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ISAP
Pilot Documentation
News
Release
July 23, 2001
Contacts
- Michael
Herd
703/561-3924
mherd@nacha.org
- Julie
Hedlund
703/561-3915
jhedlund@nacha.org
Digital
Signatures Can Secure ATM Card Payments on the Internet, NACHA
Pilot Concludes
Herndon,
VA, July 23, 2001 - Participants
in NACHA's Internet Secure ATM Payments (ISAP) Pilot have
successfully demonstrated that consumer ATM/debit cards can
be used on the Internet with transaction authentication and
security that are comparable to point-of-sale purchases. The
pilot, which ended on April 13, 2001, successfully processed
598 transactions in which digital signatures substituted for
personal identification numbers.
"The
success of the Internet Secure ATM Payments Pilot shows that
digital signature technology can be used to secure transactions
because the signature is transported through an EFT network
and validated by the issuing bank," said Elliott C. McEntee,
President and Chief Executive Officer of NACHA - The Electronic
Payments Association.
The
digitally signed transactions were validated 100 percent of
the time, and the average response time for authorizing a
transaction was 6-8 seconds. Approved transactions and
any denials were successfully returned to the merchant.
In addition to successful transaction processing, the pilot
withstood attempts to compromise security and commit fraud.
The
ISAP model is an open, interoperable architecture that is
solution neutral. Because transaction security and authentication
are comparable to PIN-based debits at the point-of-sale, Internet
merchants are provided with card present equivalent
transactions that are more difficult to repudiate.
In
the pilot, participants acting as consumers made purchases
at a web site using ATM/debit cards. Instead of using
a PIN, the consumer digitally signed an electronic payment
request. The encrypted payment request was then sent
through the STARSM electronic payments network,
and the consumer's account was debited in real-time.
"To
further the growth of e-commerce, the issue of security has
to be satisfied for consumers. According to a survey recently
commissioned by STAR, that's one reason that two-thirds of
online sales are cancelled before consumers reach the checkout,"
said Ronald V. Congemi, president of Star Systems® (STARsm). "And,
even those who do shop online limit their purchases because
of security concerns. That is the reason we are very
enthusiastic about our support of the successful digital signature
technology. The flexibility and security of this authentication
method make it a highly attractive solution for financial
institutions, retailers and consumers alike."
A
detailed report reviewing the pilot results and describing
the participants roles is available on the Internet Council's
web site at http://internetcouncil.nacha.org.
Participant
contact information
ActivCard,
Inc.(NASDAQ/EASDAQ: ACTI)
Rod Stuhlmuller
510-574-0100
www.activcard.com
AmeriNet, Inc.
David Kerlin
503-670-8292
www.debit-it.com
ANI Services
Bob Plunkett
858-695-6400
www.aniservices.com
Commercial Capital Bank
Stephen Gordon
949-585-7500
www.commercialcapital.com
eFunds
Terry Blake
414-341-5060
www.efunds.com
MagnaCash
Staci Smith
510-808-3728
www.magnacash.com
STAR Systems
Nikki Waters
619-234-4774
www.star-system.com
UTM systems corp.
Robert Lee
425-451-8585
www.utmsystems.com
About
NACHA - The Electronic Payments Association
NACHA
represents more than 12,000 financial institutions through
its 33 regional payments associations, and 600 organizations
through its seven industry councils and corporate Affiliate
Membership program. NACHA develops operating rules for
the Automated Clearing House (ACH) Network and for electronic
payments in the areas of Internet commerce, electronic bill
payment and presentment (EBPP), financial electronic data
interchange (EDI), international payments, electronic checks,
electronic benefits transfer (EBT) and student lending.
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