Des Moines, Iowa (August 22, 2011) ― The SHAZAM Network today announced the creation of a dual-message PIN product, a first for the EFT industry, and plans to expand its support of EMV. The product will use a dual-message transaction with separate authorization and settlement messages for PIN-based transactions, a capability previously only available on signature-based transactions.“The SHAZAM network was a pioneer with single message PIN transactions and will now become a pioneer again by supporting dual message PIN transactions,” said Michael Hollinger, SHAZAM President and CEO.
This support for both single and dual-message PIN products will allow SHAZAM debit cardholders to make PIN-based purchases at more online retailers than ever before. In addition to e-commerce, the dual-message PIN product will be useful at brick-and-mortar merchants that accept signature debit transactions, like restaurants, car rental companies and hotels.
“Our financial institution participants understand the importance of increasing PIN debit transactions in a post-Durbin world,” said Hollinger. “SHAZAM will be enhancing PIN processing though support of EMV chip and PIN technology and the dual-message PIN system technology. This will give debit cardholders more options, more security, and overall, more reasons to choose their SHAZAM card over any in their wallet.”
The solution provides the SHAZAM PIN debit brand as an alternative that will lessen the cost and effort required to support the Durbin Amendment for merchants and financial institutions, enabling them to integrate network routing alternatives allowed by the Federal Reserve Board’s final rules.
SHAZAM acquirers can send SHAZAM transactions using the standard dual-message processing logic they use today with the added security of a PIN in the authorization message. SHAZAM’s state-of-the-art processing system will be used to track the number of completions to the original authorization to prevent the cardholder or merchant from posting more than the original approved authorization.
The dual-message PIN transactions will be considered PIN transactions for routing purposes and will follow SHAZAM operating rules. Interchange rates for the dual-message transactions have not been set.
“Both the issuing and acquiring communities are facing tough decisions in the wake of Regulation II and an anticipated shift to chip-and-PIN to support EMV,” said Hollinger. “SHAZAM understands the need to be aggressive in supporting these changes, as well as other authentication technologies.”
About SHAZAM
The SHAZAM network was founded in 1976 and is one of the last remaining member-owned and -controlled EFT networks and processors in the industry. SHAZAM provides innovative and state-of-the-art EFT services to community financial institutions in 30 states. SHAZAM is a single source provider for ATM processing, debit and ATM card processing, card authorization services, merchant processing, Automated Clearing House (ACH) services, and information security solutions.
