Card Payment Solutions incorporating:
PURCHASING CARD
NEWS
The Information Exchange for Electronic Transactions & Card Payment Solutions www.cardpaymentsolutions.co.uk
issue 43 2008
Payments Cards & e-Payment Solutions Conference
‘The times - they are a changing in more ways than one’ See pages 7-11 for more information
card payment solutions
T +44 (0)161 928 0485
HSBC Commercial cards are strongly positioned to be the solution of choice for B2B payments over the next 10 years, for all businesses ranging from the local newsagent to the large multi-national. As consumers, we have shifted our spend away from cheques to card payments at a rapid rate. This shift is being similarly reflected in the business world. Cards provide convenience, flexibility, access to credit, security and control of work-force spend.
Cards also represent an extremely efficient mode ofe-payment. As the use of e-commerce expands, this will undoubtedly accelerate the growth of B2B card payments. HSBC are committed to meeting the evolving payment needs of businesses in all market sectors and by all channels. This mirrors our philosophy of being a global, but local bank, understanding fully the requirements of our complete range of business clients.
Mike Skelcher, Head of Commercial Cards HSBC Bank plc, Level 37, 8 Canada Square, London E14 5HQ Tel : 0207 992 5281
Established in 1992, Adflex provide cutting-edge, innovative software and general IT services for a diverse range of industries and clients including many blue chip organisations. We specialise in the development of Card Processing software and Payment Processing Systems which are approved by all the main acquiring banks. We consider ourselves leaders in this field and offer merchants the ultimate flexibility in Credit and Purchase Card processing. Our solutions support Level 1 credit/debit cards through to Level 3 Purchase cards (Visa Global Invoice Specification and Line Item Detail) and also support 3D secure in an e-commerce environment. Adflex Products Adflex Virtual Terminal (AVT) Adflex Virtual Terminal is a simple yet powerful windows application that can be run on a standard Windows PC, allowing all card types to be processed quickly and easily. Adflex Integrated Solution (AIS) Adflex specialise in providing integrated solutions which allows seamless communication between your current computer systems and our payment gateway removing the need to re-key transaction information. Adflex Bureau Service (ABS) For those who do not want to use a software solution to accept purchase cards, take advantage of our Bureau Service. Simple send us your invoices in electronic format and we’ll do the rest for you. The people we employ are highly trained, plain speaking and experienced in the field of Payment Card Processing. Whether you are a small owner operated company or a part of a large multinational, our people will listen carefully to your requirements and deliver a solution that fits.
Adflex Ltd, 284 Warley Hill, Brentwood, Essex CM13 3AB Tel: 01277 268 755 e-mail: info@adflex.co.uk www.adflex.co.uk
page 2
W
www.cardpaymentsolutions.co.uk www.purchasingcardnews.co.uk
E
info@cardpaymentsolutions.co.uk info@purchasingcardnews.co.uk
…Following on from ‘Interchange’ an Australian perspective article in our last issue…
MasterCard Takes Action on Intra-EEA Cross-Border Consumer Interchange Fees Complies with EC Decision, Appeal to Continue MasterCard Europe (MCE) announced that as of June 21, 2008 MasterCard is temporarily repealing its current MasterCard and Maestro intra-EEA crossborder consumer card interchange fees in conformity with the European Commission’s December 19, 2007 decision. MCE said it will continue its dialogue with the Commission services about an interchange fee methodology that the Commission services believe is consistent with the decision. MCE also said it will continue to pursue its appeal of the decision to the European Court of First Instance, which it filed on March 1. On announcing MasterCard's decision, Javier Perez, President, MasterCard Europe, said:
“We said in December that although we strongly disagree with the European Commission’s decision, we would comply with it. At the same time, we have solid legal arguments supporting our appeal of the decision to the European Court of First Instance, and we will continue to vigorously pursue that appeal. MasterCard’s policy is to comply with all applicable decisions and regulations, but to challenge them through appropriate channels when we believe that is necessary. “MasterCard believes that its crossborder interchange system has kept the cost of payment cards low for cardholders, and if left unchallenged the Commission's decision will be bad news for European consumers. “We trust that the Commission does appreciate that some level of interchange is necessary to share costs among all participants in a payment
system that operates across Europe and the world. However, despite our having made several proposals to reduce substantially cross-border consumer interchange fees, we have not yet reached an understanding with the Commission services on future steps. Therefore, in order to ensure our compliance with the decision, we have taken this action while we continue discussions with them. “Although we are complying with the June 21 deadline, it’s important to keep in mind that this decision only applies to intra-EEA cross-border consumer card interchange fees The level of these fees in the future will depend on the result of our continuing dialogue with the Commission and, ultimately, upon the outcome of MasterCard's appeal. Moreover the transactions affected amount to less than five percent of MasterCard Europe volume, and we do not anticipate any significant near-term financial impact as a result of today's action. Nor do we anticipate being disadvantaged versus other four-party payment systems, in light of the Commission's stated intention to apply the logic of the decision to all similar systems. "We remain committed to taking the necessary steps to continue providing a system that benefits millions of European cardholders and merchants who rely on MasterCard and Maestro cards, and to providing our customers with competitive payments products and services.” For further information on MasterCard’s position on the European Commission’s decision, go to. www.mastercard.com/us/company/en/ newsroom/ec_decision.html To learn more about interchange, go to: http://www.mastercard.com/us/compa ny/en/ourcompany/interchange.html
T +44 (0)161 928 0485
W
www.cardpaymentsolutions.co.uk www.purchasingcardnews.co.uk
E
info@cardpaymentsolutions.co.uk info@purchasingcardnews.co.uk
card payment solutions
Contents MasterCard Takes Action on Intra-EEA Cross-Border Consumer Interchange Fees
