Index & Debit Cards

[TS79]

Index near Central mall have changed their policy to not accept local bank Visa Debit cards anymore although they will continue to accept Visa Credit cards no problem as of about 6 weeks ago. When asking why they just say that the manager is trying to stop the use of debit cards for reasons unknown. The will refuse to accept debit cards and direct you the ATM machines outside.

Just curious, a question to any merchants out there who use these credit / debit machines.What is the cost of using these systems? Is there much of a difference in fee to the merchant when a customer uses Visa Debit card over Visa Credit card? Can't understand why a big retailer like Index would not want to accept debit cards.

Edited December 5, 2012 by TS79

[stevenl]

Depending on the size of the retailer, the charge will be around 2%, bit more for smaller retailers. Charge for debit and credit cards is the same, so I guess Index is simply thinking: "either the customer goes to the ATM and withdraws money, nobody is charged anything, or he pays with debit card and we pay 2%. Same to the customer, we save some money, so please withdraw."

[Jimi007]

Depending on the size of the retailer, the charge will be around 2%, bit more for smaller retailers. Charge for debit and credit cards is the same, so I guess Index is simply thinking: "either the customer goes to the ATM and withdraws money, nobody is charged anything, or he pays with debit card and we pay 2%. Same to the customer, we save some money, so please withdraw."

You are correct! I'm rather happy that merchants in Thailand are rejecting the notion they should pay Visa and Mastercard for the "privilege" of accepting their card. Banks and credit card companies suck the life out of small merchants. I have no problem visiting the ATM before shopping...