The Electronic Funds Transfer Association (Efta), representing the major US cash machine networks, has announced the development of a set of guidelines to facilitate real-time online debit payments over the Internet.
Currently, Internet payments are largely limited to the use of credit cards. The guidelines are aimed at helping financial institutions, terminal manufacturers, merchants, payment processors, and software houses to develop and quickly bring to market debit products for Internet purchases, says Efta.
The guidelines were developed by the Advanced Payments Group, a task force under the auspices of the Network Executives Council (NEC) of Efta, following a year-long research and development programme.
"The use of ATM cards to make purchases at the point-of-sale grew 28 percent nationwide last year, continuing a trend that began 10 years ago," says Dennis Lynch, president and CEO of NYCE. "Similarly, once the networks offer real time, secure debit to make purchases on the Internet, we expect consumers will readily adopt this method of payment."
The guidelines assist networks in developing rules, and address security standards and business practices for companies and individuals to follow in developing products and technologies.
"There is a substantial need for an alternative to credit cards for Internet payments, and the shared EFT networks are uniquely positioned to provide online debit as a reliable, secure and widely accepted option using the existing infrastructure," Lynch says.
Each of the major EFT networks is preparing to accept real-time, secure debit transactions from the Internet using the guidelines as a common reference, says Efta.