STAR Network signed a nonbinding letter of intent to participate in the Universal PIN Debit Service enabled by CardinalCommerce.

STAR is an electronic funds transfer network with more than 2 million retail and ATM locations, and a First Data company.

Cardinal’s UPDS enables online shoppers to use their ATM/debit cards to make purchases using the cardholder authentication method chosen by their financial institution. UPDS currently supports multiple authentication choices. After execution of a final agreement between STAR and Cardinal, new authentication options would be made available to STAR member financial institutions based on demand.

Because UPDS is available through the Cardinal Centinel Universal Merchant Platform, current Centinel customers may opt into UPDS. Transactions flow through merchants’ existing order management systems, gateways, and processors.

Participation in the UPDS is part of the STAR eCommerce roadmap, which has long recognized the value of extending secure debit payments into the online and mobile channels. The ability to offer security for protection of consumer payment information, multiple advanced authentication methods, and a convenient customer experience is critical to the success of debit payments online for all parties.

 “Once a contract is executed and the service implemented, UPDS integration would allow STAR member financial institutions the flexibility to choose the secure authentication method they want their customers to use when using their debit cards online,” says Julie Saville, vice-president of Product Development for the STAR Network.

UPDS has the potential to help grow secure debit transactions online by enabling merchants that accept STAR, which in turn would provide the coverage needed for STAR member financial institutions to promote this payment method to their cardholders. Authentication methods offered by STAR through the UPDS would help ensure that debit transactions are as secure for online payments as they are today at the physical point of sale with PIN authentication.

Cardinal’s UPDS provides an integrated solution that does not disrupt merchant fulfillment or customer service systems. UPDS will be deployed in a manner that makes it easy to participate and that will encourage participation by key stakeholders, using the “plug and play” Centinel model.

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