In addition to signing up with a low-cost provider, merchants trying to save money on interchange have a bag of tricks they can reach into at the POS. But using it the right way can be tricky.
A service from Merchant Warehouse called BINSmart is designed to help merchants lower interchange costs by calculating - using a host of factors - the competing interchange rates on PIN debit- and credit-based purchases. For any given purchase where the consumer uses a debit card, the program determines whether interchange would be lower as a PIN debit or credit purchase, and then prompts the customer to pay with the cheaper option.
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