National
Canadian Banks Finalizing Plans To Offer Debit Shopping Online
By D.L. McCracken
May 5, 2005, 12:24

Online shopping has become so popular over the last few years that Internet storefronts are providing stiff competition to their traditional real-time counterparts. But as Internet shopping increased, there was one group of potential shoppers who found themselves locked out of making online purchases - those who for various reasons did not own a major credit card.

Enter Interac Online, a new service for Canadians being finalized by Canada's major banking institutions. The Royal Bank of Canada is expected to be the first to offer this new service to its customers by the end of May. Banks to follow will be the Bank of Nova Scotia, Bank of Montreal and Toronto Dominion Bank with Canadian Imperial Bank of Commerce scheduled to offer early in 2006.

Being coined "webit" transactions in some circles, customers will be able to make their online purchases in the same manner that credit card users follow - they will be asked to choose their method of payment, in this case it will be "Interac Online". Once this method is selected, that person will be directed to their personal online banking account where they will be asked to confirm and approve the transaction. At that point the customer will be sent back to the online store for purchase acknowledgement and complete the transaction.

Interac Online is expected to be up and running within the next few weeks.


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