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Pin-Based Debit Transactions!
Retail merchants can accept debit cards in one of two ways:
- Signature Based (off-line) Debit Transaction
This type of transaction is the most common way to accept a debit card and is processed like a regular credit card by
swiping it through the terminal machine. The debit card must bear the Visa or MasterCard logo.
- Pin-Based (on-line) Debit Transaction
A newer and least expensive method of accepting debit cards is as a pin-based (on-line) debit transaction.
The card is swiped through the terminal and the customer is prompted to enter their pin number. An external or built-in
pin-pad device is required for encrypting and processing the transaction securely. Merchants have two choices:
- Terminal Machines with Built-in Pin-Pads
Quality terminal machines come with the pin-pad built inside the keypad. Many merchants however prefer the external pin-pad
for reasons such as, the terminal isn't being constantly turned around to the customer, etc.
Due to strict security requirements, the built-in pin-pad must be encrypted by your merchant provider.
Therefore, it is best to purchase the machine from them to avoid any encryption fees or downtime.
- External Pin-Pad Devices
Quality terminal machines are capable of supporting an external pin-pad device regardless if it is already built-in.
Due to strict security requirements, the external pin-pad must be encrypted by your merchant provider.
There are several advantages to accepting debit cards as a pin-based (online) debit transaction.
- Lower Rates & Fees
We only charge a flat fee of 65 cents for each pin-based (online) debit transaction; regardless of ticket size.
This can add up to a substantial savings over the course of a month.
The chart below represents a conservative cost analysis for a merchant accepting 100 debit cards over the course of a month
(about 3 per day) and averages $75 per sale. As you can see below, this merchant would have saved $1,041 over the course of a year.
The larger the ticket size, the more you save!
| blank |
Debit Card |
Credit Card |
| Average Sale Amount |
$75.00 |
$75.00 |
| Cost Per Transaction |
100 @ 65 Cents = $65.00 |
100 @ 25 Cents = $25.00 |
| Discount Rate |
N/A |
$7,500 @ 1.69% = $126.75 |
| Cost Per Month |
$65.00 |
$151.75 |
| Cost Per Year |
$780.00 |
$1,821.00 |
| Annual Savings |
$1,041 |
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- Faster Checkout Lanes
When your store is busy, even the smallest delays can make a big difference. Many consumers find it much quicker to enter their pin number instead
of searching for a pen and signing a receipt.
- Increased Customer Loyalty
Everyone has their own personal habits and preferences. More and more consumers are learning about the convenience of using
pin-based debit and their expectations of your acceptance is growing every day.
- Less Prone to Chargebacks
When it comes to credit cards, consumers are well protected. Even so to the extent that some consumers abuse
the system and take advantage of merchants. On the other hand, pin-based debit transactions are handled a little
differently. As long as the merchant provides a quality service/product, their liability to chargebacks is greatly
reduced due to the authentication of the transaction.
Debit Networks - process any debit card using any of the debit networks listed below:
National Networks
- AFFN
- Interlink
- Maestro
Regional Networks
- Accel
- Alaska Option
- Cash Station
- Honor
- MAC
- Magic Line
- MoneyStation
- NYCE
- Pulse
- Shazam
- Star
- TYME
- Yankee
For more information or to get started, please contact us.
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