To PIN or not to PIN

Jay

Jan 10, 2023 · 1 min read

To PIN or not to PIN

Did you know that entering your PIN isn’t necessary when making a payment?

It’s a little known fact that merchants and card issuers are on opposite sides of the issue when it comes to debit card PIN transactions.

When you use your debit or prepaid card at a point of sale terminal you will get a message asking you to enter a PIN, but it isn't necessary! There is always an option to bypass entering your PIN, but merchants can make it difficult to find since the transaction is cheaper for them when you enter it

On the flip side the issuer of the card wants you to bypass the PIN and run it on the “credit” network rails. Card issuers do this because they make larger interchange fees from the merchant and use this revenue to fund rewards!!

Prepaid cards will often charge a fee if you use a PIN transaction at a point of sale terminal to help remind customers to bypass that option.

For our StormX PrePaid Card holders, we encourage you to opt out of entering your PIN at point of sale terminals whenever possible. This will prevent any fees from the card issuer and keep the cashback rewards opportunities well funded!