3 PAYMENT METHOD SCORECARD: CARD | DEBIT
Cost
involve creating the front-end user experience as well as the back-end integration to accept card payments. If they operate in-store and online, multiple front-end and flows would be needed. This would demand higher costs up-front, but likely lower monthly costs to a provider. However, smaller merchants may opt for a plug-in option with a gateway that allows them to accept payments without creating the user experience and accompanying software but may lead to higher costs in the long run with monthly subscriptions to Rewards are not as common for debit cards in comparison to credit cards but do exist. Deposits held in demand deposit accounts linked to a debit card may accrue interest, which can be considered a reward for debit usage. 811 Interest Payment on Debt The nature of debit cards does not support accumulating debt; however, over drafting from an account is possible and overdraft fees can reach up to $35 per overdraft transaction. Surcharging Surcharging is banned in many countries, and as a result many network rules also ban surcharging. Even where it is allowed (e.g., Australia and on credit cards in some U.S. states), there are limitations including loss of sales. Complex laws surrounding surcharging means merchants often are not able to exercise their right to surcharging. use the provider’s services. 810 Consumer/Bank Costs Rewards
Metrics
Weight Score
Average Fee Level
15% 5.0 10% 1.0
Competitive Leverage
Competition within Payment Method
15% 4.0
Fixed Cost Rewards
10% 2.0 15% 2.0 15% 4.5 20% 3.0
Interest Payment on Debt
Surcharging TOTAL SCORE
3.3
Merchant Costs Average Fee Level (Updated as of September 4, 2025.) According to CMSPI’s Cost of Payments Analysis, debit card’s average fee is 0.67%. Note: this analysis includes global data; debit card average fees Card payments are the most popular consumer payment method in most countries, sometimes by large margins. It would be difficult for a merchant to not accept card payments. Competition within Payment Method Competition in the form of co-badging within debit cards is widely available in countries such as the U.S. & Australia. It is not always mandated in countries but still can be seen in countries such as Denmark and Germany. While competition exist, enablement issues, e.g., PINless debit in the U.S., can prevent merchants from easily accessing all of the networks available on the card, which can limit a merchant’s negotiating leverage. Fixed Costs can vary significantly by country. Competitive Leverage Fixed costs for credit and debit card acceptance can range depending on the size of the merchant and their operating environment. Larger merchants with the means to invest in custom APIs may consider building a solution in-house which would
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