During this decade, the average debit cardholder increased usage of debit at the POS by 32%. In the same timeframe, card use for ATM withdrawals declined by 41%.
A new study from Discover’s PULSE found that 84% of financial institutions reissued all exposed cards in response to the Target breach, compared to only 29% that typically reissue all exposed cards as a standard response to breaches. Overall, 14% of all debit cards were exposed in data breaches in 2013, compared to 5% in 2012. PULSE says 86% of financial institutions stated that they plan to begin issuing EMV debit cards in early 2015.
MasterCard and PULSE reached an agreement to allow financial institutions that issue EMV debit cards that participate in both the MasterCard and PULSE networks to use MasterCard’s common debit solution on those cards. U.S. debit regulations require that each debit card provide merchants and acquirers the opportunity to route debit transactions over multiple, unaffiliated networks. This is made possible for debit EMV cards through the use of common application identifiers (AIDs). Licensing MasterCard’s common debit AID will help support EMV chip adoption in the United States by enabling issuers to deploy EMV cards in compliance with this regulatory requirement. PULSE will use MasterCard’s common AID to process domestic ATM and POS transactions on behalf of issuers that participate in both PULSE and MasterCard, including those initiated with contactless-enabled devices.
Paydiant white-label mobile payments announced the grant of a new patent from the U.S Patent and Trademark Office (USPTO). U.S. Patent No. 8,632,000, granted on January 21, 2014, describes approaches for using a mobile device to conduct transactions at automated teller machines (ATMs). The solution enables consumers to use their smartphones, instead of their debit or credit cards, to withdraw cash from ATMs, enhancing the consumer mobile banking experience while also supporting financial institution loyalty. And because it is software-only, it can be deployed without installing additional hardware on ATMs. The Paydiant solution enables the user to get cash simply by scanning a QR code displayed on the ATM with their smartphone. The Paydiant solution also increases security by eliminating the risks associated with card skimming and PIN theft at the ATM. An ATM code or token is obtained by a mobile device and used to associate an end user and their payment accounts to a transaction at an ATM. Users can pre-stage cash withdrawals on their smartphone and then identify themselves at the ATM by scanning the transaction specific QR code that signals the ATM to dispense cash via an encrypted connection to the cloud.
Hybrid PayTech World Inc announced today that Smart eMoney Inc. (SMI) and Hybrid PayTech Asia Inc. (Hybrid) have collaborated for the deployment of a pioneering mobile payment ecosystem platform to enable enterprise and retail businesses in the Philippines. SMI will use the HybridVIRTUO Ecosystem Platform for mobile point-of-sale (mPOS) roll-out which includes a unique host of solutions for easy integration with other existing payment systems. The scalable Hybrid platform will enable SMI to deploy a full suite of compliant mobile payment solutions for businesses and includes Hybrid’s HybridMPOS APPs, a mobile application built on the most popular operating systems for wireless devices such as Android, IOS, BB, and Win6,7,8.
PULSE debit/ATM networks implemented a major upgrade to its DebitProtect Fraud Mitigation Service and introduced an optional fraud blocking service. The enhanced system allows transactions to be blocked in real time, enabling PULSE participants to respond faster to suspected fraud before more fraud is perpetrated on a card, thus reducing losses and decreasing cardholder impact. The DebitProtect fraud mitigation system was first launched across the PULSE network in 2007. PULSE collaborated with Hewlett-Packard (HP) and Retail Decisions (ReD) on the DebitProtect upgrade. PULSE deployed the ReD PRISM® software solution, implemented on HP NonStop servers. The initiative received the 2012 HP Alliance ONE Partner of the Year Award for Innovation. In addition to the enhanced fraud detection service and new Authorization Blocking option, financial institution participants may use an optional service that includes the development of custom rules specific to their organization. This helps minimize the impact of false positives on cardholders.
Paydiant cloud-based mobile wallet and cardless ATM access closed a $15 million round of funding from North Bridge Venture Partners, General Catalyst Partners, Stage 1 Ventures and two of Paydiant’s customers. Paydiant’s platform is currently deployed in partnership with prominent card-issuing banks, retailers, restaurants, merchant processors, debit/ATM networks and POS providers. The company was recently awarded a comprehensive mobile wallet patent for conducting payments in store, online and for pay-at-the-table transactions. With Paydiant, retailers and banks can begin signing up consumers today for mobile payments for multiple smartphone operating systems and smartphone to POS interfaces like 2D codes and NFC.
PULSE debit/ATM network and Paydiant cloud-based mobile wallet and offer redemption platform, are working together to provide an easy-to-use mobile commerce solution for PULSE participants. The Paydiant solution will enable PULSE financial institution and merchant partners to quickly deploy contactless payment and cash access functionality to better serve their mobile-minded customers. Paydiant’s mobile wallet platform is software-based and works with both new and existing smartphones – including iPhone® and Android™ devices already in the hands of millions of consumers. It also works with existing point-of-sale (POS) terminals used by participating merchants today without requiring new hardware.
Old Second National Bank has teamed with Discover to create the Old Second Debit Card powered by Discover® Debit. Old Second customers will receive the new card in 2014, following a pilot program with bank employees. Discover Debit is managed by PULSE, a leading debit/ATM network, and a subsidiary of Discover Financial Services. Old Second, a PULSE network participant for more than 10 years, has approximately 50,000 debit cardholders. The bank provides full-service banking from Chicago-area branches in Cook, Kane, Kendall, DeKalb, DuPage, LaSalle and Will counties in Illinois. By joining with Discover, Old Second will provide its customers with signature debit cards that provide convenient access to manage and spend their funds, along with security features that give them peace of mind.
fisoc, provider of the Buzz Points loyalty program, joined PULSE to offer Buzz Points to the network’s participants. Letting financial institutions connect with consumers and merchants through rewards and social-media engagement. Buzz Points was aligned with Discover Debit, managed by PULSE, to offer rewards that encourage consumers to shop locally and support merchants in their communities. Participating cardholders earned reward points that could be redeemed for gift cards or donated to charitable causes. Buzz Points is now being made available to PULSE financial institutions in select markets.
Discover partnered Cadence Bank to create the Cadence Bank Debit Card powered by Discover Debit. Cadence recently completed a comprehensive evaluation of its debit options in response to the changing financial services landscape and determined an affiliation with Discover made the most strategic sense. Discover Debit provides convenience and security, with broad national acceptance as well as leading fraud-prevention and data-security tools to help mitigate cardholders’ exposure to debit card fraud. Cadence also is participating in Buzz Points™ through PULSE Loyalty Edge, multi-faceted loyalty program incorporates merchant rewards and aims to drive spending to local merchants in the communities the bank serves.