There are significant differences for Key entered and PIN entry transactions in Credit cards processing.
Key entered Transactions
Key-entered transactions are performed in a store when the merchant’s card reader is malfunctioning or if the card itself cannot be read. So instead of swiping the card, the employee will manually enter the card’s information into the system.
Employees should also make an imprint of the card on carbon paper and have the customer sign and date the receipt, which the merchant will keep on file.
PIN Entered Transactions
To process PIN based debit transactions, the debit card must be swiped through a PIN Pad terminal that has been programmed with a unique encryption security code. Instead of signing the receipt for the transaction the customer will be prompted to enter his or her PIN number into the PIN Pad. The terminal will encrypt the PIN number and pass it to the bank for verification.
If there are not sufficient funds in the customer’s bank account to cover the amount of the debt, the transaction will be declined. In addition to purchases, ATM cards can also be used at ATM machine along with a PIN to make cash withdrawals, deposits, balance transfers, and check on current balances.
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