MORE SAVINGS WITH DIRECT
HIGH RISK DEBIT CARD PROCESSING
Just like the credit
card, a debit card is also used to make
electronic payments. It is a card that
is issued by the bank where you have
your account. The card will be attached
to your savings account. Therefore, you
can access the funds in your savings
account with this card. The debit card
can be used just like a credit card i.e.
you can make payments for your purchases
using the debit card. The debit card is
also associated with the MasterCard or
Visa networks. The primary difference
between a debit and credit card is that,
with the debit card the funds will be
immediately deducted from your bank
account whereas with a credit card the
balance will be added to your credit
account. Purchases made using the debit
card can be charged to either the
savings or the checking account of the
card holder.
“Debit Card Services”
allow the merchants to get their
payments quickly by deducting it from
the card holder’s savings or checking
account. It is similar to that of a
paper cheque but is much more flexible
since it allows “electronic funds
transfer”. Due to the Debit Card
Services, paper cheques can be
completely eliminated. Your customer
authorizes you to transfer funds from
your savings or checking account to his
business account.
These services are
primarily used to make recurring
payments like rent payment or
electricity bill. There is no need to
give a cheque each month. All you have
to do is give permission to transfer
money from your account each month and
it will be done automatically. Debit
cards can also be used to make payments
for online purchases.
Debit Card Services and
Debit Card Transactions are the same.
They facilitate transfer of funds. This
is from the customer’s point of view.
But, the meanings of
those terms differ from the merchant’s
view point. This is because the
transactions can be processed through
many different networks with varying
costs.
The fees for purchases
made using the debit card is much lower
because the risk involved is less.
However, this low fee is not passed on
to the customer’s by some of the
merchant processors. They charge about 2
to 3 percent together with an inquiry
fee of about 30 cents for each
transaction.
The “Debit Card Services”
make use of the ACH network to transfer
funds between bank accounts. This is why
your normal checking account can be
used. Also, this will cost lesser than
the normal debit card transactions.
Using “Debit Card
Services” over “Debit Card Transactions”
will help you save a significant amount
of money as the cost per transaction is
a fixed and it is less than a dollar.
Therefore, the bigger the average ticket
size the more you save by using “Debit
Card Services” because of the fixed fee.
You should integrate the “ATM Verify”
technology to improve the security of
your e - check transactions which can be
performed with the same ACH network.
Contact
one of our helpful account
representatives to assist you in the
setup of
a
high risk merchant account or
offshore merchant account for a
high risk merchant. |