FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person * CANNAVINO JAMES A   2. Issuer Name and Ticker or Trading Symbol DIRECT INSITE CORP [DIRI.OB] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) __X__ Director _____ 10% Owner __X__ Officer (give title below) _____ Other (specify below) Chairman of the Board & CEO (Last) (First) (Middle) 6501 RED HOOK PLAZA, SUITE 201 - PMB 3. Date of Earliest Transaction (Month/Day/Year) 09/22/2006 (Street) RED HOOK, ST. THOMAS, U.S.V.I., VI 00802 4. If Amendment, Date Original Filed(Month/Day/Year) 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock               573,075 D   Common Stock 09/22/2006   P   2,500 A $ 0.6 575,575 D   Common Stock 09/22/2006   P   2,500 A $ 0.72 578,075 D   Common Stock 09/22/2006   P   29,000 A $ 0.75 607,075 D   Series C Redeemable Preferred Stock 12/18/2003   P   200 A $ 1,000 200 D

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

2005 Employee Option Plan

$ 0.62

12/30/2005

A

350,000

12/30/2005

12/29/2012

Common Stock

350,000

$ 0.62

1,585,950

D

Common Stock Purchase Warrants

$ 0.9348

12/18/2003

P

149,765

12/18/2005(1)

12/18/2008

Common Stock

149,765

$ 0.9348

1,235,950

D

Common Stock Purchase Warrants

$ 0.9348

12/15/2003

P

64,185

12/15/2005(1)

12/15/2008

Common Stock

64,185

$ 0.9348

1,086,185

D

2003 Stock Option Plan Right to Buy

$ 1.16

12/05/2003

A

170,000

01/27/2003(3)

12/31/2008

Common Stock

170,000

$ 1.16

1,022,000

D

2003A Stock Option Plan Right to Buy

$ 1.16

12/05/2003

A

190,000

01/27/2003(3)

12/31/2008

Common Stock

190,000

$ 1.16

852,000

D

2003 Stock Option Plan (Right to Buy)

$ 1.26

07/18/2003

A

108,000

03/31/2005

04/01/2006

Common Stock

108,000

$ 1.26

662,000

D

Stock Option Plan (Right to Buy)

$ 2.02

01/27/2003

A

240,000

01/27/2005(5)

01/26/2008

Common Stock

240,000

$ 2.02

554,000

D

Stock Option Plan (Right to Buy)

$ 2.05

07/29/2002

A

74,000

06/30/2005(4)

07/28/2012

Common Stock

74,000

$ 2.05

314,000

D

Stock Option Plan (Right to Buy)

$ 1.05

01/17/2002

A

240,000

02/17/2005(2)

01/16/2012

Common Stock

240,000

$ 1.05

240,000

D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
CANNAVINO JAMES A 6501 RED HOOK PLAZA SUITE 201 - PMB RED HOOK, ST. THOMAS, U.S.V.I., VI 00802	X		Chairman of the Board & CEO

Signatures

/s/ James A. Cannavino		09/25/2006
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	Warrants to purchase common stock are exercisable at the rate of no less than 500 shares at a time during the term of the Warrants.
(2)	Shares vest 10,000 shares per month commencing 2/17/02.
(3)	37,500 vest 12/5/03; 322,500 shares vest at the rate of 7,500 per month commencing on the 5th day of each month commencing 1/5/04 for 43 months.
(4)	Shares vest one-third 6/30/03, one-third 6/30/04, and one-third 6/30/05.
(5)	120,000 shares vest 1/27/03; 120,000 shares vest at the rate of 5,000 per month commencing 2/27/03 and on the 27th day of each succeeding month through 1/27/05

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