SAN FRANCISCO -- UTM Systems Corp., an e-commerce security system developer, announced the completion of a project designed to provide a framework for evaluation of ATM/debit card payment protocols for Internet payments.
The project is summarized in a report prepared by KPMG LLP, a professional services firm, that outlines a comprehensive evaluation process for online ATM/debit transaction protocols. The report was completed in cooperation with several members of the National Automated Clearing House Association's (NACHA) Internet Secure ATM Payments (ISAP) workgroup.
"ATM/debit card use is poised to become a preferred method of payment for consumers buying goods and services via the Web once a viable and robust transaction protocol has been developed," said Robert Lee, president of UTM Systems. "As a member of the NACHA ISAP group, UTM Systems believes it is crucial to have an objective third party such as KPMG help develop a standard, or criteria, that defines a variety of online ATM/debit card payment protocols."
The report cites 10 categories of evaluation criteria to assess the viability of various ATM/debit card transaction solutions. Among the categories: security, privacy, branding, convenience/functionality, financial model implications, legal issues, protocol independence/compatibility, transition to other technologies like wireless communications and integration with existing payment systems and infrastructures.
The next phase of the project will focus on evaluation of a variety of protocols currently applicable to ATM/debit payments on the Internet, including the NACHA ISAP model that utilizes digital signature authentication and validation, the European FINREAD model, SET (secure electronic transactions) and the encrypted PIN Block model represented by the NYCE Corporation's SafeDebit initiative.
The evaluation framework document is being made available at no cost to any financial institution, merchant or payment network desiring to perform their own evaluation. Requests for copies of the framework document can be made through any sponsor or by accessing UTM Systems Corp.
The NACHA ISAP pilot was launched in October 1999 to develop and test a low-cost, convenient payment option for Internet-initiated ATM/debit card purchases. The technical tests are part of a continuing effort coordinated by NACHA to establish technical standards, business practices and operating rules to allow consumers to purchase goods and services via the Web using their ATM/debit cards. It's estimated that roughly 80 percent of the U.S. households that have ATM cards cannot use them for secure Internet-based purchases.
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