can you pay your discover card with a debit card

What credit cards can I use to pay bursar account charges? You can pay any amount on your Discover card by calling the Discover card payment phone number on the back of your card. When you call the. Use your Discover Network card to pay your federal, state and local taxes through ACI Payments, Inc. You may earn cash back for every tax dollar you charge.

Can you pay your discover card with a debit card -

Can I make debit payments with a credit card?

When checking out at a store and presenting your payment card, you may have been asked if you prefer “debit or credit.” Does this mean you can make debit payments with a credit card or vice versa? While you can use debit and credit cards to make the same types of purchases, what’s the difference between the two? Find out when to use debit and credit cards below.

Debit and credit payments: what’s the difference?

A debit card is tied to an existing source of funds, usually your checking account. There are also prepaid debit cards, while others are tied to savings accounts. By contrast, credit cards allow you to make a purchase on credit, with the understanding that you will pay back the lender at a later date.

When you’re asked at the register if you’d like to make a debit or credit payment on your debit card, it doesn’t mean that you can borrow money from a lender. Instead, this question is referring to how the payment will be processed. Here’s a look at how the two methods differ:

Debit card transactions

  • You must enter your PIN number

  • You can usually request cash back

  • The purchase is processed electronically

  • Merchant processing fees are lower

  • The transaction is processed immediately

  • There is usually no customer fee involved

Credit card transactions

  • Uses a signature as verification

  • Purchase is processed through credit card networks

  • Merchant processing fees are higher

  • The charge may take several business days

  • A hold might be placed on your account until it’s authorized

As you can see, there are advantages to making debit card payments both for the consumer and merchant. Transactions are completed immediately or within the same business day, with lower fees for both parties. With prepaid debit cards, you know exactly what you’re spending without worrying about how much is in the bank.

At the same time, using a credit card means you don’t have to run the risk of exposing your PIN number. This is why some consumers choose to have their debit cards processed as a credit transaction at the register. Some additional security is provided when making payments in person, though this is unnecessary for online payments.

Can you make debit payments on a credit card?

As we’ve explored above, your credit card is not tied to an existing source of money like a bank account, so you can’t use it to make debit payments.

However, you can use your credit card to sign up for recurring payments. For example, you might submit your credit card details to sign up for a subscription entertainment service like Netflix, a month-to-month gym membership, or to pay certain utility bills. The money will be charged to your credit account on a recurring basis, working in a similar fashion as direct debits.

You can also use your debit card to access a quick line of credit by signing up for overdraft protection with your bank. This allows you to use your card up to a predetermined limit even if you don’t immediately have the funds in your account. You’ll be expected to rectify the situation quickly and there’s usually a hefty overdraft fee to pay. For this reason, it’s better to use a credit card with a favorable rate rather than relying on an overdraft for credit.

Reasons to use business credit cards

Though you can’t use them to make debit payments, there are still advantages associated with using business credit cards:

  • They can help you build a positive credit history

  • They might offer warranties on big-ticket expenses

  • They offer additional fraud protection in comparison to debit cards

  • Some business credit cards come with perks like airline miles and freebies

  • The Fair Credit Billing Act allows you to dispute unauthorized purchases

Yet you should always be cautious of taking on more debt than you can easily repay as a business. It’s also important to look at fee structures carefully. Introductory rates might be low, but you should also consider interest rate hikes to avoid getting hit with an unexpected bill down the line.

We can help

GoCardless helps you automate payment collection, cutting down on the amount of admin your team needs to deal with when chasing invoices. Find out how GoCardless can help you with ad hoc payments or recurring payments.

GoCardless is used by over 60,000 businesses around the world. Learn more about how you can improve payment processing at your business today.

Learn moreSign Up

Источник: https://gocardless.com/en-us/guides/posts/can-I-make-debit-payments-with-a-credit-card/

Guide to E-Commerce Credit Card Processing

 Female employee taking electronic payment from customer

Credit card processing is an essential aspect of any e-commerce business. Your e-commerce credit card processing service allows money to move from your customers’ accounts to yours, quickly and conveniently. Whether they’re shopping for goods or paying an invoice, consumers expect the option to do so electronically.

The ease and speed with which electronic payments happen due to the complex operations behind the scenes. There may not be a need for shoppers and bill payers to understand the process. For the business owner receiving the funds, however, it makes financial sense to have a basic knowledge of how online credit card processing works.

First, it’s important to understand that e-commerce credit card processing requires three main elements: a customer interface, a merchant account or third-party payment service provider to collect funds, and a payment gateway to approve purchases.

You have choices in each area, and the choices you make can affect the fees you pay, the level of customer service you receive and the overall experience your company delivers to customers. That’s why it’s important to understand what goes into e-commerce credit card processing before you start accepting online payments and choose your merchant account or provider.

Your customer interface should make a positive first impression

Whatever your business is, you need a mechanism for interacting with your customers. If you’re selling a product, that mechanism is your website and shopping cart. If you’re a service provider, it’s the electronic invoice you send with a payment link. Either way, this portal helps create an important first impression of your company.

You want your customer interface to be clean, easy-to-navigate and reflect your brand with your company logo and brand colors. You also want it to be secure, so customers feel comfortable entering their payment information on your site.

Merchant accounts make it possible to accept credit card transactions

When a customer makes a purchase, their money must go somewhere. E-commerce credit card payment systems are not tied directly to your existing bank account, so funds won’t go directly into your business bank account. Instead, you’ll need to open a merchant account.

A merchant account is a bank account with a merchant acquiring bank that businesses use in order to accept credit card and other electronic payments. The merchant acquiring bank acts as an intermediary between the business and the credit card company, facilitating the authentication of the payment and other technical aspects. Once the electronic payments are processed and approved, the bank distributes the funds into the merchant account.

Since money is transferred from the merchant account to your business account before the customer has paid their credit card bill, the merchant account covers those charges. Because of this, a merchant account is considered a line of credit.

If a customer requests a chargeback because they were unhappy with the product or service or had issues with their experience, you, as the business owner, are liable for those charges.

Since a merchant account is considered a line of credit, you may want to apply for a merchant account through your current bank or credit union. You might also save on fees — and gain convenience — by having all your business banking needs satisfied through one financial services provider.

Most banks will require some or all of the following information on your merchant account application:

  • Business activities.
  • Banking information.
  • Tax returns.
  • Payment model.

They may also run a business or personal credit check.

Once you’re locked in with a merchant account, you may have to sign a multi-year contract.

Many business owners find that having a merchant account is the less expensive option for accepting credit card payments. The merchant acquiring bank may charge per-month and per-transaction fees, but it may be less expensive than other options.

If you have a brick-and-mortar store in addition to your online presence, a merchant account can allow you to accept point-of-sale credit card payments in addition to allowing customers to complete card-not-present transactions through your website.

Third-party payment processor: a simple solution for accepting online payments

Fortunately, there is a simpler way to begin accepting online payments with credit cards. You can choose a third-party payment service provider such as Square, Stripe or Paypal.

Some of these services have flat-rate monthly fees on top of transaction fees, while others have free plans that only charge transaction fees. Transaction fees typically include a flat rate plus a percentage of each credit card purchase.

