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Pin Debit Processing - How It Compares To Credit And What is Cheaper

February 27, 2018

Have you ever been asked the question "Debit or credit" before? There is a difference in fees between them and as a business you should know what's better for your bottom line. 

 

Most of us carry "plastic"in our wallets which gives the consumer options at the Point-Of-Sale.  A debit card can technically be used as a debit or credit, and most of the time, the consumer decides which option to process. From a fee standpoint, there are differences on how each is processed and a common benchmark to compare is directly related to the average transaction amount. 

 

Credit, also known as signature debit transactions, allows the customer to sign for the purchase, and the settlement gets to be processed through the standard credit card companies such as MasterCard, Visa and Discover. The logo on the front facade will determine which company gets to process the transaction. 

 

Pin debit processing, in the other hand, requests the debit PIN to be keyed on the keypad, and the settlement gets to be processed through the debit network instead. 

 

 

If your business averages transactions with higher dollar amounts, the general guideline is that PIN debit processing will be cheaper to run your operations.  If, the opposite is true, and your average transaction is lower dollar amounts, then credit may be a more economical choice.  There are three main reasons that determine fees associated with each transaction:

 

• Percentage based fees

• Markups applied to each transaction

• Chargebacks

 

If you would like to learn a little more about the differences on each and determine what is best for your specific operations, please fill out the form below and one of our experts will help analyze your specific business. If you would also like to get setup with Pin debit processing, fill out the form below and we will get your business setup and saving fees quickly.

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