The Evolution of EFT Networks from ATMs to New On-Line Debit Payment Products

On June 15, 2001, the Payment Cards Center of the Federal Reserve Bank of Philadelphia sponsored a workshop on the evolution of the electronic funds transfer (EFT) industry. Paul Tomasofsky and Bruce Sussman of NYCE, the New Jersey-based electronic payments company, led the workshop. Beginning with a brief history of EFT and the automated teller machine (ATM) industry, Tomasofsky and Sussman discussed the growth of debit card applications and various Internet payment mechanisms. They then described NYCE's new payment product, SafeDebit,TM which is designed to address security issues in making payments over the Internet. This paper provides highlights from the NYCE presentation and the ensuing discussion, complemented by additional background research on the structure and evolution of debit cards.