NACHA To Launch Web PaymentPilot
HERNDON, Va. - (04/20/06) NACHA said its pilot project totest web-based payments to retailers and billers will begin earlynext year and run 12 months. Officials with the electronicspayments association said in a conference call last week theyexpect to sign up most of the participating financial institutions,merchants and billers by Aug. 30. The group, which sets theoperating rules for Automated Clearing House payments, said itplans to set fees for pilot transactions, similar to interchangefees charged in card transactions. Under the system, NACHA expectsthe financial institution that is sponsoring the merchant or billerto pay the consumers bank or credit union. Participantswould have to use multi-factor authentication for transactions, asrequired by NCUA and the federal banking regulators. The newapplication would allow consumers to make online payments andtransfer funds between accounts by logging on to their banksor credit unions online banking program. Merchants wouldreceive instructions when the funds have been transferred, thenship the goods.