You can get started using a third-party payment service without an extensive application process or credit check. It’s quick and easy to choose your e-commerce payment processing provider and get started. Billing is usually month-to-month, so you won’t be locked into a long-term contract.

However, some customers have complained about sudden account holds or even account closures by the company’s fraud prevention team.

Plus, the fees can add up quickly — especially if you are paying a flat-rate monthly fee, a flat fee per transaction and a percentage of each sale. Despite this, the simplicity of these systems leads many business owners to start accepting credit card payments with this model, and possibly switch to a merchant account as their sales volume grows.

Merchant accounts are more time-consuming to set up but will likely end up costing you less down the road, whereas payment service providers and e-commerce sites are easier to set up but come along with higher fees.

E-commerce platform: One-stop sales and e-commerce payment processing

If you use an e-commerce platform such as eBay, Etsy or Shopify for your online business, you don’t have to worry about setting up a merchant account or choosing an e-commerce payment provider system.

These platforms have built-in payment processors and most accept all major credit cards as well as alternative payments like gift cards.

To get started, you’ll create your store and activate your payments. You can choose to either build an e-commerce website from scratch or implement e-commerce capability into your existing website. Regardless, you’ll need your employee identification number (EIN) and banking information for setup.

Most of these sites charge a monthly fee plus transaction fees to cover online payment processing.

Other options to accept online payments

Service providers and contractors often choose to accept or receive payments without using credit cards at all. ACH (automated clearing house) processing allows customers to pay directly through their bank account. This convenient and secure means of accepting payment may carry lower fees than debit or credit card payments, and it’s more convenient and secure than writing a check.

Monitored by the National Automated Clearing House Association, this payment method pulls money directly from your customer’s bank account and puts it into your business bank account after they have provided their bank account number, routing number and authorization.

Permitting ACH payments can help prevent late payments for recurring customers, which helps improve your business’s cash flow, not to mention a predictable stream of recurring revenue.

Similarly, you can establish acceptance of recurring monthly ACH, debit or credit card payments by setting up a subscription billing plan. Some e-commerce payment processors, including Paypal, allow this option through their payment platform.

The payment gateway: How credit card transactions are approved

Whichever type of service you choose, there is yet another element of card-not-present e-commerce credit card transactions you should be aware of, which is the payment gateway.

A payment gateway is a software application that communicates with the credit card company to obtain an authorization or a denial of a transaction. Think of it as a virtual credit card machine, minus the magnetic strip or chip reader. This lower level of security is one reason transaction fees for e-commerce are typically higher than for sales when the card is physically present.

The payment gateway encrypts the customer’s information — one important aspect of the gateway’s functionality — and forwards it to the credit card company. The credit card company checks that the consumer has the credit available, puts a hold on the funds and sends a message back that the sale has been approved. This is what’s happening behind the scenes during few seconds before your customer gets that “thank you for your order” message on their screen.

The funds are now in the merchant account and will be moved to your account on a predetermined schedule, generally once a day. The amount of funds that find their way into your account will be diminished by various fees.

If you are using a payment service provider, you may be able to set the timeframe for transferring funds, or transfer funds to your connected bank account manually whenever you wish.

How to choose your credit card payment mechanism for e-commerce

As you can see, there are pros and cons to each type of payment system. Merchant accounts are more time-consuming to set up but will likely end up costing you less down the road, whereas payment service providers and e-commerce sites are easier to set up but come along with higher fees.

Understanding how credit card transactions work can help you make a more informed decision.

Here are a few questions to research regarding the various choices in e-commerce credit card processing companies and methods. Discovering the answers to these questions can help you find the best e-commerce credit card processing solution for your business.

  • What features does this service offer?
  • How much can I expect to pay in fees based on my volume of transactions?
  • What level of customer support can I expect to receive?

E-commerce credit card processing is complicated, but that shouldn’t keep you from doing business online.

Armed with knowledge about how credit card processing works, you can make a more informed choice about the most affordable, most effective way to accept credit card payments from your online customers and deliver a seamless experience to your shoppers or clients.

CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.

Follow us on Instagramfor more expert tips & business owners’ stories.

CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here.

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Published June 16, 2021

Источник: https://www.uschamber.com/co/run/finance/ecommerce-credit-card-processing-guide

Pay by credit or debit card

Pay by phone

Call 800-650-9138eight zero zero six five zero nine one three eight and be ready to enter the following information:

  • Account number
  • Billing zip code

Pay at Walmart

Make a debit card payment at any Walmart MoneyCenter or customer service desk for a $1.50 fee. For store hours, please call the store of your choice or visit walmart.com External website. Opens in new window.

Why a fee?

The ability to pay by credit and debit card online and by phone is provided by a third-party payment processor that charges a convenience fee for each card payment accepted. This fee helps cover transaction costs that average 3 percent of the amount paid. Those costs help card providers cover “cash back” and other rewards for their cardholders.

We’re always working hard to keep your costs as low as possible while maximizing your convenience. In late 2017, we negotiated a deal with our card processor that lowered the convenience fee for most of our customers. A small number of customers who make large payments now pay a higher fee. In early 2018, our processor agreed to accept American Express cards and to offer an option that allows our customers to make an unlimited number of payments, giving you more options to pay your bill by credit or debit card.

Источник: https://www.tep.com/pay-by-credit-or-debit-card/

Unfortunately, we can't process credit or debit card payments. However, we do offer a number of other options to help you keep your account up to date:

Pay Online - This flexible, convenient and secure service allows you to schedule a one-time or recurring payment, and avoid writing monthly checks.

AutoCheque - We can automatically debit your monthly vehicle payment from your bank account. Simply download, print, complete and submit an AutoCheque form (in PDF format) and we'll get you started. To view this PDF document, you need to install the free Adobe Acrobat Reader DC on to your computer.

Pay by Mail - If you're not sure where to send your payment, log in to your account, go to the “Account Overview” section and click the Payment Mailing Address link for the current mailing address.

Pay by Phone - You can make a payment from your checking account 24 hours a day by calling the toll-free number for our Customer Service Team. Please have your routing and bank account numbers available when you call.

Agent-Assisted Pay by Phone - You can make a payment from your checking account by calling the toll-free number for our Customer Service Team.

Mobile Application - You can make a payment with your smartphone by downloading our mobile application.

  • iPhone/iPad: Devices with iOS6 or higher (Look for myTFS in the App Store)
  • Android: Android Devices OS 4.1 or higher (Look for myTFS in the Google Play Store)

Western Union Quick Collect (WUQC) - Western Union offers a way for our customers to make a guaranteed payment by either cash or debit card. Once your payment is made, WUQC will provide you with a 10-digit Money Transfer Control Number (MTCN).

  • Call 1-800-325-6000 or access www.westernunion.com for Western Union support
  • Western Union "agent locations" are often located within another type of business (e.g., check cashing facility or food market) other than a Western Union office
  • Western Union will collect a fee for the transaction.
  • You will need to provide the following information to Western Union:
    • TFS account number
    • Company Name based on account type
Account TypeCompany
RetailToyota Motor Credit Corporation
LeaseToyota Lease

CheckFreePay - Cash payments to your account can be made through CheckFreePay. Visit www.checkfreepay.com for retailer locations.

  • You need the following to make a CheckFreePay payment:
    • Your billing statement or account number
    • A photo ID
  • CheckFreePay collects a fee for the transaction

If you are past due for your monthly payment, please contact our Customer Service Team who can help you make arrangements.

