As an issuer, you can expect to come out ahead as multiple national merchants begin to route PINless transactions over $50 via PULSE PAY® Express (PPE) beginning in early 2018.
Here's what you need to know:
- You will see more PINless transaction volume via the PULSE Network, with PINless transactions over $50 increasing gradually over 2018.
- You will want to apply fraud rules similar to those you already have in place for comparable transactions on your card-brand network to your PINless transactions from PULSE.
- These are not new transaction types – you’ve been processing these types of transactions for some time. What’s new is seeing them come from PULSE.
- You will have chargeback and dispute rights on PINless transactions over $50, comparable to those you have long used for like transactions with card-brand networks.
PPE allows merchants to route transactions to PULSE issuers without PIN verification. With competitive interchange and low network fees, the news that merchants are requesting PPE is a win for you and your institution. Routing PINless transactions through PULSE creates better economics for issuers versus transactions routed via the card brand. PPE is available for both card-present and card-not-present payments in any dollar amount and supports payments with no cardholder verification, signature verification and secure authentication options like CVC2 and Address Verification Services (AVS). Most likely your organization has been authorizing PINless transactions over $50 for some time. You may not have seen many of these transactions coming through the PULSE Network, however. The PINless transactions you’ve seen from PULSE were mostly under $50.
Increase Efficiency and Profitability by Treating all Your Networks the Same
The days of the EFT Networks (PULSE, Star, Accel) being a different beast than your card-brand network are long gone. This means you can take advantage of the higher interchange and lower fees you get by routing transactions without PINs through an EFT network. To make the most of this opportunity, be sure to apply the same fraud mitigation rules and transaction monitoring for all PINless transactions you see, regardless of whether they come from your EFT network or card network.
Best Practices for PINless Transactions:
- Consistency with Processing – Process your PULSE network transactions that are not verified by a PIN the same way you would your Visa or MasterCard transactions that are also not PIN verified.
- Consistency with Rewards – Consider making PINless and signature transactions from PULSE eligible for the same rewards as similar transactions from Visa or MasterCard to prevent cardholder confusion.
- Consistency with Your Risk Management Strategy – Make sure your in-house fraud team, your processor and your EFT network are all a part of your fraud mitigation strategy. Have your processor apply the existing rules from your similar transaction types on card networks to your PULSE transactions. To learn more about ways to decrease fraud, consider talking with the fraud experts here at PULSE on best practices and the latest offerings in cybersecurity.
Have questions about getting the most from PPE and PINless transactions? Talk to us about ways to optimize your economics when it comes to PINless transactions and best practices for a healthy fraud mitigation strategy.
Read more here, or contact your Account Executive or call 877-247-8573, for more information.