PIN/Signature Debit Card
What Is Debit Card Processing?
Debit card processing permits a merchant to accept a consumer debit card linked to that consumer’s checking or savings account.
Sunrise works with merchants to get that transaction to the consumer’s card-issuing bank for approval of the purchase or bill payment transaction.
Accepting Debit Cards
Debit is the most preferred method of payment by consumers today.
Debit is most popular in the 25 – 40-year-old segment of the population. Accepting debit cards costs less to the merchant than other types of payment. In addition, PIN debit fraud is lower than any other method of payment, thereby, more than justifying the cost of “PIN pad” equipment.
The consumer trend over the past several years has been to pay with personal bank funds as opposed to lines of credit, and this trend is expected to continue.
Primary Types of Debit Card Processing
Learn the differences between PIN Debit, Signature Debit, PINless Debit and Online Debit.
- PIN Debit: Used in a retail environment, consumers select debit at the point of sale and enter their PIN (Personal Identification Number).
- Signature Debit: Can take place at a retail location or an online Web site. Transactions are routed through the credit card networks (e.g., Visa® and MasterCard®) but are paid using a consumer’s funds on deposit in their checking or savings account.
No entry of a PIN is required for a signature debit transaction. As a result, there may be a heightened risk of fraud, and typically a higher interchange rate is charged to the merchant.
According to The New York Times, PIN debit is generally the lowest-cost type of debit payment from a merchant perspective. The New York Times also states that the difference between signature debit and PIN debit fees are significant enough that some large retailers “…steer customers to use a PIN, the debit norm outside of the United States.”* - Online Bill Payment (also known as PINless Debit): A debit payment type used by certain Web-based merchants that have established some type of contractual relationship with the consumer and, therefore, know their identity.
Wireless providers are the largest merchant category using online bill payment. Consumers may pay cell phone bills online using a PIN debit card, but without being required to enter a PIN. Since consumer identity is already known, interchange rates are generally lower than card-not-present signature debit.
Access to All Major Debit Networks
Sixty-five percent of all payments in the United States today derive from the use of a debit card.
Debit card transactions grew approximately 17 percent in 2010 and will grow another 15 percent in 2011. Sunrise provides access to all major debit card networks including:
- ACCEL/Exchange®
- Alaska Option®
- AFFN® (Armed Forces Financial Network)
- Credit Union 24® (CU24)
- Interac® and Interac Online in Canada
- Interlink®
- Jeanie®
- Maestro®
- MasterCard® Debit
- NYCE®
- PULSE®
- SHAZAM®
- STAR®
- Visa® Debit
Call us or CONTACT US ONLINE to learn more about debit card acceptance options offered by Sunrise.
