Calling all Bankers/Tellers
Hello,
When using your debit card for transactions there are two methods in which your account can be debited and the merchant paid. The descriptions for these two methods vary from bank to bank, but I would assume that POS Debit would mean a PIN based debit card transaction and a DBT purchase would be a signature card purchase. How it appears on your online banking account will also vary from bank to bank.
A PIN based transaction, where obviously you have to enter your PIN to complete the transaction, will debit your checking account almost instantly. This is because the transaction is completed over the ATM network, and the bank pretty much treats it the same as an ATM withdrawal. Merchants usually prefer this method due to the lower cost in processing PIN transactions. This is why at most supermarkets and WalMart you will be prompted to enter your PIN number first if paying with a debit card. The benefit to you using this method is that the funds are debited almost immediately and you can usually option to take additional cash back. Some banks (not many anymore) will charge a fee for this transaction.
A signature based transaction usually, but not always, requires your signature on the receipt. This transaction is transmitted through the credit card network your bank subscribes to indicated by the logo on your card (Mastercard or Visa). The merchant will request an authorization from your bank to ensure the card is active and there are sufficient funds for the transaction. The authorization will usually stay on the account for one or two days until the merchant is paid at which time your account is debited. Banks will ususally "hold" the authorization amount against your account until the amount is debited. The credit card companies prefer you use this method as their network is utilized for the transaction resulting in lower costs for them. Visa and Mastercard are offering different incentives in conjunction with their affiliated banks to encourage customers to use signature based transactions. While cash back isn't an option using this method, a strong benefit is that credit card companies will not hold you responsible for unauthorized purchases or disputes with merchants.
I know its a lot of information, but I hope it helps.
When using your debit card for transactions there are two methods in which your account can be debited and the merchant paid. The descriptions for these two methods vary from bank to bank, but I would assume that POS Debit would mean a PIN based debit card transaction and a DBT purchase would be a signature card purchase. How it appears on your online banking account will also vary from bank to bank.
A PIN based transaction, where obviously you have to enter your PIN to complete the transaction, will debit your checking account almost instantly. This is because the transaction is completed over the ATM network, and the bank pretty much treats it the same as an ATM withdrawal. Merchants usually prefer this method due to the lower cost in processing PIN transactions. This is why at most supermarkets and WalMart you will be prompted to enter your PIN number first if paying with a debit card. The benefit to you using this method is that the funds are debited almost immediately and you can usually option to take additional cash back. Some banks (not many anymore) will charge a fee for this transaction.
A signature based transaction usually, but not always, requires your signature on the receipt. This transaction is transmitted through the credit card network your bank subscribes to indicated by the logo on your card (Mastercard or Visa). The merchant will request an authorization from your bank to ensure the card is active and there are sufficient funds for the transaction. The authorization will usually stay on the account for one or two days until the merchant is paid at which time your account is debited. Banks will ususally "hold" the authorization amount against your account until the amount is debited. The credit card companies prefer you use this method as their network is utilized for the transaction resulting in lower costs for them. Visa and Mastercard are offering different incentives in conjunction with their affiliated banks to encourage customers to use signature based transactions. While cash back isn't an option using this method, a strong benefit is that credit card companies will not hold you responsible for unauthorized purchases or disputes with merchants.
I know its a lot of information, but I hope it helps.
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