<PAGE>

                                                                     EXHIBIT 4.2

                      ----------------------------------


                          DIGITAL INSIGHT CORPORATION

                  THIRD AMENDED AND RESTATED RIGHTS AGREEMENT



                               February 10, 2000



                      ----------------------------------
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
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<S>                                                                      <C>
Section 1   Certain Definitions...........................................  1

Section 2   Piggyback Rights..............................................  2

       2.1  Notice of Registration........................................  2
       2.2  Underwriting..................................................  3
       2.3  Right to Terminate Registration...............................  4
       2.4  Termination of Piggy-back Rights..............................  4

Section 3  Demand Registration............................................  4

       3.1  Demand Registration...........................................  4
       3.2  Underwritten Public Offering..................................  5
       3.3  Inclusion of Additional Shares................................  5
       3.4  Limitations...................................................  6
       3.5  Termination of Demand Rights..................................  6

Section 4  Form S-3 Registration..........................................  6

       4.1  Registrations on Form S-3.....................................  6
       4.2  Termination of S-3 Rights.....................................  7

Section 5  Obligations of Company.........................................  7

Section 6  Expenses of Registration.......................................  8

Section 7  Indemnification................................................  8

       7.1  The Company...................................................  8
       7.2  Holders.......................................................  9
       7.3  Defense of Claims.............................................  9

Section 8  Rule 144 Reporting............................................. 10

Section 9  Limitations on Subsequent Registration Rights.................. 10

Section 10  Covenants..................................................... 10

      10.1  Directors and Officers Insurance.............................. 10
      10.2  Key Man Life Insurance........................................ 11
      10.3  Proprietary Information Agreements............................ 11

Section 11  Merger........................................................ 11

      11.1  Merger Holders................................................ 11

Section 12  Miscellaneous................................................. 11

      12.1  Assignment.................................................... 12
      12.2  Governing Law................................................. 12
</TABLE>
                                      -i-
<PAGE>

<TABLE>
<CAPTION>

                               TABLE OF CONTENTS
                                  (continued)
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<S>                                                                      <C>
      12.3  Counterparts.................................................. 12
      12.4  Titles and Subtitles.......................................... 12
      12.5  Notices....................................................... 12
      12.6  Attorney's Fees............................................... 13
      12.7  Amendments and Waivers........................................ 13
      12.8  Severability.................................................. 13
      12.9  Delays or Omissions........................................... 13
     12.10  Entire Agreement.............................................. 13
</TABLE>

                                     -ii-
<PAGE>

                          DIGITAL INSIGHT CORPORATION

                  THIRD AMENDED AND RESTATED RIGHTS AGREEMENT

     THIS THIRD AMENDED AND RESTATED RIGHTS AGREEMENT (the "Agreement") is
effective as of February 10, 2000 among DIGITAL INSIGHT CORPORATION, a Delaware
corporation (the "Company"), Paul Fiore and Daniel Jacoby (the "Management
Holders"), Ole Eichhorn, Nasser J. Kazeminy, Edward Harris, Robert Newkirk, Gary
Mason, the Nasser J. Kazeminy Irrevocable Trust, the Yvonne P. Kazeminy-Mofrad
Irrevocable Trust, Kevin Savage, Robert Lucas, XP Systems Corporation, Menlo
Ventures VII, L.P., Menlo Entrepreneurs Fund VII, L.P., HarbourVest Partners V-
Direct Fund, L.P., John Dorman, Steve Zarate, Steve Reich, Kevin McDonnell,
Silicon Valley Bank and Comdisco, Inc. (the "Investor Holders"), Noro-Moseley
Partners IV, L.P. (the "Merger Investor Holders"), Brady L. Rackley III and
Brady L. Rackley (the "Merger Management Holders"). The Management Holders and
the Investor Holders are sometimes referred to herein as (the "Holders") and the
Merger Management Holder and the Merger Investor Holders are sometimes referred
to herein as (the "Merger Holders"). This Agreement amends and restates in its
entirety that certain Second Amended and Restated Rights Agreement dated May 26,
1999, as amended to date, (the "Second Rights Agreement") which amended and
restated in its entirety that certain Rights Agreement dated February 27, 1998.
Pursuant to Section 12.7 of the First Rights Agreement and Section 13.7 of the
Second Rights Agreement, this Agreement shall benefit and bind all Holders who
signed the First Rights Agreement or Second Rights Agreement, regardless of
whether or not they sign this Agreement.

     NOW, THEREFORE, in consideration of the mutual promises and covenants
hereinafter set forth, the parties agree that the Second Rights Agreement shall
be amended and restated to read in its entirety as follows:

                                   Section 1

                              Certain Definitions
                              -------------------

     Certain Definitions.  As used in this Agreement, the following terms shall
     -------------------
have the following respective meanings:

     1.1  "SEC" shall mean the Securities and Exchange Commission or any other
federal agency at the time administering the Securities Act.

     1.2  "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the SEC promulgated thereunder, all as
the same shall be in effect at that time.
<PAGE>

     1.3  "Initial Public Offering" or "IPO" means the Company's sale of its
Common Stock in a bona fide, firm commitment underwriting pursuant to a
registration statement under the Securities Act.

     1.4  "Merger Agreement" shall mean that certain Plan of Merger and
Reorganization by and among the Company, Black Transitory Corporation and nFront
Inc. of even date herewith.

     1.5  The terms "register", "registered" and "registration" refer to a
registration effected by preparing and filing a registration statement in
compliance with the Securities Act (as defined below), and the declaration or
ordering of the effectiveness of such registration statement.

     1.6  "Registrable Securities" means:  (a) with respect to the Holders, (i)
the shares of Common Stock of the Company outstanding on May 26, 1999 and the
shares of Common Stock of the Company issuable or issued upon conversion of the
Series A Preferred Stock (the "Series A Preferred"), the Series B Preferred (the
"Series B Preferred") or the Series C Preferred (the Series A Preferred, the
Series B Preferred and the Series C Preferred being collectively referred to
hereinafter as the "Stock") outstanding as of May 26, 1999, and (ii) any other
shares of the Company's Common Stock issued as (or issuable upon conversion or
exercise of any warrant, right or other security which is issued as) a dividend
or other distribution with respect to or in exchange for or replacement of the
Stock; (b) with respect to the Merger Holders, the shares of Common Stock of the
Company issued (or issuable upon exercise of a warrant) to the Merger Holders
pursuant to the Merger Agreement; provided, however, (c) in all cases, any
                                  --------  -------
shares that would otherwise be Registrable Securities sold by a person in a
transaction in which that person's rights under this Agreement are not assigned
or to or through (other than to the Merger Holders) a broker, dealer or
underwriter in a public distribution or a public securities transaction shall
not be Registrable Securities.

     1.7  "Securities Act" shall mean the Securities Act of 1933, as amended,
and the rules and regulations of the SEC promulgated thereunder, all as the same
shall be in effect at the time.

     1.8  An "Affiliate" of an entity referenced herein shall mean (i) any
entity who controls, is controlled by, or is under common control with such
entity, or (ii) any constituent partner or stockholder of such entity.

                                   Section 2

                               Piggyback Rights
                               ----------------

     2.1  Notice of Registration.  If at any time or from time to time, but with
          ----------------------
no obligation to do so, the Company proposes to register (including for this
purpose a registration effected by the Company for stockholders other than the
Holders) any of its equity securities under the Securities Act in connection
with the firm commitment underwritten public offering of such securities solely
for cash (other than a registration relating solely to the sale of securities of
participants in a Company stock plan, or a registration on any form which does
not include substantially the same information as would be required to be
included in a registration statement covering the sale of the Registrable
Securities), the Company will:
<PAGE>

                 (i)  promptly give to the Holders written notice thereof; and

                 (ii) use its reasonable best efforts to include in such
registration (and any related qualification under blue sky laws or other
compliance), and underwriting, all the Registrable Securities (subject to
cutback as set forth in Section 2.2) specified in a written request or requests
made within thirty (30) days after receipt of such written notice from the
Company by any Holder.

     In connection with any registration pursuant to this Section 2, the Holders
participating in such registration shall provide all information to the Company
as may be required in order to permit the Company to comply with all applicable
requirements of the SEC in connection with such registration.

     2.2  Underwriting.  The right of any Holder to registration pursuant to
          ------------
this Section 2 shall be conditioned upon such Holder's participation in such
underwriting and the inclusion of Registrable Securities in the underwriting to
the extent provided herein. If any Holder proposes to distribute its securities
through such underwriting, such Holder shall (together with the Company and any
other stockholders distributing their securities through such underwriting)
enter into an underwriting agreement in customary form with the managing
underwriter selected for such underwriting by the Company.

     Notwithstanding any other provision of this Section 2, if the managing
underwriter advises the Holders registering shares of Common Stock in writing
that marketing factors require a limitation on the number of shares to be
underwritten, then the Registrable Securities of the Holders, the securities of
the Company and the securities held by any other stockholders distributing their
securities through such underwriting shall be excluded from the underwriting by
reason of the underwriter's marketing limitation to the extent so required by
such limitation as follows: (a) first, the securities held by such other
stockholders distributing their securities through such underwriting shall be
excluded in a manner such that the number of any shares that may be included by
such holders are allocated in proportion, as nearly as practicable to the
amounts of such securities proposed to be offered by such persons in such
registration, (b) if after all securities held by such other stockholders have
been excluded and additional shares shall be excluded, Registrable Securities of
the Holders shall be excluded in a manner such that the number of any
Registrable Securities that may be included by such Holders are allocated in
proportion, as nearly as practicable to the amounts of Registrable Securities
held by such Holders, and (c) if after all securities held by the Holders and
such other stockholders have been excluded and additional shares shall be
excluded, securities of the Company shall be excluded.  If any Holder or other
stockholders disapprove of the terms of any such underwriting, he or she may
elect to withdraw therefrom by written notice to the Company and the managing
underwriter.  Any securities excluded or withdrawn from such underwriting shall
be withdrawn from such registration, and shall not be transferred in a public
distribution prior to ninety (90) days after the effective date of the
registration statement relating thereto.

     2.3  Right to Terminate Registration.  The Company shall have the right to
          -------------------------------
terminate or withdraw any registration initiated by it under this Section 2
prior to the effectiveness of such registration, whether or not any Holder has
elected to include securities in such registration.

                                      -3-
<PAGE>

     2.4  Termination of Piggy-back Rights.  The rights of any Holder to receive
          --------------------------------
notice and to participate in a registration pursuant to the terms of this
Section 2 shall terminate at such time as such Holder could sell all of the
Registrable Securities held by such Holder in any one three month period under
the terms of Rule 144 under the Securities Act; provided, that such Investor
Holder holds fewer than 1% of the Company's outstanding capital stock; and
provided further, that the Company is subject to the reporting requirements of
the Securities Exchange Act of 1934.

                                   Section 3

                              Demand Registration
                              -------------------

     3.1  Demand Registration.  At any time after the earlier of (a) January 1,
          -------------------
2000, or (b) six months after the closing of the Company's IPO, the Investor
Holders shall be entitled to have the Company effect two (2) demand
registrations of Registrable Securities then owned by such Investor Holders
requesting such registration. A request for such registration (a "Registration
Request") must be made in writing and such Registrable Securities must have an
offering value of at least $10,000,000. The Company shall give notice of such
requested registration to all Investor Holders and shall use its reasonable best
efforts to cause the Registrable Securities specified in such Registration
Request to be registered as soon as reasonably practicable so as to permit the
sale thereof, and in connection therewith, shall prepare and file a registration
statement (on any appropriate form selected by the Company) with the SEC under
the Securities Act to effect such registration. Such registration statement
shall contain such required information pursuant to the rules and regulations
promulgated under the Securities Act and such additional information as deemed
necessary by the managing underwriter or if there is no managing underwriter, as
deemed necessary by mutual agreement between the Investor Holders requesting
registration and the Company. Such Registration Request shall (i) specify the
number of shares intended to be offered and sold; (ii) express the present
intention of the requesting Investor Holders to offer or cause the offering of
such shares for distribution; (iii) describe the nature or method of the
proposed offer and sale thereof; and (iv) contain the undertaking of the
requesting Investor Holders to provide all such information and materials and
take all such action as may be required in order to permit the Company to comply
with all applicable requirements of the SEC and to obtain any desired
acceleration of the effective date of such registration statement.

     3.2  Underwritten Public Offering.  If requested in the Registration
          ----------------------------
Request, and provided that the underwriter or underwriters are reasonably
satisfactory to the Company, the Company (together with all officers, directors
and other third parties proposing to distribute their securities through such
underwriting pursuant to Section 3.3 hereof) shall enter into an underwriting
agreement with an investment banking firm or firms containing representations,
warranties, indemnities and agreements then customarily included by an issuer in
underwriting agreements with respect to secondary distributions. The Company
shall not cause the registration under the Securities Act of any other shares of
its Common Stock to become effective (other than registration of an employee
stock plan, or registration in connection with any Rule 145 or similar
transaction) during the effectiveness of a registration requested hereunder for
an underwritten public offering if, in the judgment of the underwriter or
underwriters, marketing factors would adversely affect the price of the
Registrable Securities subject to such underwritten registration.

                                      -4-
<PAGE>

     3.3  Inclusion of Additional Shares.  The Company may include in a
          ------------------------------
registration pursuant to this Section 3 securities for its own account and by
other third parties (including officers and employees of the Company), in
amounts as determined by the Company's Board of Directors (the "Additional
Securities"). In the event that such Additional Securities are included in a
registration pursuant to this Section 3, and if the underwriter of such
registration advises the stockholders or the Company registering shares of
Common Stock in writing that marketing factors require a limitation on the
number of shares to be underwritten, then the Registrable Securities of the
Investor Holders, the securities of the Company and the securities held by
stockholders other than the Investor Holders shall be excluded from the
underwriting by reason of the underwriter's marketing limitation to the extent
so required by such limitation as follows: (a) first, the securities held by
stockholders other than the Investor Holders shall be excluded in a manner such
that the number of any shares that may be included by such holders are allocated
in proportion, as nearly as practicable to the amounts of such securities
proposed to be offered by such persons in such registration, (b) if after all
securities held by stockholders other than the Investor Holders have been
excluded and additional shares shall be excluded, securities of the Company
shall be excluded, and (c) last, if after all securities of the Company and
securities held by stockholders other than the Investor Holders have been
excluded and additional shares shall be excluded, Registrable Securities of the
Investor Holders shall be excluded in a manner such that the number of any
Registrable Securities that may be included by such Investor Holders are
allocated in proportion, as nearly as practicable to the amounts of Registrable
Securities held by such Investor Holders. No securities excluded from the
underwriting by reason of the underwriter's marketing limitation shall be
included in such registration. If any officer, director or other stockholder
(including Investor Holders) who has requested inclusion in such registration as
provided above disapproves of the terms of the underwriting, such person may
elect to withdraw therefrom by written notice to the Company, the underwriter
and the Investor Holders requesting registration. In the event that the Company
has substantially prepared and has filed, or is in a position to file, a
registration statement pursuant to this Section 3, and such registration does
not become effective by reason of the refusal of the Investor Holders to proceed
(other than refusal to proceed based upon the existence in the registration
statement, or the prospectus contained therein, of an untrue statement of a
material fact or omission to state a material fact required to be stated therein
or necessary to make the statements therein not misleading), then a demand
registration shall be deemed to have been effected by the Company at the request
of the Investor Holders. In the event that 50% or more of the Registrable
Securities proposed to be offered by any Investor Holder in a registration
pursuant to this Section 3 are excluded from such proposed registration as a
result of the underwriter's marketing limitation, then the Investor Holders
shall be entitled to an additional demand registration pursuant to the terms of
this Section 3.

     3.4  Limitations.  Notwithstanding the foregoing, if at the time of any
          -----------
request to register Registrable Securities pursuant to this Section 3, the
Company is engaged, or has formal plans to engage within ninety (90) days of the
time of the request, in a registered public offering or any other activity that,
in the good faith determination of the Board of Directors of the Company, would
be adversely affected by the requested registration to the material detriment of
the Company, then the Company may, at its option, direct that such request be
delayed for a period not in excess of ninety (90) days from the effective date
of such offering, or the date of commencement of such other material activity,
as the case may be. Such rights to delay a request may not be exercised more
than once in any twelve month period.

                                      -5-
<PAGE>

     3.5  Termination of Demand Rights.  The rights of any Investor Holder to
          ----------------------------
request a registration pursuant to the terms of this Section 3 shall terminate
upon the earlier of (i) such time as such Holder could sell all of the
Registrable Securities held by such Holder in any one three month period under
the terms of Rule 144 under the Securities Act; provided, that such Investor
Holder holds fewer than 1% of the Company's outstanding capital stock; and
provided further, that the Company is subject to the reporting requirements of
the Securities Exchange Act of 1934l; and (ii) three years following the closing
of the Company's IPO.

                                   Section 4

                             Form S-3 Registration
                             ---------------------

     4.1  Registrations on Form S-3.  Any Investor Holders shall be entitled to
          -------------------------
request (an "S-3 Registration Request") an unlimited number of registrations of
Registrable Securities then owned by such requesting Investor Holders on a Form
S-3 registration statement under the Securities Act (an "S-3 Registration"). The
S-3 Registration Request must be made in writing and the S-3 Registration
Request shall (i) specify the number of shares intended to be offered and sold;
(ii) express the present intention of the requesting Investor Holders to offer
or cause the offering of such shares for distribution; (iii) describe the nature
or method of the proposed offer and sale thereof and (iv) contain the
undertaking of the requesting Investor Holders to provide all such information
and materials and take all such action as may be required in order to permit the
Company to comply with all applicable requirements of the SEC and to obtain any
desired acceleration of the effective date of such registration statement. The
Company shall, as soon as practicable, file an S-3 Registration and proceed to
obtain all such qualifications and compliance as may be so requested and as
would permit or facilitate the sale and distribution of all or such portion of
the requesting Investor Holders' Registrable Securities as are specified in the
S-3 Registration Request, within 30 days after receipt of such written notice by
the Company; provided, however, that the Company shall not be obligated to
             --------  -------
effect any such registration, qualification or compliance, pursuant to this
Section 4 if (i) Form S-3 is not available for such offering by the requesting
Investor Holders; or (ii) the Company has, within the twelve (12) month period
preceding the date of such request, already effected two registrations on Form
S-3 for any Investor Holders pursuant to this Section 4.

     4.2  Termination of S-3 Rights.  The rights of any Investor Holder to
          -------------------------
request a registration pursuant to the terms of this Section 4 shall terminate
upon the earlier of (such time as such Holder could sell all of the Registrable
Securities held by such Holder in any one three month period under the terms of
Rule 144 under the Securities Act; provided, that such Investor Holder holds
fewer than 1% of the Company's outstanding capital stock; and provided further,
that the Company is subject to the reporting requirements of the Securities
Exchange Act of 1934; and (ii) three years following the closing of the
Company's IPO.

