A seller, vendor or a business man needs to accept debit cards as a mode of payment as it is one of the most commonly used mode of payment. A debit card is a convenient form of making a payment without carrying cash with you. It is a service extended by your banks in which you have an account. They provide you with cards which are called debit cards. These cards enable you to make a payment to any vendor who has a well established system which enables them to accept payments in modes other than money. They can accept debit cards and credit cards as a mode of payment.
The main difference between these two cards would be credit. In case of credit cards, the customer is actually purchasing a product on credit, where he buys now and pays later. Here the financial institution which has provided the credit card makes the payment to the vendor and the buyer pays it to the financial institution later when the bills are generated at the end of the credit period. The credit period would range from 30– 45 days depending upon the offers available through the banks or financial institutions. Here the customer pays a service charge as well as interest to the bank or financial institution. And the vendor also has to make a payment in order to avail of a merchant account or a third party processing account which will enable one to accept these cards and this could be for both accepting debit cards as well as accepting credit cards.
However, in case of a debit card, the customer is not taking any credit and using his own money. He can use money that is available in his bank account and shop by using the same in the form of a debit card. Since it is just an extension of the bank account and he is using his own money, he is not paying any interest. The Vendor has to have a similar merchant account which enables him to accept debit cards as he does in case of credit cards.
Hence, it is essential to accept debit cards in order to get business. Even in an online business or online trade, it is more essential to accept debit cards as compared to any other businesses as they can be easily used to make a payment when there is no direct face to face communication.