How Visa Debit Card Works- Difference Between The US And Canada

In the US, a Visa debit card is issued by the American financial institution. In the case of Canada, it is issued by the Canadian financial institution. Although both these cards look the same, there are many differences between the US Visa debit card and the Canada Visa card. Merchant account services work differently in order to process payments. However, we have made a brief breakdown of how Visa card works in the US and Visa card works in Canada. So, if you want to know more about these, go through the following points:

How Visa Debit Card Functions in the US

In the US, the definition of the Visa debit card is quite different from the rest of the world. The consumers can use their debit cards as a credit card. Yes, merchants can accept credit card payments online from the consumer’s debit cards.

Basically, the card-issuing network is the same for debit and credit cards in the US. Therefore, it does not matter whether it is a credit or debit purchase. The merchants will always see the Visa symbol at the debit or credit card machines.

However, the responsibility of the customer also plays a very impactful role here. Customers have to clarify before making the transaction. That for what purpose, he or she is going to use the card. In case of credit, the transaction fee will be deducted from the available credit card balance and on the other side, if the customer uses it as a debit card, the balance will be deducted directly from the customer’s savings account. So, after making the decision, the merchant will swipe the card through the payment terminal.

So, here, the flexibility is at its best as the entire payment processing system is based on the customer’s decision. Moreover, cardholders will get benefits from all kinds of transactions. They can even earn points on their Visa debit card purchases.

How Visa Debit Card Functions In Canada

In Canada, the scenario is quite different. According to the Code of Conduct for the Credit and Debit Card Industry in Canada, the card-issuing networks have to issue credit as well as debit cards ‘as separate payment cards’.

It means that Visa debit cards work on a different network in Canada. It is actually the Interac network that is used by all the debit cards in Canada. But, there are some differences-

If the consumer makes debit card bill payments using pin, chip, and swipe technology at the merchant’s payment terminal, it will be always considered as the Interac debit transaction. But, on the other side, if the customer makes phone purchases or any online bill payments using the numbers carved on the debit card, it will be processed as a Visa debit card transaction.

In Canada, it does not matter whether the transaction is processed using Interac’s or Visa’s network, if the consumer is making any debit card transaction, the amount will be deducted directly from the account of the cardholder. If there is not an adequate amount of funds available in the bank account of the consumer, the transaction will be automatically declined. Here, Visa debit card does not borrow any money which is actually seen in the case of Visa credit card.

Benefits of Accepting Visa Debit or Credit Card Payments

Standing in the 21^st century, we all are quite acquainted with the fact that people are giving more preference to cashless transactions. Therefore, if we see the whole matter from a businessman’s perspective, having POS or any kind of payment terminal has become necessary. But, we are not getting into that point. What we are going to tell you is the advantage of accepting Visa debit or credit card payments. So, have a look at the following points:

• Enable More Choices and Convenience To The Customers: Visa debit cards allow the customers to choose the way they want to make the payments for purchasing items. Therefore, if you accept Visa cards, it will definitely make a solid impression upon your customers. They can purchase items from your store using their preferred payment methods. Ultimately, it will ensure that your business is not going to face any downfall.

• Easily Attract Travellers: Travellers generally do not carry a good amount of cash as they prefer Visa cards. So, if you accept Visa debit cards, you can easily attract travellers and elevate your business to the next level.

• Everyone Does Not Have Access to Credit Cards: It is a fact that it is not so easy to be eligible for credit cards and therefore, everyone does not have access to credit cards. So, if you as a business owner accept Visa debit cards, you can make it easier for such people. They can easily make transactions at your shop.

Need To Accept Visa Debit Cards?

In order to accept Visa debit cards, you have to pair your business with merchant processing solutions, and International Payment Solution otherwise known as IPS is one of the reputable payment processors in Canada. So, we recommend you to go with IPS that offers ready-to-use card processing services. Paired with the latest technologies and security, debit card machines at IPS will definitely boost your confidence level.

So, what are you waiting for? Visit International Payment Solutions today and avail of their top-notch service.

Start accepting credit card online and/or in your store today! , Fill out the below form for a free consultation, we will get back to you shortly: