Your cost to process a Debit card should be significantly lower than the cost to process a Credit card. Not all processors want you to know this, and some don’t even offer lower pricing for Debit transactions. Today approximately 40% of card transactions are completed using an ATM/Check card in the US, and this is growing steadily. Here’s what you need to know:
When you accept payments with the customer present, you should have a PIN pad and accept PIN Debit. What is PIN debit? When a customer uses their ATM card or a Check card and they enter their ATM PIN to pay for the goods/service. The funds are withdrawn directly from their checking account, instead of a credit card. Using a PIN pad can save you over 1.0% on every transaction.
Even if you process transactions over the phone, mail, or via e-commerce you too can benefit from special Debit card pricing. You just need to work with a provider like Leap Payments who offers lower Debit card processing. With special debit pricing, you can save over 0.5% or more for each truncation, which will really add up over the month and year.
How do you know if you have special Debit card pricing? If your terminal or online processing method does not ask you if the card is a Debit card when processed, you’re probably paying Credit card rates for Debit cards. If you don’t have discounted pricing for Debit/Check cards with or without a PIN, you’re ready to jump to Leap Payments and experience a better way to get paid.