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I have a MIT Federal Credit Union debit card, Venmo recognizes it as a credit card, subsequently subject to the 3% fee. Why?

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    Merchants usually recognize debit cards as credit cards. It's normal. The distinction is done in the issuing bank, where credit cards put the amount on the next credit statement while debit cards deduct the amount from your current balance. – ADTC Jan 4 '14 at 12:53
  • @ADTC Thanks, good to know! – Franck Dernoncourt Jan 4 '14 at 13:00
  • Is the question about the fee or the debit recognised as credit? Your answer seems to only address one half of that. – Eight Days of Malaise Jun 5 '14 at 18:49
  • @EightDaysofMalaise Was about why the card was recognized as credit. Debit cards issued from small banks such as MIT Federal Credit Union are recognized as credit cards by Venmo. – Franck Dernoncourt Jun 5 '14 at 19:21
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Payments using credit cards and debit cards issued from small banks such as MIT Federal Credit Union are subject to a 3% fee due to the high processing rates. Luckily, all bank payments are free, so there is no need to go through credit cards or debit cards.

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  • Will you please add the source for this information, and a link? – A.K. Sep 3 '17 at 0:40

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