Источник: https://www.toyotafinancial.com/us/en/planning_tools/faq/payments/what_payment_methods_do_you_offer_can_i_pay_with_a_credit_or_debit_card.html

What forms of payment are accepted for renting a car?

Forms of Payment Policies

I will be renting at an airport location in the United States

At our airport locations, located within the United States and Puerto Rico, you can provide a credit card or debit card as an acceptable form of payment. Please be advised when using a debit card, special conditions may apply, so please read all the conditions below.

Credit Cards

  • A major credit card is a card that is supported by a pre-determined line of credit, and not a bank account, or a pre-paid balance.
  • We currently accept American Express, Discover Network, MasterCard, and Visa credit cards at our US Aiport Locations.
  • At the time of rental, a credit card must be presented with available credit, in the renter's name. In addition to the anticipated cost of the rental, an additional security deposit may be required. To find out the cost of the security deposit, you will need to contact the location directly.
  • The signature on the back must match the name imprinted on the card and the signature on the rental agreement.
  • If the renter reserved online, the name printed on the card presented by renter must match the name booked for the online transaction and identification presented.

Debit/Check Cards

  • Debit card deposits are only accepted at the time of rental if accompanied by a ticketed return travel itinerary. The name and address shown on the renter’s driver’s license must match their current home address. Active duty military personnel are exempt from address requirements.
  • Other than the renter’s spouse or domestic partner, no other additional drivers are allowed. 
  • At the time of rental, charges will be placed on the debit card which reduces the available funds in the account associated with the card used. Renter is responsible for any overdraft fees incurred.
  • Disembarking passengers will be asked to provide a credit card or debit card with funds to cover the cost of the rental. Renters without a ticketed return travel itinerary will need to provide a credit card with sufficient funds to cover the cost of the rental plus $200. Debit cards are only accepted at the time of rental if accompanied by a ticketed return travel itinerary.
  • The signature on the back must match the name imprinted on the card and the signature on the rental agreement.
  • At the end of the rental, if you are entitled to a refund, the location will release the funds immediately. Due to bank processing times, this could be delayed a couple of days, but we find that typically customers have their refund within 15 business days.

FORMS OF PAYMENT NOT ACCEPTED:

Cash

Virtual Credit Cards:

  • Enterprise does not accept online-only, virtual credit cards or any other type of "single-use" card number security product or one-time use credit card number that may be provided by credit card companies for online use.
  • Enterprise shall not assume responsibility or liability in connection with the use of on-line only, virtual credit cards or any other type of "single-use" card number security product or one-time use credit card number that may be provided by credit card companies for online transactions.
  • Enterprise shall have no obligation to honor transactions made with such cards.

I will be renting at a non-airport location in the United States

At our non-airport locations, located within the United States and Puerto Rico, you can provide a credit card or debit card as an acceptable form of payment. Please be advised when using a debit card, special conditions may apply, so please read all the conditions below.

Credit Cards

  • A major credit card is a card that is supported by a pre-determined line of credit, and not a bank account, or a pre-paid balance.
  • We currently accept American Express, Discover Network, MasterCard, and Visa credit cards at our US Airport Locations.
  • At the time of rental, a credit card must be presented with available credit, in the renter's name. In addition to the anticipated cost of the rental, an additional security deposit may be required. To find out the cost of the security deposit, you will need to contact the location directly.
  • The signature on the back must match the name imprinted on the card and the signature on the rental agreement.
  • If the renter reserved online, the name printed on the card presented by renter must match the name booked for the online transaction and identification presented.

Debit/Check Cards or Money Order

  • Some Enterprise Rent-A-Car locations may accept debit cards to secure the rental transaction. To reserve a vehicle without a major credit card, please contact the local office directly.
  • A rental branch may require a combination of these items:
    • Two current utility bills - example: water bill, gas bill, or an internet/cable bill. 
    • Your most recent paycheck stub
    • A minimum deposit plus the entire cost of the rental at the time of pickup. Please see renter requirements policy when booking a reservation as the amount can vary between locations.
    • Proof of insurance.
    • Personal references - for security reasons, when you come in the branch may ask for two people they can contact to verify who you are and where you live. Most of the time you will need their full name and phone number.
  • To get specific requirements or to find out if the location you wish to rent from allows cash or money orders, please contact the renting location directly.
  • At the time of rental, a debit card must be presented with available credit, in the renter's name. In addition to the anticipated cost of the rental, an additional security deposit may be required. To find out the cost of the security deposit, you will need to contact the location directly.
  • The signature on the back must match the name imprinted on the card and the signature on the rental agreement.
  • At the end of the rental, if you are entitled to a refund, a refund will be released to your bank. Refunds are generally received within 20 business days from the conclusion of the rental. For payments made by cash, check or money order, any such excess will be refunded by check.

I will be renting at an airport location in Canada

At our airport locations, located within Canada, you can provide a credit card as an acceptable form of payment.

Credit Cards

  • A major credit card is a card that is supported by a pre-determined line of credit, and not a bank account, or a pre-paid balance.
  • We currently accept American Express, MasterCard, and Visa credit cards at our Canadian Airport Locations.
  • At the time of rental, a credit card must be presented with available credit, in the renter's name. In addition to the anticipated cost of the rental, an additional security deposit may be required. To find out the cost of the security deposit, you will need to contact the location directly.
  • The signature on the back must match the name imprinted on the card and the signature on the rental agreement.
  • If the renter reserved online, the name printed on the card presented by renter must match the name booked for the online transaction and identification presented.

METHODS OF PAYMENT NOT ACCEPTED:

Debit/Check Cards

  • Debit/Check cards are not accepted at the time of pickup
  • At the time of return, the location may accept money orders, traveler's checks, or a debit card, as long as it is not a Canadian based debit card, as a form of payment.

Cash

Virtual Credit Cards

  • Enterprise does not accept online-only, virtual credit cards or any other type of "single-use" card number security product or one-time use credit card number that may be provided by credit card companies for online use. 
  • Enterprise shall not assume responsibility or liability in connection with the use of on-line only, virtual credit cards or any other type of "single-use" card number security product or one-time use credit card number that may be provided by credit card companies for online transactions.
  • Enterprise shall have no obligation to honor transactions made with such cards.

I will be renting at a non-airport location in Canada

At our non-airport locations, located within Canada, you can provide a credit card or debit card as an acceptable form of payment. Please be advised when using a debit card, special conditions may apply, so please read all the conditions below.

Credit Cards

  • A major credit card is a card that is supported by a pre-determined line of credit, and not a bank account, or a pre-paid balance.
  • We currently accept American Express, MasterCard, and Visa credit cards at our Canadian non-airport locations.
  • At the time of rental, a credit card must be presented with available credit, in the renter's name. In addition to the anticipated cost of the rental, an additional security deposit may be required. To find out the cost of the security deposit, you will need to contact the location directly.
  • The signature on the back must match the name imprinted on the card and the signature on the rental agreement.
  • If the renter reserved online, the name printed on the card presented by renter must match the name booked for the online transaction and identification presented.

