WASHINGTON, DC — February 10, 2004 — Helping the nation’s retailers to inform consumers about the advantages of debit payments using a personal identification number (PIN), the Food Marketing Institute (FMI) today released Debit or Credit? It Does Make a Difference, a training package designed to teach front-end associates how and why to encourage customers to use their PIN.

As a result of recent antitrust litigation against VISA and MasterCard, retailers may now decide 1) whether they will continue to take signature–based debit transactions and 2) whether they want to encourage customers to use a preferred payment type. This training video and management guide offers information on how to communicate to customers the decision on which transactions will be accepted and tips to educate consumers on the value of using online debit payments.

“Each transaction converted from a signature-based debit to a PIN-based debit may save the retailer 10 cents or more,” said Jennifer Hatcher, senior director, government relations, FMI. “There are numerous benefits to using PIN-based debit including speed, identity security, a cash-back option and lower retailer fees that keep consumer prices low.”

Companies that decide to support PIN debit or not accept signature debit transactions will make that decision for three primary reasons:

1. A PIN debit transaction is much faster at the point of sale than a signature transaction.

2. The potential for fraudulent use of signature debit when the card is used without a PIN.

3. High bank fees retailers must pay each time the signature card is used without a PIN.

The training materials include a video, management guide, reproducible customer brochure/ bag stuffer and checkout lane signage.

To order Debit or Credit? It Does Make a Difference ($65, FMI retailer/wholesaler members; $110, associate members; $130, non-members) or for more information, visit the FMI Store at http://www.fmi.org/pub/.