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4 Easy Rules Of Debit Card Fees | debit card fees

Those who have both secured and unsecured credit cards often wonder which type of bank account they should choose when deciding which one of the two will be best for their purchases. While each type of card has its advantages and disadvantages, it is usually a good idea to understand these so that you can make an informed decision on what you would like to use your card for. Here are a few of the main differences between debit cards and credit cards and why they are charged in the way they are:

* Processing fees – A processing fee is a flat rate fee paid by you for any debit card transactions. This fee is calculated based on the amount of money you have loaded onto your card and varies according to the card provider. Some providers may charge an annual or monthly service fee while others may only charge a single transaction fee.

* Service fees – Different credit and debit card networks charge different service fees for their services. These include overdraft fees, maintenance fees, transaction fees, and any other charges specific to the card network. Some card networks may include an application fee, which is a one time membership fee charged for the card. You also pay transaction fees if you wish to charge a gift card or store card. Some networks also charge an application fee if you wish to sign up for an automatic billing program.

* ATM fees – Credit and debit card fees are also determined by the frequency with which you use your card at an ATM. Most banks charge a flat rate fee for every twenty four hours or the amount of minutes you wish to be billed for. Some banks charge an hourly fee. Many banks offer online banking, which allows you to withdraw from your account directly through your bank website or mobile website from your phone, which saves you the trip to an actual bank.

* ATM surcharges – A bank may charge an ATM surcharge each time you use your debit card to make a purchase or to withdraw money. The ATM surcharge is usually based on the amount withdrawn and not on the total spent. For example, if you have ten dollar bill in your pocket and you intend to use the ATM to get to twenty five dollars, the surcharge will be calculated as follows: (ten dollars) x 24 hours = forty five dollars. In other words, a bank will add forty five dollars to your transaction amount and tack it to the debit card fees.

* Debit card processing fees – The two types of fees that are assessed for debit card processing are referred to interchange fees and interchange commissions. Interchange fees are charged when a customer uses a credit or debit card to make a purchase or to make an online transaction. This fee varies between credit and debit card networks. In most cases, a bank will apply an interchange fee to each purchase and to each withdrawal. This fee is added to the regular debit card fees. Some networks also charge an annual maintenance fee that is equal to one percent of the debit card transactions performed each calendar year.

* Debit card processing fees – There are two different fees that are assessed for debit network fees. A flat transaction fee is charged for each debit transaction, regardless of the amount of the sale. This fee is applied once per month. On the other hand, the annual transaction fee is charged every twelve months. The fee is deducted from the balance of your account after you pay the applicable minimum charge.

When shopping for a card, always check on the fees associated with your chosen bank. Banks can charge fees for all transactions. They may charge one fee for debit transactions and another fee for cash transactions. Some charge fees for debit purchases, while others may charge a membership fee that is only applied once and expires after twelve months. All fees can be assessed whether you are using a credit or debit card. It is always advisable to read the terms and conditions associated with your chosen bank's services before you make a purchase.


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