Collaboration with IBM team
Datacash Group PLC
12 March 2004
Datacash Group Plc ('DataCash' or 'the Company')
DataCash collaboration with IBM team
The Board of DataCash Group Plc, the AIM listed payments service provider,
announces that it is working with computer giant IBM as part of a team to help
mid-tier retailers implement a new credit and debit card fraud system being
introduced in January 2005. Known as 'Chip and PIN', the system's
specifications have been established by Europay, MasterCard and Visa (EMV).
This is a significant breakthrough into the high street 'cardholder present'
market for DataCash which up until now has focused on processing 'cardholder not
present' online transactions. The high street market represents the overwhelming
majority of card transactions.
Chip and PIN is designed to prevent fraud by obliging consumers to use a secret
PIN when they use their credit cards to purchase goods in the high street. Many
of the country's big retailers, such as the supermarkets, are already installing
the technology but there is strong evidence that smaller, mid-tier, traders are
finding the cost of upgrading legacy software systems and hardware too
expensive.
The initial team led by The Triangle Group (an IBM Premier Business Partner)
address the concerns of the mid-tier retail sector by offering a complete
solution for a low fixed monthly charge of around £25 per terminal. The solution
consists of consultancy, hardware, software, implementation and payment
processing. The team has identified a target market of mid-tier retailers which
may be attracted by the package.
Initially DataCash will contribute its outsourced payment processing and fraud
management capabilities to the team. These skills have been built up around the
mission critical requirements of its existing online client base that already
includes some blue-chip names including B&Q, Boots, Mothercare and Early
Learning Centre. Once deployed, retailers will also be able to benefit from
additional value added services delivered through DataCash's outsourced payment
processing platform including Dynamic Currency Conversion, stored value, gift
card and mobile top-up. It is anticipated these value added services will
provide mid-tier retailers with further support for the business case to deploy
Chip and PIN through the team.
DataCash Chairman David Bailey said: "Whilst online retailing is growing at a
tremendous rate this agreement is great news for us as it takes us into the
cardholder present market which represents significant scope for growth. We are
delighted that our skills and processing abilities developed through the
internet, can now be applied to the high street market and that IBM has chosen
us to support this exciting venture."
The new legislation covering credit card fraud comes into effect from January 1,
2005. Any retailers who do not install EMV-compliant Chip and PIN solutions by
then will become liable for any fraud losses which would otherwise be passed to
the card issuers.
Other partners in the team, in addition to The Triangle Group, are Ingenico
(hardware suppliers) and Kilrush Consultancy.
* * ENDS * *
Issued on behalf of DataCash Group Plc by St Brides Media & Finance Ltd, 46
Bedford Row, London WC1R 4LR.
Contacts:
David Bailey DataCash Tel: 0870 7274760
Cliff Feltham/Isabel Crossley St Brides Tel: 020 7242 4477
Note to editors:
DataCash provides the electronic services, by which merchants can accept,
authorise and settle transactions made by a variety of financial instruments
such as cards and direct debits.
The Company has been listed on AIM since 1996 and last June changed its name
from Auxinet plc to DataCash Group plc to reflect the fact that it is now purely
focused on payments processing.
What is EMV?
EMV is the standard devised by Europay, Mastercard and Visa (EMVco) 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 timetable is short. A key
component of the EMV chip migration plan is the shift of liability for
fraudulent transactions. Visa EU has mandated that from January 2005 liability
will automatically shift to any non-EMV compliant party involved in a fraudulent
transaction.
This information is provided by RNS
The company news service from the London Stock Exchange
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