Originally Posted by
tmiw
BTW another one of those things that weirdly isn't that common: PINless debit (i.e. running debit cards over the debit networks without providing a PIN instead of over Visa or MC). You'd think a lot of places would be all over it given how many complaints there have been about interchange over the years.
This US Payments Forum Paper from 2019 (specifically the summary on Page 15, last page of PDF) seems to indicate that it requires proper routing on the US Common Debit AID, and that even with PIN bypass correctly enabled, it can create issuer declines and lost sales. If selectable kernel configuration is used, lost/stolen liability can occur on networks with a shift. If the global AID is used then no lost/stolen liability but it's the most expensive.
It seems like an area where a lot of merchants have said between the complexity and uncertainty and debit card users being used to PIN entry, might as well leave it on.