AUSTIN, Tex. - X.com, owner of the online payment service PayPal, has signed a contract to use technology from software provider ClearCommerce Corp. that will enable it to process online and wireless credit card transactions in-house.

X.com, the most widely used payment service for online auctions, will use the ClearCommerce Hosting Engine, which processes 62 transactions per second.

Citing ClearCommerce's "rules-based fraud detection" capabilities, Elon Musk, chief executive officer and founder of X.com, said his company decided to use the technology, in part, as a strategy to prevent chargebacks.

X.Com has outsourced its processing to Cybersource Inc., an online transactions processor based in Mountain View, Calif.

ClearCommerce president and CEO Robert J. Lynch said his company's payment processing software is designed especially for "small online merchants and individuals."

According to X.com, the PayPal service processes more than 100,000 online transactions a day. X.Com is a privately held company in Palo Alto, Calif.

ClearCommerce in Austin, Tex., also supplies processing software for Chase merchant services.

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