ProPay, a provider of end-to-end payment security, credit card processing, and electronic payment services, recently declared the addition of encryption and tokenization of Automated Clearing House “ACH” data into its suite of ProtectPay services.

 This newly added function illustrates ProPay’s practical approach in helping organizations to protect sensitive data.

 According to Gartner (News - Alert) analyst Avivah Litan, “The continuing increase in bank account takeovers is a serious concern for banks and their customers. Clearly, protecting ACH data is equally, if not more, important than protecting credit card data because there are fewer protections for consumers in the event that banking information is compromised.”

 The FDIC reports that in the third quarter of 2009, bank fraud concerning electronic funds transfers grew to more than $120 million.

 Some of the benefits of ProPay’s ACH Solution include the fact that it encrypts and tokenizes sensitive ACH payment data, facilitates the lower transaction costs related with ACH, integrates effortlessly into organizations’ platforms or websites via the ProPay API, supports business, personal , Web-based , and telephonic ACH transactions, offers reachable, personalized reporting, and supports both high and low volume ACH processing.

 Similar to other ProtectPay services, the ACH encryption and tokenization solution from ProPay avoids the requirements for the organizations to store, transmit, or process sensitive ACH payment data on primary and successive transactions. After the ACH data is captured, encrypted, and processed by ProPay, the data is substituted with a token which can be used by organizations for future transactions against the data.

 Greg Pesci, chief operating officer at ProPay said, “ACH data is increasingly a target of the hacking community. ProPay is leading the industry and applying the same technology for protecting payment card information to the protection of ACH data through our ProtectPay offering. Remove the data and you remove the risk.”