Difference Between POS and Debit Card Transaction
by John Burnett, BOL Guru Guru BIOS
Question: What is the difference between a point of sale (POS) transaction and a debit card transaction?
Answer: A POS transaction can be completed using either a debit card or, in many cases, an ATM card. These transactions are usually PIN-authenticated, and travel through ATM networks. Debit card transactions can include POS transactions competed with a debit card, but also include signature-authenticated purchase transactions that are switched via the national credit card networks.
From a Regulation E perspective, the term "debit card" POS transaction includes any purchase made with an access device, whether it's authenticated using a PIN or using a signature.
BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through to learn more about their products and services.