DEBIT CARD PROCESSING

Processing debit cards is as simple as processing credit cards. The debit cards permit the consumers to deduct money from their personal bank accounts, which is generally a checking account. A true debit card requires the entry of the PIN number before purchases are completed. Many people usually refer their MasterCard/Visa Check Cards as their debit cards because these cards can be used in the same way as debit cards. The only difference is that these cards do not require PIN number to make a buy. The check cards can easily be identified since they have a Visa or MasterCard logo on them.

The process for accepting debit cards works in a similar fashion as accepting credit-cards. The difference lies in the fact that when the information of the consumer’s debit cards is entered, the amount covered to make a purchase is subtracted from the bank account of the consumer.

The merchant has to ensure that verification services are included while accepting debit cards. This verification service checks the negative database of check writers that are bad. This service also aids in reducing the count of bad checks which a merchant may receive.

In case a merchant has a retail establishment, one can save large amounts of costs incurred due to processing by the acceptance of debit cards. The only addition necessary is that of PIN Pad. If the swipe terminals being used do not have an internally present PIN Pad, then it will be necessary for the merchant to make an investment for an external PIN Pad.

Making a debit/check card processing in the same lines as that of a transaction made for credit cards implies that the merchant will have to shell out two times the rate for processing. The use of PIN pads to carry out debit card transactions will result in payment for each transaction only; no discount rates will be applicable. To incur fees on per transaction basis, it will be a requisite for the customer to enter the four digit PIN numeral onto the processing terminal or the PIN pad. If the PIN number is not entered by the consumer, then, the discount rate and per transaction rates will be indicted to all those who use the check cards with the MasterCard or Visa logo on them.

True debit-cards, such as Maestro, Interlink, Pulse, NYCE, Honor, MAC, and Star incur only the per transaction fees as it is a must for the consumer to enter the PIN number so that the card can be used. However, this is not the case for Check Card consumers as entering the PIN number is optional. However, by entering the PIN number, paying additional fees will not be applicable. However, this optional is available only for the retail establishments.

For internet merchants, the same charges will be incurred for the processing of debit cards as it is with the processing of debit cards. For businesses that take place over the internet, per transaction fees will be inducted.