If you are a retail merchant,  most of your credit card transactions are “swiped” through ( not “keyed-In) and that means you need to make sure that you have a PCI Compliant PIN pad to accept PIN-based debit transactions. Why should I buy a PIN Pad?  A PIN-PED based debit transaction is the most secure type of transaction there is and that translates into a lower rate for you!   When I visit various merchant locations and ask the owner why he/she does not have a PIN Pad, the most common answer is either “I didn’t know I needed one” or “I accept debit and just have the customer sign.”

If you read our recent blog post about Understanding Interchange and your Merchant Statement, you will find that debit cards(offline) are the cheapest type of transaction (i.e. See Visa Interchange) for a merchant to process.   There are really two main things that will affect the rates you pay on each transaction:  1) The security of the transaction (pin based debit/swiped/keyed-in) and 2) the type of card your clients decides to pay you with (debit, skymiles, business rewards etc).

Attach a pin pad onto your POS (Point of Sale) terminal and what’ll happen?  You will see a dramatic savings if you start utilizing it!  A good tip is to always push debit transactions if the ticket price is over $25.00.    Using a PIN Pad allows the transaction to be routed through the Debit Networks instead and you are now only subject to the Interchange Fees of the Debit Networks (i.e. Interlink Interchange Charts ).   Like I said eariler, the lower the risk level of the transaction, the lower the processing fee.  I have seen some merchants overpaying on processing Debit transactions by as much as 200 basis points (2.00% ) simply because 1. They were not processing with @BryanTepus or @MichaelHsiung and were simply being ripped off  or 2. The merchant did not have a debit PIN Pad for his customers to punch in their PIN number, the cheapest way to process cards.

Please take note that you will need to get a new pin pad because a lot of the older pieces of equipment are becoming non-compliant.  Those merchants caught using expired PIN Pads and POS Systems will be subject to fines (penalties) from the card associations. ( Click here for a complete list of PCI Approved PIN Pads ) If you are unsure whether your PIN Pad (or Terminal) is compliant and up to todays security standards, please feel free to email us with any questions to: info@MerchantJuice.com Remember that you if you are a merchant who is not currently setup to accept debit cards using a PCI Compliant PIN Pad, you are ovepaying by 15%-45% on your fees to process the transactions that you are having the customer “sign” for.

For a explanation of terms regarding your merchant account please visit our Merchant Account Glossary or feel free to fax us a copy of your most recent merchant statements to 949-544-0231 Attn: Merchant Juice or email statements@merchantjuice.com!

You can also send any questions to teachme@merchantjuice.com!

Tags | Accepting Debit Cards, Add new tag, Bryan Tepus, business, Credit card, Debit card, Debit Cards, Financial Services, free pinpad, Merchant Account, Merchant Juice, Merchant Services, Michael Hsiung, PCI, PCI Compliance, PCI Compliant PED Devices, PCI PED, Personal identification number, PIN Pads, Point of sale, POS Terminals, reduce merchant account fees, Save money on merchant account, Using a PIN Pad, VISA, Why do I need a pinpad?