the EDI 810, 820, etc formats that can be used by the previous example of
the automobile industry ... being able to feed p-card transactions directly
into backend a/p system ... are also standard format used in ACH bank
network. An example is 3rd party bill processor doing funds transfer for
single aggregate total with individual account remittence broken down into
ACH addenda record using EDI defined format (i.e. just need to know how to
get the data items into ACH  ... some ACH addenda records can get quite
large).

the x9.59 financial standard does provide for digital signature strong
authentication for all account-based transactions (credit, debit, ach,
check, stored-value, etc). reference recent ACH trials ...
http://www.garlic.com/~lynn/nacharfi.htm  NACHA AADS RFI
http://internetcouncil.nacha.org/Projects/ISAP_Results/isap_results.htm
NACHA AADS results!!

the design has strong authentication carried as part of the seemless,
end-to-end single transaction (authorization business process also
responsible for authentication business process w/o any major gaps and/or
holes
http://www.garlic.com/~lynn/  ... misc. x9.59 financial standard issues.

misc. other nacha references
http://www.garlic.com/~lynn/aadsm6.htm#echeck Electronic Checks
http://www.garlic.com/~lynn/aadsm6.htm#aadsatm (certificate-less) digital
signatures can secure ATM card payments on the internet
http://www.garlic.com/~lynn/aadsm6.htm#pcards The end of P-Cards?
http://www.garlic.com/~lynn/aadsmore.htm#nacha NACHA digital signature
pilot
http://www.garlic.com/~lynn/aadsmore.htm#debitfraud Debit card fraud in
Canada
http://www.garlic.com/~lynn/aepay6.htm#ecomich call for new measures: ICH
would be glad to help
http://www.garlic.com/~lynn/aepay6.htm#userauth MS masters NC mind-set
(authentication is the key)
http://www.garlic.com/~lynn/aepay7.htm#nonrep1 non-repudiation, was Re:
crypto flaw in secure mail standards
http://www.garlic.com/~lynn/aepay7.htm#nacha Nacha reports mentions X9.59
payment protocol
http://www.garlic.com/~lynn/aepay7.htm#visadeb1 Visa Debit Card
http://www.garlic.com/~lynn/aepay7.htm#netbank net banking, is it safe??
... power to the consumer
http://www.garlic.com/~lynn/ansiepay.htm#aadsnwi2 updates for (AADS)
Relying-Party Certification Business Practices
http://www.garlic.com/~lynn/ansiepay.htm#aadsach NACHA to Test ATM Card
Payments for Consumer Internet Purchases
http://www.garlic.com/~lynn/ansiepay.htm#atmdebit NACHA AADS ATM debit ...
from tomorrow's american banker
http://www.garlic.com/~lynn/99.html#217 AADS/X9.59 demo & standards at BAI
(world-wide retail banking) show
http://www.garlic.com/~lynn/99.html#224 X9.59/AADS announcement at BAI this
week
http://www.garlic.com/~lynn/2001c.html#72 PKI and Non-repudiation
practicalities
http://www.garlic.com/~lynn/2001f.html#79 FREE X.509 Certificates
http://www.garlic.com/~lynn/2001h.html#5 PKI/Digital signature doesn't work
http://www.garlic.com/~lynn/2001h.html#36 PKI/Digital signature doesn't
work
http://www.garlic.com/~lynn/2001h.html#37 Credit Card # encryption
http://www.garlic.com/~lynn/2001h.html#53 Net banking, is it safe???
http://www.garlic.com/~lynn/2001h.html#58 Net banking, is it safe???
http://www.garlic.com/~lynn/2001i.html#9 Net banking, is it safe???
http://www.garlic.com/~lynn/2001i.html#16 Net banking, is it safe???
http://www.garlic.com/~lynn/2001j.html#0 E-commerce security????
http://www.garlic.com/~lynn/2001j.html#49 Are client certificates really
secure?



David Goldberg <[EMAIL PROTECTED]> at 10/02/2001 08:36 AM


-Quick and efficient settlement: Banks, the subject of another email in
this
string, maintain an effective inter-bank clearing network, i.e. ACH and
other country-specific networks, that is actually very efficient at moving
money between bank accounts at different banks. Until there is a better
solution, banks will continue to play a valuable intermediary role in the
world's ability to move money. Commercial settlement solutions should
leverage this strength. The real issue here is that the ACH network, albeit
effective at moving dollars, is ineffective at moving the data associated
with those dollars (see next point).

-Rich remittance information: One of the least efficient and costliest
activities involved in B-to-B settlement is the time and resources it takes
to generate payments on the buyer side and, even more so, post and
reconcile
payments on the seller side. Buyers and sellers both benefit significantly
when remittance information and addenda records move with the payments
through the system.  The largest value-add for either participant would be
the ability to include as much descriptive remittance as is required for
more efficient back-office payment processing. Furthermore, the need to
keep
the "dollars and data" together from end-to-end is critical. Once
separated,
as happens with a fEDI transaction that flows into a bank for back-end ACH
settlement, remittance information requires manual processing or re-keying.
When bits turn into atoms and back again, errors inevitably occur. All you
have to do is ask your nearest Account Receivable Manager or Controller
about the remittance and reconciliation limits of ACH, fEDI, P-Cards and
paper checks.

-Integration with existing A/P and A/R systems: The sheer number of various
ERP systems currently installed within enterprises, and the systems-related
investment constraints of mid-sized and small businesses, seem to leave
only
paper checks as the only ubiquitous payment solution. However, given the
remittance, security/fraud and settlement timing issues associated with
checks, buyers and sellers need an electronic payment solution that is
acceptable and usable by companies of all sizes. Therefore, the ability of
any payment and settlement application to integrate into these systems and
software, without necessitating changes to those systems, makes remittance
flow and reconciliation even more efficient. A buyer should be able to
generate their regular pay run within their existing A/P system environment
and process, include addenda in the proscribed format of that system and
disburse it electronically to all of its vendors regardless of vendor size,
systems capabilities or preferred remittance format. Likewise, a seller
should be able to receive remittance in their A/R system's proscribed
format
for electronic uploading and posting, from any of its business customers
regardless of size, systems capabilities, etc.

-Security: Digital signatures using strong PKI encryption, buyer- and
seller-side system access controls and secure Internet transmission are all
available technologies to solve the critical authentication, theft and
fraud
protection issues. These should be table-stakes in today's commercial
environment.




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