Debit Network Partnering with Acculynk, Financial Institutions and Major Merchants to Test Consumer Use of PIN Debit for Web-Based Shopping
HOUSTON--(BUSINESS WIRE)--Mar. 23, 2009--
PULSE, one of the nation’s leading ATM/debit networks, has signed an
agreement with Acculynk under which PULSE will test Acculynk’s PaySecure®
Internet PIN debit technology in a pilot program. The pilot will involve
selected PULSE merchant and financial institution participants and is
slated to begin in the second quarter of 2009.
The goal of the pilot test is to assess consumer acceptance of
Internet-based PIN debit transactions. Acculynk’s technology enables
consumers to use their debit cards with a personal identification number
(PIN) to pay for online purchases.
“Internet-based PIN debit has tremendous potential value for consumers,
who enjoy the convenience of debit cards,” said Judith McGuire, PULSE
senior vice president, product management. “Of debit users who have a
preference, 56 percent prefer PIN authentication over signature,”
McGuire added, referring to the findings of the Hitachi Consulting/BAI 2008
Consumer Payment Preferences Study. “We also believe this new
payment option could provide significant value to both card issuers and
merchants, driven in part by reductions in fraud and cardholder
disputes.”
“In addition to reducing fraud losses and chargebacks associated with
online purchases, Internet PIN debit is predicted to increase online
debit purchase transactions,” said Acculynk President Nandan Sheth.
“These incremental transactions will come from three sources: consumers
who have PIN-only debit cards, individuals who are currently hesitant to
use their signature-enabled debit cards online without the PIN
authentication, and consumers who are inclined now, or in the future, to
use alternative Internet payment methods.”
How it Works
Acculynk’s PIN-pad technology integrates directly into the merchant
checkout process, providing a seamless experience for online shoppers.
The consumer will be aware of the PIN entry option only if his or her
card is enabled for PIN debit. The consumer will have the choice of
entering their PIN or completing the purchase as a signature debit
transaction.
Acculynk’s Internet PIN debit service utilizes many advanced security
features, including a graphical, scrambling PIN pad for the secure entry
of PIN data. The PIN pad numbers appear on the purchaser’s computer
monitor in random order, and the numbers re-scramble each time the
cardholder clicks on a digit of his or her PIN using the mouse.
The PIN itself is not captured on the consumer’s PC nor is it
transmitted over the Internet. Instead, Acculynk captures and encrypts
data associated with the PIN entry process, then transmits that
encrypted data in a separate message from the message used for the card
number. This makes it extremely difficult for fraudsters to capture any
information that could be used to compromise a consumer’s debit card or
account. In addition, producing a counterfeit card would be virtually
impossible because the magnetic stripe data is not captured during the
online transaction.
“PULSE believes that Internet PIN debit could provide significant
benefits to cardholders, e-commerce merchants and financial
institutions,” said McGuire. “Our pilot program will help us determine
whether this product delivers a favorable cardholder experience.”
About PULSE
PULSE is one of the nation’s leading ATM/debit networks, currently
serving more than 4,500 banks, credit unions and savings institutions
across the country. PULSE is owned by Discover Financial Services (NYSE:
DFS). The network links cardholders with more than 289,000 ATMs, as well
as POS terminals at retail locations nationwide. The company is also a
valued resource for industry research related to electronic payments and
is committed to providing its participants with education on evolving
products, services and trends in the payments industry. For more
information, visit www.pulsenetwork.com.
About Acculynk
Acculynk is a leading technology provider with a suite of software-only
services that secure online transactions. Backed by a powerful
encryption and authentication framework protected by a family of issued
and pending patents, Acculynk’s services provide greater security,
reliability, convenience and return on investment for consumers,
merchants, networks, issuers and acquirers. Acculynk is headquartered in
Atlanta, Georgia, with a management team that brings extensive
experience in the financial, network, security and payment processing
industries. For more information, visit www.acculynk.com.
Source: PULSE
PULSE
Anne Rhodes, 832-214-0234
arhodes@pulsenetwork.com
or
Acculynk
Danielle
Duclos, 678-894-7013
dduclos@acculynk.com