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![*]()
Accept Debit cards
![*]() A seller, vendor or a business
man needs to accept debit
cards as a mode of payment as it is one of the most
commonly used mode of payment. A debit card is a convenient
form of making a payment without carrying cash with you.
It is a service extended by your banks in which you have
an account. They provide you with cards which are called
debit cards. These cards enable you to make a payment to
any vendor who has a well established system which enables
them to accept payments in modes other than money. They
can accept debit cards and credit cards as a mode of payment.
The main difference between these two cards would be credit.
In case of credit cards, the customer is actually purchasing
a product on credit, where he buys now and pays later. Here
the financial institution which has provided the credit
card makes the payment to the vendor and the buyer pays
it to the financial institution later when the bills are
generated at the end of the credit period. The credit period
would range from 30– 45 days depending upon the offers
available through the banks or financial institutions. Here
the customer pays a service charge as well as interest to
the bank or financial institution. And the vendor also has
to make a payment in order to avail of a merchant
account or a third party processing account which will
enable one to accept these cards and this could be for both
accepting debit cards as well as accepting credit cards.
However, in case of a debit card, the customer is not taking
any credit and using his own money. He can use money that
is available in his bank account and shop by using the same
in the form of a debit card. Since it is just an extension
of the bank account and he is using his own money, he is
not paying any interest. The Vendor has to have a similar
merchant account which enables him to accept debit cards
as he does in case of credit cards.
Hence, it is essential to accept debit cards in order to
get business. Even in an online business or online trade,
it is more essential to accept
debit cards as compared to any other businesses as they
can be easily used to make a payment when there is no direct
face to face communication.
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