Card Payment Characterstics

 

EMV Debit vs. PIN Debit

First, let’s clear up some confusion about EMV debit and PIN debit. EMV debit cards function the same as previous magnetic stripe debit cards. Using an EMV debit card will deduct funds from a bank account. It still requires entering a PIN or signing for a transaction.

EMV debit is not a new or separate category of debit card – it’s simply debit cards with a chip for increased security. The two main types of debit are still PIN debit and signature debit. As of 2023, there are no cost differences for accepting a chip debit card vs. a magstripe debit card.

My new EMV terminal doesn’t require a PIN for debit – what’s the issue?

In order for a terminal to prompt for a PIN when a customer uses an EMV debit card, both the terminal and the card must be configured to allow PIN entry. There are 4 main reasons why your machine may not prompt a customer for their PIN:

• Terminal is not set up with the common AID
• Customer did not choose the common AID
• Card is not PIN-preferring
• Your machine does not have the correct injection keys

Common Debit Card Networks and Their Fees in US

Across the U.S., there are many common debit card networks, and below is a listing of some of the common fees for reference. 

Accel Interchange & Network Rates

Pin Debit	0.05% + $0.21
Pinless Bill Pay	0.65% + $0.13
Internet PIN	0.05% + $0.21

NYCE Interchange & Network Rates

QSR	1.30% + $0.03
PIN Debit	0.05% + $0.21
Internet PIN	0.05% + $0.21

Pulse Interchange & Network Rates

PIN Debit	0.05% + $0.21
Petroleum Base	0.80% + $0.15
Pinless Bill Pay	1.59% + $0.12

Shazam Interchange & Rate Fees

General Retail	0.85% + $0.15
Business Debit Card Present	1.70% + $0.09
Internet PIN	1.15% + $0.15

Star Interchange & Network Rates

QSR	1.15% + $0.08
Petroleum	0.85% + $0.17
Internet PIN	0.90% + $0.195

Understanding the different fees the PIN networks charge is important because it impacts many layers as money flows through the payment system.

For example, merchant transactions involve the merchant, acquiring bank, payment processor, and the issuing bank. All of those layers charge a fee that the consumer never sees but impacts the economics of each layer.

The PIN debit card can help make the transaction more secure for the merchant and the entire payment process.