PIN Effective for Flex Debit Cards April 1, 2013

Flex debit cardholders have always signed for their purchases.  Effective April 1, 2013, cardholders may also be required to enter a PIN when making purchases.  This change is required by the Dodd-Frank Wall Street Reform and Consumer Protection Act (passed by Congress in 2010), specifically the Durbin Amendment within that Act.

New debit cards will not have to be reissued as a result of this change.  Cardholders may securely obtain their PINs without cost via ASR’s Website.  Employers also have the option to have the PINs mailed to cardholders.

PINs will be system generated and cannot be changed, reset, or customized.  Further, cardholders will be unable to make cash withdrawals at ATMs or at stores that allow for cash back on PIN debit purchases.  If the card is lost or stolen, the cardholder may request a new card, but that card would have a different PIN.  Cardholders may call ASR for assistance if they forget or lose their PINs.  ASR will assist the cardholder in retrieving the existing PIN in that case; a new PIN will not be assigned.

The effect on the cardholder experience is to be determined in part by the merchant.  By law, merchants may choose the network on which they wish to route transactions: signature debit or PIN debit.  If a cardholder forgets his or her PIN, the merchant may simply run the transaction as a signature debit or require another form of payment.  Merchants that choose a PIN transaction system will likely have that system in place by the end of April.

If you have questions about this new PIN feature, call ASR Health Benefits at (616) 957-1751 or (800) 968-2449.