Using a credit card is more convenient than writing a check, and safer than carrying cash. But now there's an even simpler method of payment - debit cards.
To submit a merchant account application to Next Day Funding, please Click Here.
Debit Cards Offer Customers Another
Form of Payment
Given the consumers' passion for plastic, it's no surprise that debit cards are quickly becoming the preferred way to pay. Debit cards offer the ease of a credit card, and the convenience of cash. Funds are drawn directly from customers' accounts.
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What Exactly is a Debit Card?
Debit cards are issued by banking institutions and provide access to the checking or savings account of the cardholder. The success of the transaction is dependent upon the availability of funds in the account being accessed because funds are withdrawn directly from the account. The account can be accessed through ATM machines or point-of-sale locations.
Debit cards provide an excellent opportunity to reach consumers who do not possess credit cards, and at the same time, resist carrying large amounts of cash. And with debit cards, the threat of chargebacks is erased.
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On-Line vs. Off-Line Transactions
You may think you currently possess the technology to process debit cards. But beware of credit cards that masquerade as debit cards. You could end up paying higher fees if you don't know the difference. By accepting these cards, you may be creating an off-line transaction. Off-line transactions result in twice the fees, eliminate the cash-back option, and offer no protection against potential chargeback losses.
How can you tell if your debit transactions are on-line or off-line? If you're accepting debit transactions without the use of a PIN pad, and the cards you're accepting for debit transactions carry the familiar credit card logos (Visa, MasterCard, etc.), your transactions are off-line, and your paying twice as much as necessary to process them. By processing with Next Day Funding, you'll convert to on-line transactions. You'll then have the ability to accept true debit cards, pay only the transaction fee, increase your customer base and, at your election, offer your customers a cash-back option. Additionally, debit card transaction fees are lower than traditional Visa/MasterCard fees.
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What Additional Investment is Necessary to
Accept Debit cards?
Surprisingly enough, you'll need very little additional equipment to process debit transactions. In most cases, you can use the same terminal you use for credit card sales. You'll just need to add an encrypted PIN pad and printer from Next Day Funding to your terminal. Once your equipment is in place, you can accept debit cards issued by virtually any banking institution in the nation. Next Day Funding extends your earning ability by providing not only regional debit recognition, but utilization of national networks, as well.
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How Much Money Will You Save?
Just Do the Math
Debit transactions are far less costly than the average credit transaction. Consider this: The average credit card sale is $85.00. Let's say you pay a processing rate of 2.10. If you multiply the sale amount by the rate, you'll discover that you're paying $1.78 to process the transaction. With debit cards, you'll pay an average per-transaction fee of $0.40. That's a savings of $1.38 on each transaction.
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With Debit cards, You'll Encounter:
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The Whole Story, in Short
Experts predict that debit card use will eventually eclipse all other payment methods. This is not surprising given that debit cards:
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Propose an additional method of payment;
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Positively affect the average size of sales;
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Initiate impulse buying;
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Reduce risk of bad check losses;
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Provide a non-obligatory cash-back option,
turning browsers into buyers
To submit a merchant account application to Next Day Funding, please Click Here.
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