Decoupled Debit - Let's Take a Closer Look

Table of Contents

1. INTRODUCTION

2. CONCEPT BEHIND THE DECOUPLED DEBIT CARD

3. MASTERCARD BRANDED DECOUPLED DEBIT PRODUCTS

4. HOW THE TRANSACTION WORKS

5. SETTLEMENT - ACH VS. TRADITIONAL PIN OR SIGNATURE NETWORK

6. MASTERCARD' S ROLE

7. ADVANTAGES OF DECOUPLED DEBIT

• THE INTERMEDIATE SERVICE PROVIDER
• THE MERCHANT
• THE CONSUMER
• THE ACCOUNT HOLDER

8. CHALLENGES OF DECOUPLED DEBIT

• THE INTERMEDIATE SERVICE PROVIDER
  • Compliance/Regulations
  • Mitigating Risk
• THE MERCHANT
• THE CONSUMER
• THE ACCOUNT HOLDER

9. PROFITABILITY

10. THE PAYPAL AND CAPITAL ONE MASTERCARD DECOUPLED DEBIT CARDS

• PAYPAL
• CAPITAL ONE

11. CONCLUSION

APPENDIX

• REGULATION E SECTION § 205.14 ELECTRONIC FUND TRANSFER SERVICE PROVIDER NOT HOLDING CONSUMER' S ACCOUNT
• MODEL DISCLOSURE FORM FOR SERVICE PROVIDING INSTITUTIONS (SEC. 205.14 (B) (1) (II)
• PAYPAL DEBIT CARD AGREEMENT LINK
• PAYPAL USER AGREEMENT LINK

List of Exhibits

• FIGURE 1: DEBIT CARD VALUE CHAIN
• FIGURE 2: EXAMPLES OF DECOUPLED PROGRAMS
• FIGURE 3: TRADITIONAL DEBIT CARD TRANSACTION FLOW
• FIGURE 4: DECOUPLED DEBIT CARD TRANSACTION FLOW
• FIGURE 5: ACH SETTLEMENT
• FIGURE 6: ADVANTAGES OF DECOUPLED DEBIT PROGRAMS
• FIGURE 7: DECOUPLED DEBIT CHALLENGES