The merchant passes the card information to the acquirer for authorization of the payment. What role do merchant processors, networks and bank processors play in the payment ecosystem? This is called a pull-payment, since the merchant is effectively pulling the payment out of the consumer’s account.Ĭard networks also create and govern the rules a merchant must follow to accept the network’s cards. Each of these methods transmits the consumer’s card information throughout a complex environment so the merchant can ultimately be funded for the payment. When a consumer pays a merchant for goods and/or services, either online or in-store, the payment is initiated via a swipe, dip, tap, scan or click.
Reach out to us today to discuss how we can create the perfect debit-only payment solution for your business.What role do merchant acquirers/processors, networks and bank processors play in the payments ecosystem?Ī merchant is the acceptor of payments. If working in the following industries, it may be worth looking into debit card payment processing to improve your bottom line:ĭon’t see your industry listed above? Don’t stress – experienced high-risk merchant providers, like Payment Savvy, can work with businesses of all shapes and sizes. Many business types can benefit from debit-only card acceptance – high-risk companies included. High-Risk Industries Benefitting from Debit-Only Payments ACH payments also risk coming back NSF (Non-Sufficient Funds) by the time the payment clears your customer’s bank account. This most often results in an additional day or two delay in receiving funds into your bank account. The main difference is a debit card payment has funds immediately withdrawn, whereas an ACH payment needs to be submitted and transferred. Immediate Approval – Since debit-only card links to a checking or savings account, it is incredibly similar to an ACH, or electronic check, payment.Don’t let the terminology scare you your customers will complete the transaction just as they would with a credit card on the front end. eCommerce merchants can still accept a debit payment without a PIN by processing over an EFT Network (Star, Pulse, NYCE, etc.). “PINless” Processing – Entering a PIN (Personal Identification Number) is usually associated with debit-only payments.For these reasons, it’s normal for debit-only card payments to be assessed a lower processing fee than merchant accounts with both debit and credit card acceptance. Debit card payments also equate to lower than average chargeback percentages. This is due to funds withdrawn from a checking or savings account associated with the card immediately. Reduced Cost – A debit card payment carries less risk than a credit card payment.In particular, industries where credit card processing is prohibited, a debit-only payment solution is beyond helpful. Why would a company want to accept debit-only card payments solely? As every business has goals and needs, debit-only payment processing can be beneficial for specific industries. The two most common options are credit and debit cards. When it comes to processing payments, businesses have many options to choose from.
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