What is and who pays debit card fees

With the world being on the run, the use of debit cards for shopping is fast gaining popularity. When you make a purchase you will be asked on the mode of payment you will use. Most people will opt to pay using debt card. The reason for doing this is because they find it a much secure and fast means of clearing their bills. Unlike carrying hard cash, the use of debit card will prove secure. But, do you know how to make purchases using the debit card? Who will pay the debit card fees? How long does it take to make purchases using a debit card and what rights do you have? If you are looking for answers to all this, you are in the right place. Keep reading.

When you use a debit card to make purchases, you will have the chance to choose on how the process takes place. You can either do it online or offline. This is something that can be used electronically to complete transactions in the shortest time possible. All you need is your pin number. It will reduce on the time you will spend clearing your bills as it involves swapping. When used offline, you don’t need to use your pin. You only need to sign a charge slip.

The use of debit card for offline transactions works same as when you use a credit card. Your debit card has a visa logo that will ensure it runs through the visa network for the money to be deducted from your account. Every time you make a purchase there is a debit card fees that will be charged. The banks and retailers do care on how the transaction you make with your debit cards proceeds. When you make offline transactions and sign a charge slip, the retailers is the ones who will pay some fees. This fee will go to the bank that gave you the debit card.

The debit card fees that retailer pay is 2% of the total purchases you make. This amount may sound less but when it is summed from all debit card holders, it is a lot. This is money that will benefit the debit card companies and banks. Because the banks will benefit, they are now encouraging customers to adapt shopping with debit cards.

The interchange fee that is charged when you use a debit card will be sent to the banks where you are a member. However, as a buyer, you don’t have to be happy about this. At one point in life you will have to pay the fee even though you will not realize. It comes from somewhere and in most cases it is involved on the good that you buy. In fact, it is this fee that has built the price of the products or services you are in need of. You now know that despite the fact that debit cards will speed up transaction and are safe, at one point you will pay heavily for the same.