Debit cards vs credit cards – it’s an ongoing battle to become the top payment method for everyday purchases. Unlike credit cards which allow customers to pull from a reserve line of credit, debit cards withdraw the funds directly from customer checking accounts. This way, the customer can make purchases with expendable income and not worry about adding to debt.

While you don’t have to take sides in the debit cards vs credit cards debate, it’s important to understand some differences.

Debit cards vs credit cards – advantage: debit cards
Banks are huge advocates for debit cards vs credit cards. After all, it puts more money in their pockets! Since you pay a small transaction fee every time a customer uses debit cards, the banks encourage their clients to use them whenever possible for every day purchases. Some banks will even encourage debit card use by offering reward points redeemable for prizes, or cash back for spending a certain amount. But even though you’ll pay more in overall fees with debit cards vs credit cards, you make up for it with increased sales volume.

If you plan to accept debit cards, you will need to add a PIN pad in addition to a credit card terminal to process transactions. That’s a minor cost when you consider the convenience it offers your customers. They are likely to spend more using their debit card than they would with cash which will help grow your bottom line.

Debit cards vs credit cards – advantage: credit cards
Don’t overlook the lasting popularity of credit cards vs debit cards. Credit cards are still a staple when it comes to increasing customer purchasing power, especially when customers are low on available cash. Credit cards also offer more protection than debit cards because the Fair Credit Billing Act protects consumers from liability for fraudulent charges if the card is lost or stolen. By processing credit card charges in person, you have more proof to fight chargeback threats.

Debit cards are also not always opportune for larger purchases. In fact, some businesses such as the top car rental companies prefer credit cards vs. debit cards, even though debit cards feature the familiar Visa or MasterCard logos. There are two reasons for this:

1. It’s easier to get a debit card by opening a bank account than it is to apply for and get a credit card, so it’s not an effective way to determine if the customer is a good risk.
2. Since debit cards work the same way as a Visa or MasterCard, the business has fewer options if the customer has lack of funds or defaults on payments.

Taking both sides of the debit cards vs credit cards debate
Fortunately for your business, you don’t have to choose debit cards vs credit cards. You can easily accept both – and BuyerZone can help. Simply complete a free request for credit card processing quotes and we’ll match you with multiple suppliers who will provide you with customized quotes for service and equipment. Or, compare merchant account services from multiple providers instantly to learn which one can offer you the best solution for accepting both popular types of payment.