Comments on: Can merchants require use of PIN number for any & all debit or credit card transactions? http://smallbusinessmerchantaccounts.org/can-merchants-require-use-of-pin-number-for-any-all-debit-or-credit-card-transactions.htm Sat, 19 May 2012 12:51:58 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: Jason Bordeaux http://smallbusinessmerchantaccounts.org/can-merchants-require-use-of-pin-number-for-any-all-debit-or-credit-card-transactions.htm/comment-page-1#comment-480 Jason Bordeaux Thu, 09 Jul 2009 09:38:03 +0000 http://smallbusinessmerchantaccounts.org/can-merchants-require-use-of-pin-number-for-any-all-debit-or-credit-card-transactions.htm#comment-480 Plain and Simple: If you choose to accept only debit cards, you can require a PIN. If you accept both credit AND debit cards, you not only cannot process with a credit card PIN (which is only requested for an ATM or a credit card terminal that is set up for cash advance) but you must also process an offline debit card transaction (signature instead of PIN) upon cardholder request. You could probably set up a cash advance terminal for credit cards, but I suspect that would be rarely used. It's terribly expensive for the cardholder and most cardholders have no clue what their credit card PIN is. Your best bet is to match credit cards with a photo ID and assure that the signature is a match. If a credit card cannot be read by your terminal, this is a red flag. Do not complete a key entered sale unless the address verification information and CVV code are a match - your terminal should have the software downloaded to perform these tasks. Even if you do all of this, though, you are at some risk of fraud. This is unfortunate but true. I liken this risk to robbery, shoplifting or counterfeit bills. In many cases you can make a theft claim to your insurance company if you can show that reasonable measures are in place to deter fraudulent purchases. Assuring that you are PCI Data Security Standard Compliant is your best bet. Compliance also assures that you will not be fined by MasterCard and Visa for being duped - take a look at your merchant processing agreement and you will see that it states that you are responsible for adhering to card association standards and all penalties for transgressions. Below, I have provided links from MasterCard and Visa which we provide our customers. One is a security webinar and the other discusses PCI compliance. They are a great start towards assuring that you minimize your risk. Good luck with your new endeavor! Plain and Simple:

If you choose to accept only debit cards, you can require a PIN.

If you accept both credit AND debit cards, you not only cannot process with a credit card PIN (which is only requested for an ATM or a credit card terminal that is set up for cash advance) but you must also process an offline debit card transaction (signature instead of PIN) upon cardholder request.

You could probably set up a cash advance terminal for credit cards, but I suspect that would be rarely used. It’s terribly expensive for the cardholder and most cardholders have no clue what their credit card PIN is.

Your best bet is to match credit cards with a photo ID and assure that the signature is a match. If a credit card cannot be read by your terminal, this is a red flag. Do not complete a key entered sale unless the address verification information and CVV code are a match - your terminal should have the software downloaded to perform these tasks.

Even if you do all of this, though, you are at some risk of fraud. This is unfortunate but true. I liken this risk to robbery, shoplifting or counterfeit bills. In many cases you can make a theft claim to your insurance company if you can show that reasonable measures are in place to deter fraudulent purchases. Assuring that you are PCI Data Security Standard Compliant is your best bet. Compliance also assures that you will not be fined by MasterCard and Visa for being duped - take a look at your merchant processing agreement and you will see that it states that you are responsible for adhering to card association standards and all penalties for transgressions.

Below, I have provided links from MasterCard and Visa which we provide our customers. One is a security webinar and the other discusses PCI compliance. They are a great start towards assuring that you minimize your risk.

Good luck with your new endeavor!

]]> By: man_of_mustard http://smallbusinessmerchantaccounts.org/can-merchants-require-use-of-pin-number-for-any-all-debit-or-credit-card-transactions.htm/comment-page-1#comment-481 man_of_mustard Thu, 09 Jul 2009 09:38:03 +0000 http://smallbusinessmerchantaccounts.org/can-merchants-require-use-of-pin-number-for-any-all-debit-or-credit-card-transactions.htm#comment-481 I don't think so. You can't make a credit card user enter a PIN number unless the credit card company issues them one. I don’t think so. You can’t make a credit card user enter a PIN number unless the credit card company issues them one.

