Dankort: Difference between revisions
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[[File:Dankort logo.png|thumb|200px|The Dankort logo]] |
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The '''Dankort''' is |
The '''Dankort''' is the national [[debit card]] of Denmark. Today it is usually combined with a [[Visa card]] and functions as a Visa [[debit card]] abroad and in stores that don't accept DanKort. |
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== History == |
== History == |
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The first Dankort was issued by ''Pengeinstitutternes Købe- og Kreditkort'' in September 1983. In 2001 Dankort A/S was founded, and it took over the rights to the Dankort in January 2001. |
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The first Dankort was issued by ''Pengeinstitutternes Købe- og Kreditkort'' in September 1983. In 2001 Dankort A/S was founded, and it took over the rights to the Dankort in January 2001. In 2004 the Dankort technology was upgraded from being simply a magnetic strip card, to a hybrid card with both the magnetic strip and an [[smart card|embedded chip]]. This was to improve security by reducing the possibility of card fraud, but was ill received as the card holders picture was removed from the card, making it possible, in theory, for anyone to use the card. Also, the new chip system was faulty and slow, and by 2006 it remained sparsely used. In the beginning of 2005 the Danish [[bank]]s introduced a fee for using the Dankort of 50 [[øre]] ($0.07) per transaction, prompting massive protests from Danish politicians (right in the middle of a general election campaign), store owners and card holders. The law was subsequently changed converting the transaction fee to a fixed annual payment to be paid by the store, the amount depending on the number of transactions ( 4,999 or less; 5,000–19,999 or 20,000+). Further thresholds were later introduced into the system, allowing greater differentiation between stores.[http://www.pbs.dk/da/temaer/nyheder/Pages/nyhed-20091211-dankort_abonnement.aspx] |
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In 2004 the Dankort technology was upgraded from being simply a magnetic strip card, to a hybrid card with both the magnetic strip and an [[smart card|embedded chip]]. This was to improve security by making it harder to clone a card and also to add more room for extra information on the card. However the card holder's picture was removed from the card to make room for the chip (which was already crowded with a lot of information, along with logos of Dankort, Visa, and so on), making the merchant no longer able to do a photo identification of the card holder. |
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The Dankort system has recently become more controversial due to its success and subsequent incompatibility with foreign bankcards bearing the VISA (or Mastercard) logo. Danish law was changed effective July 2005, converting the payment per transaction paid by stores, to a fixed annual amount depending on the number of transactions. Stores are not allowed to pass this fee on to the consumer wishing to pay with a dankort. |
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In the beginning of 2005 the Danish [[bank]]s introduced a 50 [[øre]] per transaction fee for using a Dankort card. The instatement of this fee was questioned by Danish politicians, [[merchants]], and cardholders. The law was subsequently changed, converting the per transaction fee to a fixed annual payment to be paid by the merchant, the amount depending on the number of transactions ( 4,999 or less; 5,000–19,999; 20,000+). Further thresholds were later introduced into the system, allowing greater differentiation between merchants.<ref>{{cite web | title=Nets Denmark A/S | website=Forside | date=2009-12-11 | url=https://www.nets.eu/dk-da/Pages/default.aspx | access-date=2020-11-27}}</ref> Danish law was changed effective July 2005, converting the payment per transaction paid by the merchants, to a fixed annual amount depending on the number of transactions. Merchants are not allowed to pass this fee on to the consumer wishing to pay with a Dankort. |
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Danish law distinguishes between varying types of debit and credit cards. The maximum rates charged are as follows:<ref>[http://www.konkurrencestyrelsen.dk/konkurrenceomraadet/betalingskort/gebyrer/gebyrer-ved-fysisk-handel/ Konkurrencestyrelsen] {{da icon}}</ref> |
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Danish law distinguishes between varying types of debit cards and credit cards. |
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{| class="wikitable" |
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! Type of card || Fee paid by the store || Max. fee a consumer<br>may be charged by a physical store |
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| Dankort or VISA/Dankort<ref>All VISA/dankort use a security chip. The now-abolished original version without the chip carried no fees for stores and consumers.</ref> || Annual fee || No fee |
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| Danish brand debit cards without security chip<br>(e.g. Acceptcard or Forbrugsforeningen) || No fee || No fee |
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| Danish brand credit cards with security chip<br>(not yet introduced) || Annual fee || No fee |
