The Prepaid Press - June 15, 2008 - (Page 26)

RETAIL FOCUS June 15 · 2008 - 26 PREPAID IOI by Professor Retske POSA For want of a nail, the shoe was lost; For want of a shoe, the horse was lost; and For want of a horse, the rider was lost, For want of a rider, a battle was lost For want of a battle, a kingdom was lost. B. Franklin, 1757, Poor Richard’s Almanac This verse, paraphrased by Benjamin Franklin, demonstrates how important the smallest detail can be in the overall scheme of things. In the expansive world of prepaid, the nail may be the POSA terminal. POSA, Point of Sale Activation, is the key to provisioning prepaid services. Without the POS terminal, prepaid could not “knuckle busters,” paper based machines that exist as it is. emboss the raised numbers from a card. This Students, you have seen this little device in labor intensive process was expensive and slow. many places. In fact, it may be the most ubiq- Merchants often had to wait as much as a week uitous piece of retail hardware, surpassing even to get their funds. cash registers. In many retail establishments it Today, all the necessary information is stored is nothing more than a credit card transaction on the magnetic stripe affixed to the back of the terminal, allowing merchants to accept credit card. The terminal has a magnetic stripe reader and debit cards, with additional software. In the integrated into it to read this information. It also past, the POSA terminal was often a separate de- has software that allows the terminal to add the vice, but they are merging today. merchant account information and details about Let’s take this in two parts. First, a transac- the transaction. This software also enables the tion terminal. This device has many different terminal to access the network, sign on and subembodiments, and can even be built into the mit the transaction for processing. frame of a cash register device. Very simply, it alThe software in the terminal can be modified, lows a merchant to read the information on the or new software added. This allows new applicamagnetic stripe on the back of a credit or debit tions to be added, including prepaid. card, combine this with the current purchase For prepaid, there are other functions that and the merchant’s account information, and need to be added to the terminal. For example, submit the transaction for processing.4/29/08 4:41:53 PM Without processing debit transactions is only half the QuarterPageAdd_Quatro08.ai this marvelous device, we would still be using battle. We also have to be able to process credit transactions. A debit transaction is like the purchase we discussed earlier. But, we have other things that have to be done to support a prepaid system. First, we might want to be able to manage cards so that they cannot be used until activated. If you take a $50 AMEX gift card off the rack, and try to spend it, it will not work. As part of the purchase process, the clerk runs the card through the POS terminal, which then informs the network processor that the card has been paid for, and can be used. This function is provided by special software that is in the terminal. In other applications, we may be able to specify how much the cards should be activated for, so the buyer can pick an amount. Again, this is provided by software in the POS terminal. These activation functions have been around for some time, several years, in fact. you may have seen some news in the last year or so about “reload” networks. Visa and MasterCard both announced systems in 2007. A reload network is the next level in prepaid, and enables more sophisticated functions, like virtual bank accounts, where the account can have funds loaded from payroll payments, cash or other payments. The US government uses a system like this for Social Security payments to people without bank accounts. This application requires several new functions of the POSA terminal. First, it must be able to register the credit, handle a variable amount, and be able to use the card for the account information. In the back end, at the network processor, these payments and debits have to be done in real time. Otherwise, the deposited funds will not be immediately available. yes, the POSA terminal is the nail, without which the kingdom would fall. See you next class! Retail Focus in Brief Dresser Wayne has named Dan Gleeson director of Distributor Sales for United States operations. Gleeson will be responsible for the continued development of sales in the retail petroleum equipment distribution channel. On May 5, Gleeson began transitioning into the responsibilities held by Ron Ragsdale in preparation for Ragsdale retirement effective July 11th. Dresser Wayne - www.dresserwayne.com the merchants. VendTek – www.vendteksys.com The Pinnacle Corporation (Pinnacle) has formed a strategic partnership with Bit9, Inc. (Bit9) to help retail customers meet the stringent policies required by the Payment Card Industry’s (PCI) Data Security Standards (DSS). The partnership between Pinnacle and Bit9 includes the OEM distribution of the Bit9 Parity enterprise application whitelisting solution with Pinnacle’s Palm POS product line. Bit9 Parity will provide a heightened level of security and control for Pinnacle retail customers. Bit9 Parity enables Pinnacle clients to control and lockdown their workstations to meet and exceed the requirements of PCI DSS standards while maintaining the Windows user interface. Pinnacle’s independent QSA partner, Coalfire Systems, has certified the Palm POS v9.2 solution with Bit9 Parity, ensuring the joint Pinnacle-Bit9 solution meets PCI DSS and Visa’s Payment Card Best Practice standards requirements. Pinnacle – www.pinncorp.com Bonnier’s Parenting magazine is offering readers cash back for purchasing products from certain online retailers, reports MediaBuyerPlanner. The program, called Parenting Privileges, lets magazine subscribers get cash back — via a Visa Prepaid Card — when they spend with online retailers like ToysRUs.com, Target.com and Diapers.com, according to Mediaweek. Rewards vary, but are typically between 5 percent and 7 percent of the purchase price. Parenting is second place in the parents magazine category. Ad pages were down 1.2 percent in the first half, while competitor Parents saw ad pages soar 12.4 percent, per the Mediaweek Monitor. Source: Markeing Vox – www.marketingvox.com VendTek Systems Inc, a provider of automated transaction systems software, has been chosen as the distributor of prepaid wireless and long distance products for all Bell World stores. Bell World stores are part of Bell Mobility, the wireless division of Bell, Canada’s largest communications company. Bell World is the first wireless retailer to employ VendTek’s new e-Fresh web interface. The e-Fresh system interfaces directly with a national merchant’s or carrier’s retail system. This enhancement to the e-Fresh system also supports multiple languages for use worldwide. New hardware is generally not required by Epana Networks, Inc., through its subsidiary Kare Distribution, Inc., a manufacturer, marketer a n d d i re c t distributor of Hispanic-focused prepaid calling cards, has announced a partnership with HealthTrans Inc. to provide pharmacy discounts through Kare’s newly launched consumer loyalty program -- Club Bienestar. Club Bienestar was launched in Dec. 2007 as a loyalty program in the prepaid phone card industry targeting the U.S. Hispanic consumer. The Kare and HealthTrans partnership provides Club Bienestar members and their immediate family to receive automatic and complimentary enrollment in Acceso HealthTrans, a pharmacy discount program that provides discounts to its members at certain participating pharmacies for drugs and other healthcare supplies. Epana – www.epana.com HealthTrans Access - www.pathtobettercare.com http://www.vendteksys.com http://www.dresserwayne.com http://Target.com http://Diapers.com http://www.marketingvox.com http://www.pinncorp.com http://www.quatrocanada.com http://www.epana.com http://www.pathtobettercare.com

