Fintech · Electronic Payments

No fee Payment Methods to Collect Monthly from Debit Cards?

Lucas E Wall

December 11th, 2016

I am looking for any service that allows me to key in the debit card of a customer without having the card with me.

These are customers living in another city for whom every penny counts and therefore having zero fees for them, and I will be optimal.

They pay every month a fixed amount, but I need to check with them to make sure they have funds first. If they do, I'd need to run the number of their debit card and collect. It is always a few hundred dollars, and there should be between 5-10 transactions monthly.

I checked PayPal, but it requires one to have the debit card physically at the moment, and the fees are not zero.

With all the fin-tech services out there I suspect, there should be one that fits these requirements. 

Robert Lee

December 12th, 2016

That is the primary difference between credit and debit cards; the debit card has to be present and the customer has to physically input their PIN. While you can run it through the credit card networks like VISA and MasterCard (if the card is branded by those credit card companies), it will show up as a credit transaction and the fees will be credit card-based. The alternate network - which runs through NACHA - is a totally different and separate process.

Back in 2001, my company, UTMsystems, was the only company tested and certified by NACHA to successfully run PIN-based debit transactions online. We were forced to close the company down in 2002 because of the actions of three evil employees who attempted to steal my IP through a forced bankruptcy, all during the dot-com crash.

Oh - and BTW: There is no such thing as fee-free when it comes to payments. But the fees for true debit transactions are a fraction of credit transactions because of the security and the validation process. Which is why grocery stores will always try to get you to complete your payment as a debit transaction instead of credit. (At least $1.50 in credit card fees for $100 of groceries vs. 35c in fees for a $100 debit transaction!)

Tua Lino at

December 11th, 2016

I use Stripe bur there is a fee. The thing I like most is once I run their card it automatically charges ut every month. Similar to paypal since qualification is quick and easy 

Henry Daas Coach-Approach Strategic Advisor

December 11th, 2016

Venmo is the only service I use for small transactions & it charges no fee. I suspect you could make it work in this scenario

Peter Liepmann

December 13th, 2016

Most checking accounts will allow automated monthly electronic transfers. Venmo is NOT for commercial, only personal- so doesn't apply here. Venmo Scammers Know Something You Don't