Personal Banking
Checking

 

Signature vs. Pin

What types of transactions does the bank offer?

The bank offers both signature-based and Personal Identification Number (PIN) transactions on one card. When a customer swipes their card at the checkout line, a clerk will ask if they want to pay by debit or credit. If they select “debit,” they need to key in their PIN. If they select “credit,” they sign the sales slip.

What is the difference between a PIN and signature debit transaction?

A PIN debit is an “online” transaction meaning the funds are deducted from a customer’s account immediately. A PIN transaction can only be done through a merchant’s credit card terminal or POS software system with an attached pin pad.

Signature debit is an “offline” transaction, meaning the funds are not deducted from a customer’s account in real time. The purchase price is usually deducted from their account in two or three days. A signature debit transaction accesses a customer’s checking account rather than their credit account.

What does this mean to the bank customers?

A signature debit transaction can be more secure and convenient.

Fraudulent use of a signature transaction requires an extra step, which makes such activity more difficult.

Unlike a signature transaction, a PIN transaction is usually posted to the account the same day. A signature transaction can take two or three days to complete, giving the user the opportunity to dispute, and, if necessary, challenge any questionable charges.

Merchants may be less motivated to resolve disputes involving PIN-based debit transactions since the funds have already been deducted from your checking account.

For signature-based transactions, both card associations have zero liability policies that protect a customer if:

  • The account is in good standing.
  • The user has exercised “reasonable care.”
  • The user hasn't reported an excessive amount of unauthorized events (e.g., successive months of unauthorized purchases.)