Online Debit Card

Video Transcription

Hello, today we're going to talk about online debit card processing.

Now the first thing to know is that not every merchant processing company allow their merchants to accept credit cards online. You know, sometimes they might seem to be able to accept a credit card but you're not accepting it like a debit transaction. Which means a lot of people whether they're accepting payments online is due to perhaps a payment gateway system or a virtual terminal. They might have a shopping cart on their website or anything of that nature, where somebody would use their Visa or MasterCard debit card but a lot of times it'll go through like a regular credit card.

The merchant processing companies really allow their merchants to start accepting debit transactions. This means a client might have a debit card that may not have a Visa or MasterCard logo on it and even the option of putting in their pin number online. It's not common in the industry but it's getting to the point now some merchants or merchant processing companies are offering it.

Why would you have a merchant accept debit transactions is first of all a cheaper way to accept transactions online. What we do know that in industries, the merchant actually pays a flat fee for a debit transaction. For example, a debit transaction might cost you 5-7 cents flat whether your transaction is a thousand dollar transaction or a twenty dollar transaction. It's a very big difference when it's not a debit transaction, it's a percentage. When it's a percentage, the bigger the amount, the more you're going to be paying in fees. So that's the advantage people are finding out with online debit card transactions.

It's very fast, very convenient but again, make sure the merchant processing company that you are associated with truly give that option. What we do know is that not everyone gives that option to really accept debit cards payments where the customer actually entered a pin number online.

That was it for today, thank you very much.