HOUSTON - The Pulse network is offering utility companies, lenders and certain other billers a new payment option that allows consumers to automatically pay recurring bills with debit cards without entering their PINs.
Pulse EFT Association's Recurring PINless Bill Pay service, launched at the beginning of August, is touted by Pulse for increasing convenience and security for debit cardholders, while simplifying the collection process for billers and supporting the continued shift from paper-based to electronic payments.
Pulse defines recurring payments as those that cardholders have authorized a biller to charge to their debit cards automatically.
Pulse introduced its PINless Bill Pay service in 1995. PINless Bill Pay enables the conversion of check and automated clearinghouse payments - also known as direct debit payments - to card-based payments.
"Clearly, there is tremendous room for growth in debit-based bill payments," said Judith McGuire, Pulse's vice president of retail services. "Although consumers are increasingly using electronic methods to pay their bills, until now debit cards have accounted for only a small fraction of those payments. The introduction of a new debit-based option for recurring payments allows consumers to transfer their growing reliance on debit cards for point-of-sale purchases to recurring bill payments."
The expanded program also includes a "Stop Pay" feature that allows financial institutions to block transactions from a specific biller at a cardholder's request.
