Archive for December, 2009
The following guide will help you understand when it is appropriate to complete certain types of transactions.
Debit vs. Credit – Debit cards always have a lower fee in terms of the percentage paid on the total volume of the transaction. Credit cards always have a lower per transaction fee which makes them the better choice for very small transaction volumes. The easy way to know which is better to accept is to figure out your break even point. On average, a good rule of thumb for a break even would be $10 as you see below:
Credit < $10 < Debit
Swipe vs Key Enter – Swiping a card instead of key entering it is always the better choice. Swiping the card will decrease transaction time, create a less risky transaction, and lower the costs associated with the transaction.
Offline Debit vs PIN Debit – The term offline debit refers to accepting a debit card without having the customer enter their PIN. PIN debit refers to the occasions in which the customer enters their 4 digit PIN code to complete the transaction. Offline debit will traditionally have a slightly lower per transaction fee while PIN debit has a lower percentage paid on the total volume. The break even point for PIN vs offline debit is not always the same but the easiest way to know which is better to accept is to remember a break even point of $15 as you see below:
Offline debit < $15 < PIN debit