Online Resources Corp. said Thursday that it would permit health-care providers to accept PIN-less debit payments through First Data Corp.'s Star network.

The goal is to reduce health-care billers' costs and losses, Online Resources said, citing a report from McKinsey & Co. that said transaction processing expenses eat up "an inordinate" 15% of U.S. medical payments

"Online Resources is pleased to extend this payment option to health-care providers who are looking for a more efficient, real-time complement to credit card and other payment methods," Robert Craig, the Chantilly, Va., company's executive vice president for electronic commerce services, said in a press release.

The new system would allow people to initiate PIN-less bill payments online and by phone over the Star network to health-care organizations.

PIN-less debit transactions do not require the consumers to enter a PIN. For security reasons they are typically permitted only when the biller and customer have an established relationship.

First Data is a unit of Kohlberg Kravis Roberts & Co.