Debit Plataform
The issuance of debit cards is rapidly growing in Brazil. Nowadays, anyone who has an account at one of VisaNet Brasil's partner banks is automatically given a Visa Electron debit card-no need to go through a credit approval process or pay any fees-which results in huge purchase potential.
When customers pay with a Visa Electron card, the purchase amount is automatically deducted from their checking account, and credited to the merchant. The security of the transaction is assured by a pin number, entered by the cardholder, and the transaction is only completed upon the customer bank's authorization, which guarantees that the funds are available.
But those who think that Visa Electron works only for debit payments are mistaken. Consumers can establish a future date to pay for their purchases, or finance them through the CDC credit line (Direct Consumer Credit).
Debit (in cash)
This is the most well-known type of payment offered by the debit platform. Here, the purchase amount is automatically debited from customer's checking account. Many cardholders select this type of payment to avoid worrying about future payments. Merchants that accept this type of payment have the sales amount credited into their account, minus a previously agreed fee, one day after the operation.
Vendas Pré-datadas (Deferred billing dates)
With the Pré-Datado option (Post-Dated), cardholders can establish when the purchase amount will be debited from their checking account. Their account can be debited between 2 and 90 days after the purchase and VisaNet Brasil credits the sales amount into the merchant's account, minus a previously agreed fee, on a date selected by the cardholder. Visa Electron Pré-Datado works exactly like a post-dated check, where the payment dates are previously established by the merchant and the customer. But there is a crucial difference: merchants are assured of payment. Should a customer not have enough funds in their account, VisaNet Brasil pays the merchant and starts a collection process against the bank and its client.
When merchants make a "post-dated" sale they can carry out several sales transactions, all with different payment dates, as long as they are mutually agreed with the client and within the proper limits. Merchants have the power to establish the number of post-dated payments. Each post-dated payment is an independent transaction, just as it would be with a post-dated check.
CDC (Consumer Direct Credit)
Some banks offer their customers this credit line, which has a previously fixed interest rate. With CDC, cardholders finance their purchases using their Visa Electron card and repay the financed amount directly to their banks, without any paperwork.
To merchants, CDC works just like a debit card sale since the net sales amount is credited in full into their account, one business day after the sale.
CDC was created as an alternative to the financing scheme offered by some finance companies and retailer payment books for sales of products and services of higher amounts. With CDC, only the card issuing banks need to worry about the credit risk.
For more information, click here.