Just another contribution to this discussion. While re-reviewing P.L.
104-191 I ran across the following:

P.L. 104-191, August 21, 1996 Subtitle F Administrative Simplification

��PROCESSING PAYMENT TRANSACTIONS BY FINANCIAL INSTITUTIONS

��SEC. 1179. To the extent that an entity is engaged in activities of a
financial institution (as defined in section 1101 of the Right to Financial
Privacy Act of 1978), or is engaged in authorizing, processing,clearing,
settling, billing, transferring, reconciling, or collecting payments, for a
financial institution, this part, and any standard adopted under this part,
shall not apply to the entity with respect to such activities, including the
following:

��(1) The use or disclosure of information by the entity for authorizing,
processing, clearing, settling, billing, transferring, reconciling or
collecting, a payment for, or related to, health plan premiums or health
care, where such payment is made by any means, including a credit, debit, or
other payment card, an account, check, or electronic funds transfer.

��(2) The request for, or the use or disclosure of, information by the
entity with respect to a payment described in paragraph (1)-
��(A) for transferring receivables;
��(B) for auditing;
��(C) in connection with-
��(i) a customer dispute; or
��(ii) an inquiry from, or to, a customer;
��(D) in a communication to a customer of the entity regarding the customer�
s transactions, payment card, account, check, or electronic funds transfer;
��(E) for reporting to consumer reporting agencies; or
��(F) for complying with-
��(i) a civil or criminal subpoena; or
��(ii) a Federal or State law regulating the entity.��.

Therefore, until such time as the security rule is adopted in final form,
which may or may not contain a requirement for encrypting table 2 data in
either the 820 or 835, I believe there is no requirement to encrypt table 2
of either the 820 or 835 when it's included along with table 1 and the
entire transactions travels through the banking network.

Rachel Foerster
Principal
Rachel Foerster & Associates, Ltd.
Professionals in EDI & Electronic Commerce
39432 North Avenue
Beach Park, IL 60099
Phone: 847-872-8070
Fax: 847-872-6860
http://www.rfa-edi.com

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