PIN Debit vs Signature Debit Payment Processing

UNDERSTANDING FEE STRUCTURE OF DEBIT CARD PAYMENTS

Signature debit transactions generally carry higher rates but lower flat fees.

In other words, the percentage being taken off the sales price is higher, but the per-transaction fees are typically lower.

PIN debit transactions frequently do not charge a percentage but do charge a higher flat fee.

It is common for payment processors to charge only a flat, per transaction fee for PIN debit transactions. This is why lower volume, higher-value businesses are almost certainly better going with a PIN-based debit system when possible.

PIN TRANSACTIONS FLOW THROUGH THE DEBIT NETWORKS

Perhaps the biggest difference between PIN and signature debit card purchases is the payment networks in which they are processed. Debit card networks, AKA electronic funds transfer (EFT) networks, are wholly separate from credit card networks, and the payments are essentially processed as a digital check. Examples of debit card networks include STAR and Interac. PIN purchases are also considered more secure from outside threats of theft and fraud.

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SIGNATURE DEBIT TRANSACTIONS FLOW THROUGH THE CREDIT NETWORKS

When customers choose “credit” AKA “signature” based debit card payments, those flow through the credit card network which is backing the card. In other words, these are routed through the same networks as a credit card purchase, but still as a debit transaction. This type of transaction is also sometimes known as an offline debit transaction.

OTHER CONSIDERATIONS WHEN PROCESSING DEBIT CARDS

There are a few other considerations before making a business decision to opt for PIN or signature payment processing, including:

PURCHASE PINPAD TERMINAL TO PROCESS PIN DEBIT TRANSACTION

PAX SP20

PAX SP30

PAX S300

Dejavoo Z3

VX 805

VX 820

FD-35-HW

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