Internet Start-Up Offers Web-Based ACH Payments

CHARLOTTE, N.C. – A new company formed by a group of banking veterans has acquired the Retail Payments platform from CheckFree it plans to use to offer lower-cost ACH transactions for online shopping. The company, called Moneta, said customers can register their checking or money market accounts at its website, and then buy goods and services by transferring money directly from these accounts to participating e-retailers. Moneta authenticates customers by means of four-digit PINs, and says it does not divulge any financial information to merchants. Merchants can save up to 50% on the interchange fees they pay for cards transactions, according to the company. CheckFree has been using RPS to offer ACH-based online payments to U.S. consumers for two years. CheckFree, which is about to be acquired by Fiserv, sold the payments system to Moneta on Sept. 21. CheckFree will continue to process the RPS transactions for Monetta.