The use of debit cards has grown significantly over the past decade. Consumers may favor debit cards because the money comes directly out of their checking accounts, which can enable better financial management. FDIS offers both PIN-secured and signature-based debit card processing.
PIN-secured debit purchases use a secret personal identification number (PIN) to authorize purchases. The transactions are authorized in real time. The funds in the customers' accounts are captured, and money is normally transferred into the merchant's account in two to three business days.
Signature-based debit transactions are performed offline and do not require a PIN. They do, however, require the customer's signature on the receipt. Because signature-based debit cards are processed through the same system as credit cards, they incur transaction fees and discount rates. Merchants who have existing credit card accounts can easily add signature-based debit to their list of payment options and broaden the number of payment options they provide to their customers.