Payment Cards: Types of Debit and Credit Cards and Their Impact on SMEs

Payment Cards: Types of Debit and Credit Cards and Their Impact on SMEs

Payment Cards: Types of Debit and Credit Cards and Their Impact on SMEs

Payment Cards: Types of Debit and Credit Cards and Their Impact on SMEs

Do you want to know more about the different types of cards used in France? Take a look at our analysis of the main credit cards.

Do you want to know more about the different types of cards used in France? Take a look at our analysis of the main credit cards.

Payments-and-checkout

Nov 29, 2022

The credit card is a familiar item in France, an integral part of our daily lives. Whether it's for the latest Prix Goncourt, Stromae's new album, or a trendy shirt to make a statement at a party, the French don't hesitate to pull out their debit or credit cards for their purchases. It remains the most widely used payment method for online shopping, offering the advantages of speed and security. To boost sales, online stores aiming to sell in France have a vested interest in offering trustworthy payment methods. However, be mindful of transaction fees and the often inconsistently used terminology. Here's all the useful information you need!

The credit card is a familiar item in France, an integral part of our daily lives. Whether it's for the latest Prix Goncourt, Stromae's new album, or a trendy shirt to make a statement at a party, the French don't hesitate to pull out their debit or credit cards for their purchases. It remains the most widely used payment method for online shopping, offering the advantages of speed and security. To boost sales, online stores aiming to sell in France have a vested interest in offering trustworthy payment methods. However, be mindful of transaction fees and the often inconsistently used terminology. Here's all the useful information you need!

The credit card is a familiar item in France, an integral part of our daily lives. Whether it's for the latest Prix Goncourt, Stromae's new album, or a trendy shirt to make a statement at a party, the French don't hesitate to pull out their debit or credit cards for their purchases. It remains the most widely used payment method for online shopping, offering the advantages of speed and security. To boost sales, online stores aiming to sell in France have a vested interest in offering trustworthy payment methods. However, be mindful of transaction fees and the often inconsistently used terminology. Here's all the useful information you need!

The credit card is a familiar item in France, an integral part of our daily lives. Whether it's for the latest Prix Goncourt, Stromae's new album, or a trendy shirt to make a statement at a party, the French don't hesitate to pull out their debit or credit cards for their purchases. It remains the most widely used payment method for online shopping, offering the advantages of speed and security. To boost sales, online stores aiming to sell in France have a vested interest in offering trustworthy payment methods. However, be mindful of transaction fees and the often inconsistently used terminology. Here's all the useful information you need!

A Brief Overview of Credit Cards

Definition

Let's start with a brief definition: a credit card is a magnetic card issued by a financial institution and used to carry out transactions. There are several types. To navigate the available options, let's focus on credit cards as a payment method AND as a network, along with their use.

Categories

First, let's take a look at the two main categories of credit cards:

  1. Debit Card: This card allows both cash withdrawals and payments, whether online on an e-commerce site or at a local merchant.

    It is a payment card, usually with systematic authorization: before each transaction, the account balance is checked, and if sufficient, the transaction is authorized. There are also debit cards without systematic authorisation, where the authorisation request is random, a specificity in France due to the CB network, which we'll discuss later.

    Important: Transaction amounts with a debit card are debited daily, i.e., immediately, from the account of the cardholder. This is one of the main characteristics of this type of card.

  2. Credit Card: This card also allows cash withdrawals and payments. There are two subcategories:

    • Deferred Debit Card: All operations the cardholder performs during a specified period (usually a month) are debited at a later date, not immediately (excluding cash withdrawals). Generally, the cardholder is not liable for interest.

    • Credit Card: As known in France, offering a revolving credit facility and the option to pay in instalments. There are various types, such as store-branded cards (issued by a retail brand like Décathlon or Amazon), allowing cash withdrawals and payments within a specific network, or co-branded cards accepted by all merchants.


Note: To recognise them, it's straightforward! Since 2016, with the application of Regulation (EU) No. 2015/751, credit cards bear the "DEBIT" label (for immediate debit cards). Credit cards, on the other hand, display "CREDIT" for deferred debit cards, for example, those allowing instalment payments or revolving credit.


There are two other card categories:

  • Commercial Card: Also called a professional card, labeled "COMMERCIAL," with expenses charged to a company's account.

  • Prepaid Card: Reserved for individuals, labeled "PREPAYE." This card allows access to a limited amount of money, such as gift cards.

