Whether paying at the pump, making purchases online or withdrawing cash for a night out, debit cards are used for a variety of everyday purposes. Many financial institutions give you the option of having a PIN-only debit card (also known as an “ATM card”) or a dual-use debit card that allows you to make both signature and PIN transactions to access your money for purchases or cash withdrawals. It’s your choice.

So what’s the difference between the two? Unlike other forms of payments, at most locations you can choose how you’d like to authorize the purchase. With PIN-based debit, you are required to enter your personal identification number (PIN) for safe access to your money and account. PIN-based debit allows you to perform transactions at ATMs, make purchases at retailers that provide PIN pads, and receive cash back at participating retailers. Your transaction request is processed immediately with PIN debit, and is reflected in your account almost instantly. With signature debit, your transaction is settled in your account within a few days.

Signature debit transactions are similar to traditional credit card transactions because they are signature-authorized, but unlike credit cards, the funds are debited from your checking account rather than charged against a line of credit. Signature-based transactions are typically accepted at retailers or service providers that honor Visa, MasterCard or Discover. Your authorization can be completed in one of two ways. You may either sign your receipt for in-store purchases or, when making purchases online or over the phone, you can complete your purchase through a process known as a “card-not-present” transaction. These types of transactions do not require a signed authorization.

Debit cards also can be used to pay certain bills online or over the phone, without providing or entering your personal identification number (PIN). Examples of such payments – also known as "direct debits" – include utility bills, mortgage payments, government and educational payments and insurance premiums. PINless debit bill payment offers a secure payment option, combined with the convenience of paying with a debit card.

Visit our Safe and Secure section on this site for more information on the latest technology used to protect your debit transactions and tips on what you can do to ensure accurate and safe withdrawals.