I was listening to CBS Latenight news while online last night. They ran a story about Debit Cards that got me thinking.
Apparently, this year for the first time Mastercard and Visa will make more money from Debit Cards than from Credit Cards. The story went on to say that when customers use debit cards and "sign" the merchant pays the fees, but when the customer enters their pin number the customer pays the fees.
The long and short of the story was to stir up consumer backlash toward the cards and merchants since "customers don't know they're paying the fees when they use their pin".
It just made me wonder about the implications for online use of debit cards.
- If any of us are accepting them (vs Credit Card)?
- If they are being accepted, how was this implemented? (Does it work well)
- If they are being accepted, is the merchant really saving any fees?
Just curious, anybody doing this?
Ed
Full Version: Debit Cards
| QUOTE |
| If any of us are accepting them (vs Credit Card)? |
I use my visa debit card all the time online - just use it the same as I would a credit card, I don't think the processors can tell the difference.
I am certain they are putting Check cards in the Debit car category. I dont think I would ever enter my pin number in a website, but I use my check card like its going out of style
Yeah, check cards and debit cards are treated the same. As long as the card has a VISA logo (Do they come in Mastercard? Never saw one.), they can be used as a credit card (no pin needed) or a check/debit card (pin needed). As merchants, we really wouldn't have a way of knowing if/when a customer uses a debit card versus a credit card since they would process the same on our sites.
Personally, I always use my debit card as a credit card because I can never remember the pin. My debit card used to be called a check card, but VISA made banks and credit unions change this because they started putting out their own check cards - or so I was told by my credit union.
Personally, I always use my debit card as a credit card because I can never remember the pin. My debit card used to be called a check card, but VISA made banks and credit unions change this because they started putting out their own check cards - or so I was told by my credit union.
| QUOTE |
| Do they come in Mastercard? |
They sure do. My paypal debit card is a MC.
| QUOTE |
| - If they are being accepted, how was this implemented? |
I've never come across a site that takes ATM cards (where you'd enter your PIN). As a shopper, I would never enter my PIN anywhere but in an ATM. I used it once (w/PIN) at a supermarket and got a $1.50 fee from the market's bank and another $1.50 fee from my bank
, whereas I pay no fees when I use it like a credit card. Most banks offer the debit card (Visa/MC) option tied to your checking account, so I can't imagine a need for this, but maybe...
| QUOTE (johnj @ Sep 17 2004, 05:56 PM) | ||
They sure do. My paypal debit card is a MC. |
Nice to know! Thanks john!
| QUOTE |
| I've never come across a site that takes ATM cards (where you'd enter your PIN). As a shopper, I would never enter my PIN anywhere but in an ATM. I used it once (w/PIN) at a supermarket and got a $1.50 fee from the market's bank and another $1.50 fee from my bank , whereas I pay no fees when I use it like a credit card. Most banks offer the debit card (Visa/MC) option tied to your checking account, so I can't imagine a need for this, but maybe... |
Yeah, now that I'm thinking about it, I think I get 6 free debit card transactions (the one with the pin) before I get hit with a charge. Although it's been a long time since I used it like this, because as I said, I'm pin-number challenged.
I use my Visa debit card & have never been charged a fee (unless at an ATM).
However when the USPS asked if it was credit card or debit card, and I replied debit I had to enter my pin on the little keypad machine. Apparently I got it wrong so it wouldn't accept it, so she said "let's just run it as a credit card". She slid my card thru her reader and it was fine. Next time I tried the debit card again & got the pin right --neither time was my account charged a fee.
Jean
However when the USPS asked if it was credit card or debit card, and I replied debit I had to enter my pin on the little keypad machine. Apparently I got it wrong so it wouldn't accept it, so she said "let's just run it as a credit card". She slid my card thru her reader and it was fine. Next time I tried the debit card again & got the pin right --neither time was my account charged a fee.
Jean
All,
Yes I did know that they process as a credit card (according to which card MC or VISA is associated with the bank).
My larger question was whether anyone had implemented (or even if it was possible) payment by debit card to require PIN as Jean mentions above (and thus, if I understand correctly, no fee to merchant)?
Perhaps it doesn't matter and as Travis suggests, because no customers would be willing to input their pin. (Although, if the merchant pays 2%+ for credit card processing, they could offer a 1%+ discount for any customers who would "risk it" and still be money ahead.)
Just curious.
Ed
Yes I did know that they process as a credit card (according to which card MC or VISA is associated with the bank).
My larger question was whether anyone had implemented (or even if it was possible) payment by debit card to require PIN as Jean mentions above (and thus, if I understand correctly, no fee to merchant)?
Perhaps it doesn't matter and as Travis suggests, because no customers would be willing to input their pin. (Although, if the merchant pays 2%+ for credit card processing, they could offer a 1%+ discount for any customers who would "risk it" and still be money ahead.)
Just curious.
Ed
| QUOTE (edc @ Sep 19 2004, 02:13 PM) |
| All, Yes I did know that they process as a credit card (according to which card MC or VISA is associated with the bank). My larger question was whether anyone had implemented (or even if it was possible) payment by debit card to require PIN as Jean mentions above (and thus, if I understand correctly, no fee to merchant)? Perhaps it doesn't matter and as Travis suggests, because no customers would be willing to input their pin. (Although, if the merchant pays 2%+ for credit card processing, they could offer a 1%+ discount for any customers who would "risk it" and still be money ahead.) Just curious. Ed |
I think this would have to be set up with your credit card processor. Call them and find out if you can set up debit card transactions with them.
This is a "lo-fi" version of our main content. To view the full version with more information, formatting and images, please click here.