Decoupled Debit Card With Rewards Put To The Test By HSBC And CVS.

Publication: ATM & Debit News

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HSBC Finance Corp. and CVS/Pharmacy say their test of a decoupled, closed-loop rewards PIN debit card is going well, with both companies hoping to expand the trial. The six-month test of CVS ExtraCare Plus began Sept. 9 in 141 Indianapolis CVS drugstores.

Decoupled debit cards can deduct funds from checking accounts that are not tied to the issuer. Transactions for standard debit cards are processed within seconds over the bank's chosen EFT network. Decoupled debit transactions are processed over the Automated Clearing House, or ACH network, in two to three days. Decisions on whether to grant access to funds with a decoupled debit card bear some similarities to decisions on extending credit to credit cardholders, sources say.

Capital One Financial Corp., a large institution that advertises heavily, is credited with sparking...

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