Do I need Pin-Debit Processing?

 

Do I really save money with Pin-Debit Acceptance?

There are two tupes of Debit Cards: Signature Debit and Pin-Debit. So what's the difference?

Signature Debit: 

A signature debit transaction requires the cardholder to sign a receipt; either paper or electronically as a way of verifying the customer. These cards are processed via the BRANDS Network (Visa, MasterCard, Discover, American Express) and are subject to their interchange rate. These cards are treated just like a regular credit card and require NO Additional Equipment or Set-Up Fees. 

The rates and fees for the SIGNATURE DEBIT via the BRANDS NETWORK ranges from .05% - 1.65% with Transaction Fees between $.04 - $.30.

PIN DEBIT NETWORK

PIN Debit 

A pin-debit transaction,requires cardholders to enter their PINs (personal identification number) into the terminal to verify their purchase. Pin-debit transactions are processed through a different card netwrok called the PIN-DEBIT NETWORK. Some of the brands included in this network are: Accel, Jeanie, NYCE, STAR, or Shazam. The rates charged by these network brands are all different based on the pin-debit company choosen by your bank that assigned you your pin-debit card. You can find which one you have by looking at the front of your card!

The rates and fees for the PIN DEBIT NETWORK ranges froom .05% - 1.30% with Transaction Fees between $.03 - $.21.

PIN or Signature? What’s the best for my business?

Each business must decide for itself what it best for them. But here are some guidelines: 

1. If you do a lot of online or card not present transactions, Pin-Debit does not work for those transactions as it is ONLY set up for In-Person using a Pin-Debit enabled Pin-Pad.
2. You need to register with the PIN DEBIT NNETWORK brands and have an additional set-up on your merchant account. 
3. With the new Durban Ammendment, most Signature Debit credit cards are regulated and can only charge the merchant .05% plus the transaction fee. This is typically cheaper than the PIN DEBT NETWORK. 
4. Ask yourself, how many of my customers will pay me with a Debit VS Credit card. A debit card pulls the money immediately while a credit card will float the money until the bill is due. 

If you need help understanding of deciding on which is best for your business, please call us! 

Merchant Processing Solutions Inc.

954-938-2420