Originally Posted by NeilVA
Actually its different from card to card. A store branded card is the lowest for the store( around 1%-1.5%) while all the others are 3%-5%.
Debit cards are currently treated as secured credit cards(but do not have the same benefits as one), so they get the same fee by the processing merchant as a normal credit card. Checks are treated as promissary notes, so they are charged their monthly processing by their bank and then there is a bank to bank fee. Ever wonder why banks prefer you use debit cards rather than checks? Now you know why.
(This is the merchant services employee talking) but when I said debit, I meant transactions where you enter a pin number with your card. The pin is the secure piece. With that (with what I see at work) the merchant pays a lower rate for that transaction than if the signature is supposed to be secure.
Basically I could see a store refusing to take a pin-based debit or signature sale for a payment on a line of credit because it costs said store money, which I see every day take a bite out of profits.