Acculynk is a start-up business offering a technical solution for protecting PIN numbers entered over the Internet. At the heart of Acculynk is a graphical scrambling PIN –pad for the secure entry of sensitive cardholder information, like a PIN. This provides merchants with the ability to offer PIN debit on the web stores and shopping carts.
While Acculynk does seem to solve the problem of not being able to use PIN debits on-line, the real question is does anyone care? Since the Durbin Amendment has effectively equalized the interchange costs of PIN versus signature debit transactions, the financial impact to the merchant may not be as great. PIN debit may protect the merchant from potential fraud, but there are other methods for controlling fraud. Plus is a merchant really going to require PINs to be entered for all debit card transactions? If a non-PIN option is available then the fraudster simply selects this option.
A recent blog post by Elizabeth McQuerry from Glenbrook Partners stated that online PIN debit transactions may be attractive to the emerging card markets in Latin America and Asia Pacific. The market for prepaid cards is rapidly expanding in Latin America, growing from US$20 billion in 2011 to US$110 billion according to Brian Riley of Tower Group. Many card products in Latin America are Chip and PIN based so this could be the market for Acculynk.
In any case, it is interesting technology for the protection of all types of private information that may be transmitted over the internet. You can see a demo of this by visiting acculynk.com.