Difference Between POS and Debit Card Transaction

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.

First published on BankersOnline.com 6/20/05