Debit Card Processing

Debit Card Processing Overview

Debit cards or check cards provide cardholders with electronic access to bank accounts at financial institutions. These cards can be used by cardholders instead of cash to make purchases. Debit card processors charge nominal debit card processing fees as a way of doing business. When companies utilize debit card processing services, it allows them to focus on their core business and steer clear of the hassle associated with paper checks.

Processing Millions of Debit Card Payments Annually

Thanks to years of experience as a payment industry leader, YapStone has developed debit card processing solutions with powerful features such as detailed reporting that helps businesses reconcile and gain insights from analytics, and the ability to handle industry-specific data. What’s more, YapStone is fully PCI Level One certified, and provides solutions focused on reliability and security.

How Does Debit Card Payment Processing work?

Online Debit card processing involves a series of steps:

Step 1: User Initiates Online Debit Card Payment 

The user logs on to a YapStone website or app to pay rent, HOA dues, vacation home rental charges, inn charges, or a church donation. After selecting debit card as the payment method, the user provides name, debit card details, and billing address, and then submits payment.

Step 2: YapStone to Payment Processor

The details of the transaction are sent by YapStone to its payment processor via a dedicated link that’s monitored 24/7 to make sure that debit card payment processing is uninterrupted.

Step 3: Payment Processor to Debit Card Networks to Card Issuing Bank

In order to validate payment details, the payment processor sends them through the debit card networks (Visa, MasterCard) who send them for authorization to the card-issuing bank.

Step 4: Card Issuing Bank

The card-issuing bank approves or denies the transaction based on card status and by assessing if the transaction falls within the cardholder’s credit limit.

Step 5: Payment Processor to Debit Card Networks to YapStone

If payment is approved, the user is charged by the card issuer, which then transfers the funds to the card networks minus debit card processing fees to cover costs like credit risk and customer rewards. The card networks then relay the approved status of the transaction back to the payment processor, which informs YapStone and passes on the funds, minus any applicable fees.

Step 6: YapStone to User

YapStone notifies the user via the online payment interface regarding the transaction’s approved or denied status. In the event the paymentis denied, YapStone’s payment gateway informs the site or app and due to the fact that the card issuer did not authorize the transaction, no further action takes place.

Step 7: YapStone to Merchant

Finally, YapStone transfers funds from its bank account to the merchant’s account. This normally takes one to two business days. A receipt is emailed to the user and payment receipt notifications are sent to the merchant. In addition, detailed YapStone merchant reports are updated in real-time. Reports include the Batch Reconciliation Report ,Transaction Activity Report, and Transaction Summary Report.

* There are several processing options offered by YapStone. Not all online debit card payment processing follows this flow.


Debit Card Processing for Check Dominated Industries

We like to think of you as a valued partner not a customer. It’s explains why so many types of businesses, from property management companies to vacation rental owners to inns and B&Bs to non-profits, engage us to handle their online debit card processing. Of course, we also have broad knowledge of the industries where we work and a sophisticated payment and risk management platform. Not to mention the fact that we process 8-billion dollars worth of electronic payments on an annual basis.

Contact us today to meet your debit card processing needs