Table of Contents Feed for the Digital Edition of The Prepaid Press - June 15, 2008

The Prepaid Press - June 15, 2008 Contents The Retske Report: The More Things Change… Regulatory Rundown: June 2008 5 Minutes With Harvey Caron VP/Marketing Director, Pentagon Graphics TPPExpo’08 Spotlight Handset Trafficking Dealt Blow Prepaid Wireless Roundup Virgin Mobile to Use Platform-A Sprint Reports Lower Wireless Revenues Virgin Mobile Adds Samsung to Offerings States Considering Photo ID for Prepaid Wireless Prepaid Reviews Podcast Includes TPP Editor Prepaid Wireless in Brief Managing Equipment and Capacity Upgrades Atlantax Systems and TMI Form Alliance The Legal Line Spot Rates FTC Halts Bogus Prepaid Phone Card Claims Titan Global Re-Appoints Kurt Jensen as Pres/CEO Calling Cards in Brief TX AG Files Suit Against Calling Card Company Startec Moves to PhoenixSoft Cirrus Ringplus.net Offers Free Calls Interchange Fee War Begins edo Interactive Launches Networking Card MasterCard Uses CSC Platform nFinanSe Gets $15 Million Line of Credit Travelex Cash Passport Debuts at US Retail Stores CardEx Offers Cost-Free Gift Cards Payments in Brief Altair and Blueberry Launch a Prepaid Card for Moms FrontStream Acquires Direct Technology Innovations New Etelcharge Version Goes Live Prepaid 101: POSA Retail Focus in Brief NRF Says Retailers Fighting Organized Crime Blackhawk Announces Annual Hawk Awards NRF Says Retail Sales Showed Resiliency in April TravelCenters Adopts Coinstar Pay As You Go Marriott Offers a $25 Visa Gift Card NRF Favors Law Protecting Retailers from Lawsuits Starbucks Card Members Get Free AT&T Wireless Wi-Fi Our Advertisers Classifieds Contact Us

The Prepaid Press - June 15, 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.