Secure Internet PIN Debit Transactions Deliver Issuers Reduced Fraud
HOUSTON, Jul 14, 2010 (BUSINESS WIRE) -- PULSE, one of the nation's leading debit/ATM networks, is bringing the
security, reliability and convenience of PIN debit to online shopping
with the introduction of PULSE(R) Internet PIN debit.
Financial institutions using PULSEInternet PIN Debit can
deliver convenient PIN-based, online transaction verification to a
growing number of consumers who purchase products from e-commerce
merchants. The new payment solution, which uses Acculynk's PaySecure(R)
Internet PIN debit software, reinforces the issuer and cardholder
relationship by using a financial institution-branded graphical PIN pad.
According to a forecast from Javelin Strategy & Research, online retail
transaction volume is expected to reach $268 billion by 2013. However,
as many as 15 percent of debit cardholders have PIN-only debit cards,
which previously could not be used for Internet purchases.
A separate Javelin study conducted last year found that 79 percent of
consumers surveyed would feel more comfortable using debit cards online
with a PIN than without it. PULSE network issuers can now address this
need with Internet PIN debit transactions, giving cardholders the option
to use their PIN debit cards for e-commerce in an easy and safe manner.
PULSE confirmed cardholders' acceptance of the technology in a 2009
pilot, which used PaySecure. In the pilot, 54 percent of debit
cardholders paying for online purchases preferred to enter a PIN when
presented with the choice of PIN or signature options to complete the
transactions. Additionally, chargebacks were reduced 77 percent compared
to signature debit transactions, and there were no instances of
"Our successful pilot confirms that debit cardholders are comfortable
entering a PIN when shopping online," said Judith McGuire, PULSE senior
vice president of product management. "With PULSE Internet PIN debit,
financial institutions can offer cardholders a secure, trusted and
preferred payment option for online purchases. The product gives
consumers with PIN-only debit cards a new payment choice, and should
appeal to cardholders who already prefer to enter their PIN at
How PULSE Internet PIN Debit Works
When consumers check out in the usual manner from a merchant website
using cards that participate in PULSE Internet PIN Debit, they are given
the option of completing the transaction with a PIN. Consumers who
select this option are prompted to enter their PIN to complete the
transaction, using a graphical, scrambling PIN pad that can be
customized with the card issuer's logo and debit card design. The
cardholder clicks the mouse on a number and the PIN pad re-scrambles as
each subsequent digit is selected. The PIN is not captured on the
computer, nor is it transmitted over the Internet.
The solution makes a general phishing attack difficult because several
unique attributes are displayed during the transaction, including
merchant branding, financial institution identifiers and the VeriSign
Secured(R) Seal. In addition, Acculynk's Internet PIN debit
software service is integrated directly into the online checkout
process, eliminating the need for cardholders to enroll or be redirected
to another site to complete purchases.
A demonstration of PULSE Internet PIN Debit and more product information
is available at www.pulsenetwork.com/ipd.
PULSE, a Discover Financial Services (NYSE: DFS) company, is a leading
ATM/debit network, serving more than 4,400 banks, credit unions and
savings institutions across the United States. The network links
cardholders with ATMs and POS terminals at locations nationwide. Through
its global ATM network, PULSE provides worldwide cash access for Diners
Club and Discover cardholders through hundreds of thousands of ATM
locations. The company is also a source of electronic payments research
and is committed to providing its participants with education on
emerging products, services and trends in the payments industry. For
more information, visit www.pulsenetwork.com.
Anne Rhodes, 832-214-0234
Tara Hanney, 713-513-9561