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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549
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                                    FORM 8-K

                                 CURRENT REPORT
     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


       Date of Report (Date of earliest event reported): January 2, 2004


                               DIRECT INSITE CORP.
             (Exact Name of Registrant as specified in its charter)




   Delaware                    0-20660              11-2895590

(State or other          (Commission File         (IRS Employer
jurisdiction                   Number)        Identification Number)
of Incorporation)



80 Orville Drive, Bohemia, NY                         11716
(Address of principal executive offices)            (Zip Code)


       Registrant's telephone number, including area code (631) 244-1500




Item 5.  Other Events

Deferral of Dividends on Series A and Series B Preferred Stock
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     The Registrant and Metropolitan, the holder of the Registrant's outstanding
Series A Convertible Preferred Stock (the "Series A Preferred Stock"), agreed to
defer the dividends payable by the Registrant on the Series A Preferred Stock on
September 25, 2004 until February 1, 2005, at which time the  Registrant  agreed
to pay 107.5% of the amount otherwise  payable in September 2004. The Registrant
and the  holders  of its Series B  Redeemable  Preferred  Stock  (the  "Series B
Preferred Stock") agreed to defer the dividends payable by the Registrant on the
Series B Preferred Stock quarterly  commencing  January 1, 2004 through November
1, 2004 until January 1, 2005, at which time the  Registrant  agreed to pay such
Holders the  deferred  dividends  plus  interest  thereon at the rate of 12% per
annum.  The Holders of the  outstanding  shares of Series B Preferred  Stock are
James A. Cannavino,  the  Registrant's  Chief Executive  Officer and a director,
Tall Oaks, and Markus & Associates.


                                   SIGNATURES

     Pursuant to the  requirements  of the  Securities  Exchange Act of 1934, as
amended,  the  Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.


January 9, 2004                     DIRECT INSITE CORP.

                                    By: /s/ James A. Cannavino
                                        ----------------------
                                        James A. Cannavino
                                        Chief Executive Officer