432521 wrote:About chip and pin, from my understanding is it just basically the same way a debit card works?
Yes and no. Chip + PIN or EMV has a microchip on the front of the card. Rather than sliding your card (as you would with a debit card) you place the chip into the card reader, the card is read and it asks for your purchase PIN. You enter the PIN, the transaction is approved and you take your card and receipt and you are off.
With our debit cards, someone could easily slide the card and choose credit; thus taking over the account. Chip + PIN cards are coded in a way that if the card is presented to a EMV card reader (which most countries have, including Mexico) the card will not approve a sale any other way except for Chip + PIN. Meaning, if you find an EMV card and attempt to use it the machine would ask you to place the chip in the reader and request a PIN. Otherwise the charge will be declined.
But in the basic sense, yes you are correct, to approve the sale it would be similar to a debit card debit purchase with PIN. My bank/credit union frown on PIN debit transactions as it lowers their swipe fee. The credit union charges $0.25 per swipe on debit PIN transcations, so I have actually never used a PIN with my debit card....