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Pin-Based "On-line" Debit Transactions
The use of debit cards is growing tremendously in the United States. In fact the
numbers are staggering, with an estimated 13 billion on-line point of sale debit
transactions predicted for 2008, up from only 2.9 billion in 1999. The reason for
this growth in debit card usage is that many of the cards being issued by banks
today are dual purpose credit / debit cards.
By having an encrypted PIN pad a merchant who conducts face-to-face business can ask
the customer if he would like to pay with debit or credit. By keying in their private
four digit pin number into the PIN pad when prompted the merchant will pay a flat
rate of $0.75 cents, no matter what the amount of the sale. By comparison, using a
credit card on a $100.00 sale, the MasterCard or Visa discount rate would cost the
merchant approximately $1.90, and an American Express sale approximately $3.25.
Accepting debit cards is a real convenience to many customers who cannot get approved
for credit cards or prefer not to use their credit card for certain types of purchases.
For the merchant it means guaranteed funds without the concern of accepting a check
that might later bounce.
In order for a merchant to accept pin-based debit transactions an encrypted PIN pad is
required. Depending on the type of equipment a merchant is using an external PIN pad
may be required. Some credit card processing units now come with integrated PIN pads
which eliminates the need for an external encrypted PIN device, however, the integrated
unit will still need to be encrypted in order for debit services to be activated.
Once we establish your account to accept debit cards you will have access to all of
the major national and regional debit networks including:
STAR© (Formerly MAC and Cash Station)
Honor©
NYCE©
Bankmate©
Maestro©
Pulse©
Most©
Shazam©
Interlink©
AFFN©
 On-line VS. Off-line Debit
Online Debit - ATM Cards:
An online debit card allows the cardholder to access their checking account by keying
in their PIN (Personal Identification Number) when prompted by the PIN pad. The
terminal will then dial out in real-time and check to see if there are enough funds
in the cardholder's account to complete the sale. There is no need for the customer
to sign the sales draft. In this case the merchant is charged only the per transaction
fee of $0.75.
Offline Debit - ATM or Check Cards:
The vast majority of debit cards issued by banks today are dual purpose ATM/Check
Cards. Most are the Visa Check Card or the MasterCard MasterMoney Card. You will
notice that they have the Visa or MasterCard logos on them. These cards combine the
checking account access of the traditional ATM Card (Online Debit) with the universal
acceptance of a credit card. These Check Cards give the customer two options:
The customer can pay with the online debit component by using this card just like a
debit card by entering their PIN. There is no need for the customer to sign the sales
draft. In this case the merchant is charged only the per transaction debit fee.
The customer can use their debit card just like a credit card. The merchant swipes the
card through the terminal and does not request the customer to use the PIN pad. The
customer then signs the printer receipt or manual sales draft. The sale will clear at
the credit card interchange rate.
Pin-Based Debit Equipment Options
Verifone PINpad 1000
Price: $90.00
Hypercom S9 PINpad
Price: $107.00
Nurit PINpad 292
Price: $118.00
Please do not hesitate to contact us with any questions or concerns at 1-877-493-EPAY (3729).
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