Are recurring debit card transaction considered POS transactions? We offer a Reward checking account that requires the accountholder(s) to have 10 debit card POS transactions post within their monthly statement cycle along with a couple of other criteria to qualify for a higher interest rate. I've recently been made aware that while PURCH SIG and PURCH PIN are being counted as POS, a debit card transaction coming through as REC PAYMENT (assuming recurring payment) are not. I am able to modify our criteria to count these REC payments, but our data processor said I should check with Compliance first to find out if these REC payments are considered POS trans. Are there guidelines to refer to or is this at the Bank's discretion?

You receive the same interchange fees regardless of whether a debit card purchase is one-time or recurring. Besides including these in your count, you may want to consider how to review customers who didn't receive the promised rewards because these transactions haven't been counted as a regulator could consider the failure to provide the rewards to be an unfair or deceptive practice.

Yes, that is the next step after determining if they should count. Thank you!