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Pin Debit

June 3, 2023

Pin Debit Processing

Anytime a customer enters their PIN (Personal Identification Number) to make a purchase, that is considered pin debit. Whenever you pay for any good or service with a debit card, there’s an option to purchase using debit. All of these debit card purchases are known as pin debit payments.

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What is Pin Debit?

Pin debit transactions are less expensive for businesses with a large amount of payments being processed, compared to other transaction methods such as Signature Debit. As a result, high risk merchants in particular can benefit greatly from this method of payment acceptance.

Signature Debit

A pin debit transaction is essentially a password protected online payment transaction. This processing method authorizes funds over an EFT (Electronic Funds Transfer). In addition, it is password protected through the requirement of a 4 digit PIN number.

Secure Debit Card Payments

Because the customer using the debit card must know the personal identification number code to initiate the payment, it is much easier for the merchant to avoid fraud. This makes debit using a PIN a very secure method of payment processing.

Signature Debit

A transaction is considered signature debit when a customer uses their debit card to pay for the products or services. However, instead of entering their PIN on a payment terminal, the merchant has the customer sign the receipt.

When you process a payment via signature debit, the transaction is actually routed through MasterCard, Discover, or Visa. Therefore, the payment is not actually processed over the PIN debit network.

Pin Debit Card Network

As with every type of payment processing, the debit card process involves many steps. From the customer initiating the payment with their PIN number, to the merchant receiving the funds, there is an order of processing over the debit card network. Therefore, this financial process is important for merchants to know.

Below is a breakdown of debit card payment processing:
  1. Debit Card Payment ProcessingThe customer swipes their debit card in the merchant’s payment processing terminal.
  2. The merchant’s payment terminal is required to offer the customer with one of two processing options:
    • Debit Transaction
    • Credit Transaction
  3. The customer chooses the debit transaction option. Therefore, this initiates the payment process over debit card networks.
  4. Merchant terminal then requires the customer to input a 4 digit personal identification number (PIN).
  5. The customer inputs their PIN to securely process the card transaction.
  6. Card networks and financial institutions process the submitted PIN.
  7. Once approved, the debit transaction is complete.

Processing Debit Cards for Merchants

More than likely, you’ve paid for a product or service using PIN debit. There is no doubt that this payment processing method is here to stay. Therefore, as a business owner, there is no choice but to offer debit and signature debit payment options to customers.

Card Processing for Merchants

Lastly, the experts at PayKings can help get merchant accounts approved fast. If you are in need of debit processing for your high risk business, call (727) 300-0277 today.

Whether it’s a secure debit payment gateway, a physical payment terminal, or a high risk merchant account, PayKings has ideal payment solutions. In addition, strong relationships with banks and financial institutions allow us to offer some of the lowest rates in the industry.


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Kyle Hall CEO

June 3, 2023 | Merchants | Kyle Hall