And the term "carte bancaire" in all this? Well, it no longer exists as such. A "carte bleue" is actually a French Visa card. Does the CB logo not mean "carte bleue"? No, it doesn't. The CB logo actually stands for "carte bancaire" and appears on all cards issued by French banks, referring to the CB Banking Card Group, the market leader in France with 73.9 million CB cards in 2021 and over 14 billion transactions.

"With the European regulation, the merchant has the option to automatically preselect their preferred payment brand for each transaction — the one offering the most favourable conversion rate, the highest guarantee level, or the lowest fees. However, the customer must have the option to change this brand if they wish". - Loys Moulin, Director of Development at CB.

This brings us to the main networks available in France.

What is a Network or Scheme?

When a customer pays for online purchases with their card, they usually have the choice between CB, Visa, or Mastercard— the three main payment networks in France. The CB Banking Card Group is a French specificity, while Visa and Mastercard are the two international giants of credit cards.

What does this mean? It means that the selected network processes the transaction and applies network fees, i.e., commissions, to verify the client's solvency and ensure that online store owners are remunerated. The various networks intervene at the time of transaction validation.

It's worth noting that the vast majority of credit cards issued by a French bank are co-badged: in addition to the French CB network, they support an international network (usually Visa or Mastercard). Transaction fees for a purchase paid with a Visa card issued by a French bank will be the same as those for a CB card. However, if you sell internationally, be aware that these fees may be higher for cards issued abroad. In such cases, transaction fees for a purchase made with a Visa issued in Belgium, for example, will be charged at Visa Europe rates. And in the case of a purchase made with a Visa issued in Algeria, transactions will be billed at Visa International rates.

Now that introductions are made, and you know a bit more about the different types of credit cards, let's delve into the details of transaction pricing—an essential aspect of e-commerce.

Definition

Let's start with a brief definition: a credit card is a magnetic card issued by a financial institution and used to carry out transactions. There are several types. To navigate the available options, let's focus on credit cards as a payment method AND as a network, along with their use.

Categories

First, let's take a look at the two main categories of credit cards:

  1. Debit Card: This card allows both cash withdrawals and payments, whether online on an e-commerce site or at a local merchant.

    It is a payment card, usually with systematic authorization: before each transaction, the account balance is checked, and if sufficient, the transaction is authorized. There are also debit cards without systematic authorisation, where the authorisation request is random, a specificity in France due to the CB network, which we'll discuss later.

    Important: Transaction amounts with a debit card are debited daily, i.e., immediately, from the account of the cardholder. This is one of the main characteristics of this type of card.

  2. Credit Card: This card also allows cash withdrawals and payments. There are two subcategories:

    • Deferred Debit Card: All operations the cardholder performs during a specified period (usually a month) are debited at a later date, not immediately (excluding cash withdrawals). Generally, the cardholder is not liable for interest.

    • Credit Card: As known in France, offering a revolving credit facility and the option to pay in instalments. There are various types, such as store-branded cards (issued by a retail brand like Décathlon or Amazon), allowing cash withdrawals and payments within a specific network, or co-branded cards accepted by all merchants.


Note: To recognise them, it's straightforward! Since 2016, with the application of Regulation (EU) No. 2015/751, credit cards bear the "DEBIT" label (for immediate debit cards). Credit cards, on the other hand, display "CREDIT" for deferred debit cards, for example, those allowing instalment payments or revolving credit.


There are two other card categories:

  • Commercial Card: Also called a professional card, labeled "COMMERCIAL," with expenses charged to a company's account.

  • Prepaid Card: Reserved for individuals, labeled "PREPAYE." This card allows access to a limited amount of money, such as gift cards.

And the term "carte bancaire" in all this? Well, it no longer exists as such. A "carte bleue" is actually a French Visa card. Does the CB logo not mean "carte bleue"? No, it doesn't. The CB logo actually stands for "carte bancaire" and appears on all cards issued by French banks, referring to the CB Banking Card Group, the market leader in France with 73.9 million CB cards in 2021 and over 14 billion transactions.

"With the European regulation, the merchant has the option to automatically preselect their preferred payment brand for each transaction — the one offering the most favourable conversion rate, the highest guarantee level, or the lowest fees. However, the customer must have the option to change this brand if they wish". - Loys Moulin, Director of Development at CB.

This brings us to the main networks available in France.

What is a Network or Scheme?

