Is pin or siganture debit cheaper?

At face value, both PIN debit and signature debit transactions look the same. They are both conducted on a debit card, so what’s the difference?

The truth is there are some big differences when it comes to cost. How you process debit cards can have a large impact on your bottom line. Most businesses aren’t aware of this and end up throwing money out the window. Here’s what you must know.

What is a PIN Debit Transaction?

A PIN debit transaction occurs when the customer enters their PIN into the credit card machine. Only they know the PIN and if they enter it incorrectly, the transaction won’t go through. The transaction doesn’t go through a credit network like a credit card does. Instead, it goes through a debit network.

With a PIN debit transaction, the debit network ensures there are enough fees for the transaction to go through. If there are not enough fees, the transaction is denied.