In the US, Online purchases with a debit card generally do not use the lower fee debit card networks, but instead use the credit card networks. Basically every debit card in the US is co-branded by one of the credit card companies, and can be processed by merchants as if it were a credit card.
The lower fee debit card networks operated by the interbank networks that run the ATM system (Pulse, NYCE, STAR, etc) do not seem to be available for online purchases.
So while you absolutely can pay with them online from the merchant's perspective it is a credit card, and only the issuing bank is treating them differently.
While Visa et al do know this is a debit card, and could could offer lower interchange fees, I'm not sure if they do, and they certainly don't lower it to the same level as the debit networks.
This may very well be different outside the US, as they may not be fully seperate networks in every country.
>In the US, Online purchases with a debit card generally do not use the lower fee debit card networks, but instead use the credit card networks. Basically every debit card in the US is co-branded by one of the credit card companies, and can be processed by merchants as if it were a credit card.
Yeah. So what?
It doesn't make any immediate, practical difference to me.
Sure, it would be great if fees were lower. That would (presumably) reduce price increases over the long term and allow merchants to increase their gross profits. Having high "processing" fees is rent seeking at best and is likely a drag on the economy.
That said, GP's comment[0] (which is what my comment was addressing) that "The thing about debit cards though...they don't work for online payments which makes them effectively useless." is (at least in the US) flat wrong.
Huh? That hasn't been my experience. At all.
I make online purchases nearly (yesterday I made two!) daily with my debit card with no problem at all.
Perhaps that's an issue where you live. I'm in the US, so YMMV, I guess.