When a customer pays for online purchases with their card, they usually have the choice between CB, Visa, or Mastercard— the three main payment networks in France. The CB Banking Card Group is a French specificity, while Visa and Mastercard are the two international giants of credit cards.

What does this mean? It means that the selected network processes the transaction and applies network fees, i.e., commissions, to verify the client's solvency and ensure that online store owners are remunerated. The various networks intervene at the time of transaction validation.

It's worth noting that the vast majority of credit cards issued by a French bank are co-badged: in addition to the French CB network, they support an international network (usually Visa or Mastercard). Transaction fees for a purchase paid with a Visa card issued by a French bank will be the same as those for a CB card. However, if you sell internationally, be aware that these fees may be higher for cards issued abroad. In such cases, transaction fees for a purchase made with a Visa issued in Belgium, for example, will be charged at Visa Europe rates. And in the case of a purchase made with a Visa issued in Algeria, transactions will be billed at Visa International rates.

Now that introductions are made, and you know a bit more about the different types of credit cards, let's delve into the details of transaction pricing—an essential aspect of e-commerce.

Definition

Let's start with a brief definition: a credit card is a magnetic card issued by a financial institution and used to carry out transactions. There are several types. To navigate the available options, let's focus on credit cards as a payment method AND as a network, along with their use.

Categories

First, let's take a look at the two main categories of credit cards:

  1. Debit Card: This card allows both cash withdrawals and payments, whether online on an e-commerce site or at a local merchant.

    It is a payment card, usually with systematic authorization: before each transaction, the account balance is checked, and if sufficient, the transaction is authorized. There are also debit cards without systematic authorisation, where the authorisation request is random, a specificity in France due to the CB network, which we'll discuss later.

    Important: Transaction amounts with a debit card are debited daily, i.e., immediately, from the account of the cardholder. This is one of the main characteristics of this type of card.

  2. Credit Card: This card also allows cash withdrawals and payments. There are two subcategories:

    • Deferred Debit Card: All operations the cardholder performs during a specified period (usually a month) are debited at a later date, not immediately (excluding cash withdrawals). Generally, the cardholder is not liable for interest.

    • Credit Card: As known in France, offering a revolving credit facility and the option to pay in instalments. There are various types, such as store-branded cards (issued by a retail brand like Décathlon or Amazon), allowing cash withdrawals and payments within a specific network, or co-branded cards accepted by all merchants.


Note: To recognise them, it's straightforward! Since 2016, with the application of Regulation (EU) No. 2015/751, credit cards bear the "DEBIT" label (for immediate debit cards). Credit cards, on the other hand, display "CREDIT" for deferred debit cards, for example, those allowing instalment payments or revolving credit.


There are two other card categories:

  • Commercial Card: Also called a professional card, labeled "COMMERCIAL," with expenses charged to a company's account.

  • Prepaid Card: Reserved for individuals, labeled "PREPAYE." This card allows access to a limited amount of money, such as gift cards.

And the term "carte bancaire" in all this? Well, it no longer exists as such. A "carte bleue" is actually a French Visa card. Does the CB logo not mean "carte bleue"? No, it doesn't. The CB logo actually stands for "carte bancaire" and appears on all cards issued by French banks, referring to the CB Banking Card Group, the market leader in France with 73.9 million CB cards in 2021 and over 14 billion transactions.

"With the European regulation, the merchant has the option to automatically preselect their preferred payment brand for each transaction — the one offering the most favourable conversion rate, the highest guarantee level, or the lowest fees. However, the customer must have the option to change this brand if they wish". - Loys Moulin, Director of Development at CB.

This brings us to the main networks available in France.

What is a Network or Scheme?

When a customer pays for online purchases with their card, they usually have the choice between CB, Visa, or Mastercard— the three main payment networks in France. The CB Banking Card Group is a French specificity, while Visa and Mastercard are the two international giants of credit cards.

What does this mean? It means that the selected network processes the transaction and applies network fees, i.e., commissions, to verify the client's solvency and ensure that online store owners are remunerated. The various networks intervene at the time of transaction validation.

It's worth noting that the vast majority of credit cards issued by a French bank are co-badged: in addition to the French CB network, they support an international network (usually Visa or Mastercard). Transaction fees for a purchase paid with a Visa card issued by a French bank will be the same as those for a CB card. However, if you sell internationally, be aware that these fees may be higher for cards issued abroad. In such cases, transaction fees for a purchase made with a Visa issued in Belgium, for example, will be charged at Visa Europe rates. And in the case of a purchase made with a Visa issued in Algeria, transactions will be billed at Visa International rates.