Debit/Check Cards or Money Order

  • Some Enterprise Rent-A-Car locations may accept debit cards, pre-paid cards, or other forms of payment to secure the rental transaction. To reserve a vehicle without a major credit card, please contact the local renting location directly.
  • At the time of rental, a debit card must be presented with available credit, in the renter's name. In addition to the anticipated cost of the rental, an additional security deposit may be required. To find out the cost of the security deposit, you will need to contact the location directly. Any deposit or cost of the rental held at the start of the rental is a sale on the debit card as funds are being taken from the associated checking account.
  • For security reasons, many Enterprise branches do not accept cash payments. We apologize for any inconvenience. However, some branches may accept cash or a money order using the "cash qualification" process below for customers who do not have a credit card.
  • Generally, a branch may require some, but not limited to, the following:
    • Two current utility bills - example: water bill, gas bill, or an internet/cable bill. 
    • Your most recent paycheck stub
    • A minimum deposit plus the entire cost of the rental at the time of pickup. The deposit amount varies by location so it is always best to contact them directly.
    • Proof of insurance - if you don't have insurance, don't worry; we can help make sure you are protected. To learn more about our protection products, click here.
    • Personal references - for security reasons, when you come in the branch may ask for two people they can contact to verify who you are and where you live. Most of the time you will need their full name and phone number.
  • To get specific requirements or to find out if the location you wish to rent from allows cash or money orders, please contact the renting location directly.
  • The signature on the back must match the name imprinted on the card and the signature on the rental agreement.
  • At the end of the rental, if you are entitled to a refund, the location will release the funds immediately. Due to bank processing times, this could be delayed a couple days, but we find that typically customers have their refund within 15 business days. 
Источник: https://www.enterprise.com/en/help/faqs/forms-of-payment.html
can you pay your discover card with a debit card

Can you pay your discover card with a debit card -

Guide to E-Commerce Credit Card Processing

 Female employee taking electronic payment from customer

Credit card processing is an essential aspect of any e-commerce business. Your e-commerce credit card processing service allows money to move from your customers’ accounts to yours, quickly and conveniently. Whether they’re shopping for goods or paying an invoice, consumers expect the option to do so electronically.

The ease and speed with which electronic payments happen due to the complex operations behind the scenes. There may not be a need for shoppers and bill payers to understand the process. For the business owner receiving the funds, however, it makes financial sense to have a basic knowledge of how online credit card processing works.

First, it’s important to understand that e-commerce credit card processing requires three main elements: a customer interface, a merchant account or third-party payment service provider to collect funds, and a payment gateway to approve purchases.

You have choices in each area, and the choices you make can affect the fees you pay, the level of customer service you receive and the overall experience your company delivers to customers. That’s why it’s important to understand what goes into e-commerce credit card processing before you start accepting online payments and choose your merchant account or provider.

Your customer interface should make a positive first impression

Whatever your business is, you need a mechanism for interacting with your customers. If you’re selling a product, that mechanism is your website and shopping cart. If you’re a service provider, it’s the electronic invoice you send with a payment link. Either way, this portal helps create an important first impression of your company.

You want your customer interface to be clean, easy-to-navigate and reflect your brand with your company logo and brand colors. You also want it to be secure, so customers feel comfortable entering their payment information on your site.

Merchant accounts make it possible to accept credit card transactions

When a customer makes a purchase, their money must go somewhere. E-commerce credit card payment systems are not tied directly to your existing bank account, so funds won’t go directly into your business bank account. Instead, you’ll need to open a merchant account.

A merchant account is a bank account with a merchant acquiring bank that businesses use in order to accept credit card and other electronic payments. The merchant acquiring bank acts as an intermediary between the business and the credit card company, facilitating the authentication of the payment and other technical aspects. Once the electronic payments are processed and approved, the bank distributes the funds into the merchant account.

Since money is transferred from the merchant account to your business account before the customer has paid their credit card bill, the merchant account covers those charges. Because of this, a merchant account is considered a line of credit.

If a customer requests a chargeback because they were unhappy with the product or service or had issues with their experience, you, as the business owner, are liable for those charges.

Since a merchant account is considered a line of credit, you may want to apply for a merchant account through your current bank or credit union. You might also save on fees — and gain convenience — by having all your business banking needs satisfied through one financial services provider.

Most banks will require some or all of the following information on your merchant account application:

  • Business activities.
  • Banking information.
  • Tax returns.
  • Payment model.

They may also run a business or personal credit check.

Once you’re locked in with a merchant account, you may have to sign a multi-year contract.

Many business owners find that having a merchant account is the less expensive option for accepting credit card payments. The merchant acquiring bank may charge per-month and per-transaction fees, but it may be less expensive than other options.

If you have a brick-and-mortar store in addition to your online presence, a merchant account can allow you to accept point-of-sale credit card payments in addition to allowing customers to complete card-not-present transactions through your website.

Third-party payment processor: a simple solution for accepting online payments

Fortunately, there is a simpler way to begin accepting online payments with credit cards. You can choose a third-party payment service provider such as Square, Stripe or Paypal.

Some of these services have flat-rate monthly fees on top of transaction fees, while others have free plans that only charge transaction fees. Transaction fees typically include a flat rate plus a percentage of each credit card purchase.

You can get started using a third-party payment service without an extensive application process or credit check. It’s quick and easy to choose your e-commerce payment processing provider and get started. Billing is usually month-to-month, so you won’t be locked into a long-term contract.

However, some customers have complained about sudden account holds or even account closures by the company’s fraud prevention team.

Plus, the fees can add up quickly — especially if you are paying a flat-rate monthly fee, a flat fee per transaction and a percentage of each sale. Despite this, the simplicity of these systems leads many business owners to start accepting credit card payments with this model, and possibly switch to a merchant account as their sales volume grows.

Merchant accounts are more time-consuming to set up but will likely end up costing you less down the road, whereas payment service providers and e-commerce sites are easier to set up but come along with higher fees.

E-commerce platform: One-stop sales and e-commerce payment processing

If you use an e-commerce platform such as eBay, Etsy or Shopify for your online business, you don’t have to worry about setting up a merchant account or choosing an e-commerce payment provider system.

These platforms have built-in payment processors and most accept all major credit cards as well as alternative payments like gift cards.

To get started, you’ll create your store and activate your payments. You can choose to either build an e-commerce website from scratch or implement e-commerce capability into your existing website. Regardless, you’ll need your employee identification number (EIN) and banking information for setup.

Most of these sites charge a monthly fee plus transaction fees to cover online payment processing.

Other options to accept online payments

Service providers and contractors often choose to accept or receive payments without using credit cards at all. ACH (automated clearing house) processing allows customers to pay directly through their bank account. This convenient and secure means of accepting payment may carry lower fees than debit or credit card payments, and it’s more convenient and secure than writing a check.

Monitored by the National Automated Clearing House Association, this payment method pulls money directly from your customer’s bank account and puts it into your business bank account after they have provided their bank account number, routing number and authorization.

Permitting ACH payments can help prevent late payments for recurring customers, which helps improve your business’s cash flow, not to mention a predictable stream of recurring revenue.

Similarly, you can establish acceptance of recurring monthly ACH, debit or credit card payments by setting up a subscription billing plan. Some e-commerce payment processors, including Paypal, allow this option through their payment platform.

