With the introduction of Visa Debit, consumers have another way to pay for goods and services. What does this mean for your business?
What is Visa Debit?
Visa Debit works like any ordinary debit card. It allows cardholders to pay directly from their bank account. However, there are three primary differences between Visa Debit and Interac.
- Security. Visa Debit offers enhanced security over traditional debit cards including fraud insurance, fraud monitoring, identity theft assistance, and a 3-digit security code that verifies a cardholder’s identity for internet and phone transactions.
- Convenience. Unlike Interac, Visa Debit allows cardholders to pay by internet, phone, and mail.
- Rewards. Visa offers cardholders rewards for shopping with their Visa debit cards. Rewards include airmiles, cashback, and travel points.
How does Visa Debit affect your business?
There are several costs and benefits that you should consider before deciding to offer Visa Debit as a payment option.
- Cost. You may find that your transaction costs increase as more of your customers switch to Visa debit cards. Currently, Interac charges a flat rate per transaction. Visa debit costs retailers between 1-2% per of the transaction.
- Benefits. As a merchant, you are not required to accept Visa debit cards. However, given Visa Debit’s market potential, it’s worth considering. For instance, a survey commissioned by Visa Canada in 2009 found that 74% of respondents were interested in a debit card with enhanced features.
Here are some of the benefits of accepting Visa Debit.
- Increased customer service. Canadian consumers want payment