Debit or Credit Card Interchange Fees

If you buy anything you often ask yourself is it debit or credit transaction.The real difference is how your purchase is processed.what fees are admitted on the purchase,who are paying it and what fee are with bound with it.

when you use your credit card sometimes you choose how your purchase is processed either online or offline.If its online than you will be probably needing to enter your PIN Number for the purchase.This way is quick.and it will take no time.Other way is that you sign a slip this is offline transaction and need some time while its been confirmed.

If your credit card has a VISA logo on it than it is running on a visa network.

The difference between online and offline transaction is that when you do a offline purchase by simply signing a slip the retailers have to pay 2% of the fee this is called interchange fee which goes to the bank which issued your debit or visa card.

Online transaction the retailers have to pay lot less 10 cents per transaction which goes to the bank who issued your credit or debit card.