The payment gateway: How credit card transactions are approved

Whichever type of service you choose, there is yet another element of card-not-present e-commerce credit card transactions you should be aware of, which is the payment gateway.

A payment gateway is a software application that communicates with the credit card company to obtain an authorization or a denial of a transaction. Think of it as a virtual credit card machine, minus the magnetic strip or chip reader. This lower level of security is one reason transaction fees for e-commerce are typically higher than for sales when the card is physically present.

The payment gateway encrypts the customer’s information — one important aspect of the gateway’s functionality — and forwards it to the credit card company. The credit card company checks that the consumer has the credit available, puts a hold on the funds and sends a message back that the sale has been approved. This is what’s happening behind the scenes during few seconds before your customer gets that “thank you for your order” message on their screen.

The funds are now in the merchant account and will be moved to your account on a predetermined schedule, generally once a day. The amount of funds that find their way into your account will be diminished by various fees.

If you are using a payment service provider, you may be able to set the timeframe for transferring funds, or transfer funds to your connected bank account manually whenever you wish.

How to choose your credit card payment mechanism for e-commerce

As you can see, there are pros and cons to each type of payment system. Merchant accounts are more time-consuming to set up but will likely end up costing you less down the road, whereas payment service providers and e-commerce sites are easier to set up but come along with higher fees.

Understanding how credit card transactions work can help you make a more informed decision.

Here are a few questions to research regarding the various choices in e-commerce credit card processing companies and methods. Discovering the answers to these questions can help you find the best e-commerce credit card processing solution for your business.

  • What features does this service offer?
  • How much can I expect to pay in fees based on my volume of transactions?
  • What level of customer support can I expect to receive?

E-commerce credit card processing is complicated, but that shouldn’t keep you from doing business online.

Armed with knowledge about how credit card processing works, you can make a more informed choice about the most affordable, most effective way to accept credit card payments from your online customers and deliver a seamless experience to your shoppers or clients.

CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.

Follow us on Instagramfor more expert tips & business owners’ stories.

CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here.

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Published June 16, 2021

Источник: https://www.uschamber.com/co/run/finance/ecommerce-credit-card-processing-guide

Editorial Note: Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our marketing partners don’t review, approve or endorse our editorial content. It’s accurate to the best of our knowledge when posted.

Advertiser Disclosure

We think it's important for you to understand how we make money. It's pretty simple, actually. The offers for financial products you see on our platform come from companies who pay us. The money we make helps us give you access to free credit scores and reports and helps us create our other great tools and educational materials.

Compensation may factor into how and where products appear on our platform (and in what order). But since we generally make money when you find an offer you like and get, we try to show you offers we think are a good match for you. That's why we provide features like your Approval Odds and savings estimates.

Of course, the offers on our platform don't represent all financial products out there, but our goal is to show you as many great options as we can.

Staying on top of your credit card bills is a key part of building and maintaining strong credit.

Payment history is a key component of your credit scores and missing even one payment could have an impact that includes late fees or a higher interest rate in the future. Fortunately, it doesn’t take too much effort to manage once you know what to look out for.

So what, exactly, do you need to know about paying your monthly bill? Here’s a brief overview that can help you get — and stay — on top of your payments.

Working on your credit? Check My Equifax® and TransUnion® Scores Now

How can you make credit card bill payments?

When you’re ready to make a payment on your credit card, you’ve got a few options. One thing that credit card issuers have in common though, is that they won’t let you pay your credit card bill with a different credit card. That’s because they’re concerned that you’ll keep adding to your existing credit card debt.

Here are some common ways that card issuers will usually let you pay your credit card bill.

  • ACH transfer — Add your bank account and routing numbers to your credit card company’s website or mobile app, give them a call to provide your info, or mail your credit card statement back to your card issuer with your ACH info.
  • Cash — If your credit card issuer has a local bank or credit union branch where you can stop by, you may be able to pay in person with cash.
  • Check — If your issuer accepts checks, you can mail one in with your credit card bill.
  • Online bill pay — You may be able to use a checking account to complete payment with online bill pay.
  • Money transfer — You may be able to wire money to pay your credit card through a money-transfer service like Western Union.

Depending on your payment method and the time of day you submit a payment, it will be credited and posted as a transaction on your account either the same day the bank receives it or the next business day. The law regulated by the Consumer Financial Protection Bureau states that payments received by 5 p.m. must be credited that same day.

Keep in mind that you may have a grace period when you receive your bill. If so, you’d generally have a few weeks between the billing statement date and when payment is due to avoid any late fees and interest — if you pay in full by the due date.

3 tips to help you stay on top of your payments

Understandably, life can get busy and it can be challenging to keep up with your payment due dates. So how can you make sure you don’t miss a payment?

  • Consider setting up autopay for your credit card bills — but make sure you have enough in your bank account first.
  • Alternatively, set up text or email alerts to be notified when your payment due date is coming up.
  • If you have multiple credit cards, consider requesting the same payment date for all your accounts. You can generally do this either by calling up your card issuer or making a request online. This way, you don’t have to keep track of multiple payment dates.
Working on your credit? Check My Equifax® and TransUnion® Scores Now

Should you carry a balance on your credit card?

Many people believe that you need to carry over a balance from month to month on your cards in order to build credit, but that’s just a myth.

What actually helps build credit is regularly paying your credit card bill on time. In fact, if you carry a balance, you may end up having to pay hefty amounts of interest with no benefits to your credit whatsoever.

We recommend avoiding carrying a balance whenever possible. In the case that you’re unable to pay off your balance in full, ensure you make at least the minimum payment.

If your credit card balances are starting to build up and you’re getting caught up in interest payments, you may want to consider a balance transfer card, especially one that offers a 0% introductory APR period.

When should you pay off your credit card balance?

Aim to pay your credit card bill in full by your statement due date. Paying the full statement balance each month has a positive impact on your credit and shows lenders that you’re able to responsibly borrow money.

If your credit utilization (the total amount of credit you’re currently using divided by the total amount of credit you have available) is on the higher end, you might consider making multiple payments each month, as this can reduce your credit utilization rate. It’s generally recommended to keep your overall credit utilization below 30%.

Your credit card issuer will typically report your credit activity to the credit bureaus on a monthly basis. So, if you pay off a portion — or even all — of your credit card bill before that date, you can lower your credit utilization ratio, which can in turn benefit your credit.

For example, say you’ve charged $2,000 in purchases and you have a $4,000 credit limit. When your statement date comes around, your card issuer will report your credit utilization at 50%.

But suppose you decide to pay off $1,000 before your statement comes through. That will lower your card balance to $1,000. When your statement is issued, your credit utilization will only be reported as 25% in this instance.

To find out exactly when your information is getting reported to the credit bureaus, call up your card provider.

How often do lenders report to the credit bureaus?

Lenders typically report your balance to bureaus once a month.

They can report at different times to different bureaus, so your credit scores may vary across reports.

For a more in-depth look, check out our primer on how reporting works.


Next steps

Paying off credit card bills — or any bills, for that matter — is never much fun, but maintaining good payment habits can go a long way for your credit.

Here are some tips to remember.

