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Internet Pin Debit: How It Can Protect Your Borrowers


internet-pin-debit-protects-your-borrowersSecurity breaches are a perpetual part of our technologically advanced society. The more convenient modern e-commerce becomes, the more susceptible businesses, financial institutions, and consumers are to fraud. As a lender, you are tasked with meeting your borrowers’ needs for convenient online payment processing technology, while still ensuring the platform is secure.

Online payment processing technology is not optional—your borrowers expect the convenience of online and mobile banking, and a security breach is too expensive to fathom.  According to Chubb, the average data breach loss in 2011, was $5.5 million. If your financial institution suffered a data breach, it could be very costly—both financially and when it comes to your reputation. Additionally, ensuring that you comply with required compliance and regulatory obligations is a priority.

With these things in mind, consider internet pin debit, a payment solution that can be added to your existing online payment portal. Internet pin debit allows your borrowers to make their payments online using their debit card and requiring a PIN. Offering PIN authentication increases the security of the transaction on the back-end; borrowers see their card issuer’s familiar logo on-screen before they hit the “submit” button, affording them peace of mind that security is a top priority to your institution.

How does internet pin debit work?

When making an online payment, your borrower initiates the payment as they normally would, entering their card number and associated information. Once the system validates that the card is a debit card, the PIN option appears. Your borrower would enter their PIN number by selecting the digits on screen—as opposed to keying it in on their keyboard—preventing the PIN from being captured during transmission and processing, offering an added level of security. Only the PIN coordinates are captured—as opposed to the actual digits—and then encrypted prior to being processed. After each digit is clicked, the PIN pad scrambles, never leaving numbers in the same location on the PIN pad.

The added security features of internet PIN debit gives your borrowers an alternative method of payment, offering them the same kind of point-of-sale “pay now” experience they get when they shop with their debit cards.

Identity theft is a major concern for consumers. In 2013, the Target data breach became front and center illuminating how more than 110 million customers can be affected by one security breach. Identity theft could be devastating to your borrowers—from the monetary loss to the time and energy spent rectifying the situation. Internet PIN debit reduces your borrowers’ exposure to fraud and helps to manage the associated costs that accompany a security breach.

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internet pin debit: how it protects your borrowers

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