How Does Debit Card Processing Work?

Debit card processing is a way of authorizing and settling financial transactions using a debit card. This can be done in person, over the phone or online. When you use your debit card to make a purchase, the funds are transferred immediately from your bank account to the merchant’s account. The merchant then deposits the money into their bank account and the transaction is complete.

There are a few things to keep in mind when using debit card processing:

Processing fees: Most merchants will charge a small fee for each transaction, which is typically around 2-3% of the total purchase price.

Minimum purchase amounts: Some merchants may require a minimum purchase amount in order to use your debit card. This is typically $10-15.

Declined transactions: If there are not enough funds in your bank account to cover the purchase, your debit card may be declined. Be sure to keep track of your account balance and make sure you have enough money available to cover any purchases you plan on making.

Overdraft fees: If you do not have enough funds in your account to cover a purchase and your debit card is declined, you may be charged an overdraft fee by your bank. This fee is typically around $35.