STORES - September 2010 - (Page 62)

CONSIDER THIS / ARTS UPDATE The Beauty of Collaboration BY RICHARD MADER ARTS and Brussels-based EPASOrg have agreed in principal to collaborate in developing a global payments standard, helping to ensure that the business needs of the European and U.S. retail and financial sectors are satisfied by a single standard. Richard Mader is American Express) and payPayments are one of the most dynamic processes in retail. executive director of ARTS. ment-related suppliers (HyperPayment types like contactless devices, gift cards and govcom, Ingenico and Wincor Nixdorf); the ARTS project was ernment benefits programs continue to be introduced and promoted by retailers and POS vendors. In addition to evolve, and the promise of payments via mobile phones Wincor Nixdorf, ARTS partners included Epicor, Epson, looms on the horizon for much of the world. Meanwhile, PCINCR, SAP, Vertex and Sears Canada. Clearly, however, DSS and chip-and-PIN/EMV regulations have been introboth sides of the payment process recognized the opportuduced in many countries, emphasizing the need for innity for improvement. creased security in the software dealing with payments. Finally, there is a huge variation in payment processes, technologies, protocols One EPAS member petroleum company operating and practices among the different regions in 12 European countries is required to deal with of the globe. One EPAS member petroleum company operating in 12 European 35 different payment terminals, 30 different protocols countries is required to deal with 35 differbetween payment terminal and POS register ent payment terminals, 30 different protoand 10 different protocols between terminal cols between payment terminal and POS and the card acquirer systems. register, and 10 different protocols between terminal and the card acquirer systems. The myriad variables within the payRepresentatives of ARTS and EPAS met in Amsterdam ment process create maintenance and security problems at the annual ARTS international meeting, reviewed reand additional expense. All of these factors point to the spective project plans and specifications and immediately need to separate payments from the other aspects of retail realized the projects needed to be consolidated and result transaction processing systems (like POS) and develop a in a single global standard. Independent work was disconstandard XML payment interface. tinued, and a joint team formed to focus on merging the In 2008, ARTS established a work team to define an XML work in progress. Compromise was quickly reached to standard that would: avoid delaying the release of this important payment stan• Isolate payment business logic and technologies into dard. Highlights of the joint standard: separate and more focused subsystems, enabling retail• ARTS standard data names and UnifiedPOS connections ers to minimize the flow of highly confidential data and will be used in the payment standard, as both have wide therefore minimize the impact of supporting regulations global adoption. like PCI-DSS. This would also allow retailers to purchase • EPAS design will be used in Version 1, scheduled for repre-certified PCI payment applications. lease in the third quarter of this year. • Increase flexibility to permit rapid implementation of con• Subsequent releases will expand the standard to include stantly evolving payments technologies and regulations. all use cases defined by the ARTS work team. At that time, ARTS was unaware that EPAS had begun a • The global payment standard will be developed and similar effort in 2006, one described in its mission statemaintained in a joint effort between ARTS and EPAS. ment as being designed “to foster interoperability in the Collaboration is a beautiful thing, and a new global payworld of card payments by defining a common interface ment standard will be more comprehensive in scope — between POS register and payment systems, thus facilitatand released sooner, so everyone will be a winner. For ing the separation of payment from sales.” more information on the payment standard visit the ARTS While quite similar to the ARTS project definition, EPAS website or attend the ARTS Users’ Meeting, September participants were largely financial institutions (Royal Bank 12-14 in Orlando. of Scotland, Groupement de Cartes Bancaires, Visa and 62 STORES / SEPTEMBER 2010 WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents for the Digital Edition of STORES - September 2010

STORES - September 2010
Table of Contents
Editor's Page
President's Page
Retail People
Favorite 50
Retail Showcase
Customer Retention
Social Shopping
Gift Cards
Business Intelligence
Networking & Communications
Customer Centricity
Payments & Credit
Return Fraud
Green Issues
ARTS Update
Point of View
NRF News
Retail Industry Calendar
End Cap

STORES - September 2010