HERNDON, Va. - At press time the National Automated Clearing House Association said that the first digitally signed payment sent over the Net via a U.S.-based EFT network has been successfully transmitted. A digitally signed payment was sent from a mock merchant Web site through STAR's EFT network. The system is designed to work with ATM/debit cards. Here's how it works. A consumer makes a purchase over the Net using their ATM/debit card, but instead of entering just their PIN, as they would at a real-time POS terminal, they digitally sign the electronic payment. That doesn't involve some magical electronic pen. It means the user utilizes some kind of private key or code (the digital signature) contained on a smart card or some other storage device, to sign the payment. The storage device, which will be issued by the consumer's financial, sends this signature to the consumer's financial for verification. Once it's verified the payment is made via ACH. What is being transmitted via the storage device is not account information, but the digital signature. This type of verification brings a physical presence to a Net transaction. The user only uses the storage key pin device when making a payment.
First digitally signed payment sent over the Net via a U.S. EFT network
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