U.S. Bank will become the first top ten bank in the United States to begin offering Secure Vault Payment capabilities—a function believed to be more secure than alternative online payments methods.
The service will first be rolled out to at University of Wisconsin-Stout and Wisconsin’s Polytechnic University to allow students to make online tuition payments using an online bank account either held at U.S. Bank or any other SVP-enabled financial institution. Specifically, students and their parents will have the ability to make online payments on a college website and be automatically redirected to their bank’s homepage to make a payment.
Once a consumers is logged into their account and have selected how they would like to pay, the payment is then authenticated and the funds immediately withdrawn from the payer’s account. Payments will then post the the school’s account the next business day.
“U.S. Bank is committed to providing merchants and billers with innovative solutions to increase the efficiency of their payment collection and to enhance their customers’ satisfaction,” said U.S. Bank’s vice president and senior product manager for its treasury management department Eric Lim in a statement. “We believe Secure Vault Payments provides compelling benefits as an online consumer payment option for many other industries including government, utilities and non-profits. We plan on launching Secure Vault Payments with other organizations later this year.”
U.S. Bank announced its plans to begin integrating SVP capabilities this past November as part of an effort to make its online payment services more secure.
SVP Payments Help Reduce Paper Waste, Fraud Events:
SVP was developed by NACHA—The Electronic Payments Association to encourage the use of the ACH Network over use of paper checks. The SVP service uses the network eWise to transfer users between a biller’s website and a consumer’s bank.
Over two dozen banks and just a handful of merchants currently participate in the SVP network, though given the growth of identity theft and fraud events it could soon experience a growth in popularity amongst other large banks and merchants. The number of Americans reported to have been victims of identity theft fraud was 11.1 million in 2010, which is the highest rated recorded since 2003 according to data from Javelin Strategy & Research.
Watch the video below for more information about the SPV network.