PULSE Launches PIN Debit Service for Online Payment

July 22, 2010

PULSE, a national debit/ATM network, recently announced the launch of PULSE Internet PIN debit for online shopping. The Houston-based subsidiary of Discover Financial Services said it recently concluded a pilot that showed cardholders were comfortable conducting e-commerce transactions with a PIN debit card. “Our successful pilot confirms that debit cardholders are comfortable entering a PIN when shopping online,” said Judith McGuire, PULSE senior vice president of product management. According to PULSE, when consumers make a purchase at a merchant website using cards that participate in PULSE Internet PIN Debit, they are given the option of completing the transaction with a PIN. Consumers who select this option are prompted to enter their PIN to complete the transaction, using a graphical, scrambling PIN pad that can be customized with the card issuer’s logo and debit card design. The PIN is not captured on the computer, nor is it transmitted over the Internet, the network said. In the pilot, 54 percent of debit cardholders paying for online purchases preferred to enter a PIN when presented with the choice of PIN or signature options to complete the transactions. And, compared to signature debit transaction, the company said it found chargebacks were reduced 77 percent and there were no instances of fraudulent transactions. “The product gives consumers with PIN-only debit cards a new payment choice,” McGuire added, “and should appeal to cardholders who already prefer to enter their PIN at brick-and-mortar retailers.”