                                   Section 5

                            Obligations of Company
                            ----------------------

                                      -6-
<PAGE>

     Whenever the Company is required by the provisions of this Agreement to use
its reasonable best efforts to effect the registration of the Registrable
Securities, the Company shall (i) prepare and, as soon as possible, file with
the SEC a registration statement with respect to the Registrable Securities, and
use its reasonable best efforts to cause such registration statement to become
effective and to remain effective until the earlier of the sale of the
Registrable Securities so registered or ninety (90) days subsequent to the
effective date of such registration; (ii) prepare and file with the SEC such
amendments and supplements to such registration statement and the prospectus
used in connection therewith as may be necessary to make and to keep such
registration statement effective and to comply with the provisions of the
Securities Act with respect to the sale or other disposition of all securities
proposed to be registered in such registration statement until the earlier of
the sale of the Registrable Securities so registered or ninety (90) days
subsequent to the effective date of such registration statement, (iii) furnish
to any Holder such number of copies of any prospectus (including any preliminary
prospectus and any amended or supplemented prospectus), in conformity with the
requirements of the Securities Act, as such Holder may reasonably request in
order to effect the offering and sale of the Registrable Securities to be
offered and sold, but only while the Company shall be required under the
provisions hereof to cause the registration statement to remain current; (iv)
use its commercially reasonable efforts to register or qualify the Registrable
Securities covered by such registration statement under the securities or blue
sky laws of such states as any Holder shall reasonably request, maintain any
such registration or qualification current until the earlier of the sale of the
Registrable Securities so registered or ninety (90) days subsequent to the
effective date of the registration statement, and take any and all other actions
either necessary or reasonably advisable to enable the Holders to consummate the
public sale or other disposition of the Registrable Securities in jurisdictions
where such Holders desire to effect such sales or other disposition; and (v)
take all such other actions either necessary or reasonably desirable to permit
the Registrable Securities held by a Holder to be registered and disposed of in
accordance with the method of disposition described herein.  Notwithstanding the
foregoing, the Company shall not be required to register or to qualify an
offering of the Registrable Securities under the laws of a state if as a
condition to so doing the Company is required to qualify to do business or to
file a general consent to service of process in any such state or jurisdiction,
unless the Company is already subject to service in such jurisdiction.

                                   Section 6

                           Expenses of Registration
                           ------------------------

     The Company shall pay all of the reasonable out-of-pocket expenses incurred
in connection with any registration statements that are initiated pursuant to
this Agreement, including, without limitation, all SEC and blue sky registration
and filing fees, printing expenses, transfer agent and registrar fees, the fees
and disbursements of the Company's legal counsel and independent accountants.
Any underwriting discounts, fees and disbursements of counsel to the Holders,
selling commissions and stock transfer taxes applicable to the Registrable
Securities registered on behalf of any Holders shall be borne by the Holders of
the Registrable Securities included in such registration.

                                   Section 7

                                Indemnification
                                ---------------

                                      -7-
<PAGE>

     7.1  The Company.  The Company will indemnify the Holders and each person
          -----------
controlling any Holders within the meaning of Section 15 of the Securities Act,
and each underwriter if any, of the Company's securities, with respect to any
registration, qualification or compliance which has been effected pursuant to
this Agreement, against all expenses, claims, losses, damages or liabilities (or
actions in respect thereof), including any of the foregoing incurred in
settlement of any litigation, commenced or threatened, arising out of or based
on any untrue statement (or alleged untrue statement) of a material fact
contained in any registration statement, prospectus, offering circular or other
document, or any amendment or supplement thereto, incident to any such
registration, qualification or compliance, or based on any omission (or alleged
omission) to state therein a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances in which
they were made, not misleading, or any violation by the Company of any rule or
regulation promulgated under the Securities Act applicable to the Company in
connection with any such registration, qualification or compliance, and the
Company will reimburse the Holders and each person controlling any Holders, and
each underwriter, if any, for any legal and any other expenses reasonably
incurred in connection with investigating, preparing or defending any such
claim, loss, damage, liability or action, provided that the Company will not be
liable in any such case to the extent that any such claim, loss, damage,
liability or expense arises out of or is based on any untrue statement or
omission or alleged untrue statement or omission, made in reliance upon and in
conformity with written information furnished to the Company by such Holder or
controlling person or underwriter seeking indemnification.

     7.2  Holders.  Each Holder will, if Registrable Securities held by such
          -------
Holder are included in the securities as to which such registration,
qualification or compliance is being effected (the "Indemnifying Holder"),
indemnify the Company, each of its directors and officers and each underwriter,
if any, of the Company's securities covered by such registration statement and
each person who controls the Company within the meaning of Section 15 of the
Securities Act, against all claims, losses, damages and liabilities (or actions
in respect thereof), arising out of or based on any untrue statement (or alleged
untrue statement) of a material fact contained in any such registration
statement, prospectus, offering circular or other document, or any amendment or
supplement thereto, incident to any such registration, qualification or
compliance or based on any omission (or alleged omission) to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, or any violation by such Holder of any rule or
regulation promulgated under the Securities Act applicable to such Holder in
connection with any such registration, qualification or compliance, and will
reimburse the Company, such directors, officers or control persons or
underwriters for any legal or any other expenses reasonably incurred in
connection with investigating, preparing or defending any such claim, loss,
damage, liability or action, in each case to the extent, but only to the extent,
that such untrue statement (or alleged untrue statement) or omission (or alleged
omission) is made in such registration statement, prospectus, offering circular
or other document in reliance upon and in conformity with written information
furnished to the Company by such Indemnifying Holder, provided that in no event
shall any indemnity under this Section 7.2 exceed the gross proceeds of the
offering received by such Indemnifying Holder.

