Noca Inc. says its automated clearinghouse payment system can appeal to merchants and consumers alike by using the Internet to overcome the limitations of the payment format, reports American Banker, a CardLine sister publication. The system enables consumers to make ACH payments at e-commerce sites by filling in bank-routing and account numbers on a virtual check. Merchants would pay just 0.25% of the transaction value, and consumers in turn would get to use an online portal to get more detail than they would from other payment methods. "The merchants get almost-free processing. The consumer gets a detailed portal where you get the entire transaction history, not just a description one-liner, but more so the entire contents of the shopping cart, which is not possible in … legacy networks," says Pankaj Gupta, Noca founder and president. Mountain View, Calif.-based Noca launched its service at the end of last year and numbers its clients in the "double digits" today, though all are below $10 million in annual revenue. Two companies in the $100 million range have signed letters of intent, and Noca is wooing a billion-dollar company it has yet to sign, says Gupta. Noca plans many improvements to entice consumers to use its system. By the third quarter, Noca plans to have an incentive system in place through which consumers can receive merchant offers within the Noca portal, says Gupta. Noca also plans to improve security by storing partial account numbers so consumers would not have to type their full account number for every transaction. The company also may add a credit feature, Gupta says.