A Managed Chip & PIN Service for a fixed monthly charge [MCPS]

The Requirement
Every retailer faces the prospect of installing new equipment at the point of sale to accept the new standard smart cards, or risk increased fraud charges.

The Problem
However, merchants may feel that they are not ready to migrate because:

  • They think it will be too expensive
  • They think that they are not in a vulnerable sector
  • They have larger fraud problems elsewhere in their business
  • The technical complexity
  • The business case does not stack up

The Solution
Kilrush Consultancy Ltd, with many years of experience, understands the payment marketplace. It is working with IBM, its key premier partners and industry experts to provide a solution to implement Chip & PIN in the merchant environment.

This MCPS team consists of:

  • IBM
  • Triangle, one of 4 IBM Premier Business Partners
  • DataCash
  • Chip and PIN Device suppliers e.g. Ingenico, Trintech, VeriFone.
  • Kilrush Consultancy

In this team there are specialists who can help determine the steps that need to be take to create a successful migration plan and identify the correct solution for the implementation of Chip and PIN.

Together the team will help merchants to:

  • Achieve the implementation in optimum time to protect from the liability shift in 2005.
  • Take away the pain and worry of implementing the new solution with minimal disruption to store operations
  • Change the financial model for how the Chip and PIN solution is financed.

Together the team offers a complete solution, which includes:

Consulting
To help determine the best solution, plan the migration and minimise impact on the existing infrastructure. Kilrush Consultancy Ltd, backed by 24 years in the card industry, brings the team its skills and experience of implementing card technology in a variety of POS environments.

Migration services
To integrate and install the new Card hardware, software and estate management software to manage the chip and PIN device real estate and certify the new solution with the merchants chosen card acquirer(s).

Payment solutions that accept all types of cards at all payment points
The EFTPoS software application, which manages the whole card acceptance process, is scalable and has been servicing merchants(s) needs for many years. The application has been upgraded to handle the new Chip and PIN cards. These solutions provide capabilities at the payment point and, if required, at the core of the enterprise. These solutions utilise Emvelink from STS as the EMV level 2 kernel.

Service teams ready to integrate and deploy a full Chip and PIN solution from IBM Premier Partners
The team of service professionals is skilled in the development, testing, implementation and support of EFTPoS solutions. They can work with any EPOS provider to deliver the total solution. After the successful implementation the Premier Partners undertake to support any future developments and any resolve any problems that may arise.

A hosted payment enterprise solution from Datacash
As part of their extensive hosted payment processing capabilities, Datacash will host an enterprise payment switch, to route authorisation requests, manage overnight card processing and submit transaction files on the merchants’ behalf to the merchants’ chosen acquirers.

A choice of Chip and PIN Devices
The solution can support a range of devices. The Merchant can choose a Chip and PIN Device from a range of EMV approved devices from a number of suppliers. A key component of the overall solution is Chip and PIN Device estate management, to enable the firmware on the Chip and PIN devices to be properly maintained.

The Offer

A commercially attractive 5-year fixed price monthly payment deal of around £25/month per terminal.

Via an IBM Global Financing contract, a deal can be provided for the total EFTPoS solution, including hardware, maintenance and the outsourced service. The contract will run for 5 years with a fixed monthly charge on a per device basis. At the end of the five years there will be a significant drop in the monthly charge to cover the on-going running charges, and unlike bank owned monthly rented terminals, the solution can be added to the companies asset register.

Dynamic Currency Conversion
Dynamic Currency Conversion brings a new revenue stream. As well as allowing an international cardholder, using a Visa or MasterCard, to pay for goods and services in the currency of the cardholder, Dynamic Currency Conversion service providers, such as FEXCO, give merchants a NEW revenue stream. The service provider rebates the merchant an agreed percentage of the foreign currency turnover on a monthly basis for all DCC transactions processed in that period.

E-Top UP
An E-Top Up service is available to provide access to many different pre-payment services, such as mobile phone pay-as-you-go. This service provides a new revenue stream for the merchant as well as providing a footfall generator.

Stored Value cards
Stored value cards such as eGift cards provide a new more efficient and easily audited means of managing gift cards, while providing true loyalty. CARDFORM, a specialist provider of stored value payment services, can manage this service. Other forms of stored value card offerings, such as Xmas clubs and goods returned vouchers, are available via the same service.

Cardholder not present
Security facilities will be required for those who have already, or are contemplating, extending the shop front by broadening their sales channels to environments such as call centres, the Internet and self service devices, DataCash are the leading provider of these services.

Direct Debits from Point of Sale
Some merchants will now only process large household items via financial contracts rather than by cash or card. DataCash enables merchants to automate the setting up of AUDDIS, a facility for Paperless Direct Debit mandates at the point of sale, to process payments for extended warranty payments or hire purchase agreements. The service makes available an integrated fraud screening facility to initiate such agreements. Such software checks that the customer can service recurring charges, to his/her bank account and thus ensure reduced risk and administration for these types of transactions.

Fraud Screening
Chip and PIN will not get rid of fraud, it will reduce it. DataCash provides access to state of the art real-time and batch fraud management solutions that help mitigate the risk of accepting fraudulent transactions from the high street, call centres and Internet sales channels.

What is EMV?

EMV is the standard devised by Europay, MasterCard and Visa (EMV) for smartcard-based credit and debit cards, to replace existing magnetic stripe cards. The EMV standards were drafted with the aim of ensuring global interoperability of smart chip based credit/debit cards and their terminals/readers. The prime driver for the migration to EMV payment cards in the UK is the reduction of card fraud.

EMV migration is effectively mandatory and the timescale is short. A key component of the EMV chip migration plan is the shift of liability for fraudulent transactions. Visa and MasterCard have mandated that from January 2005 liability will automatically shift to any non-EMV compliant party involved in a fraudulent transaction.

Is the merchant environment the weakest link?
By 2005, every bank, issuer and retailer – every part of the payment network will need to change to accept EMV cards. The majority of cards will carry an EMV standard chip; merchants will need to be able to read and process EMV cards. Transaction processing platforms will need to be upgraded to handle the new formats.

To be ready for EMV a plan needs to be prepared to migrate to this solution as soon as possible. This ensures maximum benefit from the programme and protection from the threat of increased fraud. The aim of the MCPS team will be to do this with as little disruption to the merchants’ business as possible.

Kilrush Consultancy Ltd is ready to help merchants move to EMV today!

Action

Call Kilrush Consultancy Ltd on 01604 768319 www.kilrush.biz

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