Magazine article American Banker

MasterCard to Support Online PIN Debit System

Magazine article American Banker

MasterCard to Support Online PIN Debit System

Article excerpt

Byline: Will Hernandez

MasterCard Inc. has agreed to offer its issuing banks an online PIN debit system developed by Acculynk Inc.

Banks have typically been more eager to promote signature debit, which generates more revenue than PIN transactions, but MasterCard said the agreement announced Wednesday indicates growing consumer interest in PIN payments.

MasterCard "has clearly recognized that over the last number of years, the U.S. market has embraced PIN debit at the point of sale," said Leland Englebardt, the group head of MasterCard's global automated teller machine network.

"MasterCard wants to support its issuing customers in whatever their choice may be about giving their cardholders the functionality that the issuer believes the cardholder needs and wants," Englebardt said.

Acculynk lets people make PIN debit purchases online by integrating its PaySecure software into merchants' checkout systems. After consumers enter their card numbers, the website presents a virtual number pad where they can enter their PINs by clicking the appropriate digits.

Ashish Bahl, Acculynk's chief executive, said the Dodd-Frank Act could boost interest in his company's PIN technology, especially a provision in the law that bars banks from having exclusive debit relationships.

The reform legislation "opens up our product to a lot of large issuers that potentially may have been tied up by Visa or anyone else," he said.

MasterCard's backing of PaySecure "is important to the perception of the product," said Patricia Hewitt, the director of the debit advisory service at Mercator Advisory Group. …

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