When debit cards were first introduced, the only way that you could pay with it was by typing in your PIN code. The reason behind that was security – the banks wanted to make sure that money cannot be easily stolen from the accounts of their clients in case the card is lost or stolen. And did work for quite a while.
However, the problem started when doing shopping online became popular. The PIN system in case of debit cards might have worked in physical stores, but unfortunately, it didn’t work with the online purchases. It wasn’t until recently that pinless debit payment solutions became available, mainly because major debit card networks considered it as too much of a risk.
And how exactly does that work? Well, on the back end, each transaction is submitted to EFN., or Electronic Funds Transfer Network if you prefer – the PIN code is waived. On the front end, the process is the same as if you were paying with a credit card. Simple as that.
Pinless debit card transactions are very convenient for the customers, so if you have your own business, you should about introducing that form of payment. However, before you can do that, you will need a merchant account. The process of getting one can differ depending on what type of business you run. Below, you will find an infographic that shows you how it works for a collection agency. Good Luck.