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Table of Contents

Lead Story

The road ahead for mobile payments


Industry Update

Interchange in federal sights - again

Will Merrick's lawsuit affect PCI auditors?

Respect sought for MLSs

Pulse touts positive debit trends


A bad man gone good

Selling Prepaid

Prepaid in brief

nFinanSe lowers already 'lowest' activation fee

Franchise that closed-loop

Prepaid, quite an opportunity


Interchange debate rages on

Patti Murphy
The Takoma Group

Mobile payments gaining traction - finally

Ben Goretsky
USA ePay


Street SmartsSM:
Raising the networking bar

Jon Perry and Vanessa Lang

Negotiate to get your way

Vicki M. Daughdrill
Small Business Resources LLC

Fallout from the Great Recession

Adam Atlas
Attorney at Law

Stand alone or marry up

Dale S. Laszig
DSL Direct LLC

Want a long-lasting relationship? Snail away

Nancy Drexler
SignaPay Ltd.

Company Profile


Clearent LLC

New Products

Processing in a matrix

Multiple Merchant Account Matrix
Ezic Inc.

Don't kick the machine - call a number

ePort EDGE
USA Technologies Inc.


Welcome your inner dingbat



Resource Guide


A Bigger Thing

The Green Sheet Online Edition

June 22, 2009  •  Issue 09:06:02

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Pulse touts positive debit trends

The fourth and latest installment of the Debit Issuer Study shows an increase in overall debit transactions in 2008, as well as an increase in PIN debit transactions and a decrease in fraud loss rates. The 2009 study was commissioned by Discover Financial Services' Pulse network and conducted by Oliver Wyman Group.

The research revealed overall debit transaction growth of 8 percent in the second half of 2008. The greatest increase was seen in PIN debit: 15 percent, as opposed to 4 percent for signature debit. Issuers participating in the survey projected 7 percent growth in both PIN and signature debit in 2009.

"Americans are turning toward PIN-based debit, and they've been forced to do so by the retailers," said Steve Eazell, Director, National Sales and Marketing at Secure Payment Systems Inc. He added that consumers don't care which type of debit they use "because they think the money's coming out of the accounts instantaneously anyway."

More debit data

The study, which surveyed 73 financial institutions of varying sizes, also showed that 27 percent of all 2008 debit transactions were under $10. Cindy Ballard, Pulse Executive Vice President, stated, "In most cases these transactions are replacing cash, highlighting a clear consumer preference for electronic payments." The study also revealed the following data for 2008 (compared with the previous year):

Rewarding signatures

Regarding the increase in debit rewards, Mark Landis, President of Metro Merchant Services, said his bank was encouraging its customers to use signature debit because the bank "makes more interchange on a signed off-line debit than a PIN online debit.

"The interchange is much greater and that's how [the banks] can pay the rewards for the check card," Landis said. "They can't pull rewards out of a PIN transaction. There's not much money there. We just went through an increase [on PIN debit] but there's still less money for the issuers on PIN debit transactions."

Eazell said, "I think that [issuers are] going to figure out ways that they can utilize that. It's a less expensive transaction, so everybody benefits really. Issuers want to incent them. ... I think you're going to see more incentives in that particular area. I think that rewards cards are effective. It's a different type of rewards program, though. There's not enough revenue in it for the issuers to be able to offer the same level of rewards that they could with the credit cards."

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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