What are debit card fees and how to manage them?

Guide to managing debit card fees
  • Debit card

A debit card is a payment card issued by a bank or financial institution that allows individuals and businesses to access funds directly from their checking or savings account to make purchases or to withdraw cash.

Debit card fees are charges for various services linked to using a debit card. These fees can include monthly or annual ownership fees, charges per transaction or exchange rate fees, just to name a few. These fees vary across institutions and can significantly impact your finances.

Therefore, it is crucial to review and compare your card’s terms and conditions with other financial institutions to comprehend the fee structure and make informed financial decisions.

Note: Be aware that debit card fees differ from credit card fees. Find out more about the differences in our article: debit card vs credit card for companies.

Types of debit card transaction

Debit card transactions can roughly be divided into 3 categories: PIN debit, digital debit and signature debit.

  • PIN debit: To process debit card transactions, most providers require a PIN, typically a 4-6 digit code. Completing a transaction requires both the physical card and the PIN, providing an additional layer of security. Even if one is compromised, the other is still necessary to authorise the payment.
  • Digital debit: Debit card payments can be made through digital methods, also known as card-not-present (CNP) transactions. These include contactless payments, mobile wallets (e.g., Apple Pay or Google Pay) and biometric authentication such as Face ID or fingerprint scanning. Offering convenience and speed, these methods rely on tokenised data for enhanced security and often eliminate the need for physical cards or manual PIN entry. Digital debit is on the rise, growing rapidly in tech-forward markets.
  • Signature debit: While PIN debit still belongs to the most commonly-used methods for debit card payments, with digital debit becoming increasingly common, another option are signature-based transactions. These transactions require the customer’s signature to authorise the transaction. While less secure, customers might prefer this option for convenience reasons.

Breakdown of debit card charges

Understanding debit card charges helps businesses and individuals manage their finances effectively and make informed decisions when issuing debit cards.

The following sections describe the most common debit card fees.

Monthly/annual fees

Firstly, there are monthly or annual fees, which some providers charge for the ownership or use of a debit card. These periodic charges vary among institutions.

ATM transaction fees

Another common charge is the ATM transaction fee, applied when using an ATM not affiliated with the card provider. The fee amount typically depends on the network to which the ATM belongs.

Replacement card fee

Should a debit card be lost, stolen or damaged, users might face a replacement card fee when requesting a new card from their bank or card provider.

Foreign transaction fees

Additionally, there are debit card foreign transaction fees. These charges come into play when transactions are conducted in a foreign currency or outside the home country. These fees might involve conversion costs or further charges set by the card issuer for international usage.

Initial setup fees for larger company structures and teams

Depending on the card provider, you might pay initial fees for each debit card. Therefore, especially larger companies might incur high set up costs, if many cards are issued.

Markup fees

Markup fees are charges imposed by debit card providers to cover their operating costs and generate profit.

Additional fees for returned payments

While the previous sections cover the most common fees associated with debit card charges, there are other fees, which may vary from provider to provider. One common example are additional fees for returned payments.

These charges usually consist of two components:

  • Complaint processing fees
  • Fees that incur for investigations
amnisWisePayoneerPayPalSkrillRevolut
Currencies25+40+725Hold 1, send 4025+
FX fees0%Starting from 0.43%Up to 3.5%Around 4%3.99%0,6%-1% for amounts over allowances
Other feesFlexible monthly/annual plans, starting with a free STARTER package; 5 free ATM withdrawals per month, then 2% feeRegistration feeTransaction fees, FX fees, Withdrawal feesTransaction fees, FX fees, Withdrawal feesTransaction fees, FX fees, Withdrawal feesTransaction fees, FX fees, Withdrawal fees
Virtual debit cardsUnlimited amount of virtual debit cards included in the free package, instantly activatedYesAvailable, annual card fees of 29.95 USDAccess of virtual payments via the PayPal Business Debit Mastercard or by linking PayPal to digital walletsYesYes
Balance cashbackCashback on all funds with a positive balance in EUR, USD, GBP, and CZKCashback on the positive EUR, GBP, and USD balances.NoNoNoNo
Expense ManagementAdvanced expense management software features with auto-accounting functionality, expense tracking and API integrationsN/AN/ALimitedLimitedN/A

How to manage your business debit card fees

Use the following guidelines when comparing different business debit card options to get the most value and the lowest debit card charges.

