Debit Card Processing

SW Merchant Services Group offers comprehensive PIN-based, PINless and signature-based debit card processing so your customers can use their bank ATM cards and check cards to pay for goods and services. Debit card transactions today count for 35% of all card-based transactions. Industry analysts anticipate the total number of electronic debit payments will be greater than the total number of cash and check transactions in 2008.

What is meant by PIN-based, PINless, and signature-based debit?

• PIN-based transactions occur at the point of sale, and are defined by the entry of a PIN (Personal Identification Number) by the cardholder. Also referred to as online debit.
  
  
• PINless debit transactions are conducted without the cardholder present and are generally used only in processing environments with recurring transactions, such as utilities or other bill payments.
  
  
• Signature debit, also referred to as offline debit, is the use of a check card issued by a bank and with a Visa or Mastercard logo. During the transaction, the cardholder can elect to use the card as Debit (PIN-based) or Credit (Signature-based).

The use of debit cards for payments has increased steadily over time, as much as 25% per year.

• 30% of all debit point of sale transactions are in the retail segment
  
  
• 18% of debit is transacted in the Travel & Entertainment industry
  
  
• 9% is processed for utility/ bill payments
  
  
• 54% of grocery purchases are made with debit cards