How Does Secure Debit Card Processing Work
Merchants have two options of processing debit cards. The first option is offline (signature based) and the second option is online (pin based). For online debit card processing the card should be branded either with VISA or MasterCard logo. The online processing of debit cards in done in the same way as a credit card. After the card details are entered the merchant service provider connects to the payment gateway of the bank for the processing. In an offline transaction the customer is asked for the pin number on the card. The customer enters the pin details on the Pin-Pad. The machine helps in connecting to the payment network and automatically authorizes the payment and produces a transaction. The entire transaction takes 3-4 second to complete but as an end-user we are not aware of the complex processes that go at the backend.
Customers should take note that entering the pin amounts to authorizing a transaction. The bank where customers have their accounts will recognize the pin number of the customer and debit the account as per the sale information. Merchants get their money within a period of 24 hours-48 hours and the process is faster than credit cards. The time frame may vary from country to country and the clearing mechanism in each country. In the United States the ACH process transfers the money directly into the account bypassing the payment networks used in processing credit card payments. As a merchant and an end-user we should have some knowledge of how the processing of debit card is done. This will help us to ensure a smooth and safe transaction.
Tags: Debit Card Processing,Credit Card Processing