Debit Card Processing
Establishing merchant services that allow you to accept credit cards is the first step to offering customers the kind of payment processing they’ve come to expect. Because nearly one-third of all American consumers choose debit cards for everyday purchases, it’s easy to see why debit card processing is a must-have for your merchant services account.
Types of Debit Card Processing Transactions
Customers concerned with managing personal debt have made debit transactions their preferred form of payment. At retail, debit card processing typically involves two kinds of transactions, namely PIN-based and signature-based.
PIN-based processing
- With the card in-hand, PIN-based processing requires the cardholder to use his personal identification number (PIN) to authorize payment.
- The funds are immediately deducted from the cardholder’s checking account, using the PIN entry as a security measure intended to reduce the risk of fraud.
- Cash back is available to the cardholder by adding an additional amount to the transaction total.
Signature-based debit card processing
- Much the same as credit card transactions, signature-based debit card processing requires the card to bear the logo of a major credit card network, like Visa or MasterCard among others. Whether or not the card is physically present, the transaction can be authorized without using the PIN.
- Payment processing can be used with this type of debit card scenario through virtual terminals, MOTO and e-commerce transactions.
- Unlike PIN-based debit card processing, cash back is not available to the cardholder.
Debit Card Processing Benefits
Between speed, security and convenience, both merchants and consumers win.
Complete transactions faster
Debit and credit card processing also means freedom from check writing fraud and transactions that run at a snails pace to accommodate writing out all the payment details by hand.
Draw incremental purchases
Consumers have been trained to know that payment processing can mean convenient cash back on purchases made using a PIN, saving them a stop at the ATM. Even smaller incremental purchases add up to significant sales.
Encourage customer loyalty
Customers recognize debit card processing as a convenient way to check out and access their checking accounts. Giving customers access to a PIN pad to complete debit card transactions for easy purchases and simple cash access is the level of convenience that attracts repeat customers.
Lower your risk of fraud
Eliminate worry by introducing debit card processing. Use debit transactions in favor of eliminating your risk of fraud. From accepting bad checks to counterfeit bills, debit cards eliminate merchant loss in several areas.
Speed up checkout lines
High on the convenience scale, debit and credit card processing reduces the time from store door entry to car door entry. Debit transactions are another way to provide customers with another valuable perk that keeps checkout lines moving when customers take advantage of their signature-not-required option.
Reconcile cash drawers faster
Without paper checks to protect and present for payment processing, reconciliation at the end of the day has the potential to go faster and more smoothly.
Unlimited 24-7 support
Get round-the-clock support for debit and credit card processing along with other Switch Commerce payment processing services, from stateside customer support agents standing by to assist you 24-7. Turn to Switch Commerce for debit and credit card processing that gives your POS system and credit card terminals a direct connection to regional and national networks.
