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Banking industry

Wells Fargo and Virtual Vineyards Pioneer Secure Internet Transactions

Strategic Insights

— 1 min read

Virtual Vineyards, an Internet-based wine retailer, has begun accepting credit card payments from customers over the Internet, courtesy of Wells Fargo Bank. As of February 1995, Wells Fargo has become the first U.S. bank to securely process credit card payments for an Internet merchant. This breakthrough allows customers to browse Virtual Vineyards' online portfolio, select wines, and make secure payments using their credit cards. The process, developed by CyberCash Inc., enables Virtual Vineyards to transmit orders and encrypted credit card information to Wells Fargo, which then authorizes the payment and captures the funds from the customer's account.

Key Takeaways:

  • Wells Fargo Bank has become the first U.S. bank to provide secured payment transactions for a merchant selling over the Internet.
  • Virtual Vineyards, an Internet-based wine retailer, has begun accepting credit card payments from customers over the Internet using Wells Fargo's secure payment process.
  • The process, developed by CyberCash Inc., enables Virtual Vineyards to transmit orders and encrypted credit card information to Wells Fargo, which then authorizes the payment and captures the funds from the customer's account.
  • Virtual Vineyards' Internet address is http://www.virtualvin.com, and the bank's address is http://www.wellsfargo.com.
  • Wells Fargo's cash management division became the first bank in the United States to receive and settle a business customer's Electronic Data Interchange payment over the Internet on January 31.
  • The transaction was secured using Tested Systems Inc.'s public and private key cryptography.

Statistics:

  • The CyberCash pilot with a small number of Wells Fargo's merchant customers is scheduled to begin about April 1.
  • Virtual Vineyards offers over 200 wines for sale online, with Master Sommelier Peter Granoff selecting each wine for its quality and taste.

Sources:

  • Wells Fargo Bank press release, February 17, 1995
  • Virtual Vineyards' website, accessed February 1995
  • CyberCash Inc. press release, January 1995
  • Tested Systems Inc. press release, January 1995

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