Pressured by economic recession, a growing
number of Americans are turning from credit to debit cards as a
means of regulating spending. This makes for an ideal setting for a
pilot programme in which ATM/debit network PULSE and online debit
card payments security specialist Acculynk are to assess consumer
acceptance of online PIN debit for online shopping
transactions.
During the pilot, involving an unspecified
number of major merchant clients, PULSE will test Acculynk’s
PaySecure internet debit technology which enables consumers to use
their debit cards in conjunction with their PINs to pay for online
purchases.
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With Acculynk’s solution, a consumer shopping
online is only aware of a PIN entry option if his or her card is
PIN debit-enabled and has the choice of using the PIN or opting for
a signature debit transaction.
PaySecure has a number of security features
including what Acculynk terms a scrambling PIN pad. With this
feature the PIN pad numbers appear on the purchaser’s computer
monitor in random order, and re-scramble each time the cardholder
clicks on a digit of his or her PIN.
In addition, the PIN is neither captured on
the consumer’s PC nor transmitted over the internet. Instead,
Acculynk captures and encrypts data associated with the PIN entry
process, then transmits encrypted data in a separate messages from
the message used for the card number. This, claims Acculynk, makes
it extremely difficult for criminals to intercept information.
In a run-up to the pilot due to begin shortly,
consultancy Javelin Strategy & Research conducted a survey on
behalf of Acculynk and PULSE using mock online purchases to
evaluate debit cardholder perceptions and attitudes about
PaySecure.
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By GlobalDataJavelin’s study found that 80 percent of
survey participants would use PaySecure when it is presented by a
trusted merchant; 65 percent would feel safer buying online with
PaySecure; and 48 percent would buy more often if they could pay
with PaySecure.
According to Javelin, debit cards were used
for 26 percent of US online purchase in 2007.