2
Why Purchasing Cards
4
RBS leads the way with ‘Tap and Go’ payments for taxis
5
ITS is a leading industry expert in Transaction Solutions for all business sizes sectors and technologies
6
The Payments Cards & e-Payment Solutions Conference 2008 - Preview
7
The Payments Cards & e-Payment Solutions Conference 2008 ‘The Next Generation’
8
The Payments Cards & e-Payment Solutions Conference 2008 - General Information
11
MBNA and Mastercard bring Tap&GoTM technology to Manchester City Football Club
12
RBS Joins Forces with MasterCard to Implement MasterCard inControl TM
13
Editorial: You can e-mail all your news, views, features & events for publication to: info@purchasingcardnews.co.uk
Advertising: DataCash Acquisition of ACK Limited provides retailers with a one stop shop for multi-channel payment processing
14
‘Search...’ Purchasing Card Capable Suppliers Search Engine & Directory
15
For advertising, feature sales and sponsorship contact Peter Gittins on +44 (0) 161 928 0485 or info@purchasingcardnews.co.uk or www.purchasingcardnews.co.uk and click on ‘The Publication’ link
Full contact details: Card Payment Solutions, Castle Hill Farm, Castle Mill Lane, Ashley, Altrincham, Cheshire, WA15 0RB Tel: +44 (0)161 928 0485 Tel: +44 (0)161 928 3502 Fax: +44 (0)161 928 1713 Mobile: 07793 584166 www.purchasingcardnews.co.uk www.cardpaymentsolutions.co.uk email: info@purchasingcardnews.co.uk No article may be reproduced in part or in whole without permission of the publisher Purchasing Card News is published and printed by Caxton House Marketing Ltd. © Copyright: Caxton House Marketing Ltd 2007 The publishers are not liable for the statements made and opinions expressed in this publication.
card payment solutions
What is a Purchasing Card? A credit card that is used to purchase goods or services. When used, the gross, net and vat values are captured which negates the need for invoices and provides evidence for vat.
Why Purchasing Card? Purchasing card is the most cost effective process for purchase to payment that currently exists. The supplier needs to understand why their customer wants to use it, and the benefits available to both parties. We know that traditional procurement methods can be cumbersome, inefficient and expensive to manage. It has been estimated that to purchase an item valued at £5 can cost some organisations over £50 because of the time and people involved to raise an order, get it approved, get it signed off, be purchased and taken through the accounts process. The item bought with a purchasing card makes a huge saving in time, process and people involved. The person making the purchase, the cardholder, has a direct relationship with the supplier. They can discuss the item, size, colour, quantity, delivery date etc. rather than just the impersonal purchase order which does not allow for variation in size, colour, quantity. Large organisations could have numerous buyers, several of them buying stationery from several stationery suppliers. Through management information, they can select a single preferred supplier and put all their orders through just one. Probably earning bigger discounts, certainly reducing the administrative and accounting issues. The organisation, public or private, introduces a purchasing card scheme u sing either the Mastercard ‘onecard’, Visa or American Express cards. Cards are issued to the very people who need to buy or pay for things. The company can introduce strict budget control by card, cardholder, category of goods, by week or by month. It also gives very valuable management information on how their business is running. To have a successful purchasing card scheme, it is essential that they recruit suppliers who are purchasing card capable. page 4
T +44 (0)161 928 0485
W
www.cardpaymentsolutions.co.uk www.purchasingcardnews.co.uk
What does it mean to the supplier? There are now so many local authorities, health authorities, schools, hospitals and private corporates using purchasing card, that any supplier not capable is risking losing business opportunities to their competitors. Often one of the first questions asked on a tender is ‘Are you Purchasing Card capable’? It is true that the supplier will have to invest in a system to become capable. There are benefits, not just to the buyer, but to the supplier as well.
• •
Every transaction is authorised.
•
No more chasing payment, a real saving in admin and accounts
•
HMRC approved providing evidence of VAT
•
Direct relationship between end user (buyer) and supplier.
•
Potential to attract new business through purchasing card capability.
No more waiting for 30 or more days to get paid for goods or services. Payment is made automatically in 3 to 4 working days.
Supplier’s considerations Before embarking on becoming purchasing card capable, the supplier needs to consider 3 key factors.
•
Does the potential level of business merit investment in a system
•
Which Purchasing card scheme is their customer going to use.
•
What level of information does the customer require.
It is critical to find these things out in advance of making any decisions. The answers will shape all future decisions.
E
info@cardpaymentsolutions.co.uk info@purchasingcardnews.co.uk
If the cardholder only requires level 2 purchasing card, then it is possible to conduct the transaction on a modified credit card terminal. However, if the cardholder requires level 3, then a PC, Web based or integrated solution is required. The supplier should note that if they can do level 3, they can automatically do level 2 and 1, but not the reverse. Those suppliers who carry out a high volume of transactions may want a system that is directly linked to their sales order processing system. Purchasing cards are almost 95% cardholder not present with the transaction being carried out via telephone, fax or email. Yet in some cases, there will be a cardholder present, at a trade counter for example, so the supplier needs to consider chip and pin technology. There are costs in systems and time associated with any choice. The supplier must work with the customer to determine what information is needed, and what it means to the suppliers business process by introducing new methods. If the supplier already accepts credit/debit cards, then it should only be a case of discussing the new requirement with his bank. If the supplier is new to credit/debit cards, then they need one of the main UK acquiring banks to sign them up. The good news is that most banks are now working closely with major customers to assist with supplier recruitment. There are excellent forums, workshops, and industry opportunities which can provide unbiased information in helping the supplier determine the right decision for their business.
