How much must a merchant pay the card issuer when a customer uses a credit card? Or a debit card?

Question

I specifically want to know the difference in the cost to the merchant between credit- and debit-card usage.

Answer 1

One store told me. A signature purchase it cost them 1.6 % plus a 25 cent per transaction. A pin purchase cost them only 25 cent per transaction.

Debit cards with a MasterCard or A Visa symbol can work as a signature purchase and a pin purchase.

Banks prefer you to use it as a signature purchase. Merchants prefer you to use it as a pin purchase. Some banks will charge
you for doing a pin purchase.

Answer 2

The answer is two fold. for Credit card you are charge a 'discount fee' which is a percent of the sale for each transaction (1.5% or so) plus a transaction fee of about 20 cents.

Debit work a little different. Higher fees, both of them, but you can charge your customers an ATM convience fee, you can not charge this fee with credit cards.