How the Greenlist Works
Think of Greenlist as “Positive Pay for e-Commerce™.” Just as positive pay services validate checks and ensure that only authorized checks are paid, electronic payments protected by the Greenlist are verified and validated before they are paid.
The Greenlist User eXperience (UX) portal employs multiple factors that prove that the person generating the payment instructions is fully authenticated before even attempting to authorize a payment instruction. The Greenlist Attribute Assurance registry proves that the account address that receives the e-payment is certifiably owned by the party intended to be paid. Furthermore, this party may be known by a trusted pseudonym in cases where protection of the recipient’s privacy and confidentiality of transactions are paramount concerns. (e.g. minors, supply chain transaction participants, etc.)
Independent verification of the payer’s authorization to pay a correct transaction destination is a “double-check” that does not require any extra user steps or any release of confidential information. In fact, the Greenlist lookup function serves both parties in an X2X transaction to locate and identify each other without either of them needing to release any personal information. With Greenlist, the true account identifiers of both transaction parties never has to leave the banks.
Here’s how it works.
When a person or business registers to use Greenlist, that consumer or business owner provides an easy to remember unique identifier (through a bank portal), often an electronic mail address, mobile phone number, student ID number or nickname, to serve as their Greenlist ID. These unique ID’s are assigned accurate, actionable public payment addresses by the accountholder’s fiduciary, the bank that initially provisioned the consumer’s account. In order to be considered a public payment address, the addresses must be rendered to only receive credits. Debit instructions applied to these public addresses would fail. These public addresses are then stored in a global network of directories managed by Payment Pathways on behalf of its accredited registrars (banks).
These new e-payment addresses bind to the consumer’s primary bank account and/or debit card which the bank or financial institution already has stored on file. The registrar bank might also issue the customer a special debit-blocked Personal Account Number (PAN) that conforms to INCITS/ISO/IEC 7812-1-2000 and 7812-2-2000.
The authenticated users of the Greenlist User eXperience (UX) portal can only authorize payments to Greenlist IDs that are bound to a debit-blocked ePayment address. The bank acts as the custodian for personal and account information in the X2X transaction just as it would for any other financial transaction for that consumer. As a result, the bank retains its trusted position at the center of electronic payments in the consumer’s financial life.
The Greenlist User eXperience (UX) web portal and the Greenlist Attribute Assurance services are feasible and straightforward for all parties involved because the transaction mechanisms and procedures for high-volume uses are well understood. Capital expenditure required of the bank is minimal.
For additional information, contact Richard O’Brien at 312-346-9400