Merchant Account Signature Debit Explained:
What is Signature Debit? Signature Debit transactions occur when a customer uses a debit card for a purchase but does not enter a PIN number, instead signing for the transaction like a credit card. Merchants do not need additional services or equipment to accept signature debit transactions because they process like a credit card through their associated card brands (Visa, MasterCard, American Express, etc.). Signature debit transactions are subject to the same Interchange fees as credit cards and therefore have higher processing fees than PIN debit transactions.