Do I need a Pinpad?
Debit cards can be processed in two different ways: Pin-debit, where the card is processed using a card reader and pinpad similar to an ATM machine, or Signature debit where the card is processed just like a credit card. While a pinpad is not a necessity for accepting debit cards using the signature method, pin-debit can be an extremely cost effective system for many businesses.
Merchants who are setup to accept credit cards, can accept debit cards as long as they have a Visa or MasterCard logo on them. Debit cards with the logo can be run just like a normal credit card and will usually cost the same or slightly less than a credit card.
Pin-Debit can be a great way to save money for businesses that either have a large ticket size or businesses that accept a large percentage of debit transactions. To run pin-debit transactions, a merchant must have a pinpad attached to their credit card machine, and the customer must enter their pin number to complete the transactions. Pin-debit is also only available to retail type businesses who swipe their customers cards, and is not available for businesses who key in their transactions or operate an online businesses. Pin-debit transactions are normally setup with a flat fee per transaction instead of the standard processing and transaction fee structure accompanied by credit cards. This fee varies, but is normally between $.35 and $1.00 per transaction. Because pin-debit transactions are charged a flat rate, merchants can save themselves considerable fees on large transactions.