Big news out of the New York Times this morning as they have a thorough and in-depth look at the fees behind every Visa debit card transaction.

While it may not be as obvious as the credit card statements that hit your mail box each month, your debit card usage is big business. And there’s a big battle behind the scenes for which debit cards are offered by your bank, and how you you use them at stores.

The fight for debit cards transactions is a rare case of competition leading to higher fees. From the the New York Times:

When you sign a debit card receipt at a large retailer, the store pays your bank an average of 75 cents for every $100 spent, more than twice as much as when you punch in a four-digit code.

Despite all this, signature debit cards dominate debit use in this country, accounting for 61 percent of all such transactions, even though PIN debit cards are less expensive and less vulnerable to fraud.

How this came to be is largely a result of a successful if controversial strategy hatched decades ago by Visa, the dominant payment network for credit and debit cards. It is an approach that has benefited Visa and the nation’s banks at the expense of merchants and, some argue, consumers.

In an effort to get more of their cards to market, Visa offered banks a large cut of the fees they received when you pay with a debit card and sign for the purchase.

To increase their income, banks began offering incentives, like rewards points, on debit card purchases that use a signature instead of a PIN.

This has led to an increase in, you guessed it, debit card signature purchases.

Some stores, like Best Buy, have complained, and argue that the high fees are passed along to consumers. But the behind-the-scenes fees aren’t likely to go away anytime soon.

Then again, these fees don’t show up as a direct cost to you. And, depending on how you use your cards, you could get some reward points for your purchases.

Be an Informed Credit Card User

The inner workings of credit companies and banks may not affect you directly, but it never hurts to be an informed consumer. By knowing how your purchases are tracked and used, you can make smart decisions about how and when to use your cards.

It’s important to know why banks and credit cards offer consumers incentives and points. It’s not out of the kindness of their hearts. All promotions are for a reason.

So before you sign or swipe, make sure that you’re using the best card for your situation. Whether credit or debit, be aware of:

• Monthly interest rates
• Overdraft fees
• Protection and security levels
• Your plan to pay back purchases

You should weigh these each time you open your wallet, and make the best choice for your bank account, not your bank.