More and more customers are using Debit Cards that are tied to their checking accounts versus using a traditional credit card. Accept debit cards today!
A debit card is a bank card used in a cash transactions and is directly linked to the cardholders bank account. In a debit card transaction, the amount of a purchase is withdrawn from the available balance in the cardholder’s bank account. If the available funds are insufficient, the transaction is not completed.
In 2008, there were 314 million Visa debit cards and 126 million MasterCard debit cards in circulation in the United States. Debit cards are an alternative way to make purchases without using cash, checks or a traditional credit card. A debit card is a plastic, magnetically encoded card issued by a bank or other financial institution. The card typically bears either the Visa or MasterCard logo and is usable at any store that accepts that type of traditional credit card.
When a debit card is presented as a form of payment in exchange for goods or services, the amount of the purchase is subtracted from a checking account. Unlike credit cards, debit cards access money that is on deposit. Also, using a debit card is quicker than writing a check.
Some businesses require the cardholder to enter a four-digit PIN number, while others simply swipe the card and sign a receipt or electronic pad. The first type is known as a debit transaction, while the latter is a credit transaction. Both types of transactions deduct the funds from the cardholder’s checking account. If there is not enough money in the attached checking account to cover the debit card purchase, the sale may not go through.
Global Processing Systems can enable you to accept debit cards through all major debit networks. Call one of our representatives today to get started.
