It costs less for a financial institution to process a debit card transaction than it does to process a cheque. Why do you think this is the case?
Isaiah: Debit cards are all processed electronically. A check has to be sent in by the merchant,
handled by the bank teller, verified by the processing department, sent to a clearing house bank & then photographed for the record. It is must more work.
Processing a paper check requires some human intervention, even with devices to help open envelopes. Debit card transactions are completely electronic–there is no need for a human to handle paper, which saves money.
Cheques are manual processes cards are automated.
No degree in rocket science was necessary!