Hi Frank,
Just so everyone knows, I am associated with eConnect (..see profile..) and my personal responsibilities entail getting the word out to possible allys. I am still involved in industrial EE consulting, so I am spread a little thin at the moment. I come from the automation and controls industry - so, the intimate transaction portion of this effort is something we are both learning more about by the day.
I hope we can avoid the "...hype.." bash; as I have done my very best to simply try to be informative here.
A few of your questions may have to be forwarded to one of our resident guru's - or, I will make arrangements for one them to contact you (..possibly here on the thread..) with the nitty-gritty details. Everyone is currently in "..headless chicken.." mode - so, this may take a few days to arrange.
I'm going to tap dance around the edge of your question regarding the regulatory issue because that is not my field of expertise either. It is the best of my understanding however, that if it is an industry standard involving interstate banking (..which it does..) it would certainly need the blessing of the Federale's; or it wouldn't fly since interstate commerce is involved.
There are two efforts afoot to create a Federal standard for the future of this industry; one of which is NACHA.
The eConnect methodology/business model is definitely under consideration at the Federal level (..per my Boss..).
The user scenario involves a person with an ATM/Debit card which is associated with their personal bank account, who has eConnect software and an ePIN installed on their PC. eConnect is a facilitator with the secure software, hardware, and transactional bank host system to effect the transaction. The third party is obviously the recipient of the funds.
You would be communicating with the eConnect bank host system from your PC via the Internet. When you complete the "..configuration.." (who-what-why-where-when-how much-how many), the bank host contacts the recipient, and your ATM card bank, and completes the transaction. When sales taxes are involved, the bank host will handle that as well.
Handling of automatic foreign exchange conversion is also "..in the works.." for the future; but that's another guru issue.
These transactions (..different from your credit card which is a revolving credit-based transaction..) are SAME-AS-CASH. This will eventually allow last-minute receipt-confirmed payments of mortgages, rent, power bills, phone bills, etc.; which avoids the lost-in-the-snail-mail situation.
The recipient immediately receives a virtual-cash payment, your personal bank account is immediately debited the payed amount, and you can store or printout your receipt (..which is duplicated by your bank account register..) as you wish.
The reduction in accounting efforts (..no clerks required..) by the recipient is where the savings and fee generation comes from. This may also translate into discounts, or bonuses, back to the payee - depending upon competition and/or savings among companies.
Example: You check you power bill online for November and it's $84.72 (..$82.72 if you pay by ePIN..). You use your eConnect system, ePIN and ATM card to direct a payment to ACME Power & Light for $82.72; and receive an immediate receipt for your payment.
ACME P&LCo. will receive the amount you sent minus a small transaction fee for the service - which they cover by an internal business-savings calculation.
Your utility account gets full credit for the $82.72.
It costs a lot of money for a company to open and process checks via snail mail, and pay customer representatives to deal with all the "..didn't get a bill..", "..missing stamp..", and/or "..lost in the mail.." hassles.
More importantly, (..as brokerages eliminate the three-day settlement allowance..) you will be able to ePIN n-Dollars directly to your stock account (..via the clearing house..) and immediately purchase 82,000 shares of Whiz-Bang Inc. without ever getting out of your chair.
This will also be possible via laptop/cellphone from car/plane if you are a totally-mobile, stock-slinging, technogeek.
FYI: eConnect is a fully reporting OTC/BB listed company; symbol ECNC. We have a website which is:
e-connect.cc
Note: ECNC is global, so it is ".cc"; not .com
Hope this helps.
John :-) |
