E-commerce responds to Durbin Amendment

As banks make major adjustments to comply with the implementation of the Durbin Amendment, e-commerce merchants are also responding to the legislation and working on plans to become PIN-only debit card-friendly.

The Durbin Amendment passed as part of Congress’s financial regulation overhaul last year. Senate Majority Whip Dick Durbin (D-Ill.) championed the measure, which instructs the Board of Governors of the Federal Reserve to set rates that credit card issuers can charge to process debit cards.

In order to save revenue, issuers are expected to steer customers from signature debit to credit and PIN-only debit cards, which will allow them to charge back fraudulent and disputed transactions to the merchant.

Because PIN-only debit cards have typically required keypads for transactions, e-commerce merchants are finding ways to enable PIN-only debit cards on their checkout pages.

An internet PIN debit tool called PaySecure, provided by Acculynk, has been a popular solution and is currently live on more than 3,000 merchant websites.

In an interview with Practical eCommerce, Acculynk CEO Ashish Bahl said PaySecure’s PIN pad has a similar look and feel to the ATM or point-of-sale PIN pads.

“They just enter their PIN from their bank-issued debit card by click on the graphical PIN pad,” Bahl said in an interview with Practical eCommerce.

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