There are 3 typical levels of card information.
Steve Wilkins Level 1 – standard credit debit card. Captures minimal information. Level 2 – Summary Vat. Captures, gross, net, vat, commodity codes. Level 3 – Full line item detail.
HEAD OF OPERATIONS, ITS
T +44 (0)161 928 0485
W
www.cardpaymentsolutions.co.uk www.purchasingcardnews.co.uk
E
info@cardpaymentsolutions.co.uk info@purchasingcardnews.co.uk
card payment solutions
British tennis star of the moment, Andy Murray, using the RBS card with MasterCard PayPass.
RBS leads the way with ‘Tap and Go’ payments for taxis The Royal Bank of Scotland Group will launch the first pilot of a ‘Contactless’ debit and credit card payment service for taxis in the UK.
solution can be used to accept fares of £10 or less meaning customers no longer have to hunt for cash or change for shorter journeys across London. Contactless cards can be used for fares above £10; however the transactions will be processed in the same way as traditional cards.
Cash has traditionally been the preferred choice of payment for taxis but RBS is leading the way by introducing new technology to help the UK taxi and private hire industry adapt to increasing customer demand for flexible payment choices. RBS research has revealed that nearly half of Londoners would take more taxi journeys if they could just ‘tap and go’, with 42% saying they would pay by card if they had no cash on them.
Contactless payments are already established in major cities around the world. In the UK, demand is expected to continue to increase as more customers are issued with Contactless enabled cards.
RBS, who were the first to launch Contactless payment technology in the UK, will pilot Contactless card acceptance, in association with MasterCard PayPass, in 25 London based Xeta taxis as part of the Contactless London Launch programme, with plans to extend the service to it’s whole fleet if demand meets expectations. The technology for the pilot has been developed in partnership with Commidea one of the UK’s leading developers and provider of card processing systems. Customers wishing to pay using Contactless will simply hold their Contactless-enabled debit or credit card up to a secure reader fitted in the cab to make their payment. The Contactless
Ron Kalifa, Managing Director at The Royal Bank of Scotland said “With Contactless, customers will appreciate the convenience and speed of the card as well as the freedom from worrying about whether they have enough money for their taxi fare. Drivers will benefit too because payment is fast and there is potential to attract more customers who do not have cash available or would not normally take a taxi for ‘lower fare’ journeys.”
Geoffrey Riesel Chairman and CEO of Radio Taxis Group, of which Xeta Taxis forms a part adds “We want to offer our customers the ultimate flexibility in the way they pay for their taxi journey. We know our customers already enjoy the benefits of paying by debit or credit card and this partnership with RBS Contactless now provides the customer with even greater choice.” Leigh Clapham, General Manager, Developed Markets, said, “Last year, MasterCard introduced the first ever Tap & Go payments in New York’s iconic yellow cabs. By working with RBS on this new pilot in London, we’re making life easier for busy consumers in another one of the world’s fastest-paced cities.” Contactless payment is the latest innovation on offer from RBS to help the taxi and private hire market meet consumer demand to pay by card. A recent survey revealed that 77% of taxi drivers said accepting card payments helped them meet customer demand, with 78% agreeing card payments made customer payment easier and faster. Source: Consensus January and February 2008 and IMC March 2008
?
What’s your view? If you would like to comment on this article please email: info@cardpaymentsolutions.co.uk page 5
card payment solutions
T +44 (0)161 928 0485
W
www.cardpaymentsolutions.co.uk www.purchasingcardnews.co.uk
E
info@cardpaymentsolutions.co.uk info@purchasingcardnews.co.uk
ITS is a leading industry expert in Transaction Solutions for all business sizes sectors and technologies Specialists in developing supplying and supporting software & services for any form of transaction handling like B2B addendum EFT Loyalty & Citizen Cards e are pioneers in the fast expanding Purchasing Card market providing a range of bespoke and off the shelf transaction solutions for Mastercard, Visa and AMEX Purchasing Cards. Our independence of scheme, issuer, acquirer and manufacturer enables us to support all major debit, credit and purchasing cards, and provide multi-acquirer solutions.
W
ITS can provide solutions for low volume B2B transactions through to fully integrated, multi-merchant, multi-currency systems enabled for Levels 1, 2, 3 and VGIS data. Terminal polling Both magnetic stripe and chip & pin capability to process all cards up to level 3 purchasing cards. ITS dials in and collects a file containing your transactions at a specified time.
Procurer Online (POL) Ideal solution for customers who want to be Level 1,2 & 3 capable and are looking for the flexibility and freedom to access their own transaction data. Approved by all the major UK acquiring banks and HM Revenue and Customs, POL is a secure internet based card processing system for credit, debit and purchasing card transactions that can be accessed from any PC with web connection. Transactions are processed in real time via a secure web page provided by ITS, so customers can cut out the time consuming paperwork or purchase order and invoice preparation.
page 6
We have created an animated demonstration which you can view at www.procurer-online.com/demo
Procurer ERP Interfaced solution for processing credit, debit and purchasing card transactions (level 2 summary, level 3 LID & VGIS). It enables companies to integrate existing order processing or mail order systems with a UK APACS compliant credit/debit and purchasing card processing system. The Procurer ERP solution is provided in several variants, depending on how a specific merchant wishes to operate. Transaction details can be processed online, in batch, or a combination of both.