Now that introductions are made, and you know a bit more about the different types of credit cards, let's delve into the details of transaction pricing—an essential aspect of e-commerce.

Definition

Let's start with a brief definition: a credit card is a magnetic card issued by a financial institution and used to carry out transactions. There are several types. To navigate the available options, let's focus on credit cards as a payment method AND as a network, along with their use.

Categories

First, let's take a look at the two main categories of credit cards:

  1. Debit Card: This card allows both cash withdrawals and payments, whether online on an e-commerce site or at a local merchant.

    It is a payment card, usually with systematic authorization: before each transaction, the account balance is checked, and if sufficient, the transaction is authorized. There are also debit cards without systematic authorisation, where the authorisation request is random, a specificity in France due to the CB network, which we'll discuss later.

    Important: Transaction amounts with a debit card are debited daily, i.e., immediately, from the account of the cardholder. This is one of the main characteristics of this type of card.

  2. Credit Card: This card also allows cash withdrawals and payments. There are two subcategories:

    • Deferred Debit Card: All operations the cardholder performs during a specified period (usually a month) are debited at a later date, not immediately (excluding cash withdrawals). Generally, the cardholder is not liable for interest.

    • Credit Card: As known in France, offering a revolving credit facility and the option to pay in instalments. There are various types, such as store-branded cards (issued by a retail brand like Décathlon or Amazon), allowing cash withdrawals and payments within a specific network, or co-branded cards accepted by all merchants.


Note: To recognise them, it's straightforward! Since 2016, with the application of Regulation (EU) No. 2015/751, credit cards bear the "DEBIT" label (for immediate debit cards). Credit cards, on the other hand, display "CREDIT" for deferred debit cards, for example, those allowing instalment payments or revolving credit.


There are two other card categories:

  • Commercial Card: Also called a professional card, labeled "COMMERCIAL," with expenses charged to a company's account.

  • Prepaid Card: Reserved for individuals, labeled "PREPAYE." This card allows access to a limited amount of money, such as gift cards.

And the term "carte bancaire" in all this? Well, it no longer exists as such. A "carte bleue" is actually a French Visa card. Does the CB logo not mean "carte bleue"? No, it doesn't. The CB logo actually stands for "carte bancaire" and appears on all cards issued by French banks, referring to the CB Banking Card Group, the market leader in France with 73.9 million CB cards in 2021 and over 14 billion transactions.

"With the European regulation, the merchant has the option to automatically preselect their preferred payment brand for each transaction — the one offering the most favourable conversion rate, the highest guarantee level, or the lowest fees. However, the customer must have the option to change this brand if they wish". - Loys Moulin, Director of Development at CB.

This brings us to the main networks available in France.

What is a Network or Scheme?

When a customer pays for online purchases with their card, they usually have the choice between CB, Visa, or Mastercard— the three main payment networks in France. The CB Banking Card Group is a French specificity, while Visa and Mastercard are the two international giants of credit cards.

What does this mean? It means that the selected network processes the transaction and applies network fees, i.e., commissions, to verify the client's solvency and ensure that online store owners are remunerated. The various networks intervene at the time of transaction validation.

It's worth noting that the vast majority of credit cards issued by a French bank are co-badged: in addition to the French CB network, they support an international network (usually Visa or Mastercard). Transaction fees for a purchase paid with a Visa card issued by a French bank will be the same as those for a CB card. However, if you sell internationally, be aware that these fees may be higher for cards issued abroad. In such cases, transaction fees for a purchase made with a Visa issued in Belgium, for example, will be charged at Visa Europe rates. And in the case of a purchase made with a Visa issued in Algeria, transactions will be billed at Visa International rates.

Now that introductions are made, and you know a bit more about the different types of credit cards, let's delve into the details of transaction pricing—an essential aspect of e-commerce.

Online Payments: Pros and Cons

Online payments involve fees, often varying depending on the type of card or network used. Each credit card sale has a cost for e-commerce sites, with online store owners being responsible for these fees. There are three types of fees:

  1. Interchange Fee (also known as Interbank Payment Commission or IPC): These are fees related to money transfers between the bank of the person making the purchase and that of the e-commerce site. Within the European Economic Area (EEA), these fees are capped.

