Online Debit System


Online debit system is one of the ways in which debit card payments are processed. An electronic authorization is required in any debit card transaction that is carried out through the online debit system. Once the authorization has been sought, the amount which is paid is immediately reflected in the account of the card holder.

In an online debit system, higher security is rendered to the customers’ money by introducing the PIN system. In a PIN system, the amount is transferred from the account of the card holder only when the correct PIN number is entered. Entering the PIN authenticates the transaction which adds additional security and helps in preventing any kind of frauds.

In order to implement the online debit system, an electronic device for authorization of payments is needed at the point of sale (POS). Also, a PIN pad is required so that the customers can enter their personal identification number. The online debit system is being used by most merchants and businesses in many countries around the world.

The online debit system comes into play whenever the card holder is purchasing something and swapping the card personally. When the PIN is entered by the customer, the transaction is routed through the debit card network. Since the transaction is online, the rate to process it through an online debit system is lower for the merchant as compared to other modes of payment.

Considering the advantages of the online debit system, it is by far the most preferred system. Another advantage of the online debit system is its live status which lessens the pause that may happen while transactions are being processed. All in all, the online debit system of payments is advantageous, both, to the customers as well as the receiver.

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