Debit Cards or Credit Cards: Which to Use During the Coronavirus Lockdown

Debit is an increasingly popular payment method, particularly during the coronavirus lockdown, since it offers a fast and easy way to transfer information from the customer’s bank account through the client and rerouted to the purchase system, all through a single card account.

Everyone is familiar with credit cards, and during the lockdown we’re all looking for businesses that accept credit cards online for free. Choosing which payment method you will use as a buyer or accept as a merchant depends on your interpretation of their advantages and disadvantages. This short guide on the differences between credit cards and debit cards can help you to figure out which best suits your requirements.

What is a debit card transaction?

Debit cards are abbreviated from Automated Clearinghouse. A business’s internet merchant service is going to be mostly working with Web transactions, also referred to as web-originated debit. Charges in these transactions are made by electronically held cards that deliver the user’s banking information to the merchant through.

By putting all of the tools online, debit cards allow transactions to be conducted easily. There are some differences between debit card transactions and traditional credit card transactions that could take some getting used to, however. The main one is that debit cards limit spending power, by requiring the buyer to have the funds deposited with the bank prior to the transaction. This may prevent some purchases or limit their size, which is something that neither the buyer or merchant would prefer in a given situation.

So why use debit cards?

debit cards don’t seem like they have much of an advantage for merchants, especially if you work through merchant accounts that also accept credit cards online. However, the biggest advantage, the one that has made debit cards responsible for billions of transactions, is that it offers the lowest fees of any digital transaction system.

The Takeaway

Many merchants accept credit cards online and pay the associated fees in order to entice buyers to use their services. However, debit card transactions, while they limit some customers’ purchasing power, charge significantly lower fees. If you’re looking for merchant services, either through debit cards or online credit card systems, it’s important to keep ahead of current trends to stay competitive during the lockdown.

Visit or call (888) 924-2743 to see your options.

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