  • Try your best to make payments on time and in full to avoid a negative impact on your credit reports and keep your account in good standing.
  • Avoid carrying a balance to save on interest charges.
  • Either automate your payments or keep track of when they’re due.
Working on your credit? Check My Equifax® and TransUnion® Scores Now

Read More

Источник: https://www.creditkarma.com/credit-cards/i/how-to-pay-credit-card-bill

Pay by credit or debit card

Pay by phone

Call 800-650-9138eight zero zero six five zero nine one three eight and be ready to enter the following information:

  • Account number
  • Billing zip code

Pay at Walmart

Make a debit card payment at any Walmart MoneyCenter or customer service desk for a $1.50 fee. For store hours, please call the store of your choice or visit walmart.com External website. Opens in new window.

Why a fee?

The ability to pay by credit and debit card online and by phone is provided by a third-party payment processor that charges a convenience fee for each card payment accepted. This fee helps cover transaction costs that average 3 percent of the amount paid. Those costs help card providers cover “cash back” and other rewards for their cardholders.

We’re always working hard to keep your costs as low as possible while maximizing your convenience. In late 2017, we negotiated a deal with our card processor that lowered the convenience fee for most of our customers. A small number of customers who make large payments now pay a higher fee. In early 2018, our processor agreed to accept American Express cards and to offer an option that allows our customers to make an unlimited number of payments, giving you more options to pay your bill by credit or debit card.

Источник: https://www.tep.com/pay-by-credit-or-debit-card/

Can I make debit payments with a credit card?

When checking out at a store and presenting your payment card, you may have been asked if you prefer “debit or credit.” Does this mean you can make debit payments with a credit card or vice versa? While you can use debit and credit cards to make the same types of purchases, what’s the difference between the two? Find out when to use debit and credit cards below.

Debit and credit payments: what’s the difference?

A debit card is tied to an existing source of funds, usually your checking account. There are also prepaid debit cards, while others are tied to savings accounts. By contrast, credit cards allow you to make a purchase on credit, with the understanding that you will pay back the lender at a later date.

When you’re asked at the register if you’d like to make a debit or credit payment on your debit card, it doesn’t mean that you can borrow money from a lender. Instead, this question is referring to how the payment will be processed. Here’s a look at how the two methods differ:

Debit card transactions

  • You must enter your PIN number

  • You can usually request cash back

  • The purchase is processed electronically

  • Merchant processing fees are lower

  • The transaction is processed immediately

  • There is usually no customer fee involved

Credit card transactions

  • Uses a signature as verification

  • Purchase is processed through credit card networks

  • Merchant processing fees are higher

  • The charge may take several business days

  • A hold might be placed on your account until it’s authorized

As you can see, there are advantages to making debit card payments both for the consumer and merchant. Transactions are completed immediately or within the same business day, with lower fees for both parties. With prepaid debit cards, you know exactly what you’re spending without worrying about how much is in the bank.

At the same time, using a credit card means you don’t have to run the risk of exposing your PIN number. This is why some consumers choose to have their debit cards processed as a credit transaction at the register. Some additional security is provided when making payments in person, though this is unnecessary for online payments.

Can you make debit payments on a credit card?

As we’ve explored above, your credit card is not tied to an existing source of money like a bank account, so you can’t use it to make debit payments.

However, you can use your credit card to sign up for recurring payments. For example, you might submit your credit card details to sign up for a subscription entertainment service like Netflix, a month-to-month gym membership, or to pay certain utility bills. The money will be charged to your credit account on a recurring basis, working in a similar fashion as direct debits.

You can also use your debit card to access a quick line of credit by signing up for overdraft protection with your bank. This allows you to use your card up to a predetermined limit even if you don’t immediately have the funds in your account. You’ll be expected to rectify the situation quickly and there’s usually a hefty overdraft fee to pay. For this reason, it’s better to use a credit card with a favorable rate rather than relying on an overdraft for credit.

Reasons to use business credit cards

Though you can’t use them to make debit payments, there are still advantages associated with using business credit cards:

  • They can help you build a positive credit history

  • They might offer warranties on big-ticket expenses

  • They offer additional fraud protection in comparison to debit cards

  • Some business credit cards come with perks like airline miles and freebies

  • The Fair Credit Billing Act allows you to dispute unauthorized purchases

Yet you should always be cautious of taking on more debt than you can easily repay as a business. It’s also important to look at fee structures carefully. Introductory rates might be low, but you should also consider interest rate hikes to avoid getting hit with an unexpected bill down the line.

We can help

GoCardless helps you automate payment collection, cutting down on the amount of admin your team needs to deal with when chasing invoices. Find out how GoCardless can help you with ad hoc payments or recurring payments.

GoCardless is used by over 60,000 businesses around the world. Learn more about how you can improve payment processing at your business today.

Learn moreSign Up

Источник: https://gocardless.com/en-us/guides/posts/can-I-make-debit-payments-with-a-credit-card/

Make an Online Payment

Cash Back Credit Cards: Discover it® Cash Back, Gas & Restaurant Card, NHL® Discover it®

Travel Credit Card: Discover it® Miles

Student Credit Cards: Discover it Student® Cash Back, Student Chrome Card

Secured Credit Card: Discover it® Secured

Business Credit Card: Discover it® Business Card

Cash Back Credit Cards
Intro purchase APR is 0% for 14 months from date of account opening then the standard purchase APR applies. Intro Balance Transfer APR is 0% for 14 months from date of first transfer, for transfers under this offer that post to your account by then the standard purchase APR applies. Standard purchase APR: 11.99% variable to 22.99% variable, based on your creditworthiness. Cash APR: 24.99% variable. Variable APRs will vary with the market based on the Prime Rate. Minimum interest charge: If you are charged interest, the charge will be no less than $.50. Cash advance fee: Either $10 or 5% of the amount of each cash advance, whichever is greater. Balance transfer fee: 3% Intro fee on balances transferred by and up to 5% fee for future balance transfers will apply. Annual Fee: None. Rates as of . We will apply payments at our discretion, including in a manner most favorable or convenient for us. Each billing period, we will generally apply amounts you pay that exceed the Minimum Payment Due to balances with higher APRs before balances with lower APRs as of the date we credit your payment.

Travel Credit Card
Intro purchase APR is 0% for 14 months from date of account opening then the standard purchase APR applies. Intro Balance Transfer APR is 10.99% for 14 months from date of first transfer, for transfers under this offer that post to your account by then the standard purchase APR applies. Standard purchase APR: 11.99% variable to 22.99% variable, based on your creditworthiness. Cash APR: 24.99% variable. Variable APRs will vary with the market based on the Prime Rate. Minimum interest charge: If you are charged interest, the charge will be no less than $.50. Cash advance fee: Either $10 or 5% of the amount of each cash advance, whichever is greater. Balance transfer fee: 3% Intro fee on balances transferred by and up to 5% fee for future balance transfers will apply. Annual Fee: None. Rates as of . We will apply payments at our discretion, including in a manner most favorable or convenient for us. Each billing period, we will generally apply amounts you pay that exceed the Minimum Payment Due to balances with higher APRs before balances with lower APRs as of the date we credit your payment.

