Limited Acceptance: managing debit-only card acceptance for businesses with specific compliance restrictions.
Certain industries, such as collection agencies, consumer lending, auto finance, and others, are subject to accept debit cards only. For debit-related payments, the card brands mandate the debt to be paid without accruing more debt, such as using a credit card.
Limited Acceptance Merchant
For What Industries Will This Be Best Suited?
Businesses typically want to accept as many payment methods as possible to avoid negatively impacting sales. For some businesses, compliance rules restrict certain payment options to ensure legality. For any debt-related business, debit-only processing is a requirement. Because a debt repayment can’t be paid with another debt, such as a credit card, it is mandated to pay strictly with a debit card. These businesses include debt collection agencies, consumer loans, auto finance, mortgages, student loans, and other lending-related products.
Implementing the Changes: How To Ensure Debit Only
To ensure compliance, card brands and banks rely on technology utilizing BIN-based tables. Some payment gateways will have BIN tables integrated, which shows the card type (debit or credit) based on the first six digits. At a gateway level, a setting can be enabled for debit-only processing, which requires the gateway to validate during the authorization if the card is a debit card. If the card is debit, the gateway will authorize like normal; however, if it is credit, it will be instantly declined. BIN-based technology to ensure debit-only compliancy is a very powerful tool to ensure merchants operating in a debit-related business are compliance and legal. Due to our technology and expertise in these verticals, our compliance-driven approach is to ensure legality with both card brands and the banks.