AN on-line card based payment system to ease business transactions will shortly be launched in the country.

The system which has received Bank of Ghana’s approval is being initiated by Transactions Management Service in collaboration with CAL Merchant Bank, Ecobank Ghana Limited, The Trust Bank and Dort Communications Limited.

The majority of cards presently in the market are declined to be used as on-line as the card holders must first load the card with money before they use it at point of safe terminal.

Briefing a section of the media, Dr Kwabena Appenteng, Director of Dort Communication said with the introduction of the system, Ghana will be the first country in the sub-region to operate an on-line payment system.

He said Ghana will also take the lead to operate an inter-bank switch for routing transactions between the banks.

The project which exceeds $4 million, according to Mr Appenteng will provide a more state of the art biennial activities more convenient alternative for both consumers and merchant.

Giving the operations of the on-line payment system, Dr Appenteng said in the on-line transactions, the card holder simply presents its card at a point-of-sale terminal, punches in the amounts they wish to spend.

He said this message is then sent electrically to the card holder's bank for the transactions to be effected.

The director said if the transaction is approved by the bank, the account of the card holder is immediately debited by the amount of transactions and the cards placed in a separate account to be used for settlement will be affected by the bank of the merchant.

Commenting on the operations, Mr Kasser Tee, of the Marketing Department, of Trust Bank, said the aim of the on-line transaction is to really reduce cash transactions to be barest minimum in the country.

He said it is the aim of the promoters to bring other banks using the off-line cards on board to enable the system operates effectively.

Mr Gilbert Leibel, Director, Client services said the use of the on-line payment system will reduce attacks on merchants and protect their business activities.

Mr Kwasi Ankurong-Budu, Consumer Banking Department of Ecobank on his part stated that the bank delivers in co-operation among banks and said with the introduction of the new payment system they will be in the position to enhance their services to their clients.