Have you ever cringed when entering credit card information into an online checkout form?
Maybe you were wondering, “Who is on the other side of this transaction? Where is my information going? How do I know this is secure?” It can also be tedious keying in all of the information, especially on a mobile: credit card number, password, user name, and CVV code. Fortunately, there are solutions such as Secure Vault Payments (SVP) by eWise to help solve these problems.
SVP launched in late 2009 as a new player in alternative payment solutions. It allows you to pay for goods and services directly through your online bank account. There are close to 50 banks (and counting) participating in SVP’s service and with US Bank as a new partner in this service, the availability has increased dramatically.
How It Works
- When checking out at a participating retailer, select the Secure Vault Payment option (see image) and choose your bank from the drop down list.
- SVP will redirect you to your bank where you log in using your existing username and password.
- Select the account (i.e., savings, checking) from which you would like the money to be drawn and confirm the payment. You will then be redirected to your receipt on the retailer’s page.
What’s In It for Consumers?
- No need to maintain an account with a third party:
Since SVP works with your existing bank (current clients are US Bank, First Citizens Bank, and many more*) there is no need to set up an account somewhere else. This also removes the headache of remembering an additional username and password. - Security you can trust:
Since the transaction takes place at your bank’s website and not a third party, it removes the middleman and improves perceived security. - Familiar user interface:
You already know how to navigate your bank’s website, so there’s no need to learn a different interface.
What’s In It for Banks?
- Be a trusted advisor:
Being in the center of a transaction allows you to build rapport with clients. - Earn additional revenue:
Both the consumer’s and the merchant’s banks receive a fee for authenticating the user.
Another PayPal?
While there are many similarities between the two, such as security, the ability to pay directly
from your bank account, and no merchant storage of account information, there are two major differences.
- During a purchase, SVP directs you to your bank’s website (see image on right).
- The bank controls the payment, stores the payment information, and handles dispute resolution.
SVP is innovating on a number of fronts including a mobile app that incorporates the use of quick response (QR) codes in a payment system. To see a demo of the QR code payment system in action, visit Finovate.com. It also has other capabilities, such as providing an on-demand donation platform for non-profits. For a more in-depth look at this and other features, check out its website.
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* Other Participating banks include: AFB&T, Bank of Coweta, Bank of North Georgia, Cambridge Trust Company (Cambridge, MA), CB and T Bank of East Alabama, CB and T Bank of Middle GA, Citizens First Bank (Rome, GA), Coastal Bank and Trust of Florida, Cohutta Banking Company, Columbus Bank and Trust, Commercial Bank (Thomasville, GA), Commercial Bank and, Trust Company (LaGrange, GA), Community Bank and Trust (Enterprise, AL), First Coast, Community Bank, First Commercial Bank (Birmingham, AL), First Commercial Bank of Huntsville, First Community Bank (Tifton, GA), First Bank of Jasper, First State Bank and Trust Company (Valdosta, GA), Georgia Bank and Trust, Savings Bank of Maine, SB&T Bank, Sea Island Bank, Sterling Bank (Montgomery, AL), Synovus Bank (St. Petersburg, FL), Synovus Bank of Jacksonville,, The Bank of Nashville, The Bank of Tuscaloosa, Coastal Bank and Trust (Mobile, AL), The Coastal, Bank of Georgia, NBSC, Tallahassee State Bank, Trust One Bank (Memphis, TN), United Western Bank (Denver, CO)