News

PULSE, Acculynk partner for Internet PIN-debit tech

March 23, 2009

HOUSTON — PULSE, a leading ATM/debit network, has partnered with Acculynk to pilot Acculynk's PaySecure Internet PIN-debit technology.

According to a news release, the pilot will involve selected PULSE merchant and financial institution participants and is slated to begin in the second quarter of 2009.

The goal of the pilot is to assess consumer acceptance of Internet-based PIN-debit transactions.

"In addition to reducing fraud losses and charge-backs associated with online purchases, Internet PIN debit is predicted to increase online debit-purchase transactions," said Acculynk president Nandan Sheth. "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."

Acculynk's technology allows consumers to use their debit cards with a PIN to pay for online purchases.

"Internet-based PIN debit has tremendous potential value for consumers who enjoy the convenience of debit cards," said Judith McGuire, PULSE's senior vice president of product management. "Of debit users who have a preference, 56 percent prefer PIN authentication over signature," according to the Hitachi Consulting/BAI 2008 Consumer Payment Preferences Study. "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."

Acculynk's PIN-pad technology integrates directly with the merchant checkout process, providing a seamless experience for online shoppers. The consumer will be aware of the PIN entry option only if his card is enabled for PIN debit. The consumer then has the choice of entering his PIN or completing the purchase as a signature-debit transaction.

Acculynk's Internet PIN debit service uses security features, such as a graphical, scrambling PIN pad for the secure entry of PIN data. PIN pad numbers appear on the purchaser's computer monitor in random order, and the numbers re-scramble each time the cardholder clicks on a digit of his or her PIN.

The PIN itself is not captured on the consumer's PC, nor is it transmitted over the Internet. Instead, Acculynk captures and encrypts data associated with the PIN entry process, then transmits that encrypted data in a separate message from the message used for the card number. This makes it extremely difficult for fraudsters to capture any information that could be used to compromise a consumer's debit card or account.

Acculynk says producing a counterfeit card would be virtually impossible, because the magnetic-stripe data is not captured during the online transaction.

"PULSE believes that Internet PIN debit could provide significant benefits to cardholders, e-commerce merchants and financial institutions," McGuire said. "Our pilot program will help us determine whether this product delivers a favorable cardholder experience."