Summary

Signaturedebit remains a payments alternative only because there still is no PINdebit product on the Internet.  Also playing into the picture is thatIssuers prefer Signature Debit due to higher Interchange rates.  On theotherhand, merchants, acquirers, and consumers are in favor of PINDebit.

Analysis

PINdebit continues to grow despite the marketing efforts of Card issuerswho actively market against PIN debit in favor of Signature debit. (Who but bankers would spend marketing dollars demoting one of theirown products?).  PIN debit is preferred by merchants and consumersbecause of percieved security, cash back availability, speed at thePOS, and less cost to the merchant.  Once we have a viable PIN debitproduct on the Internet, we will see a real growth spurt in PIN overSignature.  And, by the way, we should see PIN on the Internet by theend of next year, 2010.

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