Acculynk Inc., which enables merchants to accept PIN-debit purchases online, is broadening its offerings to include online card processing and is making its products available for resale through independent sales organizations, the company announced Wednesday.
ISOs that sell signature- and Internet PIN-debit processing as a package can pursue the card-not-present and Internet merchant markets strategically, contends Nandan Sheth, president of Atlanta-based Acculynk.
Acculynk has recognized that it “can go after large retailers and do things directly, but to gain scale you have to play in the dominant market, and that includes ISOs and acquirers,” says Todd Ablowitz, president of Double Diamond Group, a Centennial, Colo.-based consulting firm. “It’s a wise move on their part.”
Acculynk enables consumers to use PIN-debit cards to make purchases online by integrating its PaySecure software into a merchant’s online-checkout system. Cardholders use their computer’s mouse to enter their four-digit PINs into an Acculynk virtual PIN pad that appears on the computer monitor.
The company’s expanded product, PaySecure Plus, includes credit and debit card processing and Internet PIN-debit transaction processing. Elavon Inc., an Atlanta-based processor, is providing card-processing services for Acculynk, says Sheth.
An Elavon representative declined to comment on its partnership with Acculynk.
Offering resellers a “full-service product could be compelling to ISOs and agents,” says Ablowitz. The ISO sales pitch to the merchant could focus on saving funds by using PIN debit, which is a lower-cost transaction type, he says.
“We’re providing a suite of services an ISO can package and use to hook additional business for Internet PIN debit,” says Tom Wilkerson, Acculynk vice president of business development.
The “hook” is Internet PIN debit because card processing has become commoditized in the ISO industry, adds Sheth. ISOs have found it difficult to differentiate themselves, and “a lot of them complain about the fact they are competing on price,” he says.
ISOs that sign up to sell Acculynk’s product will be the only ones in the market able to sell Internet PIN-debit services, says Sheth. “The ISOs will be winning business they may not have been able to win in the past.”
Acculynk has buy-rate and revenue-share compensation models available for ISOs, says Sheth, who would not disclose specific figures.
With revenue-share contracts, an ISO or agent earns a percentage of revenue from merchants they recruit as clients. In a buy-rate contract, agents earn all the revenue or a percentage of revenue above a base price the processor or acquirer sets.
The company will determine individual ISOs’ compensation packages based on their size and the amount of focus they give to Internet or card-not-present merchants. “Rates will be exceptionally favorable,” Sheth says.
Acculynk has not named any of the ISOs it is talking with regarding the reseller program, says Seth. “If we have got 10 good-size ISOs working with us over the next five to six months, I will be very happy,” he says.
Acculynk introduced PaySecure in March 2009 and has since signed agreements with seven electronic funds transfer networks, including Fiserv Inc.’s Accel/Exchange, Fidelity National Information Services Inc.’s NYCE and Discover Financial Services’ Pulse, to switch PIN-debit transactions initiated online, according to the company.
More than 1,000 merchant Web sites include PaySecure as a payment option.