Pulse Tests Technology for Consumers to use PIN Debit Cards Online
Pulse, a component of Discover Financial Services, processes transactions from ATMs, point of sale terminals and links up approximately 4500 banks. Now the Pulse network has announced that they will be testing a system that will allow consumers to pay online merchants with their PIN debit cards. Acculynk Inc. provides the technology for the system, which is the third such pilot program of its kind.
Pulse is hopeful that the trial will determine if consumers are open to using their PIN debit cards when making online purchases. Judith McGuire, senior vp at Pulse for product development, says “Internet-based PIN debit has tremendous potential value for consumers, who enjoy the convenience of debit cards.”
Acculynk has worked hard to establish several pilot projects with the EFT networks, due to the realization that PIN debit is very popular with consumers, and in fact accounts for a larger percentage of in-store transactions than does signature debit. Acculynk’s PaySecure system works by giving consumers a “floating” PIN pad on their PC screens , featuring a random arrangement of numbers. The consumer simply clicks with their mouse to enter their PIN on the virtual PIN pad. The number arrangement is rescrambled after each mouse click. Acculynk transmits an encrypted PIN block to acquiring processors and card issuers for authorization and settlement.
Another option for utilizing debit cards for online purchases is in development by HomeATM ePayment Solutions, an engineering company out of Montreal, Quebec. HomeATM has a PIN pad that consumers actually hook directly to their computer via USB.
Merchants are expected to receive such options with cheer, as like in-store debit purchases the money is guaranteed to the merchant and costs for the service are expected to be lower than credit card or signature-based debit card usage.
It is unknown exactly when Pulse will begin the pilot project, but it is expected sometime in Q2 and will run for several months.
