Bank of America and VeriSign Launch National Automated Clearing House Association's Certification Authority Interoperability Pilot

Strategic Insights -

The pilot program, announced on August 11, aims to facilitate secure Internet commerce applications between banks, merchants, and consumers. The initiative, designed by the National Automated Clearing House Association (NACHA), utilizes digital certificates for digitally signing authorization agreements to debit users' accounts for recurring payments via the Automated Clearing House (ACH). Bank of America, one of the first financial institutions to participate, is using the Online Certificate Status Protocol (OCSP) to verify the status of digital certificates issued to consumers of participating financial institutions.

Key Takeaways:

  • The pilot program is designed to facilitate secure Internet commerce applications between banks, merchants, and consumers.
  • Bank of America is utilizing the Online Certificate Status Protocol (OCSP) to verify the status of digital certificates issued to consumers of participating financial institutions.
  • The pilot program aims to bring the Automated Clearing House (ACH) onto the Internet, facilitating online commerce.
  • The use of digital certificates and signatures provides the greatest degree of online security available to date.
  • The pilot merchant, Science Applications International Corporation (SAIC), relies on Bank of America to obtain validation of digital certificates issued to consumers.
  • The pilot showcases the feasibility of using digital certificates for digitally signing authorization agreements to debit users' accounts for recurring payments.
  • The program is a significant milestone in the development of financial services, demonstrating the potential of digital certificates for online security and convenience.
  • Bank of America has implemented the VeriSign OnSite solution, which enables the deployment of digital certificates to a wide range of consumer and corporate customers.
  • The pilot program will be used to modify and further develop operating rules and business practices for the use of broader, multi-purpose digital certificates within the banking industry.

Statistics:

  • Bank of America operates nearly 1,800 retail branch offices in nine states.
  • Total assets for BankAmerica (pro forma) at June 30, 1998, was $573 billion.
  • The planned merger between BankAmerica and NationsBank Corporation will create a new company with relationships with 29 million households in 22 states and Washington, D.C., and two million businesses throughout the world.
  • The new company will have operations in 38 countries and America's largest branch and ATM networks, with 4,800 branches and nearly 15,000 ATMs.
  • VeriSign provides enterprise PKI solutions through regional account representatives, resellers, and is both secure and fast.

Sources:

  • VeriSign, Inc.
  • BankAmerica Corporation
  • Bank of America NT&SA
  • National Automated Clearing House Association
  • Science Applications International Corporation (SAIC)
  • Internet Engineering Task Force (IETF)
  • US Federal Government