Merchants, want to save some money?

As a merchant you are all for saving money. There is a very easy way that you can save some of that hard earned cash and we’re sure that most of you are doing it. But for those of you who aren’t, listen up and we can help save you some money.
When your customer presents you with their card or when they swipe it they should be asked one question: Credit or debit? The answer to this question can save you or cost you many dollars at a time, which can add up over the course of time. Why you ask?
A credit card transaction from beginning to end can take some time to complete. When the card is swiped or dipped the financial institution that issued the card extends a line of credit for the purchase to pay the merchant. A percentage of that fee is charged to the merchant (the effective rate) and the consumer will be billed for the transaction on their next statement. It can be well over a month before the financial institution is paid for this transaction, hence why they charge what they do to cover the transaction.
When a debit card is processed and the customer enters their PIN their bank is contacted, funds are verified, the transaction is approved and in most cases the funds are transferred almost immediately. There will typically be a fee but it will usually be a flat fee at a much more reduced rate than credit. No line of credit needs to be extended as the money comes directly from the customer’s account and the risk is greatly reduced, hence the reduced fee.
So save yourself some money. When a customer is using a debit card make sure it is processed as a debit card and not as a credit card. It can help put money back in your pocket and that is a good thing for everyone!