Debit cards and credit cards have become the most common way for people to pay for goods and services. Therefore, setting up card processing payments is a need in order to provide customers with a range of payment options of both debit cards and credit cards . There are some key differences between accepting those payments:

– The interchange rate for debit card transactions is less since debit cards are less of a risk. Debit card transactions usually have lower transaction fees due to being a fixed flat rate per transaction (range from $0.05 – $0.15), while credit card transaction fees are a percentage of the total transaction amount.

– Processing time for debit card transactions is settled within a day, while credit card transactions can take up to several days.

– Chargebacks are more common and time-consuming with credit cards. Chargebacks with debit cards are solve quicker and least risk.

In order to have the lowest possible effective rate and least risk, merchants should encourage customers to pay with debit cards for large ticket.