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A new payment-authentication company has developed technology that uses any phone to help verify Internet PIN-debit transactions conducted at participating merchant websites.
Adaptive Payments has introduced what it calls a five-factor authentication process that uses cardholder information and transaction data combined with the PIN consumers are accustomed to using at the point of sale or ATM. The technology also validates a consumer's Internet protocol address and phone used in the transaction.
The Shazam electronic funds network will be the first to support Ft. Lauderdale, Fla.-based Adaptive's Internet PIN-debit product, called E-commerce Checkout. Shazam will mandate its partner financial institutions and their merchant processors to accept these transactions regardless of the availability to cardholders, according to Dan Kramer, Shazam senior vice president of marketing and merchant services.
No participating merchants have been announced, but Kramer expects about 80% of Des Moines, Iowa-based Shazam's 1,500 financial institutions to make their cards eligible for the service.
Echoing what other PIN-debit networks have said about capturing e-commerce revenue, Shazam believes Internet PIN-debit products will help the network secure transactions otherwise lost to the likes of PayPal Inc....