Student Credit Cards
Intro purchase APR is 0% for 6 months from date of account opening then the standard purchase APR applies. Intro Balance Transfer APR is 10.99% for 6 months from date of first transfer, for transfers under this offer that post to your account by then the standard purchase APR applies. Standard purchase APR: 12.99% - 21.99% variable, based on your creditworthiness. Cash APR: 24.99% variable. Variable APRs will vary with the market based on the Prime Rate. Minimum interest charge: If you are charged interest, the charge will be no less than $.50. Cash advance fee: Either $10 or 5% of the amount of each cash advance, whichever is greater. Balance transfer fee: 3% Intro fee on balances transferred by and up to 5% fee for future balance transfers will apply. Annual Fee: None. Rates as of . We will apply payments at our discretion, including in a manner most favorable or convenient for us. Each billing period, we will generally apply amounts you pay that exceed the Minimum Payment Due to balances with higher APRs before balances with lower APRs as of the date we credit your payment.

Secured Credit Card
22.99% standard variable purchase APR. Intro Balance Transfer APR is 10.99% for 6 months from date of first transfer, for transfers under this offer that post to your account by then the standard purchase APR applies. Cash APR: 24.99% variable. Variable APRs will vary with the market based on the Prime Rate. Minimum interest charge: If you are charged interest, the charge will be no less than $.50. Cash advance fee: Either $10 or 5% of the amount of each cash advance, whichever is greater. Balance transfer fee: 3% Intro fee on balances transferred by and up to 5% fee for future balance transfers will apply. Annual Fee: None. Rates as of . We will apply payments at our discretion, including in a manner most favorable or convenient for us. Each billing period, we will generally apply amounts you pay that exceed the Minimum Payment Due to balances with higher APRs before balances with lower APRs as of the date we credit your payment.

Business Credit Card
Intro purchase APR is 0% for 12 months from date of account opening then the standard purchase APR applies. Standard purchase APR: 12.99% variable to 20.99% variable, based on your creditworthiness. Cash APR: 24.99% variable. Variable APRs will vary with the market based on the Prime Rate. Minimum interest charge: If you are charged interest, the charge will be no less than $.50. Cash advance fee: Either $10 or 5% of the amount of each cash advance, whichever is greater. Balance transfer fee: 5% of the amount of each transfer. Annual Fee: None. Rates as of . We will apply payments at our discretion, including in a manner most favorable or convenient for us. Each billing period, we will generally apply amounts you pay that exceed the Minimum Payment Due to balances with higher APRs before balances with lower APRs as of the date we credit your payment.

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Источник: https://www.discover.com/credit-cards/help-center/faqs/payments.html

Credit Card Processing Fees and Rates Explained

Table of Contents

Who decides on credit card processing fees?
What goes into credit card processing fees?
Three types of credit card fees that affect your rate
Processing American Express and other non-bank cards
Can you reduce your transaction fees?
Credit cards with the lowest processing fees
FAQ about Square’s competitive flat fees

Intro

Credit card processing fees, also known as qualified merchant discount rates are the fees a merchant pays for each credit or debit card sale. This fee is predetermined by your merchant services provider and usually involves three components: interchange fees, assessment or service fees, and the payment processor’s markup.

woman-using-credit-card-at-store

Deep Dive

Who decides on credit card processing fees?

Generally, there are three parties involved in credit card processing — the card issuer, the card network, and the payments processor.

The card issuer is the bank or financial institution that issues cards directly to consumers. Chase, Capital One, Citi, and Bank of America are examples of card issuers. The card issuers partner with networks such as Visa and Mastercard on credit and debit cards. For each card transaction, the card issuer charges a merchant a commission for the ability to accept the card — typically, a percentage of the transaction amount plus a flat fee.

The payments processor is the financial institution that works in the background to securely process and complete a credit or debit card transaction. To facilitate all of this, payments processors usually have partnerships with other companies or brands that work directly with consumers and merchants. Like card issuers, payments processors typically charge a percentage of the transaction amount plus a flat fee for each credit or debit card purchase.

What goes into average credit card processing fees?

When it’s all said and done, the average cost of processing payments for U.S. businesses that do between $10,000 and $250,000 in annual payments volume is between 2.87 percent and 4.35 percent per transaction.

Many factors determine how much you may ultimately pay, including PCI-compliance fees, annual account fees, and chargeback fees (which we go into below). In fact, for U.S. businesses processing between $10,000 and $250,000 in sales per year, additional fees are on average 28 percent to 60 percent higher than the initial quoted rate (not to mention the cost of hardware leases and software subscriptions). So it’s important to educate yourself before you decide how you’re going to process card payments at your business.

Square has competitive, transparent pricing so you know exactly how much you’re paying to process credit and debit cards. It’s just 2.6% + 10¢ per card present transaction (swipe, dip, or tap), 3.5% + 15 cents for each card not present transaction (like Virtual Terminal), and 2.9% + 30 cents for other transactions (like Square Online, Square Online Checkout or Invoices). There are no monthly or hidden fees, and PCI compliance and help from dispute experts are included in the rate.

Another benefit of using Square is that we charge the same rate for all major credit cards, including American Express. That way you can accept any payment method your customers prefer. With other POS solutions, credit card processing fees can vary from card to card.

Examples of average credit card processing fees for each major brand*

Mastercard1.55% – 2.6%
Visa1.43% – 2.4%
Discover1.56% – 2.3%
American Express2.5% – 3.5%

These are estimates curated by Value Penguin
*Square charges the same rate for all major credit cards, so you don’t have to worry about the differences between major brands.

Credit card fees that affect rates

Interchange Fees

Every time a customer uses a credit card in your store, there’s a fee that is paid from the the acquiring bank (merchant account) to the issuing bank (customer account). It’s called an interchange fee. (There is an exception to this, see below.)

Interchange fees are set by each network. (You can see Mastercard’s and Visa’s interchange rates on their website). They change twice a year, in April and October.

The purpose of interchange fees is to help the card-issuing bank cover things like the risk of approving the sale, fraud, and handling costs. So it shouldn’t be surprising that the factors that influence these rates relate in some way to the risk taken on by the card issuer.

They include:

Debit cards with PINs are lower risk than credit cards, so they typically have a lower interchange rate. And rewards cards (travel, triple points, etc.) and business cards typically have higher interchange rates.

  • How the transaction is processed

    In-person card present transactions at the point of sale (POS) typically have lower rates compared to card not-present (CNP) transactions (online, over the phone, invoices, or mail order).

  • The amount being charged

    Merchants with small ticket sizes and a large amount of sales can qualify for lower interchange rates to help reduce their costs.

  • The type of business

    Every business that accepts credit card payments has a merchant category code (or MCC), a four-digit number that’s assigned to them by the acquiring bank or institution. The MCC is used to classify businesses into market segments that simplify IRS reporting.

    The MCC also influences how much a bank or institution charges in interchange fees. Business types that are considered “higher risk” (like financial services, travel, gambling, and hospitality) often have to pay higher interchange fees.

American Express serves as both the card network and the card issuer and their fee structure varies from the interchange fees we’ve talked about. But if you use Square, we have the same processing fee for all major credit cards, including American Express.

credit-card-with-chip

Dues and assessments

Payments processors have to collect something called dues and assessments for the card networks. These are fees that are paid directly to the networks for the use of their card brand, as well as the ability to process transactions on their payments networks.

Assessment fees are different from interchange fees in that they’re charged based on total monthly sales and not individual transactions. They’re typically lower than interchange fees. But the how much you pay in assessment fees varies by network and depends on things like whether the cards used were credit or debit, transaction volume, and whether foreign transactions were processed.

