Debit card transactions are significantly cheaper to process than credit card transactions. Regulated debit interchange is just 0.05% + $0.21–$0.22 — compared to 1.5%–2.7% for credit cards. But many merchants don't see those savings because of how their processor structures pricing.
The Debit vs. Credit Gap
| Card Type | Typical Interchange |
|---|---|
| Regulated debit | 0.05% + $0.22 |
| Standard credit | 1.65% + $0.10 |
| Rewards credit | 2.10% + $0.10 |
| Premium credit | 2.50% + $0.10 |
On a $50 transaction, regulated debit interchange is $0.25. Premium credit interchange is $1.35. That's a 5x difference.
Why You Might Not Be Seeing Debit Savings
Flat-rate processors charge the same rate on everything. Square charges 2.6% + $0.10 whether the customer uses a debit card or an Amex Platinum. On debit transactions, the processor keeps the enormous difference between what they pay in interchange (~$0.25) and what they charge you (~$1.40).
Network Offset Pricing works with all card types. Unlike surcharging (which cannot be applied to debit cards), Network Offset Pricing displays cash and card prices for all payment methods — credit, debit, and other electronic payments.
Robert T. writes about the financial impact of payment processing on small business profitability. With an MBA and experience in small business lending, he quantifies how processing fee structures affect margins, tax deductions, and bottom-line performance.
$0.25
. Premium credit interchange is $1.35. That's a 5x difference.
Get Started
The first step to reducing your processing costs is understanding exactly what you are paying today. Request a free statement analysis and we will show you a side-by-side comparison of your current costs versus what you could save with Network Offset Pricing.