  2. Network or Scheme Fees: As mentioned earlier, these fees vary depending on the type of card (CB, Visa, or Mastercard/individual, commercial, debit, or credit), the payment platform used, or the payment type (online or physical from a POS terminal). These fees are freely set by card networks.

  3. Acquirer or PSP Fees: These are the fees charged by banks or payment solutions. They are set freely and generally cover the interchange fee and network fees. For each credit card payment (individual), for example, Mollie applies a percentage of 1.2% on the transaction amount, making it one of the most competitive payment platforms in the market.

Note: Network fees for commercial and business cards can be up to four times higher than those for individual cards.

Advantages

Easy to use and nearly universally accepted, whether in-store or online, the credit card is the preferred payment method for the French. For e-commerce merchants, it ensures they get paid quickly. Once the transaction is accepted, you are assured of being credited with the sale amount and having access to funds as soon as possible. Therefore, it is essential to offer this payment method on your e-commerce site.

However, be cautious of chargebacks, which, under certain conditions, allow reimbursement of an online payment made by credit card up to six months after the transaction. If a customer has not received their order or if the purchase was made with a stolen credit card, consumers can initiate a chargeback process for a refund. To avoid chargebacks, consult our article on How to Avoid Chargebacks?

To offer this payment method, you can turn to a payment service provider, which allows you to customize your payment page. A payment solution also guarantees secure payments, advanced features to control your cash flow, and, in general, access to technical support to help resolve any issues.

Disadvantages

As seen earlier, offering credit card payments on your e-commerce site involves transaction fees, which can quickly become high if not monitored. If you sell internationally, be careful not to be caught off guard by the higher transaction fees for cards issued abroad.

Card payment limits are generally limited, which can be problematic if you sell high-priced products, especially in the B2B sector. Don't forget to offer other payment methods, such as PayPal or other systems like Bancontact (Belgium) or iDEAL (Netherlands), allowing you to expand your business beyond borders. Read our guide Payments: The Best Options for Your Business to navigate your choices.

Be vigilant about credit card fraud: if payment is made with a stolen credit card, the cardholder can file a chargeback request. The result for e-commerce merchants: the loss of their product and money! Despite some drawbacks, if you want to succeed as an e-commerce merchant in France, offering credit card payments is essential. If certain aspects discourage you, your best option is to trust a payment service provider.

"For French consumers, CB is a trusted brand, the practical and secure daily payment method for transactions in France." - Loys Moulin, Director of Development at CB.

By the way, how do you choose your PSP?

Online payments involve fees, often varying depending on the type of card or network used. Each credit card sale has a cost for e-commerce sites, with online store owners being responsible for these fees. There are three types of fees:

  1. Interchange Fee (also known as Interbank Payment Commission or IPC): These are fees related to money transfers between the bank of the person making the purchase and that of the e-commerce site. Within the European Economic Area (EEA), these fees are capped.

  2. Network or Scheme Fees: As mentioned earlier, these fees vary depending on the type of card (CB, Visa, or Mastercard/individual, commercial, debit, or credit), the payment platform used, or the payment type (online or physical from a POS terminal). These fees are freely set by card networks.

  3. Acquirer or PSP Fees: These are the fees charged by banks or payment solutions. They are set freely and generally cover the interchange fee and network fees. For each credit card payment (individual), for example, Mollie applies a percentage of 1.2% on the transaction amount, making it one of the most competitive payment platforms in the market.

Note: Network fees for commercial and business cards can be up to four times higher than those for individual cards.

Advantages

Easy to use and nearly universally accepted, whether in-store or online, the credit card is the preferred payment method for the French. For e-commerce merchants, it ensures they get paid quickly. Once the transaction is accepted, you are assured of being credited with the sale amount and having access to funds as soon as possible. Therefore, it is essential to offer this payment method on your e-commerce site.

However, be cautious of chargebacks, which, under certain conditions, allow reimbursement of an online payment made by credit card up to six months after the transaction. If a customer has not received their order or if the purchase was made with a stolen credit card, consumers can initiate a chargeback process for a refund. To avoid chargebacks, consult our article on How to Avoid Chargebacks?

To offer this payment method, you can turn to a payment service provider, which allows you to customize your payment page. A payment solution also guarantees secure payments, advanced features to control your cash flow, and, in general, access to technical support to help resolve any issues.

