Why do you have to put in your debit pin in person, but not online?
In: Economics
It boils down to the difference between debit and credit. Debit is meant to be like taking cash directly from your account. This purchase does not take extra time to post to your account. It can be used in store, at the ATM or even at (some) banks. Credit is as it sounds, it is a temporarily posted transaction, where the bank card pays the amount and then through a process, it finally posts to your account. This is where your PIN and the CVV number on the back come in handy. The PIN means you are making the purchase in person, low to no threat of fraud. The CVV says you have the card in hand but are using it via credit. Since there is a lot of fraud online, this helps your bank be able to differentiate possible fraud on your account. If the PIN number is used, in most cases, fraud is not a concern. If it is done as an online/credit purchase and you file fraud, they are able to give you a temporary credit for the amount, order you a new debit card, and not have your account effected for long.
Long story short, your PIN number is like an ID for your debit card. So share it with no one! Hope it helps!
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