Credit Card Processing for Precious Metal Merchants
Both debit and credit card processing are available for precious metal merchants and coin dealers. Naturally, accepting all major card brands is simply smart business.
Still, when you have a choice whether to accept credit cards or debit cards, your best option is debit cards. The reasons are easy to understand.
Credit card transactions are much easier for consumers to charge back than debit card payments. Consumers can dispute a credit card transaction for six months after the payment was made. The consumer simply calls the card issuing bank and files a dispute.
Savvy consumers frequently initiate credit card chargebacks as an attempt to get the products for free. Chargebacks are a big issue for high ticket credit card merchants where a single transaction represents a big financial loss. And can jeopardize merchant credit card processing accounts.
Credit card issuing banks have a vested interest in siding with the consumer over the merchant. The banks are motivated to keep consumers using the credit cards for other purchases. After, banks make huge profits from credit cards, particularly when cards are not paid in full monthly.
Fighting credit card chargebacks takes time & effort. And, let us face the facts. The odds of winning chargeback disputes are stacked against the merchant.
Additionally, interchange rates for credit cards are significantly higher than interchange for debit cards. As a result, credit card transactions cost more than any other payment method. Increasing your cost of sales.