Disadvantages

As seen earlier, offering credit card payments on your e-commerce site involves transaction fees, which can quickly become high if not monitored. If you sell internationally, be careful not to be caught off guard by the higher transaction fees for cards issued abroad.

Card payment limits are generally limited, which can be problematic if you sell high-priced products, especially in the B2B sector. Don't forget to offer other payment methods, such as PayPal or other systems like Bancontact (Belgium) or iDEAL (Netherlands), allowing you to expand your business beyond borders. Read our guide Payments: The Best Options for Your Business to navigate your choices.

Be vigilant about credit card fraud: if payment is made with a stolen credit card, the cardholder can file a chargeback request. The result for e-commerce merchants: the loss of their product and money! Despite some drawbacks, if you want to succeed as an e-commerce merchant in France, offering credit card payments is essential. If certain aspects discourage you, your best option is to trust a payment service provider.

"For French consumers, CB is a trusted brand, the practical and secure daily payment method for transactions in France." - Loys Moulin, Director of Development at CB.

By the way, how do you choose your PSP?

Online payments involve fees, often varying depending on the type of card or network used. Each credit card sale has a cost for e-commerce sites, with online store owners being responsible for these fees. There are three types of fees:

  1. Interchange Fee (also known as Interbank Payment Commission or IPC): These are fees related to money transfers between the bank of the person making the purchase and that of the e-commerce site. Within the European Economic Area (EEA), these fees are capped.

  2. Network or Scheme Fees: As mentioned earlier, these fees vary depending on the type of card (CB, Visa, or Mastercard/individual, commercial, debit, or credit), the payment platform used, or the payment type (online or physical from a POS terminal). These fees are freely set by card networks.

  3. Acquirer or PSP Fees: These are the fees charged by banks or payment solutions. They are set freely and generally cover the interchange fee and network fees. For each credit card payment (individual), for example, Mollie applies a percentage of 1.2% on the transaction amount, making it one of the most competitive payment platforms in the market.

Note: Network fees for commercial and business cards can be up to four times higher than those for individual cards.

Advantages

Easy to use and nearly universally accepted, whether in-store or online, the credit card is the preferred payment method for the French. For e-commerce merchants, it ensures they get paid quickly. Once the transaction is accepted, you are assured of being credited with the sale amount and having access to funds as soon as possible. Therefore, it is essential to offer this payment method on your e-commerce site.

However, be cautious of chargebacks, which, under certain conditions, allow reimbursement of an online payment made by credit card up to six months after the transaction. If a customer has not received their order or if the purchase was made with a stolen credit card, consumers can initiate a chargeback process for a refund. To avoid chargebacks, consult our article on How to Avoid Chargebacks?

To offer this payment method, you can turn to a payment service provider, which allows you to customize your payment page. A payment solution also guarantees secure payments, advanced features to control your cash flow, and, in general, access to technical support to help resolve any issues.

Disadvantages

As seen earlier, offering credit card payments on your e-commerce site involves transaction fees, which can quickly become high if not monitored. If you sell internationally, be careful not to be caught off guard by the higher transaction fees for cards issued abroad.

Card payment limits are generally limited, which can be problematic if you sell high-priced products, especially in the B2B sector. Don't forget to offer other payment methods, such as PayPal or other systems like Bancontact (Belgium) or iDEAL (Netherlands), allowing you to expand your business beyond borders. Read our guide Payments: The Best Options for Your Business to navigate your choices.

Be vigilant about credit card fraud: if payment is made with a stolen credit card, the cardholder can file a chargeback request. The result for e-commerce merchants: the loss of their product and money! Despite some drawbacks, if you want to succeed as an e-commerce merchant in France, offering credit card payments is essential. If certain aspects discourage you, your best option is to trust a payment service provider.

"For French consumers, CB is a trusted brand, the practical and secure daily payment method for transactions in France." - Loys Moulin, Director of Development at CB.

By the way, how do you choose your PSP?

Online payments involve fees, often varying depending on the type of card or network used. Each credit card sale has a cost for e-commerce sites, with online store owners being responsible for these fees. There are three types of fees:

  1. Interchange Fee (also known as Interbank Payment Commission or IPC): These are fees related to money transfers between the bank of the person making the purchase and that of the e-commerce site. Within the European Economic Area (EEA), these fees are capped.

