Credit card terminals are an everyday part of life for most people. These machines accept many different payment methods, making payment of goods or services more accessible to everyone.
What You Require
Generally all terminals accept credit cards but what about debit cards? In fact, most transactions nowadays are made with a debit card. For merchants to be able to process these payments a PIN pad is required.
How Does it Work?
The client's debit card is either swiped through a card reader or inserted into the PIN pad. The merchant then enters the amount payable and the client inputs their PIN (Personal Identification Number) into the keypad.
The money is then debited from the client's bank account and transferred to the business usually within 1-3 days. These are called online debit transactions (or PIN debit) as the client is present at the time of sale.
Offline debit transactions occur when the client's card details are entered like a credit card.
What Are the Benefits?
By processing debit cards using a PIN pad you are opening your business up to many more clients. Security is generally much higher as only the client knows their PIN.
This helps avoid a chargeback (a fraudulent claim by the client resulting in the merchant being liable for payment). Debit card processing is also cheaper although credit card transactions are processed at the same speed.
Some credit card terminals have integral PIN pads, but if not, compatible PIN pads are available to suit your current terminal.
There are two types of PIN pad available:
- Counter-top - These are terminals that are counter mounted and usually have built in card readers.
- Hand-over PIN pads - These are smaller PIN pads that merchants can hand to the client.
Merchants using wireless credit card machines or process payments via the internet by keying in card details will not be able to use PIN debit.
What Are the Costs?
There are a number of debit card network providers who will charge between 12 and 55 cents per transaction, and with no percentage taken per transaction, this works out to be more cost effective than with credit cards.
Counter-top terminals start at around $180. These should be PCI approved to ensure security standards are met.
Hand-over PIN pads are around $70. PIN pads are required to be encrypted by your merchant account provider and also should PCI approved.
Always shop around when purchasing new products and equipment in order to compare costs and get the best deal for your business.