How Much Does it Cost a Business to Accept a Debit Card?
Many small businesses have heard that accepting credit cards can be expensive, but how much does accepting debit card payments cost ? Although this may seem straightforward, calculating how much you’ll owe for each card swiped at your business can be tricky. For further information and pricing on card machines click here .
We have the answer to the question, ‘ How Much Does it Cost a Business to Accept a Debit Card?’ The answer to this question depends on several factors, such as:
The card type being processed and
How often it’s swiped.
Mobile Payment Companies
Card Reader
Purchase Price
Rate
Advantages
Square
£16.00
175.00%
Sumup Air
£39.00
1.69%
Revolut
£49.00
0.8%-2.6%+2p
Low rates
Zettle
£29-£59
1.75%
Shopify
£49.00
1.5%-1.7%%
Elavon
£29.00
1.75%-2.5%
Barclaycard
£29.00
1.60%
Low fixed rates
Accept a Debit Card: Fees
That is why knowing the fees associated with each card payment type is essential. Debit cards are a widely-used payment option for many consumers. Nearly one-third of in-store purchases and one-in-five eCommerce transactions are completed using debit cards. To attract customers and sell your products or services, offering them various payment options is essential. Many businesses choose to accept credit and debit cards at their physical stores or even an e-commerce website where customers can purchase goods directly from a company’s site.
Accept a Debit Card: Selecting the Right Payment Processor
Selecting the ideal payment processor to help set up and process debit card transactions can be critical in managing your business’ finances. When researching potential processors, consider:
Their experience within the industry and
Whether they understand your particular challenges.
Remember, debit cards come in various types, each with its fee system. It’s essential to be aware of these distinctions so you don’t overpay for services that aren’t worth it.
Retailers or merchants usually pay an interchange fee when processing debit card transactions. This fee is determined by the debit network your bank uses and varies based on transaction size; for instance, Visa charges a higher interchange fee for more oversized items than smaller ones. However, these fees are just some costs to consider when accepting debit cards. You may have to pay support fees from your credit card processor and other costs that vary from bank to bank.
The average rate quoted by credit card processors can range between 0.9% and 2.9% ; however, the rate charged depends on factors like card type, brand and other details. This could be as low as 1.9% or less. Another way to reduce debit card transaction fees is by adding a convenience fee to your sales. This strategy works exceptionally well if your company sells low-ticket items, allowing customers to pay less.
Retailers or businesses need to understand the fees and costs associated with debit card payments to decide whether accepting them for your business is worthwhile and, if so, how to minimise monthly spending on credit card processing expenses. This way, you can determine if accepting debit cards makes financial sense for you and what the benefits are.
Accept a Debit Card – Find out more about card machines here .
Accept a Debit Card – Other Useful links about card machines:
Process Data Quickly Machines: What Are They and Why Does Your Business Need Them in [current_date format=’F Y’]?
Remote Card Readers: Useful Benefits in [current_date format=’F Y’]
Countertop Card Readers: A Handy Guide For Restaurants
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Hi, I’m Ally Cox, one of the leading Copywriter/Bloggers at CompareYourBusinessCosts.co.uk, a platform renowned for its in-depth analysis and comprehensive comparisons of business services. With over a decade of experience in the industry, I bring a wealth of expertise in areas such as leased lines, VoIP, business energy and office solutions, HR solutions, accounting, and payroll services, among others.
My journey in the industry began over 10 years ago, and my extensive knowledge enables me to provide invaluable insights to our users and customers. Prior to joining CompareYourBusinessCosts, I’ve been involved in various business ventures, gaining hands-on experience in HR and copywriting across a multitude of different sectors, gaining valuable knowledge about everything from clocking in systems to card machines, EPOS systems, payroll services, and so much more.
My mission is to simplify the often-complex buying process for businesses, helping them streamline their product and service comparisons effectively. By leveraging the expertise I’ve acquired over the years, I aim to assist businesses in making informed decisions that enhance their efficiency and bottom line.