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Why Credit Cards Are Preferred Over Debit Cards

There are numerous reasons why credit cards are preferred over debit cards. With Swipe4Free, processing credit and debit cards are much more affordable. Credit and debit cards have been in individuals’ wallets and pocketbooks for decades, but the former mode of payment is older than the latter. With a credit card, an individual can make a purchase using the card issuer’s money. The cardholder will have to pay this money back within 15 to 45 days, or else they’ll start paying interest on the outstanding balance. A debit card, on the other hand, is linked to a bank account. When one spends with a debit card, the amount spent is immediately deducted from their bank account. While both modes of payment are effective and useful, credit cards reign superior. Credit Cards Offer Attractive Bonuses & Rewards If you spend with a credit card, you can take advantage of numerous benefits, including one-time bonuses, cash-back, rewards points, and travel miles. Debit cards, on the other hand, do not offer such incentives. When you use a credit card to purchase products and services—and you get a bonus or cash-back for doing so—you spend less, as the bonus money or cash-back can be automatically used to cover purchases, either entirely or in part. But cash isn’t the only reward cardholders can receive. There are also cards that utilize points systems, and a cardholder can spend gained points on travel, gift cards, and merchandise. Then there are cards that offer free travel miles as a reward for spending, and once a cardholder saves up enough of these, they can use them to cover the cost of airfare, hotels, etc.

What Are Interchange Fees & What Can Merchants Do About Them?

If you run a business that accepts credit cards, you’re familiar with interchange fees. These fees can shrink profits significantly, but not if you avoid them. What are Interchange Fees & How can Merchants Fight Back Against Them? All merchants who accept credit and debit cards should be familiar with interchange fees, and that’s because interchange fees are a costly expense that significantly reduces a merchant’s bottom line. Interchange fees in the US are higher than anywhere else in the world, and last year Visa and Mastercard quietly yet significantly increased their interchange fee rates, a change that’s expected to yield them an additional $1.17 billion per year. Interchange fee rate increases may be good for the large payment processing companies, but they greatly affect merchants and sometimes make a would-be profitable merchant unprofitable. However, there are things a merchant can do to get out from under the boot heel of interchange fees. What Are Interchange Fees? When a merchant makes a sale and the customer pays using a debit or credit card, the merchant will pay what’s known as an interchange fee. This fee is charged by the bank that issued the customer their credit card, and it’s in place to cover handling costs, fraud and bad debt costs, and other risks that are associated with approving a payment. But the card-issuing bank isn’t the only entity that charges an interchange fee. Below are all the entities that will charge an interchange fee when a transaction is made:

Zero Fee Processing - The Future Of Credit Card Processing

Zero Fee Processing is a solution for both large and small businesses to improve their profit and also you don't need to worry about high payment processing. Zero Fee Processing, The Future of Credit Card Processing Zero Fee Processing has proven to be the best processing platform for business owners and has been a crucial necessity during the COVID-19 pandemic. Small businesses that implement Zero Fee Processing save the cost that traditional processing would normally be charging them by eliminating their credit card and debit card processing fees. Swipe4Free is seeing many merchants asking to have their accounts switched from traditional processing to Zero Fee Processing also known as Cash Discounting. By making this change the business owner will eliminate their credit and debit card processing fees by passing them on to the customer. This fee is known as a Non-Cash Charge and is typically set at a 4% fee per transaction. Some businesses only accept credit and debit cards, as opposed to cash, to help keep employees and customers safe from the spread of germs and the COVID-19 virus. Credit card sales have increased as a result of this safety measure. Zero Fee Processing is the best way to keep your business profitable during this uncertain time. Keeping your business open Zero Fee Credit Card Processing through Swipe4Free allows you as a merchant to keep your businesses functioning and profitable by removing your credit and debit card expenses. Over the years there has been a lot of speculation on whether Zero Free Processing was a good fit for businesses, but merchants from all over the Nation are now saving thousands of dollars every month with Swipe4Free. Swipe4Free is the perfect fit for any merchant or business owner that wants to eliminate their processing fees. Implementing Swipe4Free’s Zero Fee Credit Card Processing platform helps offset the costs of running a business allowing your income to be distrusted to payroll, inventory, rent, and other miscellaneous costs.
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