News

EFT networks reach new markets with dual-message products

May 20, 2016

Several EFT debit networks are launching or developing dual-message debit solutions, in which authorization and clearing are accomplished in two separate transactions, according to a new research note from Mercator Advisory Group, "Dual-Message Debit Makes Its Entrance."

The publication considers how dual-message debit allows networks to compete directly — and in all channels — with the global networks.

"Debit routing is in a state of flux at present," said Sarah Grotta, director of the debit advisory service at Mercator and author of the report. "EMV and tokenization have taken their toll on the transactions flowing through EFT debit networks. By launching dual-message products, they can now compete for online and mobile transactions as well as gain access to merchants who haven't incorporated PIN hardware."

This research note discusses how dual messaging could affect the debit market should merchants conclude that its financial benefits are sufficient.

Highlights of the research note include:

• a review of single- and dual-message transactions;
• an overview of the way that interchange is evolving between the EFT and global debit networks; and
• markets that the EFT debit networks will pursue with their new services.