Debit networks are a powerful tool for merchants looking to reduce transaction costs
With today’s debit networks supporting PINless and signature transactions, merchants have more routing options than ever before when accepting debit cards. Now that you have the ability in the post-Durbin world to route debit transactions to networks that cost your business less, make sure you leverage all available debit networks to take full advantage of lower cost routing opportunities. This is possible because many debit networks provide highly competitive interchange and low network fees.
No PIN, no problem
If you don’t have PIN pads and think debit networks aren’t an option for you, think again. By adding PINless and signature options from PULSE and other debit networks, online retailers, quick service restaurants, sit-down restaurants, brick and mortar retailers and others can have routing alternatives to Visa and MasterCard for every debit transaction.
A seamless experience for your customers
Your customers’ payment experience with PINless and signature options from debit networks is seamless. From their point of view, the checkout is not altered in any way and works like signature or non-verified transactions from Visa or MasterCard. For example, a quick service restaurant can route a customer's small-ticket transaction to a debit network without gathering a PIN or signature, and no receipt is required unless the customer requests it. The line moves just as quickly and the customer notices no difference. However, the restaurant could be choosing a lower cost routing option.
How much can you save?
Quite a lot actually according to a 2015 white paper from Acculynk, a payment gateway for online retailers that leverages debit networks for routing PINless transactions. Acculynk reported that for a $100 transaction on a card issued by a regulated financial institution, merchants could experience a savings of nearly 24% through debit networks versus Visa and MasterCard.
Choice is key to your success
To best leverage debit networks’ PINless and signature options, it is important that you are able to enable routing choice on as many transactions as possible. This will create the scale needed to maximize choice and savings for more transactions.
Talk with your merchant acquirer or gateway provider about how to utilize debit networks’ PINless and signature transactions for maximum economic benefit.