CyberSource Adds PIN-less Debit Card Support

Millions today are already using their check cards to make purchases and pay bills out of their checking accounts. These transactions are processed on the card association networks, much like credit cards. Now, some of these transactions can also be processed through the ATM debit networks, with the potential for considerable savings to the billing organization. Until recently, online purchases could not be processed through the debit networks. The concern was that use of PIN numbers online would enable fraudsters to gain access to both card and PIN numbers and then illegally obtain cash at automatic teller machines.

Now, debit networks such as NYCE, PULSE, and STAR are rolling out support for PIN-less debit transactions, as long as they are in the following eligible industries: utilities, education, insurance, government, and lending. These industries, due to the nature of their online payments (tuition, utility bills, insurance policy and loan repayments, etc.) are deemed to be of lower fraud risk. Per-transaction savings could range from a few cents to several dollars, depending on the particular network and the size of the transaction.