The PerkStreet checking account has the highest rewards program for just about any checking account (are you getting those rewards?) but those rewards come back to you only with “non-PIN debit card purchases.” What does this mean?
When you use your PerkStreet debit MasterCard, many retailers will ask you “debit or credit?” To get rewarded for non-PIN debit card purchases, you must select CREDIT. PerkStreet will reward you only when you use your debit card as a credit card. If you are told by a merchant that you have to enter your PIN, simply press CANCEL and you should be given the option to process the transaction as credit instead.
PerkStreet’s customers average over $600 in rewards each year! Sign up HERE!
A non-PIN debit card purchase occurs with any transaction that does not require you to enter your Personal Identification Number (PIN). Non-PIN transactions that qualify for PerkStreet rewards could include:
- Using your card to make a purchase and signing the receipt.
- Swiping your card at a keypad, selecting “credit” and then signing the receipt.
- Using your card to make a purchase on the Internet, by phone, or at a gas pump.
- Making automatic bill payments with your PerkStreet MasterCard, such as your phone bill, utility bill, or Internet service provider.
Remember that these non-PIN transactions are processed by MasterCard but are still deducted directly from your PerkStreet checking account.
Why non-PIN purchases offer rewards
When you use a debit card with your PIN, the transaction fees are very low, perhaps as low as one half of one percent (0.05%). The fees that result from using your debit card as a credit card can be much higher, perhaps three percent or more. Those fees are what make debit card rewards possible.
But don’t feel bad for the merchant. Those fees are usually budgeted and they agreed with their card processor to pay those fees, so GET YOUR REWARDS by signing up for your own PerkStreet checking account today!
Don’t delay, sign up for PerkStreet’s checking account here and start earning your own rewards!
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In many ways, those that pay using their PIN on a debit card, are subsidizing those that make non-PIN credit card purchases. Using PIN debit or cash makes sense when you are making a gas purchases, or something big like furniture.
No offense, but you are WRONG about merchants ‘budgeting’ for credit card fees! Yes, we agreed to pay them – only because if we don’t allow customers to use credit cards, they will go somewhere else. We can in no way ‘bargain’ with the credit card companies for the amount of the fees they charge us and shopping for a credit card processor is its own kind of hell: each processor figures fees differently, making it impossible to compare ‘apples to apples’.
In our industry, we sell items ranging from .50 to $25,000.00. On the small items, fees hurt the small profit. On the large items (vehicles, but not cars or trucks), if a customer makes a ‘deal’, then whips out a credit card, we have lost even more of our profit. I think many customers are not aware on how large a chunk of money that can be. Let’s say someone bought our most expensive toy at full retail ($25,000.00), plus 7% sales tax, then used a credit card on which we must pay a 3% fee: $26,750.00 x .03 = $802.50.
That is a significant chunk of change. But we are not allowed to charge someone for the privilege of using their card, even though it can cost us big money.
I am also a credit card user, so I see both sides – I just ask you to have some compassion for merchants!
I understand your frustration, but if you aren’t budgeting for those fees, you should be. I am also a merchant, selling items ranging from 10 cents to a premium window package worth over $250,000 and items and services at all price points in between. I budget 2.75% for credit and debit card fees and accept every credit card commonly available in the US.
You may think you can’t bargain with the processors, but I’ve found quite the opposite when I call in four of them and have them all wait outside my office together. After calling them into my office one by one, you’d be amazed at what happens to your fee structure. One will quickly educate you on their competition and they will in turn quickly educate you on his! Believe me, it works. You can then cherry pick the processor very easily, telling them which fees you will accept and which you simply will not.
Thank you for the suggestions. Possibly one problem we have with processors is that we are in a small town – I’ve only ever dealt with one that came to my office, and that was from Huntington Bank – over the years, it has been mainly by telephone, and they email me printouts of their fees – which I find very difficult to compare. Can you give me an example of what kind of fee I can or cannot accept?
Part of my problem is being so unfamiliar with processors… I find it extremely confusing – we accept the Chase, Visa, Discover and American Express, and each one has a different fee set up. Any other suggestions that might help? Or how I can educate myself a bit better?
I’ve been reading your email newsletter for maybe a year now and very much enjoy them!
Glad you’re enjoying the newsletters!
When it comes to card processors, almost everything is negotiable. If I were in a small town with only one known processors, I would try an Internet search of “credit card processors [your city name]” (without the quotes) and begin making contacts the top five or six. Make sure to explain your complaints to them and what you are looking for. Keep looking until you find one or two that you feel you can trust, then verify everything they tell you. There are enough charlatans out there to give the other processors a bad name, but if you sift through enough of them, you’ll find a few that are good, that know their business, and that will show you how everything works.
I would encourage you to still budget between two and three percent, possibly even setting up an accrual account with the help of your accountant to insure you aren’t blindsided by a particularly heavy credit/debit card month.
I am a consumer who uses debit cards of course, and I find the opposite to be true. when I’m dealing with a small shop owner who accepts debit/credit cards due to demand, he will often ask if this is to be processed by debit or credit, but if I give them the choice, they’ll opt for credit. they say the fees are less.
I do try to bring cash because I know they’re hurting for every penny same as I am, but when I forget to get it out of the bank, they choose credit.
Those merchants probably need to re-read their card processor agreements. Opting for credit actually take the transaction offline whereas using debit is an online transaction and its accompanying costs are far lower. I know in my business, we are charged anywhere from 0.5% to 3.2% depending on the credit card used. Debit card transactions are far lower, usually around 0.2%.