Canadian Acxsys and NYCE form alliance for cross-border PIN debit

Thursday 1 April 2004 08:52 CET | News

Acxsys and NYCE have entered into an agreement that will provide Canadian debit cardholders fromparticipating financial institutions, the convenience of using their cards at U.S. retailers supporting NYCE PIN POS payments.

This cross border service, the first of its kind to offer widespread U.S. PIN POS access to the debit-smart Canadian consumer, is planned to launch in fall 2004. Under the agreement, Acxsys will rely on the NYCE Network to link Canadian debit cardholders to U.S. retailers by offering a gateway service. Debit cardholders of Canadian financial institutions that sign up for the service will gain access to PIN POS for payments at U.S. retailers. Canadians are among the highest users of debit payments in the world on a per capita basis, using debit cards with a PIN at virtually every type of retailer. In fact, one-in-two Canadians prefer to pay by debit rather than cash, credit card or cheque, according to research conducted by Interac. Association, providers of INTERAC Direct Payment, Canadas national debit service. Now, with NYCE and Acxsys working together, Canadian debit cardholders will be able to use the same debit cards they have in hand today to pay for purchases in the United States (and obtain cash back, where available) without having to make a separate trip to an ATM to get cash or convert Canadian dollars before shopping in the United States. NYCE has demonstrated a product philosophy of continual improvement with respect to PIN POS with its historical focus on product performance and the best approval rates of any U.S. debit network - a philosophy that benefits retailers and issuers alike. This new agreement brings millions of new debit-mature consumers to U.S. retailers, unlocking immediate, secure, on-line real-time access to funds on deposit in Canada, accompanied by the substantial bottom line retailer benefits of larger average purchases (versus cash) and lower all-in payment expense (versus credit card). The Canadian debit marketplace is significant, with Canadians logging more than 2.6 billion debit transactions in 2003. Unlike in the U.S. market, Canadian financial institutions have not embraced signature debit card products, having developed the highly successful INTERAC Direct Payment service, which is available at more than 360,000 merchants across Canada as an online, real-time process.

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Categories: Payments & Commerce | Payments General
Countries: World
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Payments & Commerce