Tit-Bits Debit Card – Bankers understanding its latent potential.

Debit Card – Bankers understanding its latent potential.

More and more bankers are jumping into the wagon of Debit Cards.

This interest in the Debit Cards should benefit the customers at large.

An interesting article can be accessed at http://www.moneycontrol.com/watchlist1/searchnews.php?call=687474703a2f2f7777772e74686568696e6475627573696e6573736c696e652e636f6d2f323030392f30362f31392f73746f726965732f323030393036313935323435303130302e68746d

Banks are looking at the 1.5-2% transaction cost earned by them on each Debit Card Swipe. Majority of the Merchant Establishments pass on this transaction cost to the customers.

I opine that the Banks should

01) Charge the Transaction cost at a differential rate, than at a flat rate, from all industries, depending on the Current Account Float .

02) Encourage Merchant Establishments NOT to recover this transaction cost from the customers, by educating them of the benefits of the Debit/Credit POS Terminal.

What I find interesting is that Andhra Bank too has jumped into the Debit Cards Wagon, by understanding the lower transaction costs in cashless(ePayments) transactions.

Debit Cards-The innovative Vehicle to propel ePayments