PINless Debit: The Payment Method Merchants Should Consider Next
Blog post from Basis Theory
PINless debit allows merchants to process debit transactions without a customer-entered PIN, particularly in card-not-present and e-commerce settings, and route eligible payments through lower-cost regional networks such as STAR, NYCE, Pulse, Shazam, and Accel rather than only Visa or Mastercard signature rails. A July 2023 clarification strengthened merchants’ routing flexibility by preventing issuers and networks from blocking the use of specific debit networks, with more than 65% of debit cards now estimated to be eligible for lower-cost routing. Merchants with substantial debit volumes may save up to 100 basis points through reduced interchange and network fees while potentially improving approval rates by cascading declined transactions across available networks without changing the customer experience. Effective implementation depends on factors including debit volume, merchant category code, projected savings, processor support, BIN data accuracy, routing capabilities, and internal operational effort. Because PINless debit may not include standard tokenization, merchants must also address PCI-DSS obligations, potentially using a payment vault to tokenize and securely store card data while enabling cost-optimized routing.
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