     7.3  Defense of Claims.  Each party entitled to indemnification under this
          -----------------
Section 7 (the "Indemnified Party") shall give notice to the party required to
provide indemnification (the "Indemnifying Party") promptly after such
Indemnified Party has actual knowledge of any claim as to which indemnity may be
sought, and shall permit the Indemnifying Party to assume the defense of

                                      -8-
<PAGE>

any such claim or any litigation resulting therefrom, provided that counsel for
the Indemnifying Party, who shall conduct the defense of such claim or
litigation, shall be approved by the Indemnified Party (whose approval shall not
unreasonably be withheld), and the Indemnified Party may participate in such
defense at such party's expense; provided, however, that the Indemnifying Party
                                 --------  -------
shall pay such expense if representation of the Indemnified Party by counsel
retained by the Indemnifying Party would be inappropriate due to actual or
potential differing interests between the Indemnified Party and any other party
represented by such counsel in such proceeding, and provided further that the
                                                    -------- -------
failure of any Indemnified Party to give notice as provided herein shall not
relieve the Indemnifying Party of its obligations under this Section 7 unless
the failure to give such notice is materially prejudicial to an Indemnifying
Party's ability to defend such action. No Indemnifying Party, in the defense of
any such claim or litigation shall, except with the consent of each Indemnified
Party, consent to entry of any judgment or enter into any settlement which does
not include as an unconditional term thereof the giving by the claimant or
plaintiff to such Indemnified Party of a release from all liability in respect
to such claim or litigation. No Indemnifying Party shall be required to
indemnify any Indemnified Party with respect to any settlement entered into
without such Indemnifying Party's prior consent.

                                   Section 8

                              Rule 144 Reporting
                              ------------------

     With a view to making available the benefits of certain rules and
regulations of the SEC which may at any time permit the sale of the Registrable
Securities to the public without registration, the Company agrees to use its
best efforts to:

          (a) Make and keep public information available, as those terms are
understood and defined in Rule 144 under the Securities Act, at all times from
and after ninety (90) days following the effective date of the IPO;

          (b) File with the SEC in a timely manner all reports and other
documents required of the Company under the Securities Act and the Exchange Act
at any time after it has become subject to such reporting requirements; and

          (c) So long as an Investor Holder owns any Registrable Securities,
furnish to such Investor Holder forthwith upon request a written statement by
the Company as to its compliance with the reporting requirements of said Rule
144 (at any time from and after ninety (90) days following the effective date of
the first registration statement filed by the Company for an offering of its
securities to the general public), and of the Securities Act and the Exchange
Act (at any time after it has become subject to such reporting requirements), a
copy of the most recent annual or quarterly report of the Company, and such
other reports and documents of the Company, and such other reports and documents
so filed as an Investor Holder may reasonably request in availing itself of any
rule or regulation of the SEC allowing such Investor Holder to sell any such
securities without registration.

                                      -9-
<PAGE>

                                   Section 9

                 Limitations on Subsequent Registration Rights
                 ---------------------------------------------

     From and after the date of this Agreement, the Company shall not, without
the prior written consent of the Investor Holder(s) of at least a majority of
the outstanding Registrable Securities, enter into any agreement with any holder
or prospective holder of any securities of the Company giving such holder or
prospective holder any registration rights the terms of which are more favorable
than the registration rights granted to any Holders hereunder or to require the
Company to effect a registration earlier than the date on which the Holders can
first require a registration under Section 3.1.

                                   Section 10

                                   Covenants
                                   ---------

     10.1 Directors and Officers Insurance.  The Company shall use its
          --------------------------------
commercially reasonable efforts to promptly obtain and maintain for so long as
any Venture Holder or any representative thereof shall serve on the Board of
Directors of the Company, directors' and officers' liability insurance policies
in favor of the Board of Directors of the Company in an amount not less than
$1,000,000.

     10.2 Key Man Life Insurance.  The Company shall use its commercially
          ----------------------
reasonable efforts to promptly obtain and maintain for so long as Paul D. Fiore
shall remain an employee of the Company, a key man life insurance policy in
favor of the Company in an amount not less than $1,000,000.

     10.3 Proprietary Information Agreements.  The Company will use its
          ----------------------------------
commercially reasonable efforts to have each current and former employee and
officer of the Company execute an agreement with the Company regarding
confidentiality and proprietary information substantially in the form attached
to the Purchase Agreement as Exhibit H and will thereafter use its commercially
                             ---------
reasonable efforts to prevent any violations thereof.

