STRATEGIC PARTNERS
December 26, 2001
HERNDON, Va. -- Participants in NACHA'sInternet Secure ATM Payments (ISAP) pilot successfully processed 598 transactions in which digital signatures substituted for PINs during the pilot, which ended on April 13.
"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.
According to a NACHA release, 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.
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 STAR 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, one of the pilot participants."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."
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.
