News

Account-to-Account Money Transfers Launched in U.S. via NYCE Network

Friday 13 February 2004 22:06 CET | News

NYCE Corporation has launched its real-time account-to-account (A2A) money transfer service. For the first time in the U.S., money transfer transactions were conducted in a live production environment through an electronic funds transfer network.

These first A2A transactions were initiated at an American Eagle Federal Credit Union (AEFCU) ATM in East Hartford, Connecticut. Consumer deposit accounts at WCTA Federal Credit Union in New York, and Banknorth, N.A. in Massachusetts, were the recipients of the inaugural money transfers, as facilitated by the NYCE Network. NYCE A2A enables the real-time transfer of money between two accounts at federally-insured financial institutions that participate in the NYCE Network. Consumers will find the access, immediacy, cost and method of A2A transfers almost identical to the other ATM and electronic banking transactions that they now routinely make. NYCEs A2A is made possible by its Enhanced Message Structure (EMS) payments processing services that enables all 2,200 NYCE members to offer a suite of card not present real time funds transfer services to financial institutions cardholders, using the NYCE Network infrastructure already in place for NYCE ATM and POS PIN debit purchase transactions. NYCE financial institutions individually determine how to send A2A - whether through ATM, web, phone, or with assistance from financial institution branch personnel. AEFCU introduced A2A, built awareness, and encouraged use of A2A by launching a customer awareness campaign consisting of a promotional newsletter, a website announcement, in-branch closed circuit TV advertisements, on-hold messages on AEFCUs customer service line, and updated checking and ATM brochures. To transfer funds using NYCEs A2A product, the sender simply needs the receivers ATM/debit card number embossed on the front of the card. The receivers PIN and expiration date are never required to conduct any transaction. The transaction to fund the money transfer is always authenticated by the senders financial institution, as is the case with all EFT transactions. Like all transactions routed through the NYCE Network, A2A money transfer transactions are switched immediately in real time, and settled in the ordinary course with all other network transactions. A2A is processed as two transactions in-one: first, an authenticated debit from the account of the sender is conducted at a financial institutions ATM, e-banking website, phone banking session, or in-person teller. Second, a credit is made to the receivers account without the receiver having to participate in the transaction. The receiver may withdraw the transferred funds in accordance with the depositing financial institutions services and policies. Both the sender and the receiver must have accounts with financial institutions that are members of the NYCE Network. NYCE Corporation owns and operates the NYCE Network, providing 2,200 financial institutions, retailers and independent ATM deployers with shared network services for ATMs, POS, and A2A and direct bill payment applications. NYCE provides millions of consumers across the U.S. with secure, real-time account access. American Eagle Federal Credit Union is the second largest credit union in Connecticut with $800 million in assets and 111,000 members nationwide. With 19 branch offices and 21 ATMs, AEFCU processed 750,000 proprietary ATM transactions and 130,000 network transactions, as well as 1.2 million NYCE POS transactions in 2003.


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Categories: Payments & Commerce | Payments General
Countries: World
This article is part of category

Payments & Commerce