                                   Section 11

                                    Merger
                                    ------

     11.1 Merger Holders.  In the event that the Merger as defined in the Merger
          --------------
Agreement is consummated, the Merger Holders shall be treated as Investor
Holders for purposes of Sections 3 of this Agreement (except that the definition
of Registrable Securities applicable to Merger Holders shall apply) and as
Holders for purposes of Sections 2 through 10 and 12 of this Agreement (except
that the definition of Registrable Securities applicable to Merger Holders shall
apply); Provided, however, that (a) the Company will not be obligated to provide
        --------  -------
the Merger Management Holders with demand registration rights pursuant to
Section 3 or S-3 registration rights pursuant to Section 4

                                     -10-
<PAGE>

until the earlier of (i) the one-year anniversary of the Closing Date as defined
in the Merger Agreement and (ii) the date on which Brady L. Rackley III ceases
to be employed by the Company as a result of being terminated without "Cause" by
the Company, or the Surviving Corporation as defined in the Merger Agreement, or
his termination for "Good Reason" (as such terms are defined in Mr. Rackley
III's Employment Agreement), (b) any exercise of demand registration rights by
either of the Merger Management Holders must be pursuant to a firm commitment
underwritten offering led by an underwriter of the Company's choice (which
choice shall be reasonably satisfactory to the Merger Management Holders), and
(c) Merger Investor Holder hereby waives its rights under that certain
Shareholder Agreement dated May 13, 1998, as amended, to which it and nFront
Inc. are among the parties.

                                  Section 12

                                 Miscellaneous
                                 -------------

     12.1 Assignment.  The rights to cause the Company to register Registrable
          ----------
Securities granted to the Investor Holders by the Company under this Agreement
may be transferred or assigned (but only with all related obligations) by the
Investor Holders to an Affiliate of any Investor Holder or a transferee which
acquires at least 10% of the Registrable Securities held by such Investor Holder
at any time; provided (i) that the Company is given written notice at the time
             --------
of or within a reasonable time after said transfer or assignment, stating the
name and address of the transferee or assignee and identifying the securities
with respect to which such registration rights are being transferred or
assigned, and, (ii) provided further, that the transferee or assignee of such
                    -------- -------
rights assumes in writing the obligations of such Holder under this Agreement.
Subject to the preceding sentence, this Agreement shall be binding upon and
shall inure to the benefit of the parties hereto and their respective successors
and assigns. Any transferee or assignee shall thereafter be treated as an
Investor Holder, subject to the limitations herein. Until the Company receives
actual notice of any transfer or assignment, it shall be entitled to rely on the
then existing list of Holders and the failure to notify the Company of any
transfer or assignment shall not affect the validity of a notice properly given
by the Company to the Holders pursuant to lists maintained by the Company.

     12.2 Governing Law.  This Agreement shall be governed by and construed
          -------------
under the laws of the State of Delaware as applied to agreements entered into
solely between residents of, and to be performed entirely within, such state.

     12.3 Counterparts.  This Agreement may be executed in two or more
          ------------
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

     12.4 Titles and Subtitles.  The titles and subtitles used in this Agreement
          --------------------
are used for convenience only and are not to be considered in construing or
interpreting this Agreement.

     12.5 Notices.
          -------

          (a) All notices, requests, demands and other communications under this
Agreement or in connection herewith shall be given to or made upon the Holder at
the addresses set

                                     -11-
<PAGE>

forth in the Company's records with a copy to Debevoise & Plimpton, 875 Third
Avenue, New York, New York 10022, attention: David Schwartz, and, if to the
Company, to: Digital Insight Corporation, 28025 Mureau Road, Calabasas,
California 91302, attention: Chief Financial Officer with a copy to Wilson
Sonsini Goodrich & Rosati, P.C. at 650 Page Mill Road, Palo Alto, California
94304, attention: Steven E. Bochner.

           (b) All notices, requests, demands and other communications given or
made in accordance with the provisions of this Agreement shall be in writing,
and shall be sent by airmail, return receipt requested, or by facsimile with
confirmation of receipt, and shall be deemed to be given or made when receipt is
so confirmed.

           (c) Any party may, by written notice to the other, alter its address
or respondent, and such notice shall be considered to have been given three (3)
days after the airmailing or faxing thereof.

     12.6  Attorney's Fees.  If any action at law or in equity (including
           ---------------
arbitration) is necessary to enforce or interpret the terms of this Agreement,
the prevailing party shall be entitled to reasonable attorney's fees costs and
necessary disbursements in addition to any other relief to which such party may
be entitled.

     12.7  Amendments and Waivers.  Any term of this Agreement may be amended
           ----------------------
with the written consent of the Company and the holders of at least two-thirds
in interest of the Holders. Any amendment or waiver effected in accordance with
this Section 12.7 shall be binding upon the Holders and each transferee of the
Registrable Securities, each future holder of all such Registrable Securities,
and the Company.

     12.8  Severability.  If one or more provisions of this Agreement are held
           ------------
to be unenforceable under applicable law, portions of such provisions, or such
provisions in their entirety, to the extent necessary, shall be severed from
this Agreement, and the balance of the Agreement shall be interpreted as if such
provision were so excluded and shall be enforceable in accordance with its
terms.