]]> By: Diane W http://smallbusinessmerchantaccounts.org/can-merchants-require-use-of-pin-number-for-any-all-debit-or-credit-card-transactions.htm/comment-page-1#comment-482 Diane W Thu, 09 Jul 2009 09:38:03 +0000 http://smallbusinessmerchantaccounts.org/can-merchants-require-use-of-pin-number-for-any-all-debit-or-credit-card-transactions.htm#comment-482 Credit cards don't have PIN's attached, that is why they are required to sign the slip and your due diligence is to ask for other ID to compare the signature with. Debit cards require a PIN because they are paperless transactions. Only the cardholder should have the PIN. It is assumed that anyone who has the PIN is authorized by the cardholder to use the card. Chargebacks are an unfortunate part of doing business. However, you don't want to refuse people service because you are scared. You might want to contact the Visa and MC people directly and find out what your exposure is. I don't think they charge it back to the merchant but rather absorb the losses themselves (I believe they have insurance for this purpose), but don't quote me on that. Good luck with your new store! Diane Credit cards don’t have PIN’s attached, that is why they are required to sign the slip and your due diligence is to ask for other ID to compare the signature with. Debit cards require a PIN because they are paperless transactions. Only the cardholder should have the PIN. It is assumed that anyone who has the PIN is authorized by the cardholder to use the card.

Chargebacks are an unfortunate part of doing business. However, you don’t want to refuse people service because you are scared. You might want to contact the Visa and MC people directly and find out what your exposure is. I don’t think they charge it back to the merchant but rather absorb the losses themselves (I believe they have insurance for this purpose), but don’t quote me on that.

Good luck with your new store! Diane

]]> By: storm13 http://smallbusinessmerchantaccounts.org/can-merchants-require-use-of-pin-number-for-any-all-debit-or-credit-card-transactions.htm/comment-page-1#comment-483 storm13 Thu, 09 Jul 2009 09:38:03 +0000 http://smallbusinessmerchantaccounts.org/can-merchants-require-use-of-pin-number-for-any-all-debit-or-credit-card-transactions.htm#comment-483 no it is not you can only get PIN on debit transactios but you can ask for more ID with pics on credit charges there is not much you can for credit cards but another thing is have securty cam's at the cash so you have pic of them and keep them for aleats 60 day's it is alot of work but will protect you in the long run no it is not you can only get PIN on debit transactios but you can ask for more ID with pics on credit charges there is not much you can for credit cards but another thing is have securty cam’s at the cash so you have pic of them and keep them for aleats 60 day’s it is alot of work but will protect you in the long run

]]> By: Stephen M http://smallbusinessmerchantaccounts.org/can-merchants-require-use-of-pin-number-for-any-all-debit-or-credit-card-transactions.htm/comment-page-1#comment-484 Stephen M Thu, 09 Jul 2009 09:38:03 +0000 http://smallbusinessmerchantaccounts.org/can-merchants-require-use-of-pin-number-for-any-all-debit-or-credit-card-transactions.htm#comment-484 Current Debit cards require a PIN. Credit cards do not currently require a PIN, but that is changing. Smart Credit Cards are coming to North America with pilots starting in a number of cities in Canada. Hopefully this will cut down on credit card fraud dramatically. If you are located in Canada drop me a note and perhaps I can help you get set up with POS. Current Debit cards require a PIN. Credit cards do not currently require a PIN, but that is changing. Smart Credit Cards are coming to North America with pilots starting in a number of cities in Canada. Hopefully this will cut down on credit card fraud dramatically.

If you are located in Canada drop me a note and perhaps I can help you get set up with POS.

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