PIN debit has advantages over signature

PIN debit has advantages over signature
Tags: Bank / Credit Union, Debit / Credit, Other, Security, Transaction Processing
April 12, 2006

ePaynews: Debit-card use continues to grow in the United States, with the Star network reporting that 2005 debit purchases were 32 percent higher than cash and 24 percent higher than with checks. Star also found that consumers prefer PIN debit (47 percent) over signature debit (30 percent), because of the perceived security of using PINs to make purchases (46 percent). PIN debit transactions benefit retailers in the form of improved security, faster funds settlement and reduced chargebacks, while costing financial institutions 50 percent less than signature-debit transactions.