PIN based internet transactions have been slow in evolving because card issuers’ did not want to reduce interchange income. Cards used as credit rather than debit transactions generate higher interchange fees. But, as alternative payments are grabbing more internet transactions, banks are keen to hold on to as much income as possible, in anyway they can.
The Accel/Exchange electronic funds transfer network will launch a pilot for online PIN debit cards. The technology uses a software that presents a graphical PIN pad on the user’s screen. The consumer uses mouse clicks for PIN entry.
Rates, although not yet set will be considerably lower than credit card transactions for merchants. Merchants will also benefit also from reduced chargebacks and real-time guaranteed funds settlement.
I will not use my card in debit mode to pay on line. If my credit card information is stolen, my loses are limited. If my debit card is hacked, my money can disappear from my account. And I’m out the money until the fraud is tracked down.
Monday, November 3, 2008
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4 comments:
well unless you could somehow block or set a limit to any online transcations where your actual card was not present. If you were to go over that limit (you or someone else) for a security measure - the issuer could email or force you to change your pin the next time you are at any of their machines or at the bank. Banks could also set up the payment system to coordinate with your telephone line by voice recognition or sms. Or once even RFID goes mainstream and most of our devices have a reader pre-installed we could see the integration between hard card authentication and the online transaction, as though you were at a terminal. The website and the bank would have a secure tunnel between one another that is only set up by the merchant who will not have access to the information either, even safer than current credit card transactions. However, this all lies in the marketing of such applications, the demand, and the need for market share driven by competition.
What could drive banks to begin making such services available? 1) The push from users 2) business 3) RFID vendors selling systems 4)an online merchant growing larger by making such a system possible that would bring the idea to the spotlight to banks 5) most importantly the push of a single bank to take that to make such a system its competitive edge.
I'm currently situated out of the U.S and Canada, as well as the U.K where such innovation is most explorable. Where I am at? well we're still trying to work with credit card purches at ease at 4% commision rates which is simply not at all practical nor attractive.
are there any methods currently available to other regions for low cost transactions, including credit card but more practically e-check or even better - direct check savings account debts and PIN transfers?
We have one PIN system currently in place but only accepts the local network of banks, while we are expanding regionally.
Want to learn more about PIN Debit for Online Payment Processing? Go to:
www.PINDebit.blogspot.com
It will be thankful if you describe more about PIN Debit for Online Payment Processing....
Regards,
account payable services
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