Invoice matching service (IMS) IMS is a service that can be used to associate and match level 3 invoice data with level 1 financial information processed through EMV POS terminals. ITS will simply match the addendum data together with the terminal data, and submit to the acquiring bank in one single file. This allows you to benefit from the security of chip & pin whilst being able to provide full addendum data to your customers.
ITS customers can benefit by subscribing to our easy to use online e-Statements service; This contains simple yet effective tools for analysing and searching the transaction database. The service is updated early each morning to show transactions from the previous day that have been processed and submitted to the acquiring bank(s) for settlement.
Management Information (MI) reporting ITS is able to provide bespoke reports detailing any type or level of information captured during the transaction handling process. MI reports are particularly useful for customers that utilise our specialist, Level 4 data handling service. Additional data outside the usual financial routines can be captured and reported.
Supplier Recruitment As leading industry experts, with thousands of suppliers using our solutions, we can assist organisations with supplier recruitment through seminars and meetings, to outline the benefits and growth of the Purchasing Card Industry. We determine ‘best fit’ solutions and provide ongoing product support through online demos documentation and training.
Consultancy ITS is able to provide a full consultancy service and can arrange to meet a prospective client and discuss their particular requirements and Service Level Agreements. This can be for any part of a project or a whole end to end solution. Whatever the requirements, major or minor, ITS has a wealth of knowledge and skills in providing solutions for credit/debit card systems, Purchasing Card systems and Loyalty systems. We have strategic relationships with a number of suppliers, banks and scheme providers, so it is possible that we may be able to achieve significant savings on a client's behalf.
Contact Centre Our contact centre staff specialise in Purchasing Card expertise and managing clients’ expectations. We provide full business hours support for all customers as standard and are able to facilitate additional 1st, 2nd and 3rd line support depending on customers needs. If required, clients can talk specifically to the Account Managers who are experts where their particular products or customers are concerned. To find out more details, please contact our Sales team on 01243 434 500, visit our website at www.interactiveTS.com or email sales@interactivets.com
T +44 (0)161 928 0485
W
www.cardpaymentsolutions.co.uk www.purchasingcardnews.co.uk
E
info@cardpaymentsolutions.co.uk info@purchasingcardnews.co.uk
The Payments Cards & e-Payment Solutions Conference 2008 ‘The Next Generation’
information exchange conference
Sponsored by
Lancashire County Cricket Club Conference Centre Old Trafford Manchester M16 0PX Thursday 13th November 2008 from 10:00 to 16:30 - Registration from 08:45 Lunch and Refreshments are provided - Free on-site Car Parking is available
www.purchasingcardnews.co.uk/conference The Seventh Annual ‘Information Exchange Conference 2008’ for Payments Cards & e-Payments Solutions - The Next Generation - looks forward at all future aspects of Electronic & Commercial Card Payment Solutions & Services. The 2008 Conference will stage fourteen individual presentations throughout the day highlighting an extensive range of products and solutions on offer that provide you with the background to innovative payment solutions and services that are available now that can assist your organisations deliver efficiencies and cost savings, a major benefit for both Private Sector companies and Public Sector organisations alike. Our agenda includes leading edge presentations, case studies, breakout sessions, workshops and exhibitions hosted and presented by the industryleading specialist from commercial card schemes, banks, card issuers, and the industry’s leading solutions providers. The conference agenda illustrates just how the wide range of topics presented can affect your future day-to-day business dealings. Our focus topics include:
• • • • • • • • • • • • • • • •
Purchasing Card & Commercial Card Payment Solutions Corporate Card, T&E and Fuel Card programmes Pre-Paid Cards - Rechargeable & Pre Loaded Cards Web based Card Management Transaction Solutions Lodge Cards for Enhanced Travel MI Integration of P-Cards with e-Procurement systems Smart Card and Loyalty Card programmes eProcurment Purchase to Pay technology e-Invoicing Solutions Electronic Data Interchange EDI SAP and Oracle Integration Software Solutions Acquiring and Bureau Services Expense Management Software Solution Providers Products & Services Electronic Payment Acceptance & Merchant Sign Up Programmed Implementation, Service and Compliance issues
For further Conference 2008 information, please contact: Peter Gittins email: info@cardpaymentsolutions.co.uk or info@purchasingcardnews.co.uk Tel: +44 (0) 161 928 0485 Fax: +44 (0) 161 928 1713 www.purchasingcardnews.co.uk or www.cardpaymentsolutions.co.uk page 7
information exchange conference
T +44 (0)161 928 0485
W
www.cardpaymentsolutions.co.uk www.purchasingcardnews.co.uk
E
info@cardpaymentsolutions.co.uk info@purchasingcardnews.co.uk
Payments Cards & e-Payment Solutions Conference “The Next Generation” ‘The times - they are a changing - in more ways than one’ In the ten years since the introduction of the Government Procurement Card for the Public Sector, Purchasing Cards have become well established throughout the Public Sector as an easy to implement, cost effective and efficacious means of paying for all manner of goods and services as well as an efficient tool for T&E spend, either as “walking plastic” or via centralised booking. The next few years however will undoubtedly bring innovation in the nature of products and services offered under the “card” wrapper, not least in response to the increasing challenges that competing technologies and systems such as e-trading and e-invoicing are bringing. So what new products are already here or on the immediate horizon? Extensively used by Public Sector organisations at state, federal and municipal levels in many overseas countries, pre-paid debit cards are now gaining a foothold in the UK, offering huge potential for streamlining payments and money disbursements. The pre-paid card is simply one holding a fixed value that is debited from the organisation’s account at the time that the card is activated. Cards may be either re-loadable and issued to named individuals or single use in which case the card expires when page 8
