Preliminary numbers for the first quarter show a decrease of just under 18% in credit card processing volume for my portfolio compared to same quarter results last year. Good news, you say? Actually, the good news is that processing fees decreased closer to 30% from same quarter numbers. So, while processing volume is down, fees are down tremendously. The MAIN REASON fees are down is directly attributable to the increase in the use of debits cards as the main form of payment. Industry-wide, Q1 of 2009 was the first quarter ever when debit card processing volume exceeded credit card processing volume for Visa.

All great news, but where’s my sales pitch? Processing debit cards is only less expensive if you have a debit rate.  I still see a larger percentage of merchants that still pay the same rate to process debit and credit cards. Most processors don’t give their merchants a separate (or low enough) debit rate.  All my merchants take advantage of lower processing rates for debit cards. This is only one of the ways that I can help reduce your overhead. Call me for more ways.