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WORLDPAY EDITORIAL TEAM
July 09, 2019
Satisfying your customers often means providing options. Offering the right payment options is vital when it comes to your core products and services.
Debit cards have grown to become an essential payment option for small businesses to offer their customers.
Today, retailers everywhere know that accepting debit cards is an essential component to serving their customers. found that in the US, debit cards account for 20% of eCommerce spend and 35% of in-store purchases.
Despite the rise of alternative payment methods debit cards are expected to maintain their strength in North America. Worldpay’s 2018 that in 2022 debit cards will retain a 19% share of consumer spending online, with 32% of spend in-store.
Let’s take a look at why accepting debit cards makes sense for businesses like yours.
The enduring popularity of debit cards stems from their remarkable utility. Indeed, debit cards offer a wide range of benefits to consumers:
Accepting debit cards also benefits merchants. Your business may offer the best product or service at the best price. But if you don’t let your customers pay the way they want, they’re very likely heading to your competitor. You’ve worked far too hard to lose customers over their payment method.
For consumers, the difference between debit cards and credit cards is how payments are funded.
As the names imply, “debit” cards take money out of an account—typically a checking or savings account held at a financial institution. Funds are simply debited from customers’ accounts and the transaction amount deducted from their balance.
Similarly, “credit” cards rely on a financial institution extending credit to the consumer. Financial institutions extend credit to consumers who make purchases at businesses that accept credit cards. Credit terms vary with credit extended either on a revolving or fixed basis, predetermined fees and interest rates, and repayment schedules that meet the needs of both the lender and the consumer.
Debit card processing differs from credit card processing in six key ways:
The landscape of payments is evolving rapidly with disruptions from all sides and innovations emerging at blinding speed. That makes it more important than ever for small businesses to select a payments partner to provide for your needs today—and in the future.
If you’re at the stage of your business journey where it’s time to set up payments, obtaining debit card processing is essential. Worldpay helps navigate the world of payments, crafting solutions that best serve your business. We help merchants of all sizes with debit card processing, EMV-compliant hardware, mobile payments and more.
Connect with one of our payments experts to learn more about how we can help grow your business.
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