Check & Debit Card Processing

What are Debit, Check and ATM Cards?

Debit cards take funds from the cardholder’s deposit account and come in two main varieties; Check Cards and ATM Cards. Check Cards are issued by Visa and MasterCard and other brands working together with financial institutions. ATM Cards are issued by financial institutions and ATM network service providers working with financial institutions.

How Debit Cards Work

Generally, debit cards work a lot like credit cards. The card is presented for payment and funds are ultimately withdrawn from the cardholder’s deposit account. Debit Cards withdraw the funds directly from the deposit accounts whereas Credit Cards must have the funds withdrawn from the account via payment to the issuer. Greater processing security and lower fraud are achieved with debit cards by using confidential Personal Identification Numbers (PINs) entered by the cardholder at the time of the transaction.

Why You Should Accept Debit Cards

If you don’t accept Debit Cards you are likely losing sales. Your customers will tell you that they want the flexibility of paying by Debit Card. In particular, they want to control whether or not their card purchases will result in a loan with interest charges.

A substantial number of people use Debit Cards only, either because they don’t want to borrow the money for a purchase or simply don’t want to bother with making a payment to their Credit Card issuer. Some people use Debit Cards because they don’t meet the credit requirements for a Credit Card.