Credit Union 24 (Tallahassee, Fla.), the country's largest credit union-owned ATM and point-of-sale (POS) network, has entered into a pilot agreement with Acculynk to provide the company's Internet PIN debit service, PaySecure, to its member credit unions. The full-service, deposit-taking network is the fourth EFT network (with ACCEL/Exchange, PULSE and NYCE) to announce a pilot program with Acculynk and the only one solely devoted to credit unions.
"Our members are seeking new products that provide value to their customers and increase credit union loyalty," said Jim Park, president and CEO of Credit Union 24, in a release announcing the agreement. "PaySecure is one of the few noteworthy innovations in the debit card market in the last 10 years. It satisfies consumer demands for more secure and convenient online payment methods." He added, "This is a value-add service for any credit union we work with, and we expect it will be widely adopted."
According to the Atlanta-based provider, PaySecure is the first software-only service for PIN debit payments on the Internet. Consumers enter their PIN on PaySecure's graphical PIN-pad at the merchant checkout, and only need their existing debit card and PIN to use PaySecure; there are no hardware devices, passwords, enrollment or redirection to another Web site for payment. Acculynk also claimed that PaySecure provides an extra layer of security for debit card transactions, leading to reduced fraud and charge-backs for credit unions, and offers attractive margins.
In the release, Acculynk cited a March 2009 Javelin Research study that found that 78% of survey participants said that entering their PIN on the PaySecure PIN-pad was similar to entering their PIN at the ATM or grocery store, and that 48% said they would buy more often on the Internet if they could pay with such a method. "PaySecure will drive incremental fee income to Credit Union 24's members," predicted Ashish Bahl, CEO of Acculynk, in the release.