As the number of payment methods available to consumers has increased, having a debit card merchant account has become necessary for most businesses. When a customer uses their debit card, funds are withdrawn from their bank account and transferred to the merchant. There are fees associated with this service, but they are usually less than comparable fees for credit cards. Being able to accept debit cards provides access to a greater variety of customers, and provides assurance that private customer information is secure and that they are spending within their means.
Some customers may choose not to use credit cards or may be unable to obtain one, but almost everyone with a bank account has a debit card. Debit cards require the use of a PIN to complete a transaction and offer more security to the customer. Since the card is tied to a bank account, the customer knows that they have the available funds to make their purchase and are not incurring additional debt or overdrawing their bank account. Therefore, it can be very useful to have Debit Card Merchant Account and Merchants are guaranteed to receive the funds, and there is less of a chance of customer fraud versus when a credit card is used.
Obtaining a debit card merchant account is straightforward. Some businesses can request service from their bank. However, if the business is new or does not have a proven sales record, they may require a third party provider for debit transactions. If the merchant already has an ecommerce merchant account, then that vendor may provide debit services as well and offer a price discount for multiple accounts.
Pricing for a debit card merchant account varies greatly between vendors. There is usually a monthly fee for the service, plus a per transaction fee that can be a set rate or a percentage of the total sale amount. These fees can vary depending on the volume of debit transactions the merchant processes, the amount of risk the bank or vendor feels they are taking on by providing the service, and the average sale amounts of the transactions. It is important for a business to research providers and rates before opening their debit card merchant account. They should check with other businesses as well as the local Chamber of Commerce and Better Business Bureau to gauge the providerís reputation and service record.
Lastly, most debit cards also carry a credit card logo on them. Therefore, if the business has an ecommerce merchant account that allows them to process credit cards online, they will also be able to accept debit cards tied to a major provider.
Article Directory: http://www.articletrunk.com
The author of this article has deep knowledge about Debit Card Merchant Account, and this article has been written to give an overview of merchant account that has capability to process debit cards.
Please Rate this Article
Not yet Rated