Accept Debit Card Payments

Why Debit Cards Cost Less to Process

Debit cards pull directly from a customer's checking account, which means less risk for the card issuer and lower interchange fees for your business. Visa and Mastercard set debit interchange rates significantly below credit card rates.

A regulated debit card (from banks with over $10 billion in assets) has interchange capped at 0.05% + $0.21 under the Durbin Amendment. That means a $100 debit transaction costs you just $0.26 in interchange, compared to $1.50 to $2.10 for a credit card.

PIN Debit vs. Signature Debit

PIN debit transactions route through debit networks (Pulse, Star, NYCE) and typically cost less than signature debit, which routes through Visa or Mastercard. Encouraging PIN entry at checkout saves money on every transaction.

• PIN debit: routes through debit networks, lowest cost, requires PIN pad
• Signature debit: routes through Visa/Mastercard, slightly higher cost, no PIN needed
• Contactless debit: NFC tap transactions, rates vary by network routing

Our partners configure your terminal to prefer the lowest-cost debit network for each transaction, a feature called least-cost routing that can save 15% to 30% on debit processing.

The Durbin Amendment and Regulated Debit

The Durbin Amendment (part of the Dodd-Frank Act) caps interchange fees on debit cards from large banks. Regulated debit interchange is capped at 0.05% + $0.21, while exempt (small bank) debit cards have no cap.

Businesses that process a high volume of debit transactions benefit enormously from interchange-plus pricing because flat-rate processors charge the same 2.6% to 2.9% regardless of card type, pocketing the difference on cheap debit transactions.

Getting Started

Any merchant account that accepts credit cards also accepts debit cards. The key is ensuring your pricing model passes through the lower debit interchange rates. Get a free quote with interchange-plus pricing to maximize your debit card savings.

Frequently Asked Questions

How much does it cost to accept debit cards?

Regulated debit interchange is capped at 0.05% + $0.21 per transaction. On interchange-plus pricing, a $100 debit transaction costs about $0.26 in interchange plus your processor's markup.

Is PIN debit cheaper than signature debit?

Usually yes. PIN debit routes through lower-cost debit networks. Least-cost routing ensures each transaction uses the cheapest available network.

What is the Durbin Amendment?

The Durbin Amendment caps interchange fees on debit cards from banks with over $10 billion in assets at 0.05% + $0.21. This makes regulated debit the cheapest card type to accept.

Do I need a PIN pad to accept debit cards?

A PIN pad is needed for PIN debit transactions. Signature debit and contactless debit work without a PIN pad. Most modern terminals include PIN pad functionality.

Why does my processor charge the same rate for debit and credit?

Flat-rate processors like Square and Stripe charge one rate for all card types. Switching to interchange-plus pricing lets you benefit from the lower debit interchange rates.