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lower rates on Debit cards?

1:02 am on May 24, 2005 (gmt 0)

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We do a lot of recurring transactions. We heard that the interchange rate (merchant account discount fees) can be lower for debit cards as compared to regular credit cards.

Does anyone have any experience with this or tips on where to find more info? Our current merchant provider does not differentiate between the two types of cards.

3:14 pm on May 24, 2005 (gmt 0)

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This usually applies to brick and mortar accounts and if the consumer actually enters his / her PIN into your POS device


5:49 pm on May 24, 2005 (gmt 0)

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In the UK, debit card fees are generally a fixed cost per transaction of around 0.20 to 0.70, whereas credit cards are a percentage cost aroun 2-4%.

So, for transactions around 20 upwards, debit cards can certainly be less costly to process.


5:52 pm on May 24, 2005 (gmt 0)

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My merchent charges a percentage for credit cards and a set fee for debit cards. So for me if its a large transaction its better they pay by debit card, and if its a small one id rather pay a percentage. But then i dont get the choice, its upto the customer how they want to pay.
6:51 pm on May 24, 2005 (gmt 0)

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same here, it must be the way the all merchant account providers do it. Like someone above said, you don't get the choice of how they pay.

In the shop I work in though, some people ask which type of card I prefer (its rare though, and often on high sales that they ask.). If its something with a high price I will of course say debit card, as the 60p for a switch card on 1 100 sale is better for us than a 2% charge on a visa card.

8:54 pm on May 24, 2005 (gmt 0)

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You don't indicate waht country you are in, but, it is possible to have a 0% discount rate and only pay a transaction fee. The fee will vary depending on how your account was established.