Payment by cards (debit or credit cards)

Funny you should ask this, because I have just been to my credit union talking to the head teller about this same question and this is the way she explained it to me. If you have a debit card with a Visa logo on it then if you use it as credit then the merchant is charged a fee. This fee ranges based on the credit card company as to what the merchant will pay. If you use the same card as debit then the bank is charged a fee. In turn the bank can then charge the card holder a fee each time the card is used as a debit card. My bank covers the fees charged if you use it as a debit card; but most recently has changed their policy that they will continue to cover charges if used as debit card but will pay you higher interest on your checking account if you use as credit card.