PIN-Based Debit is an electronic payment method that allows cardholders to access funds from their bank account at the point of sale using a debit card and a Personal Identification Number (PIN). The cardholder must enter a PIN to authorize payment of goods, and once the transaction is authorized, the money is debited from the cardholder’s bank account and credited to the merchant.
Debit cards work with the same ease as credit cards and allow customers to deduct funds for purchases from their bank account (usually their checking account). True debit cards require a PIN number to be entered before a purchase can be complete. Many people refer to the Visa/MasterCard Check Cards as Debit cards since they do the same as true Debit cards, except for the fact these check cards do not require a PIN number to make purchases. You can easily identify check cards as they will have the familiar Visa or MasterCard logos on them.