  2. Network or Scheme Fees: As mentioned earlier, these fees vary depending on the type of card (CB, Visa, or Mastercard/individual, commercial, debit, or credit), the payment platform used, or the payment type (online or physical from a POS terminal). These fees are freely set by card networks.

  3. Acquirer or PSP Fees: These are the fees charged by banks or payment solutions. They are set freely and generally cover the interchange fee and network fees. For each credit card payment (individual), for example, Mollie applies a percentage of 1.2% on the transaction amount, making it one of the most competitive payment platforms in the market.

Note: Network fees for commercial and business cards can be up to four times higher than those for individual cards.

Advantages

Easy to use and nearly universally accepted, whether in-store or online, the credit card is the preferred payment method for the French. For e-commerce merchants, it ensures they get paid quickly. Once the transaction is accepted, you are assured of being credited with the sale amount and having access to funds as soon as possible. Therefore, it is essential to offer this payment method on your e-commerce site.

However, be cautious of chargebacks, which, under certain conditions, allow reimbursement of an online payment made by credit card up to six months after the transaction. If a customer has not received their order or if the purchase was made with a stolen credit card, consumers can initiate a chargeback process for a refund. To avoid chargebacks, consult our article on How to Avoid Chargebacks?

To offer this payment method, you can turn to a payment service provider, which allows you to customize your payment page. A payment solution also guarantees secure payments, advanced features to control your cash flow, and, in general, access to technical support to help resolve any issues.

Disadvantages

As seen earlier, offering credit card payments on your e-commerce site involves transaction fees, which can quickly become high if not monitored. If you sell internationally, be careful not to be caught off guard by the higher transaction fees for cards issued abroad.

Card payment limits are generally limited, which can be problematic if you sell high-priced products, especially in the B2B sector. Don't forget to offer other payment methods, such as PayPal or other systems like Bancontact (Belgium) or iDEAL (Netherlands), allowing you to expand your business beyond borders. Read our guide Payments: The Best Options for Your Business to navigate your choices.

Be vigilant about credit card fraud: if payment is made with a stolen credit card, the cardholder can file a chargeback request. The result for e-commerce merchants: the loss of their product and money! Despite some drawbacks, if you want to succeed as an e-commerce merchant in France, offering credit card payments is essential. If certain aspects discourage you, your best option is to trust a payment service provider.

"For French consumers, CB is a trusted brand, the practical and secure daily payment method for transactions in France." - Loys Moulin, Director of Development at CB.

By the way, how do you choose your PSP?

What Aspects to Consider for Your Online Payment Solution?

Turnkey solutions abound, and choosing the right provider may not be straightforward. Study the available offers and compare them to your needs. Analyze in particular:

  • Payment methods: debit and credit cards, CB cards (France), Apple Pay, PayPal, Visa, Mastercard, SEPA transfers or direct debits, etc.

  • Compatibility with major e-commerce platforms: PrestaShop, WooCommerce, Adobe, Wix, Ecwid, etc. E-commerce integration is crucial. Check the availability of extensions or plugins or the possibility to integrate payments as you wish through an API.

  • Security: Your PSP must support the PCI DSS (Payment Card Industry Data Security Standard) and 3D Secure (Verified by Visa/MasterCard SecureCode) standards.

  • Service fees: Check if there are minimum fees or hidden fees, if a subscription is required to use the service, as well as transaction fees, which vary from one platform to another.

  • Ease of use: You may not want to spend hours trying to understand the system's operation.

  • Customization possibilities: Can you, for example, add your logo to the payment page?

  • Technical support: Ensure that the help center is comprehensive and that you can contact your PSP in case of problems, whether by phone, email, or social media messages.

  • Etc.

Turnkey solutions abound, and choosing the right provider may not be straightforward. Study the available offers and compare them to your needs. Analyze in particular:

  • Payment methods: debit and credit cards, CB cards (France), Apple Pay, PayPal, Visa, Mastercard, SEPA transfers or direct debits, etc.

  • Compatibility with major e-commerce platforms: PrestaShop, WooCommerce, Adobe, Wix, Ecwid, etc. E-commerce integration is crucial. Check the availability of extensions or plugins or the possibility to integrate payments as you wish through an API.

  • Security: Your PSP must support the PCI DSS (Payment Card Industry Data Security Standard) and 3D Secure (Verified by Visa/MasterCard SecureCode) standards.

  • Service fees: Check if there are minimum fees or hidden fees, if a subscription is required to use the service, as well as transaction fees, which vary from one platform to another.

