Is a debit card sale cheaper for a merchant than a credit card sale?
Summary
Underneath, yes, by a wide margin. On a $50 in-person sale, Visa's published interchange is 24.5¢ for a debit card from a large bank and 85.5¢ for a consumer credit card in Visa's "All Other Products" category. You see that gap only on some plans, because a flat rate charges the same for every card.
The gap, in cents
Visa publishes the interchange its issuers receive for each kind of card. Using the table effective April 18, 2026, on a $50 sale taken in person:
The extra cent on regulated debit goes only to issuers that meet the Fed's fraud-prevention standards. The regulated figure is low because the Federal Reserve's Regulation II caps debit interchange at 21¢ plus 0.05% for issuers that, with their affiliates, hold $10 billion or more in assets. A card from a small bank or credit union is exempt from the cap and costs more than twice as much at the same register. Nothing on the card tells the cashier which kind it is.
Why most small shops never see it
On Chase's standard pricing, all cards cost the same: 2.6% plus 10¢ for tap, dip, or swipe. Chase's statement guide says a flat-rate plan can carry one rate for credit and one for debit, and that PIN debit may cost less. On an interchange-plus plan the table above flows straight onto the statement, so a shop whose customers mostly pay with debit keeps more of the difference.
Pressing "credit" does not make it a credit card
A debit card can run with a PIN or over a card network without one. Visa's surcharging FAQ is direct about the button on the terminal: a cardholder who picks "credit" is still using a Visa debit card, and the choice only decides signature versus PIN. U.S. merchants cannot add a surcharge to a Visa debit or prepaid card, and Mastercard does not allow surcharges on Debit Mastercard or prepaid cards either.
Routing belongs to the merchant
Regulation II bars every issuer and network, whatever the issuer's size, from limiting a debit card to fewer than two unaffiliated networks, and from stopping the merchant from choosing among the networks the issuer has enabled. A 2022 amendment spelled out that this covers card-not-present sales such as online payments. It took effect July 1, 2023.
In October 2023 the Fed proposed lowering the cap, which would have taken a $50 debit sale from 24.5¢ to 17.7¢. It has not become a final rule. The last entry in the Federal Register docket is a January 2024 extension of the comment period, and the federal regulatory agenda lists the proposal as a long-term action with the next step undetermined.
Sources
- usa.visa.com/content/dam/VCOM/download/merchants/visa-usa-interchange-…
- federalreserve.gov/paymentsystems/regii-about.htm
- federalreserve.gov/paymentsystems/regii-average-interchange-fee.htm
- federalreserve.gov/newsevents/pressreleases/bcreg20221003a.htm
- federalreserve.gov/newsevents/pressreleases/bcreg20231025a.htm
- federalregister.gov/documents/2023/11/14/2023-24034/debit-card-interch…
- reginfo.gov/public/do/eAgendaViewRule?pubId=202510&RIN=7100-AG67
- chase.com/business/payments/merchant-fees
- chase.com/business/support/payments/statements-and-fees
- usa.visa.com/content/dam/VCOM/global/support-legal/documents/merchant-…
- mastercard.com/us/en/business/support/merchant-surcharge-rules.html
Related on this site
- Who is the acquirer in a card payment, and how is it different from the card issuer?
- Who pays when a card processor advertises zero fees?
- Does a flat rate, interchange-plus, tiered, or subscription plan cost a merchant the least?
- Where on a merchant statement do you find what card processing actually cost you?
- Why interchange-plus pricing cannot be totaled
Written by Kaz (pen name). Figures are copied from providers' published pricing pages on the dates shown. We have not used these products. Corrections: contact form.