the value is either exhausted or the card is cancelled with the re-credit of any outstanding balance. They are ideal for use where the issue of standard cards would not be sanctioned, for example to restrict expenditure to an overall budget limit which cannot be exceeded or where expenses need to be covered, say hotel and meals for an occasional traveller, but with a fixed ceiling on what can be spent. Single uses fixed value cards are an ideal replacement for cash and cheques, giving much better security; accountability, acceptability and visibility of spend. An example might be where emergency or grant payments have to be made to individuals such as the issue of school clothing grants. Indeed the scope for both types pre-paid cards is extensive and it is likely that the next few years will see a surge of use by UK public sector organisations. Royal Bank of Scotland have recently announced the UK launch of “Approval to Buy”, MasterCard’s exciting and innovative product which brings an hitherto unknown degree of pre-purchase control and security to card transactions. This is achieved by providing a unique “one time use” card number via the web. Parameters such as, supplier, value, time limit and a pre-use approval workflow can be set for each transaction giving organisations complete control over the purchase and payment in contrast to standard card practice where the supplier initiates the transaction and its value. One of the major constraints of standard P Card is the fear that it can be used for unauthorised or off-contract purchases. In covering this, “Approval to Buy” adds a completely new dimension to Purchasing Cards and opens up many new areas for use.
T +44 (0)161 928 0485
W
www.cardpaymentsolutions.co.uk www.purchasingcardnews.co.uk
E
info@cardpaymentsolutions.co.uk info@purchasingcardnews.co.uk
“GPC III” The current GPC II agreement expires in March 2010 and OGCbs have just released an OJEC notice asking for expressions of interest from those wishing to provide the next generation of cards and associated solutions/services for the UK Public Sector - with the aim of having new framework agreements in place by the second quarter of 2009 ready for the start of 2010. This tender is significantly different from the previous two iterations of GPC. It is clearly designed to maximise the range of products and services offered and perhaps, more importantly, to achieve a broader span of providers than in the past, a strategy that should attract more innovative and competitive proposals from bidders. It is particularly noteworthy that OGCbs are seeking responses from “issuers” and solution/service providers rather than “schemes”. In another major move away from the GPC I & II offerings, the new tender is split into three lots as follows:
•
Lot 1: Payment Cards, Travel Cards, Integrated Cards, Lodged/Embedded Cards, Commercial Debit Cards and Associated Services
•
Lot 2: Prepayment Cards, Contactless Cards and Associated Services
•
Lot 3: Software Integration, Expense Management and Associated Services
Bids can be for one, some or all of the lots depending on the responders’ portfolio of products and interest in any particular part of the tender.
information exchange conference
So what does this all mean for the players in this market? Public Sector Users Decision time again! “The King is dead, long live the King”; except this time the King will be more like an Emperor, with a far changing and ranging choice of awards. The Public Sector will need sufficient knowledge to be able to make informed decisions. Many users will be looking forward to the opportunity to take up the new offerings to expand their card programmes whilst others might simply what to stick with the basic P Card or T&E product but move to an issuer who provides a better version or added benefits such as web based card management solutions. The timescale means that all existing GPC users and some of the rest who are contemplating starting card programmes will have to start thinking about what they want to do come January 2010. Some may choose to stay with their existing bank either within the new framework (if the bank is part of it) or without (if the bank is not part of it) but the vast majority will have to make knowledgeable decisions for the products/services that best meet their needs. Choice is a good thing but it will present users with a dilemma on how to effectively gather sufficient market information to make the right choice from a plethora of products and providers. Issuers and software/service providers Now those providing any of the products/services outlined in the lots above have a limited window of opportunity in which to respond to the expression of interest. continued over... page 9
information exchange conference
W
T +44 (0)161 928 0485
www.cardpaymentsolutions.co.uk www.purchasingcardnews.co.uk
E
info@cardpaymentsolutions.co.uk info@purchasingcardnews.co.uk
Payments Cards & e-Payment Solutions Conference “The Next Generation”
...continued
Options for consideration.
This may be either directly on their own behalf, be part of the offering of another bidder or indeed under both scenarios. Those lucky enough to be included in the framework agreements when awarded in 2009 will have a big marketing and selling task on their hands.
•
Existing programmes that has met the challenge of P2P and continues to see a need for card payment solutions
•
P2P systems with Payment Cards as an embedded payment method.
•
Lodged (hosted) Cards, this can tie in with P2P, be stand alone or part of a standard card programme.
• • • • •
Pre-paid cards, rechargeable and one-shot use
Both existing and potential new Public Sector organisations will be seeking hard and fast information on the products and services that the new GPC framework makes available and the differences/advantages each has. In many cases their knowledge will be sketchy, particularly in respect of relatively new concepts when they may not yet fully appreciate their applicability and benefits to their organisation. Having said that, there is already pent up demand for such as pre-paid cards and more sophisticated card management systems, so although the framework start date of Jan 2010 may seem a long way away it is during 2009 that many potential customers will be looking at the market and making preliminary decisions on which way they will jump.
