Nabanco Corp. is negotiating to purchase and install a neural network-based system to detect fraud among the merchants for which it processes credit card payments.

If it installs the system, Nabanco would join the handful of financial industry companies -- including credit card issuing banks and processors and card associations -- that now enlist neural network technology to spot fraud. It would also become perhaps the first acquiringside business to embrace such a technology, which is already popular among card issuers and their servicers.

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