1. Look for flexible pricing options

Before reading the fine print and comparing different debit card providers, it is advisable to sort out financial institutions according to the flexibility and scalability of their pricing solutions. Look for banks or providers that offer customisable fee structures tailored to your business needs.

The best subscription schemes enable you to scale as your business grows. Some institutions provide fee waivers or reduced charges based on factors such as transaction volumes, account balances or bundled services when switching from basic to premium subscriptions models.

Further, make sure your provider offers virtual debit cards, as they are often available at no extra cost and can be activated with just a few clicks. They offer a cost-effective solution for companies that need additional cards and do not require you to shift to a higher pricing plan.

2. Look for transparent and clear pricing structures to not worry about the fine print

When selecting a provider for business debit cards, prioritise those with transparent and clear pricing structures. Opting for such providers ensures you won’t need to fret over difficult fine prints. Easily understandable fee structures further spare you from unexpected charges or hidden costs.

Providers offering transparent pricing lay out their fee schedules clearly and detail all charges for various services or transactions. This clarity allows you to make informed decisions without the worry of hidden fees impacting your financial well-being.

3. Choose a multi-currency card with foreign currency accounts and currency exchange option

If you frequently conduct business abroad, choose a multi-currency debit card with foreign currency accounts and currency exchange options. A card provider, which is able to offer this integration, has the full ability to maintain control over the cost structure, which allows you to circumvent costly exchange rates, as offered by VISA, Mastercard or other network providers.

Therefore, opting for a multi-currency card linked to foreign currency accounts and currency exchange options can result in significant savings on foreign transaction fees. Moreover, choose a provider that offers hedging options, which serve as an extra layer of protection against exchange rate risk.

4. Introduce a subscription management strategy

As your company expands, managing expenses becomes increasingly complex. When various departments or individual employees subscribe to online services and tools, overseeing all expenditures becomes nearly impossible without a robust infrastructure.

Therefore, laying out guidelines and developing a thorough subscription management strategy with virtual debit cards allows you to regain control of all your expenses. At the same time, you grant your departments and individual employees more freedom and flexibility – a win-win situation for everyone involved.

This could also interest you: Find out how a virtual card for subscriptions can transform your subscription management strategy, helping you streamline payments, gain better control over expenses, and improve overall efficiency.

Reduce your debit card fees with amnis – simplify and save

Managing debit card fees becomes effortless with amnis’ transparent pricing and flexible features. With amnis’ physical and virtual multi-currency debit cards, businesses benefit from 0% FX fees and no card transaction charges on foreign payments, ensuring they never overspend on international transactions.

With amnis, you’ll do more than just reduce costs. Its advanced automation tools, like pre-filled tags for bookkeeping, help streamline workflows and save valuable time for your finance and accounting teams. You can assign cards to specific teams or projects to maintain clear budgets while benefiting from real-time expense tracking. Additionally, the amnis API enables seamless integration with expense management and accounting platforms.

Test the amnis business debit card

Try out amnis with a free demo account

amnis is more than a debit card provider – it’s a fully integrated financial ecosystem designed to simplify global payments and reduce operational costs. With multi-currency capabilities, amnis enables you to manage accounts in over 20 currencies, make local payments worldwide, and exchange currencies at rates significantly lower than those offered by traditional banks.

The amnis multi-currency account allows you to process foreign currency payments through local systems like SEPA or ACH, bypassing SWIFT entirely. This makes amnis the perfect solution for SMEs handling international business payments.

Try out the amnis multi-currency account with a free demo. Explore its features and see how it works firsthand:

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Elena Tankovski
As a senior content writer at amnis, I keep SMEs informed with updates on topics like the FX market, international business and the latest news through our blog and FAQ page.
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