P-Card Market Basically the “Card Market” can be split into two camps, Public Sector organisations that have an existing card programme and those that don’t.’ Both areas can be sub-divided into those Public Sector organisations that may be considering alternatives to P-Cards, such as P2P and e-invoicing and those organisations that are not at present. Organisations that have existing P-Card programmes are going to be interested in learning about solutions which enhance the basic card product - Card Management programmes like, “Approval to Buy”, Pre-Paid and integration with P2P. Those that don’t may well be interested in hearing about the basics of a standard card programme. Some of the larger organisations will also be questioning whether cards make sense if competing P2P is affordable although it may be that the added value extras may push these down the card route.
page 10
Web based Card Management solutions Pre-approval Lodge Cards for enhanced travel MI “Card and e-Payment - the next generation”. It could be built around a hub - the card platform - with various offerings hanging off it.
Assuming that there is an extensive range of products and solutions on offer under the new contract and the public sector appreciate that there are no barriers to them taking up any of them, then there will presumably be a “no holds barred” marketing campaign by all and sundry during 2009 to keep or win the business! The Manchester ‘Payments Cards & e-Payment Solutions Conference’ on November 13th offers an early opportunity for potential suppliers to present their offerings to an influential audience of public and private sector key personnel who will be involved in the decision making on how they develop their P-Card programmes. For delegates it will be an equally succinct chance for them to hear about some of the products & services that are likely to be available under the OGCbs framework(s) and meet with many of the providers, the start of the information gathering process. Choice is a good thing and competition amongst providers will hopefully lead to even more innovation to overcome the limitations that have constrained the maximum potential of cards being achieved in the past. The new GPC framework(s) aim to give Public Sector organisations more choice and much increased opportunities to easily embrace the Next Generation of products & services. All rights reserved © Caxton House Marketing Ltd. July 2008
T +44 (0)161 928 0485
W
www.cardpaymentsolutions.co.uk www.purchasingcardnews.co.uk
E
info@cardpaymentsolutions.co.uk info@purchasingcardnews.co.uk
information exchange conference
The Payments Cards & e-Payment Solutions Conference 2008 General Information
Sponsored by
Directions Lancashire County Cricket Club is situated just 2miles South of the Manchester city centre.
Mobile Phones We would advise delegates to have their mobile phones switched off during the seminars, presentations and workshops.
By Rail From Manchester Piccadilly Station 10 min by Taxi
By Metro From Manchester Piccadilly Station 15min by Metro to Old Trafford two stops from the city centre (take the Altrincham service)
Lunch and Refreshments Would you please advise us of any special dietary requirements (vegetarian, allergies, Hilal or Cosha prepared foods) by Monday 3rd November 2008.
Refreshments and Bar
From Manchester International Airport 20mins by Taxi (allow an extra 15mins at peak times)
Refreshments will be available throughout the day. A complimentary drinks reception, courtesy of Purchasing Card News, will be held at the end of the days agenda, a pay bar will be available from 18:00hrs until 21:30 hrs.
By Road
Delegate Passes
From M6 Jn19 North & South follow A56 signs to city centre.
The delegate’s pack and name badges will be available at registration from 08:45hrs on Thursday 13th November 2008.
By Air
M56 Eastbound follow City Centre, Manchester United FC & LCCC ground signs. From M60 /M62 East & West City Centre, Manchester United FC & LCCC ground signs.
Free Car Parking 24 Hour Car Parking is available for delegates attending the Conference or staying overnight at the Old Trafford Lodge
Information For All Delegates Cloak Room A secure cloakroom situated at the entrance to the conference area will be manned from 09:00am until 21:00pm on the day of the Conference.
Secure Storage Secure storage can be provided for a temporary period: Contact Conference Office.
Delegates are advised to display their name badges whist attending the conference.
Conference Agenda Caxton House Marketing Ltd reserve the right to amend the conference agenda, timings and dates up to four weeks prior to the event.
Note Lancashire County Cricket Club is private property and their terms and conditions for security and access do apply, admission to the conference is by invitation only from the approved Conference booking form.
For further Conference information please contact the Conference Office:
Conference Office Tel: 0161 928 0485 e-mail: info@purchasingcardnews.co.uk
Caxton House Marketing Ltd and Lancashire County Cricket Club cannot accept any liability for loss or damage to personal property. page 11
card payment solutions
MBNA and Manchester City Football Club, working with MasterCard, have announced the launch of Europe’s first pilot programme to issue season ticket holders with a reloadable MasterCard® Prepaid with PayPass™ contactless card, which can be used both to gain access to the City of Manchester Stadium utilising the existing smart card technology* on match days and to purchase items inside and outside the ground. The Manchester City FC MasterCard Prepaid Seasoncard with PayPass will replace the standard season ticket currently issued to supporters. Approximately 3,500 season ticket holders in the North Stand Level 2 have been chosen to take part in the trial, which will last until the end of the season during which time bars and stands in that area will accept Tap&Go™ payments for purchases under £10. To pay, participating fans simply need to tap their Manchester City FC MasterCard Prepaid Seasoncard against a specially equipped PayPass reader, greatly reducing queuing times for small purchases by removing the need to insert the card, enter a PIN, or fumble for change.
