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Tap into the Potential of Debit
Consumers themselves have created the growing demand for on-line debit cards,
which directly access deposit accounts, by making them one of the fastest-growing
payment types at the point of sale. Consider the following:
- Between 1995 and 1999 alone, on-line debit transactions increased from
775 million to 2.9 billion. That's a compound annual growth rate of 55%.
- By 2003, on-line debit transactions are projected to reach 13 billion
a year.
With Credit Card Transactions Inc., you'll be in an ideal position to profit from all the
strengths of on-line debit processing:
- A flat, low-cost tender fee structure makes Credit Card Transactions Inc. on-line debit
processing the lowest-cost form of guaranteed payment available. Compare
that with credit cards or off-line debit transactions through credit card
issuers, which are usually based on a percentage of purchases, and your
savings can be enormous.
- Real-time payment, with authorization or denial just a few seconds after
a shopper swipes a card and enters a PIN - but before he or she leaves
with merchandise - eliminates the risk of accepting a bad card or check.
- Since the cardholder's secret PIN replaces a signature, the possibility
of fraud is reduced significantly.
- Compared with cash, on-line debit purchases lead to higher average tickets
and increased impulse buying.
When you think of the explosive increase in online debit card issuance, it's
only natural to think of Credit Card Transactions Inc. - the largest debit processor in the
U.S. - as our debit partner. As a pioneer in making on-line debit processing
available to retailers, we can provide all the hardware, software, and other
support you need to accept on-line debit payment, including the following:
- Direct links are tied to virtually every debit card network in the nation,
including STAR®, MAC®, Cash Station®, NYCE® and Pulse®.
- BIN (bank identification number) technology identifies off-line debit
card transactions and prompts the consumer to enter a PIN (personal identification
number) converting the purchase to more profitable on-line debit processing
on the spot.
- BIN management automatically updates BINs and downloads files at the
store-level to safeguard against invalid transactions, whether on-line
or off-line.
- Direct processing of adjustments are with each regional or national debit
network.
Debit Network Sponsorship
Sponsorship into every debit network is an added value that Credit Card Transactions Inc.
and Credit Card Transactions Inc. can offer through Credit Card Transactions Inc.'s wholly owned subsidiary
EFS National Bank. The debit networks require that a member bank sponsor a
retailer, which allows the retailer to accept each of the specific branded
PIN-secured debit cards. As the sponsoring bank, Credit Card Transactions Inc. accepts certain
obligations if the debit networks on the retailer's behalf, including:
- Ensuring the retailer displays debit network brands correctly
- Accepting liability in the event of fraud and/or disputes that cannot
be reconciled.
Credit Card Transactions Inc. integrates sponsorship into our PIN-secured debit processing,
providing the convenience and assurances of a single-source provider.
Why You Should Purchase A PinPad to Accept Debit/ATM Cards Properly While
most merchants know they should accept debit cards, most do not understand
how to take full advantage of accepting debit cards. Below is a brief tutorial
on debit cards that all merchants should read.
Merchants can accept debit cards in one of two ways:
What is Off-line Debit Transactions?
The most common way to accept debit cards is an "off-line debit transaction." In
this type of sale the merchant accepts a debit card the same way in which they
would accept a normal credit card. The card is swiped through the terminal
and the customer signs the receipt. As far as the merchant is concerned there
is no difference in the way a credit card or an off-line debit card is processed.
The one thing merchants must remember is that the debit card must have a
VISA or MasterCard logo on it. Cards that do not bear the Visa or MasterCard
logo can not be processed off-line and will not be approved.
What is On-line Debit Transactions?
A newer and cheaper method for accepting debit cards at the point of sale is
an "on-line debit transaction." In this type of sale the card must be swiped
through the terminal and a PIN Pad must be installed on the terminal. Instead
of signing the receipt for the transaction the customer will be prompted to
enter his or her PIN number into the PIN Pad. The terminal will pass the encrypted
number to the bank for verification. The merchant will then be paid for the
transaction in the same manner and time frame that they would be paid on a
credit card sale.
There are several advantages to accepting debit cards "on-line" using a
PinPad:
1. Merchants are charged a flat fee for each on-line debit transaction instead
of a percentage rate plus transaction fee. This can add up to a substantial
savings over the course of a month. Assuming a merchant takes 100 debit cards
over the course of a month (about 3 per day) and averages $85 per sale, here
is a conservative cost analysis. Below you can see that this merchant would
have saved $903.00 over the course of a year.
2. Transactions can not "downgrade. With debit cards, you will always pay
the same flat fee as long as the customer enters their PIN number. You will
not have to worry about paying expensive downgrade fees on transactions that
did not qualify for the best rate.
3. Faster check out time. Most merchants do not realize how much time it
takes to hand a receipt and pen back and forth over the counter. Consumers
appreciate the speed of online debit transactions and feel more comfortable
making smaller purchases when they don't have to worry about holding up the
line.
4. Increased customer loyalty. Every consumer has their own spending
habits and preferences in how they pay for products. More and more consumers
are getting used to entering their PIN at the point of sale and prefer to spend
their money at places that accept debit cards. These customers expect to be
able to pay with their debit cards. |
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