Credit vs Debit transactions

[topher]

Is the risk in accepting online non-PIN debit transactions higher than credit transactions?

[chodges84]

I would have thought there would be less risk.

With a debit card the customer can't chargeback, and the bank will only allow the payment if the money is in the customers account or they haven't reached their overdraft limit.

[jwolthuis]

Not sure what a non-PIN debit transaction is.

I thought only the gas company (for example) could set up non-PIN debit trasactions. Is this form of payment now available to ordinary storefronts?

I'm aware that a debit card can cary a Visa/MasterCard logo, and tharefore be processed like a credit card. But these transactions are treated like credit card transactions.

[Corey Bryant]

Online - there is no such thing really as debit. The security is not high enough (per the issuing banks) to enter your PIN online. As long as that debit card as the Visa / MasterCard logo, it uses that system to be accepted online by the merchant

-Corey

[internetpilot]

When using a debit card as credit card (which is what a non-PIN transaction would be), I would say it's a little bit safer for the seller when it comes to charge-backs. Although the transaction is taking place through the VISA/MC "side" of the debit card, the charge is treated as a cash advance by credit card companies, and is therefore the chargeback policies are not applicable to that transaction. I encountered this policy less than six months ago as a customer using my bank debit card which has a VISA logo on it.

[Corey Bryant]

It all has to do with the issuing bank. I have a debit card with a PIN attached and it has a VISA logo. I have done chargebacks on that card in the past with no problems.

Each issuing bank is different when it comes to chargebacks - especially the time frame.

-Corey