The Prepaid Press - September 15, 2008 - (Page 28)

RETAIL FOCUS September 15 · 2008 - 28 PREPAID IOI by Professor Retske ATMs and Prepaid as debit cards, to pay for your groceries. In fact, you can also get cash back, directly from your bank account, further reducing ATM usage to get cash. But, ATMs can also be used for many other things, like paying bills, transferring money between accounts, and making charitable donations. you can top up your wireless phone at some ATMs. The possibilities are unlimited. There is even a prototype system that allows voters to actually cast their ballots at an ATM instead of going to the polls. Some of these new applications are very important to prepaid, like withdrawing money from a debit card, or loading more money into it. Some ATMs now sell prepaid cards, gift cards, and even long distance calling cards. Let’s take a look at the parts of a typical ATM. First, there is a CPU that controls the operation of the ATM. This is the brain, and is loaded with all the programs necessary for operation of the ATM. Applications are also part of the CPU programming, and can be changed as needed. There is also a separate CPU, called the crytoprocessor, in a secure enclosure that oversees the operation of the CPU and looks for indications of tampering, fraud and other adverse conditions. Then, there are input devices. Of course there is a keypad for inputting PINs, account numbers, amounts and other numeric data. A magnetic card reader is available to read the information contained on the magnetic strip on the customer’s card. To allow communication with the customer, the ATM has a display of some sort. These are often touch screen, allowing the customer to interact by pushing onscreen icons. An internal printer is available to provide the customer with a written record of transactions. Printers can also be equipped to print prepaid cards on demand. There is also a vault. This is where cash is stored for dispensing to customers. The vault also allows customers to deposit checks, deposit slips and cash into the vault for delivery later to the central bank. Then, there is the housing and security mechanism. Since ATMs are often in locations that are remote or isolated, it has to be very secure. The security systems include magnetic, thermal and seismic sensors to detect attempts to break into, or steal, an ATM. And, the final piece of an ATM is its network connection. ATMs located in banks are usually connected to the bank’s network in the branch bank. Some ATMs use dial-up lines, and others use secure Internet connections or even cellular. The transaction communications are encrypted and secured. ATMs are generally connected to financial networks like Cirrus, LINK, PLUS and PULSE, among others, in addition to their own banking network. There are even independent ATMs that are not part of a bank, but are connected to financial networks, and make money by charging users Students, how many of you have used an ATM in the last week? Most of you. In the last 24 hours? Quite a few of you. Today? OK, several. The ATM has become as much a part of the commercial landscape as trees. They are everywhere, at banks, in retail stores, shopping malls, airports and transportation terminals, schools, and even US Navy ships at sea. They are anywhere that people might need to access their bank accounts. It is interesting to note that the ATM cards, which are issued to access ATMs, have reduced the need for ATMs themselves. This is because the ATM cards usually also have a financial network logo, like Visa or MasterCard, and can be used like credit cards for most purchases. This has reduced the need to go get money from an ATM and then buy groceries, for example. Now, you can just present your ATM cards, also known for making transactions. Now, the fact that there are estimated to be over 1.5 million ATMs worldwide, including one at McMurdo Station, Antarctica, coupled with the downward trend in usage, creates an opportunity for ATMs to be used in the fast growing prepaid business. There are companies that provide software and support to program ATMs to be used as prepaid card dispensers. ATMs are already used, as we mentioned, to top up accounts and withdraw money, but the new systems allow them to be used to market and sell prepaid cards of all types, especially gift cards. This is a win-win situation, because prepaid or gift card companies are always looking for a bigger footprint, expanded distribution, and providing ATM operators with a new revenue opportunity. It is limited only by the inventiveness of the entrepreneur. So, watch the ATM in your neighborhood. It could be more than it appears to be.

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

The Prepaid Press - September 15, 2008 ISOs Hold Key to Growth in Prepaid Industry Contents From the Publisher: The Show Goes On Regulatory Rundown: Early Fall Regulatory Beat 5 Minutes With Brian Rudolph, Co-owner, Krush Communications TPPEXPO’08 Spotlight Dateline Expo: Prepaid Wireless Update 2008 Wireless in Brief MetroPCS Available at Best Buy Western Capital Resources Inc. to Acquire PQH, Inc. TracFone Launches SafeLink Wireless Prepaid Wireless Roundup CIT Secures Financing for Prepaid Wireless Company MetroPCS Premiers Loopt Social-Mapping Services Virgin Mobile USA Reports Financial Results Dateline Expo: Prepaid Calling Card Update 2008 Inc. 5000 Recognizes Viscom International USAC’s “Carrier’s Carrier” Rule Comes Under Attack NetIQ Extends VoIP Management to Microsoft Office Transverse Launches OSS/BSS Open Source Platform Calling Cards in Brief Dateline Expo: Prepaid and Alternative Payments Update 2008 NETELLER and TransSend to Offer Cards Payments in Brief U.S. Treasury Introducing Direct Express Debit Card Visa Launches New Mobile Payment Services SCX Global Acquired by Rev Worldwide Metavante Selected by Corporate Network eCom ACE and NetSpend Launch March of Dimes Card AccuPOS Announces AccuCount Software Springbok Offers Private Label Prepaid Cards Prepaid 101: ATMs and Prepaid NACS Releases State of the Industry Report PaySpot to Distribute Futura Cards Hypercom Lands Element Payment Services Retail Focus in Brief Our Advertisers Contact Us

The Prepaid Press - September 15, 2008

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