Thinking Differently about Debit Transactions
With more of the nation's merchants adopting PULSE PAY® Express and other PINless transactions, it's time to think differently about debit. As these volumes continue to grow, it's important for your institution to handle transactions based on the verification method used at the point of sale, not the network source.
In other words, you should treat PINless transactions similar to like transactions from card-brand networks.
Think about fraud scoring PINless transactions from PULSE and similar networks like you would equivalent transactions from Visa or Mastercard:
1. User services via your processor and network that monitor transactions, alert of suspicious activity and provide the ability to block transactions
2. Ensure your processor is validating security codes
3. Apply maximum dollar value at which you are comfortable issuing automatic authorizations when your core system is down or unavailable.
Those issuers that still charge PIN debit fees should re-evaluate doing so because fees based on the transaction network rather than the verification method leads to cardholder confusion.
Make PINless transactions from PULSE and similar networks eligible for the same debit rewards as equivalent transactions from Discover, Mastercard or Visa.
With highly competitive interchange and low network fees, both merchants and issuers benefit from the superior economics PINless transactions from PULSE provide. Following these simple tips will help you stay ahead of fraud trends, maximize your PINless debit profits and protect your cardholders. We recommend that any issuer not already monitoring PPE transactions enroll in DebitProtect®PINless fraud blocking. It is a valuable addition to any fraud-mitigation strategy.