Pin-Based Debit
What is PIN-Based Debit?
- PIN Based Debit is a specialized payment option that deducts funds instantaneously and directly from your customer’s account to pay for goods and services.
- The transaction skips the credit card associations, thus avoiding standard discount rates.
How Does It Work?
- PIN debit cards are issued to consumers by banks, just like credit cards.
- When your customer wants to use a debit card, you swipe the card through the Merchant Diamond, just like a credit card. In addition, your customer enters a 4-digit pin directly in to the terminal.
- Funds are then transferred from your customer’s bank account directly to your bank account.
What are the benefits to you?
- Reduced Processing Fees – You are NOT charged a standard discount rate. You are only charged a transaction fee plus a small pass-through fee for each on-line (pin-based) debit transaction.
- Reduce NSF Exposure – Checks, can bounce if there are insufficient funds; debit cards are authorized at the time of sale and funds are verified.
- Minimizes Chargebacks – By requiring a 4-digit pin, you minimize your chargeback potential.
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