March 30, 2010

PIN Debit and Signature Debit Payments

Posted by 2Checkout Category IconTechnology

More and more people are using debit cards to help them maintain their budgets. Unlike a credit card, a debit card accesses the available funds in an existing bank account. This gives the security and convenience of having a credit card without the monthly fees or interest rates. The popularity of debit card use is increasing at roughly 12 percent each year.

Because of this popularity, many online merchants are more than happy to accept debit card transactions. Until recently, online debit cards were treated as Signature Debit transactions. The customer’s electronic signature is substituted for their physical signature. Thus allowing debit cards that have a Visa or Master Card logo to process much like credit cards.

The other form of debit card transaction is a Personal Identification Number (PIN) Debit. Here, a customer pays with their debit card and authorizes the purchase by entering their unique ID. Because the purchase must be authorized by the customer, requiring an interface to enter the PIN, this method of payment is less common on the Internet.

One of the benefits of PIN debit, is a reduction in fraud and disputed charges. Customers authorize their purchases with PINs, the risk to merchants of chargebacks is virtually nonexistent. 2CO, along with Acculynk, allows your customers to buy products using the safety of their PIN debit cards. Your customers get one more way to make purchases, while merchants get the ability to accept even more sales. Sales that are much less likely to be fraudulent.