Mexican E-Commerce Held Back By Debit Cards


Latest reports suggest that e-Commerce growth is being held back in Mexico because of the reluctance of banks to give debit cards the same levels of security as credit cards.

In Mexico there are over 133 million debit cards in use, compared to just below 30 million credit card users. Yet, even though debit cards dominate credit cards, the vast majority of online businesses only accept the latter. This includes many of the sites which deal with travel related sales, including flight and hotel bookings.

But, comparatively new entrant into the Mexican e-Commerce market, Amazon, does give the customer the option to pay by MasterCard, or VISA debit card.

However, it is the bank’s responsibility for creating security levels attached to the debit cards, and they can choose not to approve an individual customer transaction. And different banks have varying degrees of security as regards their debt cards. Some have updated their systems, others have not.

It appears that many banks prefer to authorise credit card purchasers, so as not to annoy the card holder, whereas this is not the same with holders of debit cards who have to endure more layers of security and inspection.

Experts acknowledge that for e-Commerce to properly take-off in Mexico, then a wider use of debit cards must be allowed and that a standardization of the rules, including security, chargebacks and deliveries, must be encouraged.

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Reference: Mexican Business Web