Americans with higher household incomes and within the 25-34 age group are quickly adopting debit as a form of payment, preferring the speed and security of Personal Identification Numbers when making debit card purchases.
According to a recent Paymentech survey, 50% of Americans with debit cards prefer using a PIN as opposed to signing a sales receipt. The number one benefit cited by respondents preferring PIN debit is that PIN debit transactions are faster than signature debit transactions. The same group rated security as the second most important reason to use PIN debit transactions. Additionally, more than a third of this group said they would be more likely to shop at a store honoring PIN debit cards as a form of payment.
“Our survey confirms a significant portion of consumers prefer to shop in establishments that offer PIN debit,” said Dan Miner, CCM, Group Manager Debit Products for Paymentech. “It is clear that the value proposition driving this consumer preference is transaction speed and security.”
Paymentech, the nation’s premier processor and acquirer of electronic payment transactions, recently commissioned a survey asking 800 adults about preferences related to making PIN and signature debit purchases. Here are the results:
— When asked the reason for using a PIN when making a purchase, as opposed to signing a sales receipt, respondents said the PIN is faster (23%), more secure (17%), pays immediately (10%), doesn’t require giving the cashier a card (10%) and includes a cash back option (9%).
— A larger percentage, when asked which is more secure, entering a PIN or signing a sales receipt, preferred the PIN by a 56% to 32% margin.
— When asked how likely they were to shop in a store because PIN debit cards were honored as a form of payment, more than a third (36%) said ‘more likely,’ 23% listed ‘much more likely,’ and 13% were ‘somewhat more likely.’
“The payments industry knows that PIN debit is experiencing rapid growth,” said Miner. “These poll results identify the reasons merchants should consider including PIN debit in their payment mix.”
Who is Paymentech?
Dallas-based Paymentech delivers secure and reliable payment services in merchant acquiring and point-of-sale transaction processing with a wide array of product functionality and support. Paymentech ([www.paymentech.com]) processed approximately 3.7 billion total transactions and $114 billion in bankcard sales volume in 2001. Founded in 1985, Paymentech is the nation’s premier processor and acquirer of electronic payment transactions.
About the Survey
The polling company(TM) added five questions to a nationwide omnibus survey of 800 adults. The survey was fielded Sept. 7-9, 2002, at a Computer Assisted Telephone Interviewing (CATI) phone facility.
The margin of error is calculated at +3.5% at the 95% confidence level, meaning that the results obtained would differ by no more than three percentage points in either direction even if the entire population nationwide were to be surveyed.