very 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."