NYCE Launches Account-to-Account Money Transfer Service
NYCE has announced a new account-to-account money transfer service. The American Eagle Federal Credit Union is the first to allow customers to use the new service from its ATM's. AEFCU plans to launch use from its online banking site later this year.
To transfer funds using NYCE's A2A product, the sender simply needs the receiver's ATM/debit card number embossed on the front of the card. The receiver's PIN and expiration date are never required to conduct any transaction. The transaction to fund the money transfer is always authenticated by the sender's 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 institution's ATM, e-banking website, phone banking session, or in-person teller. Second, a credit is made to the receiver's account without the receiver having to participate in the transaction. The receiver may withdraw the transferred funds in accordance with the depositing financial institution's services and policies. Both the sender and the receiver must have accounts with financial institutions that are members of the NYCE Network.
According to the American Banker, it will take about six months for NYCE to certify all of its institutions for participation in the service. Participation will be mandatory for receiving institutions; optional for sending institutions. Star and Pulse are expected to launch similar services within the next few months.
Is 2004 shaping up to be the "Year of Account-to-Account Transfers" for US debit networks?
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