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Issue 05:05:02

Industry Update

Increased Market Activity for POS Equipment Vendors

United Bank Card Sells Portfolio to Optimal Payments

Consumer Confidence Declining?

Subcommittee Hears Testimony on Confusion Over Check 21


Reaching the Unbanked: Learning From South Africa's Fis

By Tracy Kitten

Industry Leader: Jack McDonnell
Thirty Years of Pioneering Work


Words Over Interchange Heating Up

By Patti Murphy

The Bundled Solution Approach to Selling, Part I

By Michelle Graff


Street SmartsSM:
What to Expect When Attending a Conference

By Kathy Harper

Will You Make More Money by Adding ATMs to Your Product Line?

By Tommy Glenn

Where to Look Before You Leap: Planning Growth, Building Success

By Mitchell D. Levy

Association Fines: Back in the U.S.S.R.

By Adam Atlas

Exploring Different ISO Management Solutions

By Joel Rydbeck

New Products

Super(Check)Man Fights Fraud

Cashless Vending Takes Convenience to New Level

New Kiosk to Bring Banking to the Unbanked

Ten Items or More Are Encouraged

Company Profiles



Make the Most of Networking



Resource Guide


PIN Debit: A Tricky Sale, but Growing by Leaps and Bounds

Every year, in preparation for our annual GSQ Acquirers Report, The Green Sheet contacts the largest processors in the United States. We ask them to provide information on the previous year's actual sales volume and number of transactions processed; we also ask them to estimate for the coming year.

In December 2003, we reported that the top 13 online, or PIN, debit acquirers processed 2.2 billion transactions worth $98.3 billion in 2002 for an average ticket price of $40.41 (GSQ, Vol. 6, no. 4).

Acknowledging the fluctuations within the industry and looking forward, we wrote: "The upshot: PIN debit growth will slow, and offline debit growth will go through fits and starts, at least in the near term, as banks come to grips with marketplace dynamics."

Who knew what a difference a year could make?

By the end of last year, PIN debit showed it was a force to be reckoned with. In December 2004, we ranked the 29 top online debit acquirers and found that in 2003, they processed 6.4 billion transactions worth $290.5 billion (GSQ, Vol. 7, no. 4).

Numbers gathered for last year's Acquirers Report also showed that in 2003, PIN debit purchases accounted for 36% of all consumer POS card payments; we predicted that for the next four years, an upward trend will continue.

We estimated 9 billion PIN debit card transactions worth a value approaching $450 billion will occur in 2004.

What's up with online debit? In the December 2004 GSQ, we wrote: "Debit card payments account for the lion's share growth these days.

"The trend is explained, in part, by the Wal-Mart settlement, which created cost incentives for merchants to steer customers toward online debit.

"There's also a growing body of data that suggests many consumers now prefer using debit cards because it provides them with a sense of having better control over their spending."

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