To assess consumer acceptance of internet-based PIN debit transactions
Pulse, a US-based ATM/debit network, has signed an agreement to test Acculynk’s PaySecure internet personal identification number debit technology in a pilot program.
The pilot is expected to involve selected Pulse merchant and financial institution participants and is slated to begin in the second quarter of 2009.
According to Pulse, the goal of the pilot test is to assess consumer acceptance of internet-based personal identification number (PIN) debit transactions. Acculynk’s technology enables consumers to use their debit cards with a PIN to pay for online purchases.
Judith McGuire, Pulse’s senior vice president of product management, said: Internet-based PIN debit has tremendous potential value for consumers, who enjoy the convenience of debit cards. Of debit users who have a preference, 56% prefer PIN authentication over signature. 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.
Nandan Sheth, Acculynk’s president, said: In addition to reducing fraud losses and chargebacks associated with online purchases, internet PIN debit is predicted to increase online debit purchase transactions. 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.