Debit Card and Point of Sale (POS) Pin Pads Improve Profitability
Interchange fees, chances of debit card fraud are reduced with PIN Pad Use
Why you need a pinpad for you POS System PIN Pads are most often used in debit and smartcard transactions in order to add an extra level of security to the transaction. They protect merchants because ideally the only person who should know the code number on the card is the card’s owner, so the danger of card fraud is much lower. PIN pads are most typically found at the point of sale, either at gas station pumps or near cash registers. Many fast food restaurants prefer to charge debit cards with pin pads because the transaction cost is a small fraction of what a credit card swipe would cost. In fact, thanks to the Durbin Amendment, the cost of a debit card transaction is about half of a credit card transaction, and the security of the debit transaction is a clear cost savings to the business owner since there are fewer dollars lost to chargeback and there is less time involved in disputing chargebacks for purchases that were actually legitimate.
PIN pad devices also have built-in security, in that the PIN number itself is encrypted for transmission to the card processor, so the threat of a lost or stolen PIN is diminished. All of the major credit card machine manufacturers also have PIN pad functionality, either from an accessory that can be plugged into the device or from portable credit card reader units that can be handed to a customer in order to gather a personal identification number. First Data and Hypercom are two of the biggest names in the PIN pad manufacturing industry. First Data manufactures the FD-10 and FD-30 pin pads, and has PIN functionality on its FD100TI terminal. Hypercom has several different PIN pads, including the S9 PCI PIN Pad and the P1300 PCI PED Pin PAD. The “PCI” in the name denotes compliance with PCI-DSS standards, which are an industry-standard requirement for the protection of credit and debit card information in electronic processing.
Almost any PIN pad is designed to stand up to years of use in adverse environments where payments are taken, so they are made of rugged plastic with keys that can stand up to millions of keystrokes. Furthermore, universal features such as red and green keys for “yes” and “no” responses make it possible for customers to quickly understand what to press on the pad in order to complete their transactions in a timely manner. Many PIN pads also come with advanced contactless reading technology so RFID and NFC enabled credit cards can be read without swiping, and without the need for the card to leave the customer’s hand. These pads may actually enhance the functionality of you existing equipment, allowing you to take smartcards without upgrading the rest of your POS system, which can be very expensive when leasing costs are taken into consideration.
Some of the most popular PIN pads include:
First Data 10
The First Data 10 PIN Pad is ideal for EBT and PIN based transactions that may happen at grocery stores and corner markets.
First Data 100Ti
First Data’s 100Ti terminal makes it possible to take PIN numbers on the terminal while using secure IP or dial-up connections to process credit and debit card transactions quickly.
First Data 30
First Data’s FD-30 PIN Pad can support PIN based debit transactions, contactless tap-and-go transactions, and card swipes. The versatility of the FD30 makes it a top choice for merchants who want to expand their card acceptance capabilities and remain flexible depending on emerging consumer trends in credit card processing.
Hypercom S9 PCI PED
Hypercom’s S9 PCI-PED Pin Pad is triple DES capable and PCI-PED approved. It can be integrated with card readers that take swipe and integrated chip information.
Hypercom P1300 PCI PED
Hypercom’s P1300 is designed to meet stringent PCI-CED security standards for PIN pads, ensuring that PIN information is encrypted and cannot be captured by data thieves. Compatible with all Hypercom product families, it is an ideal addition to Electronic Cash Register (ECR) systems.
Other PIN Pad models include:
What is PCI-PED? PCI stands for Payment Card Industry, and PED stands for PIN Entry Device. The PCI-PED standard is a program designed to prevent the theft of PIN numbers. PCI-PED approved terminals and PIN pads are manufactured to encrypt PIN data so it cannot be stolen during the transaction process or afterward, since PIN numbers can be used with a counterfeit card to extract cash from ATMs and make fraudulent transactions. Any PIN pad that is not approved by PCI-PED has to have been removed from service by July 1, 2010, and there can be stiff fines for merchants who are either not in compliance or have had a data breach traced back to non-compliant equipment. A second deadline for Visa-PED devices comes into play on December 31, 2014, so check with your credit card processing company to ensure that you have the most current equipment. Newer smartcards for credit card processing may use “chip and pin” standards in the future, as they do in Europe, to prevent fraud by having a secondary form of verification.
A misconception about the Target data breach is that PIN numbers were comprimised. In actuality, the encrypted string for the PIN number was captured, but not the actual 4 digit number itself. This is because the reader encrypts personal identification numbers in order to prevent the disclosure of the actual number. The data theives would need to be able to decrypt these numbers which are protected by 3DES (triple DES) security.
Notes and Special Information
Special note: When ordering PIN Pads, make sure that the unit is compatible with the pad and your merchant account network is able to connect the pad to the unit without reprogramming.