How Is Secure Debit Card Processing Done?

by : stephenchua

There is a steady upward trend that more people are now using debit cards to make their purchase than ever before. Another indication is that many of the banks are providing their customers with a check card that is branded by a card association. They are also looking to provide them with ones that are backed by a debit network, which will provide customers with more flexibility with regard to payment options.

A debit card does not work the same way as a credit card with regard to payment. When a debit card is used for any purchase, the full amount of money spent is deducted from the bank account of the cardholder immediately. In some cases, the deduction may occur within a few days after the transaction is completed.

Debit cards are being processed using the chip and pin service. This is being used in many countries today and is strongly encouraged by many banks as a method of reducing cloned card fraud. In fact, in some countries, no longer will a customer be able to make a purchase without the use of a PIN. The Point of Sale terminal in use is also unable to read the chip on the debit card if a PIN is not entered prior to usage. In this respect, it is actually safer to use a debit card than credit card for your purchases.

There are many reasons today why so many merchants are looking for reliable companies which can provide them with secure debit card processing. In fact, there are plenty of companies offering this type of service at reasonable cost now. There are plenty of benefits to be had from using a secure debit card and below are just a few of them.

1. They will monitor and track any fraudulent transactions in order to minimize any potential losses to your business.

2. They provide assistance to resolve any disputed transactions.

3. Reputable and reliable debit card issuers will provide you with details of their fees and agreement terms.

4. They provide a business with clear and simple monthly statements of all debit card processing transactions made. These statements will be sorted by date or card type to enable a business owner to review them online.

5. They will provide chargeback and retrieval activity so that you can have a complete history of all your business past and current financial activities.

6. They provide concise information regarding deposits including both summaries and details, which will contain the date, debit and credit numbers as well as the amounts paid.

In summary, a debit card will enable the cardholder to make purchase in the same way as a credit card but the cost of purchase is charged directly to the holder's bank account. It provides the same convenience of a credit card without the risk of accumulating credit card debt.