Decoupled Debit Debuting for the Mobile Wallet

National Payment Card Association receives mobile payment technology patent

COCONUT CREEK, Fla. -- National Payment Card Association (NPCA), a leading provider of merchant-branded PIN-based debit cards with hundreds of thousands of active cards in the market, has announced it has been issued a third U.S. patent in the area of decoupled debit technology. This most recent patent is in the mobile payments sector.

"Decoupled debit" payment methods refer to situations in which a U.S. checking accountholder from any bank or credit union is able to accomplish an electronic payment without needing to use a card issued by the bank or credit union they have their checking or debit card with. NPCA's decoupled debit technology is intended for merchants seeking to have the lowest method of payment settlement fees in the marketplace, which now includes mobile payment.

The mobile wallet from any merchant or provider will require funding, and those funding methods will vary. Some consumers will choose to fund via their credit cards, while others will select their bank-issued debit card to load their wallets.

Also, a significant number of consumers will choose to fund their mobile wallets by connecting their checking accounts to the merchant branded offer, which will include an incentive for loyalty. The NPCA patent specifically addresses this audience with the lowest settlement method available to merchants.

U.S. Patent No. 8,205,791, titled "Payment System & Methods," contains 28 claims, including various independent claims for a consumer to fund a mobile wallet via an ACH payment method for the holder of a U.S. checking account with a financial institution to accomplish a purchase at a retail site. Some examples of a payment token include a smart phone, a cellular device and a wireless device.

"With the emergence of mobile payments as an option, merchants are seeking methods of payment that represent the lowest transaction cost to them while at the same time allowing consumers to use the convenience of a mobile devices," said Joe Randazza, CEO and president of NPCA. "This patent is a logical extension to our current patent portfolio."

NPCA, based in Coconut Creek, Fla., is a marketer of Automated Clearing House (ACH) merchant branded PIN based debit payment solutions. NPCA is a member of the EFT Network, which is a part of the Electronic Check Council of the National Automated Clearing House Association (NACHA), the rule-making body for all electronic funds transfers made through ACH.