Is There A Difference Between A Credit Card Machine And A Debit Card Machine?

If you are just starting a business, or are thinking about adding credit and debit card machines, you may be wondering about the difference between credit and debit from a merchant standpoint. Let me first tell you what is the difference between a debit card and a credit card. The difference is that a debit card has a Visa or Mastercard logo on its face. When you use a debit card, the money is deducted from your checking account. With a credit card, you’re borrowing money to be repaid later. ATM and debit cards allow you to use ATMs, a safe and convenient way to manage your money. Here is a bit more information about debit and credit card processing:

How Many Readers Will I Need?: You will not need two separate readers for debit and credit card transaction. While one reader can run either card, the difference lies in the stipulations that are included with each type of transaction. Credit card companies tend to charge the merchant a fee since the customer is buying on “credit” and may, or, in some cases, may not, pay back the credit card company. Debit transactions, on the other hand, tap into the customer’s bank account and the funds are withdrawn immediately. While banks may still charge a fee to the merchant for that service, the fee is usually much less then with credit card companies.


Should I Invest in the Latest Card Machine?: Absolutely! The way that payment is processed has changed drastically over the last ten years with the addition of VenMo, Paypal, Apply Pay, and the credit and debit card chip. All of these advances require an updated technology that can help you and your customers feel secure. At the very least, it is a good idea to look at wireless credit card machines that contain a chip reader. Be sure that you are using the latest credit card terminal and machines so you can accept all forms of payment. Many people are now only carrying their cellphones, so accepting Apple or Samsung pay is now becoming a standard.


What Type of Fees Will I Be Charged?: Banks and credit card companies can charge merchant fees per transaction. However, the card processing company will also charge a fee for their services. In most cases, the fees charged by the companies are outweighed by the new revenue that adding card usage brings to a business. When you swipe your sebit/credit card  for purchasing some item, the merchant has to pay some fees (1%-2%) to the Bank or the rental fees for the swipe machine. The charges goes out of their own pocket, as the cost of running the business and convenience of taking the payments (more customers will come, if card payment is there).

Be sure to talk with your credit card processing company about all the fees involved with accepting credit and debit cards. Some credit card processing companies will charge a flat rate per swipe and some will charge a percentage. Be sure you also talk with your credit card processing company about terminals and the cost of operating one. Again some credit card processing companies will lease the units to you or some will give them to you for free.

There are many card processing companies out there, so be sure to find one that best fits your business needs. Be sure to contact for more information about both credit card and debit card re

About the Author

Hrithik Goel
I am Hrithik Goel, I am a blogger based out of Hyderabad, India. Apparently, I am a school going kid with unconventional dreams. Oh, I am also a kick-ass page speed optimizer, I've also worked for, Pan Card Status,

Be the first to comment on "Is There A Difference Between A Credit Card Machine And A Debit Card Machine?"

Leave a comment