     12.9  Delays or Omissions.  No delay or omission to exercise any right,
           -------------------
power or remedy accruing to any party to this Agreement, upon any breach or
default of the other party, shall impair any such right, power or remedy of such
non-breaching party nor shall it be construed to be a waiver of any such breach
or default, or an acquiescence therein, or of any similar breach or default
thereafter occurring; nor shall any waiver of any single breach or default be
deemed a waiver of any other breach or default theretofore or thereafter
occurring. Any waiver, permit, consent or approval of any kind or character on
the part of any party of any breach or default under this Agreement, or any
waiver on the part of any party of any provisions or conditions of this
Agreement, must be made in writing and shall be effective only to the extent
specifically set forth in such writing. All remedies, either under this
Agreement, or by law or otherwise afforded to any Holder, shall be cumulative
and not alternative.

     12.10 Entire Agreement.  This Agreement and the documents referred to
           ----------------
herein constitute the entire agreement between the parties hereto pertaining to
the subject matter hereof and any other written or oral agreements between the
parties hereto are expressly canceled.

                                     -12-
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement of the
day and year first above written.

COMPANY:                              HOLDERS:

Digital Insight Corporation           Menlo Ventures VII, L.P.


By: /s/ John Dorman                   By:  MV Management VII, L.L.C.
    -----------------------
    John Dorman                            Its General Partner
    Chief Executive Officer


                                      By:  /s/ John Jarve
                                           -----------------------------------
                                           John Jarve
                                           Its Managing Member

                                      Menlo Entrepreneurs Fund VII, L.P.

                                      By:  MV Management VII, L.L.C.
                                           Its General Partner



                                      By:  /s/ John Jarve
                                           -----------------------------------
                                           John Jarve
                                           Its Managing Member

                                      HarbourVest Partners V-Direct Fund, L.P.

                                      By:  HVP V-Direct Associates, L.L.C.
                                           Its Managing Member

                                      By:  /s/ Ofer Nemirovsky
                                           -----------------------------------
                                      Name: Ofer Nemirovsky
                                            ----------------------------------
                                      Title: Member
                                             ---------------------------------


        [Signature Page to Third Amended and Restated Rights Agreement]
<PAGE>

__________________________________    XP Systems Corporation
Ole Eichhorn
                                      By:______________________________________

                                      Name: ___________________________________

                                      Title: __________________________________

/s/ Paul D. Fiore                      /s/ Daniel Jacoby
__________________________________    _________________________________________
Paul Fiore                            Dan Jacoby

/s/ Nasser Kazeminy
__________________________________    _________________________________________
Nasser J. Kazeminy                    Edward Harris


__________________________________    _________________________________________
Robert Newkirk                        Gary Mason

The Nasser J. Kazeminy Irrevocable    The Yvonne P. Kazeminy-Mofrad Irrevocable
Trust                                  Trust


By: /s/ Nasser Kazeminy               By: /s/ Yvonne Kazeminy-Mofrad
__________________________________        ____________________________________

Name: Nasser J. Kazeminy              Name: Yvonne P. Kazeminy-Mofrad
     _____________________________          ___________________________________

Title: Co-Trustee                     Title: Co-Trustee
      ____________________________           __________________________________

__________________________________    _________________________________________
Kevin Savage                          Robert Lucas

 /s/ John Dorman                       /s/ Stephen Zarate
__________________________________    _________________________________________
John Dorman                           Steve Zarate

                                       /s/ Kevin McDonnell
__________________________________    _________________________________________
Steve Reich                           Kevin McDonnell

        [Signature Page to Third Amended and Restated Rights Agreement]
<PAGE>

SILICON VALLEY BANK
-------------------

By: _______________________________________

Name:______________________________________

Title:_____________________________________

COMDISCO, Inc.
--------------

By:________________________________________

Name:______________________________________

Title:_____________________________________



        [Signature Page to Third Amended and Restated Rights Agreement]
<PAGE>

MEMBER INVESTOR HOLDERS                   MERGER MANAGEMENT HOLDERS

Noro-Moseley Partners IV, L.P.

By  MKFJ-IV. L.L.C., General Partner
    Its General Partner

By                                            /s/ Brady L. Rackley III
    -------------------------------       --------------------------------
    Charles D. Moseley, Jr., Member       Brady L. Rackley III


                                              /s/ Brady L. Rackley
                                          --------------------------------
                                          Brady L. Rackley



                                          The Brady Rackley Grantor Retained
                                          Annuity Trust


                                          By:      /s/ Katharine S. Rackley
                                                 --------------------------
                                          Name:  Katharine S. Rackley
                                                 --------------------------
                                          Title: Trustee
                                                 --------------------------


                                          The Katharine and Brady Rackley
                                          Charitable Remainder Unitrust

                                          By:        /s/ Brady L. Rackley
                                                 --------------------------
                                          Name:  Brady L. Rackley
                                                 --------------------------
                                          Title: Trustee
                                                 --------------------------


                                                 /s/ Katharine S. Rackley
                                          ---------------------------------
                                          Katharine S. Rackley


                                          The Katharine Rackley Grantor Retained
                                          Annuity Trust

                                          By:       /s/ Brady L. Rackley
                                                 --------------------------
                                          Name:  Brady L. Rackley
                                                 --------------------------
                                          Title: Trustee
                                                 --------------------------


        [Signature page to Third Amended and Restated Rights Agreement]