The Green Sheet Online Edition
December 28, 2009 • Issue 09:12:02
An online payment product from NYCE Payments Network LLC, a subsidiary of banking and payments technology provider Fidelity National Information Services Inc., uses a process akin to tokenization to protect consumer debit card data during online purchases.
Tokenization is a security method whereby payment card processors substitute code numbers ("tokens") in place of consumer card information for chargebacks and recurring billing in the merchant space. In a similar fashion, NYCE's SafeDebit supplants card information with fill-in numbers, except that SafeDebit does it during, not after, an online transaction.
Consumers who make debit purchases on merchant Web sites that use SafeDebit are given an extra option on the scroll-down menu to choose the type of payment card used. When they select the SafeDebit option, they are asked to provide the name of their online banking institution and then enter the user name and password that pertain to their SafeDebit account.
Substitute info automatically entered
Once entered, the payment information fields (card number, expiration date, security code and so forth) are filled with the substitute SafeDebit card information rather than the actual cardholder data.
For authorization, the transaction information travels to the NYCE database, where the pseudo card information is converted into the cardholder's real information and then sent to its processor before being sent back to NYCE.
That pseudo information is then rerouted by NYCE to the purchasing page with an authorization, which indicates that both the user name and password are valid and the consumer's bank account has sufficient funds.
The SafeDebit service was recently adopted by payment authentication firm CardinalCommerce, setting the stage for its widespread deployment.
"We chose to be an early adopter of the SafeDebit solution because we believe the solution fills a market need for our clients and fits competitively within the payment offerings we already provide," said Michael Keresman, Chief Executive Officer of CardinalCommerce.
"Many merchants desire a debit option with rigorous cardholder authentication, which means our clients benefit from fewer chargebacks and the immediate verification of good funds," he added."
And with its combination of security and convenience - the elements consumers have said they are looking for in online retail payments - the SafeDebit system has the potential to boost merchant sales and bring in new transactions."
NYCE Payments Network LLC
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