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Feature: Decoupling Not So Odd |
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In recent years, consumers’ everincreasing interest in debit cards—and card issuers’ push to capitalize on that interest—has sparked the introduction of new debit options to the market. Decoupled debit, one of those options, holds significant promise.
Unlike traditional debit cards, issued by the owner’s bank, decoupled debit cards are not linked to a demand-deposit account. Transactions are settled over the branded payment networks, with funds deducted from consumers’ checking accounts and paid to an intermediate service provider using the offline ACH network. Most decoupled debit cards offer enhanced rewards to users, such as points redeemable for merchandise and services.
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