Contemplating Payments

Is Processing PIN Debit Really Cheaper?

Many years ago, the answer to this question used to be a resounding “Yes”, with the one caveat that the average ticket would be more than $30 - $40. These days the answer is not so clear. For one thing, the average ticket seems to matter a lot less than it used to. Four major changes in the electronic payments industry have altered how one should consider evaluating costs between the different card options. These changes include distinguishing between credit and signature debit cards; the passage of the Durbin Amendment; consolidation among the PIN Debit Networks; and the card brands going public. Given the evolving payments environment it’s good to revisit our assumptions about industry norms periodically.