WASHINGTON -- The Electronic Funds Transfer Association (EFTA), representing the major EFT networks, has developed of a set of guidelines aimed at helping financial institutions, terminal manufacturers, merchants, payment processors and software developers develop and quickly bring to market debit products for Internet purchases.
Currently, Internet payments are largely limited to the use of credit cards.
The guidelines were developed by the Advanced Payments Group, a task force under the auspices of the Network Executives Council (NEC) of EFTA. A summary of the guidelines is available for download at the EFTA web site.
The NEC task force's main objective is to develop a framework to support secure, real-time debit transactions utilizing the existing shared EFT network infrastructure.
Networks represented in the work group include Cash Station, Inc., CO-OP Network, Exchange/ACCEL, MAC Network, NYCE Corporation, PULSE EFT Association, Star Systems, Inc. and TYME Corporation.
"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," said Dennis F. Lynch, president and CEO of NYCE Corporation, EFTA board member and past chairman of the NEC. "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."
According to an EFTA release, 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. An open system approach was used that can be adapted to a diverse range of new products and offerings not limited to purchases over the Internet.
The task force has been working on the guidelines for nearly a year, with intensive activity underway for the past six months.
