Give us a call for more info 1-800-210-5649
Skip to content

True Credit/Debit Card Costs and Bad Credit Merchant Accounts

What’s the truth about credit and debit card acceptance expenses? Where can you find a secure and cheap bad credit merchant account? To know, just read below.

Credit/Debit Cards: Bad Credit Merchant Account
In this day and age, when mobile wallets are more than a reality, people still make payments via credit/debit cards. So, if older methods of making payments are more preferable for you, it’s quite normal.

According to an online student loan and other financial product provider, millennials still pick credit/debit and cash to make payments. Interestingly, they go for these payment options with greater willingness than with new alternatives.

In fact, debit and cash can help people keep their spending under control. However, they aren’t helpful for building credit or earning rewards on everyday purchases. To do this, you’d better choose a credit card.

Specifically, with debit cards, you’re using the sum right from your checking account to buy something. So, you’re paying like with “real money.” Debit cards enable you to have a full grasp on your funds.

Both credit and debit cards come with certain costs. Quite naturally, you’d like to spend as little as possible. When it comes to cutting costs, working with a respectable payment processor like First American Merchant is critical.

A true payment expert and BBB-accredited alternative online lender like FAM can get you a bad credit merchant account, and other merchant services at the cheapest rates. Moreover, it guarantees the highest level of security and ease of payment processing. specializes in the high risk space and has helped so many hard-to-approve merchants get the best deal for their business.

Truth About Credit/Debit Card Acceptance
If you don’t offer multiple payment methods to your customers, you aren’t going to succeed. However, if you’re running an eCommerce business, you have fewer options because of online operation: customers can’t pay in-person. So, in this case, various payment options over the internet such as debit/credit cards, eChecks (ACH) payments can be the answer.

Debit card transactions take money right from a checking account or another prepaid account, which isn’t the case with credit card transactions. However, PIN debit transactions check the balance in the linked account and then provide authorization.

Unlike eChecks (ACH) transactions, the funds don’t transfer from one account right to another. It’s the responsible card network that makes the transaction chargeable.

What about the Durbin Amendment? Well, currently, the cap is 0.05% + $0.21 for each transaction. It’s $0.22 if the transaction meets specific fraud criteria.

Be aware that base credit card processing fees are based on interchange and assessments. You’ll find the same costs with all processors. The interchange represents the biggest part of credit card transaction costs, and it’s the card-issuing bank that requires the charges.

The assessment is the same for all credit card processors. Visa, MasterCard, and Discover make money through assessments charges on every transaction associated with one of their credit cards.

So, just study all your options well and make the right decision on what payment method is the best fit for you and your business.