Mercator Advisory Group’s research report, Debit Transactions in an EMV World: A Practical Guide, follows each of nine debit transaction types at a business level from the point a consumer makes a payment selection to the authorization response. For each debit transaction type, the report identifies the network type, form factor, CVM, message type, and environment influencing the path of the transaction, and presents a process flow diagram that outlines the major milestones in the process, noting the key participants and briefly describing the process occurring as the transaction winds its way from the customer’s payment choice to the authorization response. Analysis of recent events that have materially impacted the transaction type is presented in the text following each flowchart and includes commentary on potential changes that may influence the transaction type’s future.
“We have witnessed an incredible amount of change in debit transactions over the prior two years that has materially impacted banks, processors, merchants and networks financially and operationally. With the advent of the EMV migration, tokenization, and commercialization of mobile payments, managing change becomes critical. Understanding the existing payments infrastructure and how it works at a fundamental level will be critical to those with payment-related businesses to protect and grow,” comments Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group, and author of this report.
This report has 22 pages and 10 exhibits.
Companies mentioned in the report include: Accel, AFFN, American Express, Apple, Capital One, Credit Union 24, Discover, EMVCo, JCB, Jeanie, Kroger, MasterCard, MCX, NYCE, Presto!, PULSE, Shazam, Target, UnionPay, Visa, Walmart, and ZipLine
Highlights of the report include:
- A detailed review of 9 debit transaction types and the way they are processed through the payments systems
- Analysis of the impact of Dodd-Frank Regulation II on PIN debit transactions
- Review of Visa’s PIN Authentication Visa Debit (PAVD) product and associated merchant incentives
- Commentary regarding how MasterCard and Visa’s dominant role in tokenization vault services may affect mobile payments
Interested In This Report
2023 Annual U.S. Debit Card Market Data Review
The seventh annual review of the U.S. debit card market consolidates data and analyzes recent trends shaping the use of these cards. In addition, a near-term forecast for debit vol...
Debit Regulation II Clarification
A new clarification to a debit regulation sets standards for dual routing in card-not-present transactions, but how will the Federal Reserve Board’s regulation affect merchants, de...
2023 Outlook: Debit and Alternative Products
Debit card issuers will need to navigate a recession caused by excess demand. Potential regulations that affect credit will bring volume to debit as the value proposition shifts. N...