Electronic Payment services provider, ProPay, today announced it has added encryption and tokenization to its Automated Clearing House (ACH) transaction data within its ProtectPay line of services.
After ProPay captures, encrypts, and processes the ACH data, the data is replaced with a token which organizations can use for future transactions against, eliminating the need for organizations to store, transmit, or process sensitive account information on initial and subsequent transactions.
Organizations can use ProPay’s online interface, batch file processing, or Application Programming Interface (API) to collect payments and disburse funds via the ACH network. The ProPay API enables organizations to easily integrate the service into their existing platform or website.
By encrypting and tokenizing ACH data, organizations can proactively address the protection of ACH data. Their customers and members can confidently use ACH as a secure payment option while the organizations benefit from lower transaction fees.
“The continuing increase in bank account takeovers is a serious concern for banks and their customers,” said Avivah Litan, Distinguished Garter Analyst. “Clearly, protecting ACH data is equally, if not more, important than protecting credit card data because there are fewer protections for consumers in the event that banking information is compromised.”
“ProPay is excited to extend its leadership role in providing simple, safe and affordable payment solutions to its customers by adding the ability to encrypt and tokenize ACH data,” said Greg Pesci, ProPay’s Chief Operating Officer. “ACH data is increasingly a target of the hacking community. ProPay is leading the industry and applying the same technology for protecting payment card information to the protection of ACH data through our ProtectPay offering. Remove the data and you remove the risk.”
In the third quarter of 2009, bank fraud involving electronic funds transfers (EFT fraud) exceeded $120 million, according to the FDIC.