We describe the difference imaging pipeline (DiffImg) used to detect transients in deep images from the Dark Energy Survey Supernova program (DES-SN) in its first observing season from Aug 2013 through Feb 2014. DES-SN is a search for transients in which ten 3-deg^2 fields are repeatedly observed in the g,r,i,z passbands with a cadence of about 1 week. The observing strategy has been optimized to measure high-quality light curves and redshifts for thousands of Type Ia supernova (SN Ia) with the goal of measuring dark energy parameters. The essential DiffImg functions are to align each search image to a deep reference image, do a pixel-by-pixel subtraction, and then examine the subtracted image for significant positive detections of point-source objects. The vast majority of detections are subtraction artifacts, but after selection requirements and image filtering with an automated scanning program, there are 130 detections per deg^2 per observation in each band, of which only 25% are artifacts. Of the 7500 transients discovered by DES-SN in its first observing season, each requiring a detection on at least 2 separate nights, Monte Carlo simulations predict that 27% are expected to be supernova. Another 30% of the transients are artifacts, and most of the remaining transients are AGN and variable stars. Fake SNe Ia are overlaid onto the images to rigorously evaluate detection efficiencies, and to understand the DiffImg performance. The DiffImg efficiency measured with fake SNe agrees well with expectations from a Monte Carlo simulation that uses analytical calculations of the fluxes and their uncertainties. In our 8 shallow fields with single-epoch 50% completeness depth 23.5, the SN Ia efficiency falls to 1/2 at redshift z 0.7, in our 2 deep fields with mag-depth 24.5, the efficiency falls to 1/2 at z 1.1.
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