What is Decoupled Debit?

The Term Decoupled Debit emerged in 2008. Prior to that Non Card Association debit was referred to by several different names. It was called Merchant Centric Debit, ACH Debit, Non EFT Networks Debit. R. Scott Hattfield founder of Debitmann promoted the concept of a non Visa and Mastercard Debit product. That used ACH to process the funds and linked directly to a Consumer's bank account. Because the depository Financial Institution where the Consumer's Checking account resides, does not realize revenue from Debit transaction fees. It is referred to as a Decoupled or "Unhooking" of the Financial Institution and the Debit processing relationship.

Alternative payments using ACH are hot right now. And their future seems bright. But they will require Consumers support and Merchants support.