Debit Card Transactions

One of the first things I do when performing a cost-analysis on a potential customer’s Merchant Account is look to see how their debit transactions are handled. If they are bundled under the same rates as their credit card transactions, (as they often are) – I think “SCORE!!” – because there is a good chance I’ll be able to save that client  money on their monthly processing fees (assuming debit card transactions account for a portion of their overall processing volume).

This is because debit transactions carry less cost than credit card transactions and by breaking them out into their own pricing tiers, I am able to pass some of that savings onto my customers.

This concept can be taken a bit further by exploring the distinction between Pin-Based and Non Pin-Based Debit Card Transactions. I asked Cheryl Garabedian, Senior Vice President of Partner Relations at Vision Payment Solutions to  help explain the distinction and provide some insight into which offers the better cost-saving option for merchants.

The answer is, of course, it depends. Pin-Based transactions offer a better cost solution for merchants with higher average ticket sales, but there are a number of other factors worth considering when making this decision. For the full article on this topic, click here.

Tagged as: credit card, Credit Card Processing