Visa Debit Differences in Canada vs USA - Credit Card Processing (2024)

FAQs

Visa Debit Differences in Canada vs USA - Credit Card Processing? ›

In Canada, most merchants that accept credit cards by Visa also accept Debit cards by Visa, which can be helpful for ATM cash withdrawals. However, unlike in the US, they are usually not accepted for online or phone purchases unless the merchant explicitly allows their use.

Visa Debit allows customers to make online, over-the-phone and mail order purchases, as well as recurring payments, directly from their bank account via the Visa network. Plus, when shopping at stores outside of Canada, they can pay with Visa Debit† anywhere Visa is accepted. Visa Debit is convenient.

Visa Debit is accepted online and in mobile apps, over the phone, and by mail at participating merchants in Canada. Visa Debit is accepted by US and International online, in mobile apps, telephone, and mail order retailers that accept Visa.

If you choose US Debit, you will enter your PIN and may be able to get cash back from the register. Choosing Visa Debit means you will not enter your PIN, however you may be required to sign if the purchase is above a certain amount (this amount may vary from merchant to merchant).

Debit cards are linked to the user's bank account and limited by how much money is in there. Credit cards provide the user with a line of credit that they can borrow against as needed and pay back later. Credit cards charge interest on the money the cardholder borrows (unless it's paid back within the grace period).

In Canada, most merchants that accept credit cards by Visa also accept Debit cards by Visa, which can be helpful for ATM cash withdrawals. However, unlike in the US, they are usually not accepted for online or phone purchases unless the merchant explicitly allows their use.

A Visa Debit card acts like a normal debit card, meaning it pulls funds directly from the cardholder's bank account, however they also have the capability to use the credit card networks allowing them to be used where a typical Visa is accepted.

Debit and credit cards are Canada's most common ways to pay for things. Major networks like Visa, American Express, and MasterCard are generally accepted.

Visa Debit cards work like cash, only better. They are issued by your bank or other financial institution, and use funds directly from your bank account. Accepted worldwide, Visa Debit cards offer quick, secure and convenient access to your money in person, online, overseas and over the phone.

Does Visa Debit count as Visa? ›

You can use your Visa Debit card just like a visa credit card. The difference is that the funds come from your own checking account rather than a line of credit.

No interest, No annual fee, No monthly bill

A Visa Debit card has these benefits in common with a regular debit card — because these are not credit transactions they are not charged interest, and do not get forgotten until a surprising bill comes in the mail.

If your debit card has a Mastercard or Visa logo on it, you can use it just like a credit card for online purchases. If you're shopping online and there's an option to pay with a credit card, simply select it. Enter the information from your debit card and finalize the payment.

Debit. Debit transactions are charged a single transaction rate – regardless of the value of the purchase. It generally costs merchants under 10 cents to process each debit transaction, though the fee can be as high as 40 cents. This amount does not change, whether the purchase is for $5 or $5,000.

Whether you travel to the U.S. or make purchases from U.S. retailers, spending south of the border means you'll be paying for things in U.S. dollars. You can use your Canadian credit card to cover your expenses, but it'll cost you. A U.S. currency credit card may save you money.

You need a PIN to use your debit card. You usually don't need a PIN for contactless payment where you tap your card on a payment terminal. You'll be asked to enter your PIN if you tap above the contactless card payment limit.

Tips for Using Debit Cards

For example, a United States-issued Bank of America debit card will work at Canadian retailers, but the user does incur a three-percent foreign transaction fee for each purchase. Note that debit cards differ from credit cards in that they draw real-time on money in your bank account.

Cash transactions are the least expensive way to make payments for goods and services. You will get the best deal when you pay with cash because there are no hidden fees. Depending on where you are accessing your cash, you won't have to pay a fee to use it.

If you use your debit card to make a payment abroad or withdraw cash, you'll be charged a 2.99% Non-Sterling Transaction Fee. Remember that if you're given the option, it's almost always cheaper to make the payment in the local currency.