Debit Card Processing: Closing the Gap between Your Customer Payment Choices

A debit card is the alternative to credit for customer purchases. While many consumers carry plastic regularly, not all can obtain a line of credit. Your customers need an alternative method of payment that provides similar convenience. Processing entails far more than the acceptance of credit. You can use a processor to manage credit, debit, gift, in-store, and charge cards.

Debit transactions operate in much the same way as a credit purchase. The funds are directly drawn from a bank account. In most cases, this account is the persons checking source. Most require Personal Identification Number, or PIN, entry to complete a transaction and contain a credit provider logo, such as MasterCard or Visa. Debit card processing is identical to credit handling except where the funds come from.

Fees vary depending on the provider and how you process the cards. Most companies charge a lower fee when a keypad is used for the PIN. If you run a debit just as a credit, the charges are often double what they have to be. To receive the reduced rate, the customer has to enter their PIN. This is important to remember when you run a physical retail location.

Internet Merchant Account: What Options Can You Provide Consumers?

An Internet merchant account is used for online payment processing. Your business will be charged the same fees for either type of card when the information is entered through the Web. Website transactions do not have a setup for PIN entry and therefore require a debit card to be entered just as credit. The customer will be prompted to enter the card number, expiration date, name, and other identifying data. Once entered, the transaction is processed with the same fees and in the same manner.

Electronic check services are another option you can provide to your Internet customers. These allow funds to be drawn from their bank account, but offer a lower fee than that of credit processing. Customers will still want the convenience of using plastic. It is in your best interest to implement credit as one of the available payment methods. If customers cannot use their card online, they are more likely to make the purchase through another available company.

Online buyers like to have options when it comes to paying for a good or service. An Internet merchant account allows you to provide more than one choice. If you only allow credit payments, this will be discouraging to those who either do not have credit or prefer to use their own money. For example, a customer may be willing to make a large purchase, but not have the credit to do so. They do, however, have a debit card with plenty of funds available. You can use debit card processing both at a physical location and online to obtain these sales. If you would like to provide an additional option, consider presenting an electronic check option to customers as well.

AVPS has many Internet and in-store options available for selection. One of our professionals can easily assist in finding the most appropriate account and services for your business.

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