DEBIT CARD PROCESSING: VERIFICATION SERVICE AND PIN PAD

2007-03-08 10:33:40

( Financial )



What Are Debit Cards?

Debit cards work the same as credit cards but the only difference is that the purchases you made are directly debited from your bank account. It usually is debited from your checking account. It is much easier to use than checking accounts since your purchases are already itemized at time of purchase and automatically debited from your checking account. Some debit cards are multipurpose and act as Automatic Teller Machine (ATM) cards too. You can use it to withdraw cash from ATM machines.

Verification Service

Processing of debit cards work like accepting credit cards. A verification service is provided when connecting to accept debit card payments. It will check whether the card holder has a record of bad check writing and therefore reduce the bad checks your business will receive.

Pin Pads

Debit card processing is also swiped through terminals to connect it to your bank account. A pin pad can also be used to in debit card processing. It is used for customers to enter their pins to be able to use their debit card for purchases. Using pin pads saves you on various benefits such as absence of charge backs, reduces theft from employees, offer cash options to clients, increase revenue, absence of discount fee and reduced risk of losses from issuance of bad checks.

Pin pads can either be external or internal to your terminal machine. Internal pin pads do not take up much space while external pin pads can take up counter space. External pin pads can also be cumbersome in swiveling it together with your terminal machines. Also, some retailers do not want their customers handle their debit card processing terminals.

Internet Transactions

Internet merchants, however, incur the same costs with credit card processing for debit card processing. There is no debit card processing system in place that only charge per transaction fee and no discount fee for electronic commerce.

Accepting debit cards are favored by financial providers and retailers in the long run since they are saving much money with it. Customers are actually accessing their own funds with debit card transactions. Credit card transactions, on the other hand, requires credit vendors to lend money and face the risk of non payment.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.