I heard that shortly all debit cards are going to have to display "debit" on the front somewhere. If this is true, what is the reason?
Because a cc costs the business owner 3% of the sale whereas a debit card does not. Most consumers want to protect their pin so they run it as a cc. This costs the business 3% of all those profits.
I lost my debit card while at relatives up north...ordered a new one and it say DEBIT on the card right above the Visa sign.
To make a really long story short, both Visa and MC were sued by Walmart and some others. As a result, as part of the settlement, retailers that have the propper new sinage can choose not to take Visa/MC debit, or they can take debit cards only and not the credit cards with Visa/MC-if their new decals note this. If they continue to display the old decals with no notation underneath, they still must accept both. The reason that debit cards (note, this includes the prepaid "gift" cards) now have the word "debit" on them is Visa and MC's way of making it easier for merchants and the cashiers/sale associates to tell whether or not it is a debit or credit card so they can decide according to their new store policies and decals whether or not and how to process it. The following link from Visa may help explain the new policies. I started another thread about a week ago on this you may be able to find it if you search for it. Hope this helps! http://www.usa.visa.com/personal/ca...html?it=il_/personal/cards/where_to_useA.html
Wally World was really trying to stop charge backs on Debit cards. When you use a debit card as a credit card you have the same rights as if you used a credit card ie: charge backs. Wally World was ticked that any Jane or Joe with a debit card could challenge the charge when an item was defective and a refund was refused. As for them paying a 3% discount fee I sincerely doubt it, my little outfit doesn't even pay that and I sure don't have the clout Walmart does! Just my two bits, couldn't seem to keep my mouth shut on this one any longer.
It probably depends on who your bank card processor is........the place I work at has discovered some charge more then others. That said.........there is a good chance they do pay a little more on a visa/mc transaction then a PIN-based transaction...........also, if it is a PIN-based transaction they have the option of surcharging the transaction supposidly to make up the fees (Visa and MC processed transactions are covered under the no surcharge rule). However what businessess don't tell you when they "explain" about the fees to the customers is that they can write those fees off at the end of the year as a cost of doing business. Granted that doesn't help businessess especially the smaller businesses in the short term but it does help them out in the long term. I'd be interested in knowing which retailers get the new decals and end up changing their policies because of the settlement either by only taking certain cards or by forcing a customer to use their PIN......anybody come across anyone yet?
