Secure debit card processing
Debit cards are used by majority of us, from withdrawing cash from the ATM machine to swiping the card for paying the bills. However, have we ever given a thought how the process of transferring of the amount is carried. We do not know much of the details regarding the way the transactions are carried and how secure they are. The financial companies do charge us a fix amount for every transaction carried through the debit cards. As stated by a institution, the debit card holders would be charged around $ 1.4 trillion, in the year 2009, if calculated in the United States only. Before using the cards, we should be confident about the security of the transactions carried on through the debit cards.
How The Debit Card Processing Works?
When the individual wants to swipe his card for purchasing any of the products or the services, over the counter, there are two ways to complete the transaction. The two ways of the debit card processing are offline and online. The offline mode is also called as signature based processing and the online is normally termed as pin based processing. The offline mode of processing needs the services of Visa and Master card over the debit card. If the card is having the Visa and The Master card services, then only the signature based proceeding is possible. The offline processing of the debit cards is the same as of the credit card processing.
The online processing is generally used in the debit cards. When the person is using the card, the company asks him to specify whether the transaction is the credit or debit sale. Once it is specified by you, and entered by the shop personnel, it starts the process of creating a transaction. The processing company do provides the service, if the transaction is related to the Cash Back offers. You are asked to type the PIN of the card, once the transaction is selected. The PIN is to be specified on a secure encrypted Pin pad. The transaction verifies the status of the account ad the transaction is complete, as soon as the amount is withdrawn from your account for the specified amount. The receipt is having all the needed details related to the transaction as date and time of the transaction, name of the store, where the transaction have taken place, the amount of the bill and many other details.
You are not supposed to sign the receipt as the transaction has already taken place through the PIN verification. The whole process of transacting the business starts when the card is swiped over the counter. The complete process of verifying the details and transfer of the amount doe not take more then 10seconds. The information regarding the sales made by you, travels to the secure payment network of your financial institution, where your account is registered. And as soon as the PIN is entered, the transaction is authorized to verify the balance in the account for covering the total cost of the sale. And if the amount is there in your account, the transaction is completed by withdrawing it and depositing the same to the shop owners account.
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