page 12
T +44 (0)161 928 0485
W
www.cardpaymentsolutions.co.uk www.purchasingcardnews.co.uk
As a prepaid card, fans can also choose to ‘top up’ the Manchester City FC MasterCard Prepaid Seasoncard , as they would a prepaid mobile phone, and use the card anywhere in the UK for contactless and Chip & PIN payments where the MasterCard PayPass or MasterCard acceptance logos respectively are displayed. Cards can be loaded with additional funds either online at www.mcfc.co.uk, over the phone on 0870 062 1894, or via a PayZone point at retailers. Duncan Martin, Head of Retail at Manchester City Football Club, said: “Once again Manchester City Football Club is leading the way on innovative solutions for improving the match day experience for supporters. This technology allows Manchester City supporters to access the stadium electronically and make purchases under £10 quickly, all by using just one card. This will help reduce queuing time and allow supporters to get into their seats for the game.” Brendan Jones, Product Executive at MBNA, said: “MBNA is delighted to work with our partner, Manchester City, to help deliver the first stadium contactless prepaid card in Europe. These cards are used in stadiums throughout the US and we are delighted to be the first issuer to introduce them into the UK market.”
E
info@cardpaymentsolutions.co.uk info@purchasingcardnews.co.uk
John Bushby, General Manager, MasterCard Northern Europe, commented: “In a European first, a single piece of plastic will enable football fans to gain access to and make payments at their home ground. A tap of your MasterCard PayPass card takes less than a second1 and our extensive experience in US stadiums has already shown the time and cost efficiencies this technology can bring to both fans and onsite retailers, in terms of the speed, convenience and safety of contactless payments, compared to cash.” In the UK alone, there are currently in excess of 20 billion payments under £10, with a value of approximately £200 billion a year 2. PayPass is the new faster, more convenient and safe way to pay for these everyday small purchases of £10 or less. Prepaid is one of the most rapidly growing sectors in the payments industry, with total spend on prepaid cards in the UK estimated to reach $34billion by the end of 2010 3. Their popularity is driven by the financial freedom they offer to cardholders, who can access the security, convenience and global acceptance of a payment card simply by purchasing it over the counter, without needing to link it to a bank account.
?
What’s your view? If you would like to comment on this article please email: info@cardpaymentsolutions.co.uk
T +44 (0)161 928 0485
W
www.cardpaymentsolutions.co.uk www.purchasingcardnews.co.uk
E
info@cardpaymentsolutions.co.uk info@purchasingcardnews.co.uk
card payment solutions
RBS Joins Forces with MasterCard to Implement MasterCard inControl™ Innovative platform provides RBS’ corporate customers with advanced controls to better manage purchasing expenditures
he Royal Bank of Scotland (RBS) and MasterCard Worldwide announced they have joined forces and implemented MasterCard’s state-of-the-art payment platform, MasterCard inControl.
T
MasterCard inControl builds on MasterCard’s unparalleled global processing platform and combines enhanced authorisation controls with an intelligent routing capability and personalised realtime communication features including alert functions, for both Commercial and Consumer products. The Royal Bank of Scotland will be the first in the world to leverage the new payment platform’s purchase control module to provide advanced functionalities for their corporate customers, including multinational corporations so they can better manage, analyse and control procurement expenditures. RBS will be marketing the purchase control solution to their customers as “Approval to Buy?” the new offering is the result of a yearlong collaboration between the two parties. Initially, RBS will be offering “Approval to Buy” to corporate customers in the UK, enabling them to streamline and automate their purchasing and accounts payable processes while keeping full control on how company money is spent. “Approval to Buy” will be able to generate unique purchasing card numbers for defined, oneoff purchases within a particular time frame,
such as a period of days. For example, a virtual card can be made operational for staff members who need to make miscellaneous purchases or who are not at a level of authority to own a corporate card. Steve Abrams, Global Group Executive, Commercial Products, MasterCard Worldwide commented: “With the first live transactions going through the MasterCard inControl platform, RBS’ corporate customers will soon see the tangible benefits of more transparency and better control over their spend. By leveraging the purchase control module within the broad capabilities of MasterCard inControl, RBS takes advantage of our multifaceted and innovative solution to better meet the needs of their customers.” Raghav Prasad, Head of Commercial Cards at RBS, said, “We identified there was customer demand for transaction controls that can be tailored to individual staff and business requirements. We wanted to offer customers the flexibility to undertake transactions within parameters reflecting the specific needs of their business. With MasterCard inControl, we were able to utilise the advanced controls and flexible functionality to design our ‘Approval to Buy’ solution which is tailored to meet our customer needs.” RBS will be working with their customers to setup the appropriate software so that each purchase can be duly authorised through internal control and procedures.
The unique card number provides corporations with convenience and security for all purchases, including those made through ecommerce, mail order and telephone. Additionally, companies can more easily reconcile their expenses to ensure all corporate spending can be analysed and properly accounted for. Jorn Lambert, Group Head of Commercial & Consumer Products, MasterCard Europe indicated, “RBS recognises the value and flexibility that MasterCard inControl allows them to provide to its customers and we are delighted to have RBS be the first issuer to implement the innovative platform. We have worked closely with them for many years to help grow their commercial card portfolio. Now, with the implementation of MasterCard inControl, we believe RBS brings change to this industry by addressing fundamental customer needs with a range of businessforward solutions.” RBS’ “Approval to Buy” solution will be offered to customers in the UK during the next 12 months. It will be brought to additional geographies, tailored to specific customer needs shortly thereafter.
?
