Lower charges for funding via Debit Card vs Credit Card?

While a 3% charge on funding by Credit Card is probably in line with market rates, an identical fee for Debit Cards seems to be excessive.

I would be surprised if Goldmoney pays the same fee for CCs and DC to its intermediary. In the retail industry the cost to both the consumer and the retailer for use of a DC is usually a small fixed fee (perhaps 10centc or 20cents) regardless of transaction size.

Please examine the costs to Goldmoney of processing a DC transaction and institute a suitable fee structure independent of your Credit Card fee. This would of course incorporate a reasonable mark-up to contribute to your network costs. You should experience a surge in the use of this very accessible form of payment.

Also please allow CC and DC funding to be set up as recurring transactions as is/was possible on the Personal platform.



  • TexTex Posts: 197 Bronze ✭✭✭
    Credit and Debit cards used online are ran the same way. Debit cards are only cheaper when there is a face to face transaction used with a pin code. That is because the perceived risk is lower and therefore the fees are lower.

    If you use a PayPal account you can reduce your funding fees by 1/3. If you have a credit card or debit card that is a rewards card (they don't have to be a rewards card) you can set one of those as your preferred payment method in your PayPal account. Doing that will help reduce your funding costs even more( depending on the amount of your rewards).

    This will work if you have a full holding account.

    Hope that helps.

  • TexTex Posts: 197 Bronze ✭✭✭
    A PayPal account to fund your Holding account.
  • Skookum_JimSkookum_Jim Posts: 124 Bronze ✭✭✭
    edited September 2017
    Tex said:

    Credit and Debit cards used online are ran the same way. Debit cards are only cheaper when there is a face to face transaction used with a pin code. That is because the perceived risk is lower and therefore the fees are lower.

    I'm sorry @Tex but i have to react - this is simply not true. Creditcards all have much larger fees than debit transaction regardless if the transaction is at the counter or online. By treating them the same goldmoney made me stop depositing at all.

    For european users (who are very aware about CC costs and also are used to very low fees if any for card transactions) there simply does not exist any reasonable way to deposit at the moment.

    @Richard_Cantillon Your thinking is correct, goldmoney most likely overcharges debitcards, else someone has tricked them good....

  • RocketDogRocketDog Posts: 826 Silver ✭✭✭✭
    I have tried to use a debit card instead of a credit card at some stores to save them the extra fees, but they told me that it didn't matter, the finance charge is the same for them, because they were not set up for using debit cards and it rang thru like a credit card. So I think that @Tex may be correct.
  • Skookum_JimSkookum_Jim Posts: 124 Bronze ✭✭✭
    @RocketDog If that is true it would be the same as saying magament is doing a terrible job and should re negotiate te terms asap.

    I doubt they would miss something like this given the effects it has on core business.
  • TexTex Posts: 197 Bronze ✭✭✭
    @Skookum_Jim In the states there are different fees. A business owner is charged less when a customer uses a pin code vs swipes in person. A business owner is also charged more for online payments. It also depends on the type of business the merchant does. American Express charges the most and Visa the least. Its usually 1.4% to 4%+, plus a set transaction fee, plus other misc fees (maybe) but the cost all depends on the size and volume of each merchant and the processing company they select. Of course the fees the merchants are charged are just passed along to the customer in higher prices. It's a trade off for convenience. The banking system and associated laws are most definitely different in each country.

    My recommendation if you have a holding account and want to fund it is to use PayPal to fund the holding account or if you still have a personal account just fund that and forget about the holding account. Hopefully soon, very soon GM will have the ACH/SEPA (the equivalent in your country I believe) available for the holding account to bring it up to par with the old personal account.

  • Skookum_JimSkookum_Jim Posts: 124 Bronze ✭✭✭
    @Tex granted, in the states it is perhaps so but goldmoney is a canadian company to my knowledge? :)

    Either way, debit is WAY to expensive. It's almost as expensive as buying physical so thats what i do instead until there is ways to fund that doesnt cost 3% extra. As consumers we don't have to accept fees you know? We have the choice to take our business else where.

    Unless something happened recently paypal is restricted in and then back out to paypal only, totally pointless if you ask me. Holding? Well, the day it actually has the same functionality as the current free account i may have a look at it again, thus far it looks less than tempting to be honest.
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