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Fees on Visa debit card?

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Contributor

Fees on Visa debit card?

Why are fees charged on Visa debit cards on Paypal, but not on Venmo?  It was a reward card I received as part of a promotion, but it works exactly like a debit card everywhere else except PayPal.

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Moderator

Re: Fees on Visa debit card?

Hi @SiggyMarvin

 

That's a great question and I can answer it with the information we've been provided. When processing a payment via a debit or credit card, several of them will use the same processor which means we would incur fees regardless of whether it's a debit or credit card. Card processors and banks will do this as you're afforded a lot more dispute options when transactions are processed as credit. When debit cards are rarely processed as a debit card, we don't incur a fee for processing this payment. However, it happens so little, that we choose to have a flat rate for cards when you send a personal payment. 

 

Debit cards have the ability to process as a credit or debit. Most places like Venmo will only allow a debit card to process as a debit to ensure that fees aren't charged to them to process the payment. However, this option can also limit the ability as to which cards can process with them. There is a give and take in each situation. I know this response can be confusing but I hope it helps you understand the difference. 

 

Regards, 

Drew

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3 REPLIES 3
Esteemed Advisor

Re: Fees on Visa debit card?

@SiggyMarvin 

 

Maybe you used card to send money at PayPal (as oppose to making purchases) for which there are fees.

 

https://www.paypal.com/en/webapps/mpp/paypal-fees#sending-friends-family

https://www.paypal.com/en/webapps/mpp/paypal-fees#buying


Kudos & Solved are greatly appreciated. 🙂
Contributor

Re: Fees on Visa debit card?

That's actually my point. There are no fees for sending money to a person with Venmo. Why can't Paypal do the same? I believe they now own Venmo.
Highlighted
Moderator

Re: Fees on Visa debit card?

Hi @SiggyMarvin

 

That's a great question and I can answer it with the information we've been provided. When processing a payment via a debit or credit card, several of them will use the same processor which means we would incur fees regardless of whether it's a debit or credit card. Card processors and banks will do this as you're afforded a lot more dispute options when transactions are processed as credit. When debit cards are rarely processed as a debit card, we don't incur a fee for processing this payment. However, it happens so little, that we choose to have a flat rate for cards when you send a personal payment. 

 

Debit cards have the ability to process as a credit or debit. Most places like Venmo will only allow a debit card to process as a debit to ensure that fees aren't charged to them to process the payment. However, this option can also limit the ability as to which cards can process with them. There is a give and take in each situation. I know this response can be confusing but I hope it helps you understand the difference. 

 

Regards, 

Drew

View solution in original post