More Issuers Are Tying Cards To A Single Brand.

More debit card issuers are processing their PIN-debit card transactions through Visa USA and MasterCard Worldwide, reversing issuers' long-standing policies of not putting all their debit product support behind one brand.

The change in banks' attitudes is a key reason why Visa's Interlink PIN-based point-of-sale debit network in March had more transaction volume than any other electronic funds transfer network, including those that also switch ATM transactions (ADN, 9/14).

Interlink is getting a lot of help from large debit card issuers, and the major card brands may be providing issuers with financial incentives as well, observers say. Wells Fargo & Co., Bank of America Corp. and JPMorgan Chase & Co., for example, all have moved most of their POS-debit volume to Visa/Interlink from Star. Visa also owns the Plus international ATM network that these issuers also support.

Stacey Pinkerd, Visa senior vice president of consumer debit products, says the percentage of Visa check card issuers putting all of their PIN-debit support behind Visa/Interlink/Plus has grown dramatically. In 2003, less 17% of check card issuers did so. The percentage grew to 39.4% in March, he says.

"We're building on marketing success because more banks are looking for an integrated debit offering," Pinkerd says.

But Visa is not alone in benefiting from this trend. Leland S. Engelbardt, MasterCard group head of global debit channel development, says seven banks, which he declined to name, have switched their PIN-debit brand support to MasterCard's Maestro point-of-sale brand. MasterCard also owns the Cirrus international ATM network.

"The trend is accelerating," Engelbardt says, referring to the overall debit market.