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Nacha to Test Web Purchasing System Metavante to Market RSA Cyota Service Princeton eCom: 2 CUs Using Product
Nacha to Test Web Purchasing System
Nacha, the electronic payments association, is recruiting banks for a yearlong pilot test of an electronic purchasing system that uses online banking Web sites.
Elliott C. McEntee, Nacha's president and chief executive, said in an interview Wednesday that the system was developed to reassure consumers who are concerned that merchants are not adequately protecting their payment information.
"The No. 1 barrier to getting consumers to use the Internet for financial transactions is the concern about giving the merchant account information," he said.
Merchants using the system would redirect customers to their banks' Web sites, where they use the automated clearing house network to initiate a payment. Banks would have to modify their online banking software to facilitate such transactions, and they would receive a fee for processing the payments.
The consumers would not provide any account information to the merchants.
Employees of Wells Fargo & Co., National City Corp., and RadioShack Corp. participated in a proof-of-concept for the payment system last year. Mr. McEntee said he was unsure whether those companies would participate in the pilot test.
Metavante to Market RSA Cyota Service
Metavante Corp. of Milwaukee has agreed to market to banks a service from RSA Cyota that spots and dismantles phishing attacks.
Banks that use the service will also participate in the RSA Security Inc. division's eFraudNetwork, which pools information from financial institutions to spot fraud that hits several companies at once.
RSA Security, of Bedford, Mass., announced the distribution deal Wednesday. It has similar arrangements with other companies that serve banks, such as the Monett, Mo., banking technology and outsourcing provider Jack Henry & Associates Inc. and the Chantilly, Va., banking and bill payment software vendor Online Resources Corp.
Metavante is the technology unit of Marshall & Ilsley Corp. of Milwaukee.
Princeton eCom: 2 CUs Using Product
Two credit unions have agreed to use Princeton eCom Corp.'s online bill payment software.
Veridian Credit Union of Waterloo, Iowa, and Utah Community Credit Union in Provo will use the PayAnyone software, the New Jersey vendor said Wednesday.
The software uses real-time digital scanning technology to spot errors and reduce the number of payments that are rejected. Princeton eCom said its customers have fewer than 2 such rejections for every 10,000 transactions.
Brett Engstrom, Veridian Credit Union's manager of e-commerce, said in a Princeton eCom press release that the software would "enable us to lower costs through reduced claims and more efficiency."
