The ability to bypass PIN entry on credit card machines is governed by various payment network rules, banking regulations, and processor-specific settings. Here are the key rules and considerations surrounding PIN bypass on terminals:
1. Network & Processor Rules
• Visa, Mastercard, Amex, and Discover have different policies regarding PIN entry. Some allow transactions to be processed as “signature debit” or “credit” instead of PIN debit, while others may require a PIN for certain transactions.
• Payment processors (e.g., Adyen) may have their own policies based on compliance requirements and risk management.
2. Card Type Considerations
• Credit Cards: Typically, these do not require a PIN for transactions unless it’s a chip & PIN card or an international card requiring PIN verification.
• Debit Cards:
• If the customer chooses “Debit,” they may be required to enter a PIN.
• Some terminals allow the option to run a debit card as “Credit” (aka Signature Debit), bypassing the PIN.
• Some banks or card issuers may force PIN entry for security reasons.
3. Transaction Amount & Risk Factors
• Low-value transactions (often under $50) may be eligible for PIN-less transactions based on processor and card network policies.
• High-value transactions may require PIN entry to reduce fraud risks.
4. Merchant & Processor Settings
• Some terminals allow merchants to enable PIN bypass, but this must comply with processor rules and risk assessments.
• Some processors automatically route debit transactions as PIN-required unless explicitly configured otherwise.
5. Industry-Specific Rules & Compliance
• PCI DSS Compliance: Ensures that transactions remain secure. Forcing a PIN bypass must not compromise security.
• Durbin Amendment (U.S. Regulation): Merchants must allow customers to choose how their debit transactions are processed (i.e., PIN or Signature).
How to Enable PIN Bypass on Terminals
1. Check with your processor (Adyen, for example) to see if PIN bypass is supported.
2. Update terminal settings to default debit transactions to “Credit” where allowed.
3. Train staff to guide customers in selecting “Credit” instead of “Debit” when prompted.
4. Ensure compliance with card network and regulatory policies.