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| Danish issued international debit cards<br>(e.g. Maestro or VISA Electron) || 0.3% (max. 4 DKK) || No fee |
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| Danish issued international credit cards<br>(e.g. Eurocard or MasterCard) || 0.75% || No fee |
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| Foreign issued international debit/credit cards<br> || 3.75% || No more than the amount<br>charged to the store |
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|} |
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Due to the higher fees charged by banks for the use of non-Danish issued cards |
Due to the higher fees charged by banks for the use of non-Danish issued cards (that consist of foreign card network interchange fees plus Danish banks' own fees), many Danish merchants only accept Dankort and Danish-issued credit cards, but not foreign cards. Some merchants might not even accept cards with foreign brands (such as Visa, MasterCard, and so on) since these cards were identified as foreign cards by the merchants, even if they are Danish-issued. In the past they used to charge an extra fee for these cards, but this is now against EU law. |
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Co-branded Dankort-Visa cards are very common in Denmark and do not carry the bigger fee, as Danish merchants treat them as regular Dankort cards within Denmark. Danish holders of Dankort-Visa are normally able to use these cards globally, wherever Visa is accepted and the fee for accepting a foreign Visa card isn't too high that a merchant will deny the use of a foreign Visa card. |
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The Dankort card is not compatible with American Express or Discover Network cards. |
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==References== |
==References== |
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== External links == |
== External links == |
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*[http://www.dankort.dk Dankort] {{ |
*[http://www.dankort.dk Dankort] {{in lang|da}} |
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{{Credit cards}} |
{{Credit cards}} |
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[[Category:Economy of Denmark]] |
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[[Category:Debit cards]] |
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[[pl:Dankort]] |
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Latest revision as of 11:57, 27 January 2022
 | This article needs additional citations for verification. (April 2020) |
The Dankort is the national debit card of Denmark. Today it is usually combined with a Visa card and functions as a Visa debit card abroad and in stores that don't accept DanKort.
History[edit]
The first Dankort was issued by Pengeinstitutternes Købe- og Kreditkort in September 1983. In 2001 Dankort A/S was founded, and it took over the rights to the Dankort in January 2001.
In 2004 the Dankort technology was upgraded from being simply a magnetic strip card, to a hybrid card with both the magnetic strip and an embedded chip. This was to improve security by making it harder to clone a card and also to add more room for extra information on the card. However the card holder's picture was removed from the card to make room for the chip (which was already crowded with a lot of information, along with logos of Dankort, Visa, and so on), making the merchant no longer able to do a photo identification of the card holder.
In the beginning of 2005 the Danish banks introduced a 50 øre per transaction fee for using a Dankort card. The instatement of this fee was questioned by Danish politicians, merchants, and cardholders. The law was subsequently changed, converting the per transaction fee to a fixed annual payment to be paid by the merchant, the amount depending on the number of transactions ( 4,999 or less; 5,000–19,999; 20,000+). Further thresholds were later introduced into the system, allowing greater differentiation between merchants.[1] Danish law was changed effective July 2005, converting the payment per transaction paid by the merchants, to a fixed annual amount depending on the number of transactions. Merchants are not allowed to pass this fee on to the consumer wishing to pay with a Dankort.
Danish law distinguishes between varying types of debit cards and credit cards.
Due to the higher fees charged by banks for the use of non-Danish issued cards (that consist of foreign card network interchange fees plus Danish banks' own fees), many Danish merchants only accept Dankort and Danish-issued credit cards, but not foreign cards. Some merchants might not even accept cards with foreign brands (such as Visa, MasterCard, and so on) since these cards were identified as foreign cards by the merchants, even if they are Danish-issued. In the past they used to charge an extra fee for these cards, but this is now against EU law.
Co-branded Dankort-Visa cards are very common in Denmark and do not carry the bigger fee, as Danish merchants treat them as regular Dankort cards within Denmark. Danish holders of Dankort-Visa are normally able to use these cards globally, wherever Visa is accepted and the fee for accepting a foreign Visa card isn't too high that a merchant will deny the use of a foreign Visa card.
References[edit]
- ^ "Nets Denmark A/S". Forside. 2009-12-11. Retrieved 2020-11-27.
External links[edit]
- Dankort (in Danish)