Special Report: Credit or Debit?

Community Comments

Wrong Assumption
     “It’s probably one of the best-kept secrets in the business,” says Michael Spray, national sales director for Universal Business Services, a Fair Oaks-based merchant-advocacy company that negotiates rates paid to processing banks for the use of credit/debit cards (www.universalbiz.org).
     Many merchants are not being properly assigned to the correct classification by their processing bank, causing them to pay excessive fees in their card acceptance program.
     “Most merchants assume there are very few options they can offer customers when it comes to plastic,” he says. “That’s a wrong assumption.” There are more than 90 individual VISA and MasterCard classifications.
     Spray says that key question, “Credit or debit?” asked by the cashier in most establishments is a misnomer and something they’re trained to say. “Processing banks train their clients’ employees a certain way. They know a customer is going to spend more if they use plastic, credit or debit, as opposed to cash.
     “Why do they do this?  Because the banks make higher profits when merchants accept ATM/Debit cards as swipe and sign,” he says.   

Eliminating Fees
Continued...

• Share
  • Digg This
  • del.icio.us
  • Newsvine
  • Facebook
  • Reddit
  • Furl It
  • !Y My Web
  • Google
• Email
• Print

Recommend This

Community Comments