David Graves, Vice President of Sales for REPAY, said that debit cards are the standard method for loan repayments, although borrowers can also choose ACH transfers, checks, or flat convenience fees. He made this statement during an appearance on the AFSA Extra Credit podcast.
"It has to be debit," said Graves, VP of Sales. "A lender can elect to charge a convenience fee, right? Most lenders offer other forms, the ability to pay with other modalities, right? It's borrower preference, right?"
The discussion focuses on how consumers repay loans in today's card-first economy. According to industry practices, many lenders restrict credit cards for debt repayment but accept debit cards, ACH transfers, and traditional checks. Convenience fees—typically small, flat amounts—are sometimes used to offset card acceptance costs when borrowers choose debit for its speed and familiarity. Industry conversations increasingly frame this as borrower preference: lenders provide multiple channels while many consumers still favor card rails for immediacy and confirmation.
Federal Reserve data highlights the prominence of debit by transaction count. In the latest release analyzed by the Federal Reserve Bank of Atlanta, non-prepaid debit accounted for 58% of general-purpose card payments in 2022, compared to 36% for credit and 6% for prepaid debit. The analysis also notes that consumers drive the vast majority of debit activity by both number and value of payments. These figures reinforce why many billers and lenders prioritize debit acceptance for everyday obligations, aligning with borrower behavior while keeping costs predictable.
Regulatory guidance distinguishes when "pay-to-pay" or convenience fees are allowed in debt contexts. The Consumer Financial Protection Bureau (CFPB) issued an advisory opinion clarifying that debt collectors may not charge such fees—like those for online or phone payments—unless expressly authorized by the underlying agreement or affirmatively permitted by law. While lenders’ own practices vary by contract and network rules, the CFPB’s interpretation of the Fair Debt Collection Practices Act (FDCPA) and Regulation F shapes policy for third-party collection scenarios, encouraging clear disclosures in loan agreements.
Graves serves as Vice President of Sales at REPAY, engaging financial services providers and other enterprises on payment strategy, card acceptance, and emerging risk. In industry forums, he discusses consumer payment preferences, security requirements, and the operational trade-offs among debit, ACH (Automated Clearing House), and instant payment options.
REPAY (Repay Holdings Corporation) is a payments technology company providing integrated solutions across verticals such as financial services, automotive, healthcare, and business-to-business payments. Its platform supports omnichannel acceptance—including cards, ACH transfers, and digital wallets—along with features like Interactive Voice Response (IVR), text-to-pay services, and compliance tooling to streamline receivables.