What’s your view? If you would like to comment on this article please email: info@cardpaymentsolutions.co.uk page 13
card payment solutions
T +44 (0)161 928 0485
W
www.cardpaymentsolutions.co.uk www.purchasingcardnews.co.uk
E
info@cardpaymentsolutions.co.uk info@purchasingcardnews.co.uk
DataCash Acquisition of ACK Limited provides retailers with a one stop shop for multi-channel payment processing DataCash Group Plc, the AIM-listed Payment Services Provider, is pleased to announce that it has completed the purchase of ACK Limited for £3million in cash. ACK is a UK based software house specialising in providing software to manage the collection of credit and debit card payments for use in the Point of Sale (PoS) systems operated by high street retailers. ACK Limited is a small, but established and respected supplier of the electronic funds transfer (EFT) software used in many of the PoS devices deployed in the UK and Republic of Ireland. The software is purchased by retailers either directly or through the vendors of their PoS software. ACK has a well established client base in the retail and hospitality sectors and increasingly in the areas of unattended and contactless payment. ACK’s existing user base includes: Musgraves (Budgens & Londis), Somerfield, J.D. Wetherspoons, Greene King and National Tyres. DataCash represents over 900 merchants globally, providing them with a single interface to process secure payments on and offline, anywhere in the world. Its portfolio includes page 14
merchants from the retail, travel, eCommerce, telecommunications and gaming sectors, working with brands such as the Arcadia Group, Flybe, Boots, Zavvi and Ladbrokes. DataCash offers a market leading range of international payment options as well as value added services including risk management, allowing merchants to process global payments reliably, efficiently and with reduced risk of fraud. The ACK acquisition enables DataCash to offer an end to end Cardholder Present solution for the first time. The two companies have cooperated in the past to provide integrated Cardholder Present solutions to existing clients including Laura Ashley and Odeon. The combination of skill sets from both teams has resulted in innovative solutions for the merchants concerned, with benefits including; improved speed of authorisation, greatly enhanced reporting functions and additional data security. Respectively each company is strong in its relevant market, but together the strength of solution for the Merchant is amplified. The purchase of ACK will enable DataCash to further extend the scope of its outsourcing with UK and Republic of Ireland based retailers and will accelerate its move to provide a full service offering for markets using unattended and contactless payments. This includes solutions
for kiosk operators, vending service providers and ticketing operations. Merchants will benefit from the introduction of more innovative ways of supplying the combination of both managed payment services and EPoS and EFT applications, the ability to receive this advanced technology from a single source within a single price plan that includes software and services and, furthermore, the reassurance of dealing with a single, established organisation, capitalised at £300M, that can offer proven 24/7 support. Andrew Dark, Chief Executive of DataCash, said: “We are excited by the opportunities that this acquisition creates. We intend to grow the service provision to the users and the re-sellers who work with the ACK product suite by providing a simple and cost effective mechanism to enable them to avoid the complication and expense of running payment services in house. Furthermore the combination of the ACK suite and the DataCash service addresses the uncertainty of changes in the compliance rules that retailers continue to face and provides affordable scale on demand.”
?
What’s your view? If you would like to comment on this article please email: info@cardpaymentsolutions.co.uk
T +44 (0)161 928 0485
W
www.cardpaymentsolutions.co.uk www.purchasingcardnews.co.uk
E
info@cardpaymentsolutions.co.uk info@purchasingcardnews.co.uk
card payment solutions
‘Search...’ Purchasing Card Capable Suppliers Search Engine & Directory Making connections between Suppliers and Buyers Log on to: www.purchasingcardnews.co.uk and click on P-Card Capable Suppliers Directory
earch... The Purchasing Card Capable Suppliers Search Engine and Directory presently contains over 7000 MasterCard and Visa Purchasing Card Capable Suppliers at Level 1, 2 & 3.
S
This represents the vast majority of the UK Purchasing Card Capable Suppliers. Multiple supplier outlets are not listed unless otherwise detailed within the suppliers own Profile Pages of the Search Engine. Further Purchasing Card Capable Suppliers will be added to the Search Engine & Directory with the business categories updated enabling detailed searches by products and services. Search A password protected online directory and search engine, designed to assist both Private & Public Sector buying, purchasing and contracting personnel recruit from the Purchasing Card Capable Suppliers listed. Search Has been developed to offer a solution to supplier recruitment, by providing an on-line directory and search engine that profiles your business activities, products and services to thousands of industry buying, purchasing and contracting personnel on a regular basis.
Buyers can search quickly and easily at a glance all the information by: -
• • • • • • •
Business Categories Products & Services Merchant Category Codes Purchasing Card Level 2 & 3 Capable Suppliers All Level 3 Capable Suppliers Suppliers Name Region
Search... Purchasing Card Capable Suppliers Search Engine & Directory will be promoted regularly in:
•
Purchasing Card NewsLink twice monthly email broadcast to 22,000 industry contacts from both the Public and PrivateSectors.
•
Purchasing Card News publication issues circulated up to 10,000 Purchasing Card industry professionals.
•
Site prominence on: • Purchasing Card News web site • Card Payment Solutions web site
For further information please contact:Purchasing Card News, Castle Hill Farm, Castle Mill Lane , Ashley, Altrincham, Cheshire WA15 0RB Tel: +44(0) 161 928 0485 Fax: +44(0) 161 928 1713 Email: info@purchasingcardnews.co.uk www.cardpaymentsolutions.co.uk www.purchasingcardnews.co.uk page 15