PIN-Based Debit

PIN-Based Debit refers to debit card transactions that are authenticated with a Personal Identification Number (PIN) entered by the cardholder. This type of transaction is typically processed through a network that allows for immediate electronic funds transfer from the cardholder’s bank account.

The main advantage of PIN-based transactions is the added layer of security. Because the cardholder must enter a secret number, it is much harder for unauthorized users to access the account even if they have the physical card.

PIN-based transactions usually bypass the credit card networks, resulting in lower transaction fees for the merchant. However, they also require the merchant to have a PIN pad available, and the customer to remember their PIN.

Despite this, many customers prefer this method of payment because it gives them more control over their funds and helps to prevent unauthorized transactions. Because the funds are transferred immediately, there is no pending period, and both the merchant and customer can be confident that the transaction is complete.