Wondering About Debit Card Transaction Fee?
When you start your business, the one thing which may annoy or confuse you the most is the payment processing solution. Merchants running a retail shop or online eCommerce platform need a credit/debit card payment solution to accept payments. The merchant needs to approach a bank or to a merchant service provider to avail payment solution. The thing that always hurts a merchant is the processing rate. The payment processing involves a processing fee associated with each and every transaction. There may be other fees required, like monthly fees, card terminal, initial set-up fees. Among the list of fees involved, but the fees that affect the most to the merchants is the per-transaction fees. Debit card transaction fee is not equally the same. Every processor may have its own set of rates and slightly different from others.
What Fees A Merchant Is Liable To Process Debit Card Transaction
A well-known fact that a merchant has to pay a nominal fee to process or accept payments through cards. But how much does a merchant have to pay? Are the fees fixed for every transaction?
In simple words, the fees are not fixed. Several factors affect the processing fees. But if we compare with credit cards, debit card transaction fees are somewhat low.
- Card-Not-Present or Card-Present payment: Processors charge different fees based on how the transaction is made. If the transaction is like online where the card is not present at the time of payment, it is known as card-not-present payment. If the transaction is in-person payment or when the cardholder is present at the time of payment, it is known as card-present payment. Usually, card-present payment has fewer transaction fees compared to the card-not-present. The reason is that card-not-present payment is considered as risk-oriented, that’s why the processor charges you more for it.
- Signature Or Pin Debit Transaction: Debit cards are usually of two types, Signature debit or pin debit. The processing rates also vary with the kind of card used for payment. The signature debit card is those in which a customer swipes the card into the terminal and then signs a digital signature to verify the transaction. Whereas in a Pin Debit card, the customers swipe the card into the card terminal and enter the Personal Identification Number(PIN) to verify the purchase. Usually, Pin debit cards have higher processing fees compared to the Signature debit card.
- Transaction Size: Processing fees also depend on your processing size or how much large volume you process in a month. If your average monthly transaction volume is high, the payment processor is more likely to reduce your transaction fees.
- Card Network: There are different card networks in the credit/debit card industry. Every card network has its own fees and may be different from other card networks. So the card network is also a factor that decides debit card transaction fees.
Conclusion-Debit Card Transaction Fee
We have understood that the fees for debit card transactions are not fixed. It varies with the processor to processor and depends on several factors. We at Quadrapay help merchants with processing rates as low as possible. We provide priority service to our customers and are available 24×7. Apply Today.
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