  • Ease of use: You may not want to spend hours trying to understand the system's operation.

  • Customization possibilities: Can you, for example, add your logo to the payment page?

  • Technical support: Ensure that the help center is comprehensive and that you can contact your PSP in case of problems, whether by phone, email, or social media messages.

  • Etc.

Turnkey solutions abound, and choosing the right provider may not be straightforward. Study the available offers and compare them to your needs. Analyze in particular:

  • Payment methods: debit and credit cards, CB cards (France), Apple Pay, PayPal, Visa, Mastercard, SEPA transfers or direct debits, etc.

  • Compatibility with major e-commerce platforms: PrestaShop, WooCommerce, Adobe, Wix, Ecwid, etc. E-commerce integration is crucial. Check the availability of extensions or plugins or the possibility to integrate payments as you wish through an API.

  • Security: Your PSP must support the PCI DSS (Payment Card Industry Data Security Standard) and 3D Secure (Verified by Visa/MasterCard SecureCode) standards.

  • Service fees: Check if there are minimum fees or hidden fees, if a subscription is required to use the service, as well as transaction fees, which vary from one platform to another.

  • Ease of use: You may not want to spend hours trying to understand the system's operation.

  • Customization possibilities: Can you, for example, add your logo to the payment page?

  • Technical support: Ensure that the help center is comprehensive and that you can contact your PSP in case of problems, whether by phone, email, or social media messages.

  • Etc.

Turnkey solutions abound, and choosing the right provider may not be straightforward. Study the available offers and compare them to your needs. Analyze in particular:

  • Payment methods: debit and credit cards, CB cards (France), Apple Pay, PayPal, Visa, Mastercard, SEPA transfers or direct debits, etc.

  • Compatibility with major e-commerce platforms: PrestaShop, WooCommerce, Adobe, Wix, Ecwid, etc. E-commerce integration is crucial. Check the availability of extensions or plugins or the possibility to integrate payments as you wish through an API.

  • Security: Your PSP must support the PCI DSS (Payment Card Industry Data Security Standard) and 3D Secure (Verified by Visa/MasterCard SecureCode) standards.

  • Service fees: Check if there are minimum fees or hidden fees, if a subscription is required to use the service, as well as transaction fees, which vary from one platform to another.

  • Ease of use: You may not want to spend hours trying to understand the system's operation.

  • Customization possibilities: Can you, for example, add your logo to the payment page?

  • Technical support: Ensure that the help center is comprehensive and that you can contact your PSP in case of problems, whether by phone, email, or social media messages.

  • Etc.

Conclusion

Paying for purchases on an e-commerce site with a debit or credit card or a Visa Debit or Mastercard Standard has different cost implications for e-commerce merchants. Transaction fees can vary considerably depending on numerous criteria.

Choosing a payment platform like Mollie can bring more peace of mind, control, and transparency. You know exactly what you will pay for each transaction.

Choose a solution that is easy to use and meets your needs! Feel free to contact us for more information.

Paying for purchases on an e-commerce site with a debit or credit card or a Visa Debit or Mastercard Standard has different cost implications for e-commerce merchants. Transaction fees can vary considerably depending on numerous criteria.

Choosing a payment platform like Mollie can bring more peace of mind, control, and transparency. You know exactly what you will pay for each transaction.

Choose a solution that is easy to use and meets your needs! Feel free to contact us for more information.

Paying for purchases on an e-commerce site with a debit or credit card or a Visa Debit or Mastercard Standard has different cost implications for e-commerce merchants. Transaction fees can vary considerably depending on numerous criteria.

Choosing a payment platform like Mollie can bring more peace of mind, control, and transparency. You know exactly what you will pay for each transaction.

Choose a solution that is easy to use and meets your needs! Feel free to contact us for more information.

Paying for purchases on an e-commerce site with a debit or credit card or a Visa Debit or Mastercard Standard has different cost implications for e-commerce merchants. Transaction fees can vary considerably depending on numerous criteria.

Choosing a payment platform like Mollie can bring more peace of mind, control, and transparency. You know exactly what you will pay for each transaction.

Choose a solution that is easy to use and meets your needs! Feel free to contact us for more information.

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Table of contents

Table of contents

MollieGrowthPayment Cards: Types of Debit and Credit Cards and Their Impact on SMEs
MollieGrowthPayment Cards: Types of Debit and Credit Cards and Their Impact on SMEs