A Debit Card Merchant Account: Right for You?
As a small business, you can save a bundle on merchant fees when you choose PIN-based debit transaction. You will need a PIN pad to do this, along with a debit card merchant account. When you run a PIN-based debit transaction, you only end up paying a per-transaction fee. Typically, merchants don’t pay a discount rate with a specialized card merchant account, which can vary from about 1-2%.
A debit merchant account is best for business owners who want the most out of processing credit cards, but don’t want the high rates. Debit card processing – by way of a card merchant account – is less expensive because it has the lowest risk; it is not processed by way of an interchange network.
Additionally, it’s almost impossible to run a fraudulent transaction when you have a card merchant account, because the customer must swipe their card to initiate the transaction. Up to that point, if the card was stolen, then the transaction can still be authorized. But, when the customer enters their four-digit PIN correctly before the transaction is approved, and then the vast majority of the time, you know you’re dealing with the card owner. Businesses are rewarded by PIN debit transactions for a few reasons. First, chargeback is virtually impossible. Second, to run a stolen credit card is not possible unless the person who stole the card knows the PIN. Third, you are receiving actual cash in the customer’s checking or savings account – not credit. Last, the risk is lower: they’re swiping and entering a PIN.
When you have a merchant account, and you use a PIN pad the transaction cannot downgrade, and the rate will be a flat, per-transaction fee that you will pay. You can simply hand the PIN pad to your customers, saving time in a busy store. Due to the payment type, the transaction should always be processed: they’re paying with cash in their bank account. If declined, they simply don’t have the funds. A debit card account can be a merchant’s blessing.
If you have any questions or concerns about acquiring or managing a debit card merchant account, don’t hesitate to call Vision Payment Solutions today, and see for yourself why so many merchants have chosen to acquire a debit card merchant account – and the benefits of doing so.