Most churches do not realize the cost of accepting a debit card is not the same as accepting a traditional credit card.

Is your transaction processor passing along the savings to your ministry?

Most believe in order to receive a lower cost for debit cards – they are required to have additional equipment so the user has the ability to enter their debit pin # in @ the time of the transaction… this is simply NOT TRUE.

As a result of a class action lawsuit settled against the primary credit card associations on June 4 in 2003, Visa and Mastercard were directed to significantly reduce the costs to process offline debit transactions.

The initian debit rate was lowered in August of 2003. Since then both Visa and Mastercard have reduced the cost to process “debit transactions” which are done in the method of “card not present”… An action which is a direct benefit to mail/phone order and internet merchants…

Is your church, is your ministry allowing donations via Debit and Credit Card? Has your processor passed along these savings to your ministry?

The easiest way to confirm that you are receiving the decreased cost for debit sales is to review your monthly merchant statement. Debit Rates should be identified as a seperate catagory and be billed @ a lower rate.

Dont let your processor Capitalize on your debit donations.

Finally – if your processor is not passing along the savings – its time to leave them… This is close to downright Theft…
They have been given the opportunity already to pass these savings along.

One final note – to test use a Debit Card and make an donation…
Track that donation and see if the rate is equal to a credit card donation…

If so – perhaps its time to ask for refunds as well as find a new processor for your online merchant needs.