There are still fees for the retailer, and on lower cost purchases, the fees tend to be higher. That’s why stores often have a $5 minimum for cards. They don’t want people buying a pack of gum with their debit card, and end up costing them more than the meager profit.
The fees on CREDIT cards are confusing, with the percentage changing based on volume, etc. I once found a really good explanation online, and it made perfect sense for about 15 minutes, and then it faded again.
Debit cards usually have a fixed fee per transaction, as well as a percentage based on volume. Credit cards don’t have that fixed fee, just a percentage of the total, so they don’t care if you use it on a small purchase.
But if the fixed fee is 50 cents, and you buy something that is 50 cents, they literally lost money. Even in a case where the item is 2 or 3 dollars, that 50 cent charge is a big hit to the profit. Do that 100 times a day on things like cans of soda and candy bars, and much of your profit on those items gets eaten by the fees, and those things are a BIG part of the profit for something like a convenience store.
In the states the machines to process debt are far more expensive than credit, and all of the services I looked into using had a monthly subscription… on top of the fees to take debit. While the fee schedule was less than credit, it was not zero.
You use your bank card to use money in your bank account (or credit union account) to pay for things at the point of sale. Insert or tap the card, and pay for things.
Is that seriously not a thing elsewhere??
We also have built-in money transfers, where we can directly pay for things by electronic transfer. No need for any of those 3rd party apps you hear about.
Does nobody use debit FFS? Card-based, zero fees. Don’t act like there’s only two options.
There are still fees for the retailer, and on lower cost purchases, the fees tend to be higher. That’s why stores often have a $5 minimum for cards. They don’t want people buying a pack of gum with their debit card, and end up costing them more than the meager profit.
no, it’s a percentage of total monthly transactions. The $5 minimum is a bullshit excuse to make you buy more.
The fees on CREDIT cards are confusing, with the percentage changing based on volume, etc. I once found a really good explanation online, and it made perfect sense for about 15 minutes, and then it faded again.
Debit cards usually have a fixed fee per transaction, as well as a percentage based on volume. Credit cards don’t have that fixed fee, just a percentage of the total, so they don’t care if you use it on a small purchase.
But if the fixed fee is 50 cents, and you buy something that is 50 cents, they literally lost money. Even in a case where the item is 2 or 3 dollars, that 50 cent charge is a big hit to the profit. Do that 100 times a day on things like cans of soda and candy bars, and much of your profit on those items gets eaten by the fees, and those things are a BIG part of the profit for something like a convenience store.
Debit cards cost merchants 2% , which they add to prices. you thought that was free?
Honestly I didn’t even think about it.
In the states the machines to process debt are far more expensive than credit, and all of the services I looked into using had a monthly subscription… on top of the fees to take debit. While the fee schedule was less than credit, it was not zero.
Erm… Pretend like I don’t know what that is.
You use your bank card to use money in your bank account (or credit union account) to pay for things at the point of sale. Insert or tap the card, and pay for things.
Is that seriously not a thing elsewhere??
We also have built-in money transfers, where we can directly pay for things by electronic transfer. No need for any of those 3rd party apps you hear about.
My guess is that they thought you were referring to something called “debit FFS”
LMAO
It’s pretty much default in Europe. I feel like credit cards mostly gained popularity here because American companies required them.
It’s all I use here in the US.
INTERAC? Canadian? Orbdoes another country do this.
Many, most? It may go by different names. “Debit” is more of a generic term for the type of process. https://en.wikipedia.org/wiki/Debit_card#Debit_cards_around_the_world
Yes, Interac. I am Canadian. Elbows up.
Merchants pay 2% to Interac. They charge you for this in the purchase price. There is no free in finance.