How Flat Rate Merchant Credit Card Processing Works

Debit cards are very common there (an average of almost 2 cards per adult). This national payment method is therefore well suited to B to C, but also to B to B. Transactions can be carried out online in the form of a pre-filled electronic bank transfer. 2 ways to make this transfer:

Transferring Money Online

On the e-shop, by entering the PAN number (Primary Account Number) of the debit card (17 digits), then validating the transfer via the online authentication method used by the issuing bank (by example a Digi-pass or other system for generating a unique code after entering a PIN code and data related to the transaction: amount or date). While Selling Credit Card Processing is perfect with flat rates, the options are open now.

On his smartphone, from the Merchant service application on which the debit card will have been pre-validated, after scanning a QR code displayed during the “payment” step on the e-shop and signing the transaction at using the PIN code specifically established on this app. The transfer appears directly in the account statements linked to the debit card.

Merchant service has now almost completely replaced the systems that each major bank had designed to set up online pre-filled electronic transfers from their own “web banking” system. These systems had the drawbacks that the e-merchant had to take out a subscription with each of them and adapt his e-commerce site in order to be able to accommodate all the customers of these different banks (unless he used a PSP) which integrated the different solutions of the banks in its solution). Consequently, few e-shops offered this method of payment. Note that the Merchant service system is limited in this country.

Benefits For E-Merchants Of Accepting Online Debit Card Payment

Security of transactions: these are carried out with the same level of security as online banking. The risk of piracy is very low;

The debit card is very widespread: more than 10 million copies in This country, the Belgians having several. Thus the e-commerce site can reach a wider population: adolescents, retirees and the unemployed.

Little new learning for people already used to online banking: They will therefore be quite easily disposed to use this method of payment;

No monthly limit: the transaction will be accepted as long as the bank account is sufficiently funded or that the opening of consumer credit that would have been granted to this customer is sufficient. However, ceilings are sometimes set in the Web-banking contract;

Good adaptation to B to B transactions (between companies), the use of online banking is becoming widespread in companies.

Disadvantages for the E-Merchant

Non universality: it is a system of national scope. Maestro (deployed by MasterCard), on the other hand, is the most common debit card brand in the rest of Europe. ;

Difficult dispute: unlike payment by credit card which applies a direct refund in the event of a dispute, with the seller responsible for showing that there is a fraud, the customer will have to submit a file to be reimbursed if he has not received the product and has not been directly refunded by the seller.

This payment method is experiencing strong development in this country, now reaching around 1/3 of online electronic payments. It is more particularly recommended when the site is aimed particularly at young people, or at other companies (B to B).

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