Similar to interchange fees, networks review their assessment fees twice a year. You can check your monthly credit card statement to see if there are changes to your assessment fee. Below are the most current (at the time of writing) assessment fees for Mastercard, Discover, and Visa.

MastercardDiscoverVisa
0.137% (Transactions < $1,000)0.13% (Credit)0.14% (Credit)
0.01% (Transactions > $1,000)0.13% (Debit)0.13% (Debit)

source: valuepenguin https://www.valuepenguin.com/what-credit-card-processing-fees-costs

Payments processor’s fee

A payments processing fee is what you pay your credit card processor for use of the product. Typically, this fee is charged per transaction, , in hidden fees, and monthly fees.

Square doesn’t have monthly or hidden fees and it has the same processing fee for all major credit cards: 2.6% + 10¢ per swipe, dip, or tap, 3.5% + 15 cents for each keyed-in transaction, and 2.9% + 30 cents for each invoice or e-commerce transaction.

Our flat payment processing fee includes any fees incurred by interchange, as well as additional dues and assessments or other fees that come from processing cards such as American Express

Other miscellaneous credit card fees and costs you might be paying

Types of FeesWhat Is It?Square’s Fee
Payment GatewayThe conduit that passes money between your merchant account and your payments processorFree
PCI ComplianceThe security standard all businesses that accept credit cards must comply withFree
ChargebackThe fee incurred when a customer issues a chargeback for a paymentFree
POS software (monthly SaaS fees)The amount you pay monthly to use your POS softwareFree
POS hardware rentalThe monthly costs to rent your POS terminal hardware and other accessories associated with your POS hardwareN/A
Batch feesCharges for the settlement/closing out of your deposits each day (also called batch header fees)Free
Hosting feesFees charged for traditional server-based POS systemsN/A
Wireless access feeA fee that can be charged for using a cloud-based POS terminal vs. a traditional phone lineFree
AVSThe Address Verification System is for keyed-in transactions and matches a customer’s billing information to the card on file, incurred on a per-transaction basisFree
Monthly statement / support / service feeSome payment processors charge a flat monthly fee for support-related services, including the preparation and mailing of your monthly statement, as well as general customer supportFree
Monthly minimum feeThe fee between your monthly GPV (credit card dollars processed) and the agreed-upon monthly minimumFree

How can you reduce credit card transaction fees?

There are a number of ways to reduce your credit card transaction fees. Here are a few:

When possible, accept cards in person.

Online, keyed-in, invoices, or mail-order transactions (also known as CNP or card-not-present transactions) have higher processing fees than in-person (POS) transactions because they’re more susceptible to fraud. They can also fall into the “mid-qualified surcharge” bucket, which bumps up the interchange fee for those transactions.

Try to accept cards in person whenever possible if it makes sense for your business.

Reduce your risks of chargebacks.

If your business incurs a lot of chargebacks (when a customer disputes a charge from your business and asks the card issuer to reverse it), banks consider you a higher risk and may hike up processing fees. So it’s important to take steps to reduce your chargeback risk.

There are a number of simple ways to minimize chargebacks, but one of the most effective is to use a credit card authorization form. This is a document the customer signs, giving you permission to charge the card on an ongoing basis. With this document in place, your chances of winning a chargeback case with the card issuer are much more likely (not to mention less complicated). Download a credit card authorization form.

Require a minimum amount for credit card sales.

To offset processing fees, many businesses (especially those that tend to handle smaller transactions) choose to require a certain dollar threshold before they accept credit cards. If you decide to set a minimum for card purchases, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 allows business to set a credit card minimum up to $10. Several states require credit card limits to be the same regardless of credit card issue. For example if the merchant sets a $5 minimum for Visa, the same minimum must be set for American Express, Mastercard and others.

Accept payments with Square.
Credit Card Processing Rates
Square2.6% + 10¢ for all in-person swiped, dipped, or tapped payments
ThemAverages between 2.87% and 4.35%

Square’s credit card processing fees are simple and transparent. There’s just one low rate for every type of card and dollar amount. We never charge any monthly fees, PCI-compliance fees, cancellation fees, or POS software fees. It’s all included in our rate. Learn more about Square’s payment fees.

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Credit cards with low processing fees

There’s a large range of card processing fees. Fees are dependent on card functionality (debit, credit) as well as the card distributor (American Express, Visa, Mastercard). Often credit cards are more expensive to process than debit cards.

A debit card with a PIN tends to be less expensive to process because its funds are available and verified right away, so there’s lower risk. Many banks charge a flat fee to process debit card transactions, regardless of the amount charged. Alternatively, a debit card that requires a signature to authorize is processed like a credit card.

Is it legal for merchants to charge a credit card processing fee?

Charging a customer to use a credit card, also known as a convenience fee, is illegal in some states. Currently eleven states have a law that prohibits merchants from charging a convenience fee to customers.

In California, for example, it is illegal for a retailer to “impose a surcharge on a cardholder who elects to use a credit card in lieu of payment by cash, check, or similar means. A retailer may, however, offer discounts for the purpose of inducing payment by cash, check, or other means not involving the use of a credit card.” You can determine if your state prohibits charging a convenience fee here.

FAQ about our rates:

How does Square offer credit card processing with no monthly fees?

We believe credit card processing should be as easy and affordable as possible. That’s why we offer simple, clear pricing that includes everything you need to securely process credit cards at your business. Learn more about Square’s merchant services here.

What can I save in credit card processing fees?

If you sell above $250,000 per year and have an average ticket size of $15 or more, your business may qualify for a competitive custom rate. Contact our sales department to learn more.

Not sure what your rate is with your current merchant services?
Our rate calculator can help you better understand what you’re paying in card processing fees month to month.

Payments are just the start

Square helps take care of the day-to-day stuff, too. From point of sale to payroll, we have all kinds of services to help you save time and run more smoothly.

Learn More

Источник: https://squareup.com/us/en/townsquare/credit-card-processing-fees-and-rates

What should I do if I can’t pay my credit card bills?

If you can't pay your credit card bill, it’s important that you act right away. Contact your credit card company immediately because many creditors may be willing to work with you to change your payment if you’re facing a financial emergency. 

Here’s what to do:

  1. Add up your income and expenses. Look for ways to cut costs. If you can’t find enough to pay your minimum payment, decide how much you can afford to pay.
  2. Call your credit card company. Be sure to clearly explain:
    • Why you can’t pay the minimum
    • How much you can afford to pay
    • When you could restart your normal payments
    • What new payment you are requesting and for how long
  1. Consider credit counseling. If you need more help, credit counseling organizations can teach you more about handling your money. Many credit counseling organizations are non-profit. Before you sign up, ask if you will be charged, how much, and what services will be provided. Watch out for for-profit debt relief companies that:
    • Charge fees before they settle your debts
    • Give a guarantee that they can make your debt go away
    • Tell you to stop communicating with creditors
    • Tell you to stop making your minimum payments
Источник: https://www.consumerfinance.gov/ask-cfpb/what-should-i-do-if-i-cant-pay-my-credit-card-bills-en-1697/

You can watch a thematic video

When To Pay Your Credit Card Bill And Increase Your Credit Score!!!

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