cps news no43

NEWSCard Payment Solutions

PURCHASINGCARD

www.cardpaymentsolutions.co.uk

incorporating:

The Information Exchange for Electronic Transactions & Card Payment Solutions

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

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E [email protected]@purchasingcardnews.co.ukT +44 (0)161 928 0485

…Following on from ‘Interchange’ an Australian perspective article in our last issue…

MasterCard TakesAction on Intra-EEACross-Border ConsumerInterchange FeesComplies with EC Decision,Appeal to ContinueMasterCard Europe (MCE)announced that as of June21, 2008 MasterCard istemporarily repealing itscurrent MasterCard andMaestro intra-EEA cross-border consumer cardinterchange fees inconformity with theEuropean Commission’sDecember 19, 2007 decision.MCE said it will continue its dialoguewith the Commission services about aninterchange fee methodology that theCommission services believe is consistentwith the decision. MCE also said it willcontinue to pursue its appeal of thedecision to the European Court of FirstInstance, which it filed on March 1.

On announcing MasterCard's decision,Javier Perez, President, MasterCardEurope, said:

“We said in December that althoughwe strongly disagree with the EuropeanCommission’s decision, we wouldcomply with it. At the same time, wehave solid legal arguments supportingour appeal of the decision to theEuropean Court of First Instance, andwe will continue to vigorously pursuethat appeal. MasterCard’s policy is tocomply with all applicable decisionsand regulations, but to challenge themthrough appropriate channels when webelieve that is necessary.

“MasterCard believes that its cross-border interchange system has keptthe cost of payment cards low forcardholders, and if left unchallengedthe Commission's decision will be badnews for European consumers.

“We trust that the Commission doesappreciate that some level ofinterchange is necessary to share costsamong all participants in a payment

system that operates across Europeand the world. However, despite ourhaving made several proposals toreduce substantially cross-borderconsumer interchange fees, we havenot yet reached an understanding withthe Commission services on futuresteps. Therefore, in order to ensure ourcompliance with the decision, we havetaken this action while we continuediscussions with them.

“Although we are complying with theJune 21 deadline, it’s important tokeep in mind that this decision onlyapplies to intra-EEA cross-borderconsumer card interchange fees Thelevel of these fees in the future willdepend on the result of our continuingdialogue with the Commission and,ultimately, upon the outcome ofMasterCard's appeal. Moreover thetransactions affected amount to lessthan five percent of MasterCard Europevolume, and we do not anticipate anysignificant near-term financial impactas a result of today's action. Nor do weanticipate being disadvantaged versusother four-party payment systems, inlight of the Commission's statedintention to apply the logic of thedecision to all similar systems.

"We remain committed to taking thenecessary steps to continue providinga system that benefits millions of Europeancardholders and merchants who rely onMasterCard and Maestro cards, and toproviding our customers with competitivepayments products and services.”

For further information on MasterCard’sposition on the European Commission’sdecision, go to.www.mastercard.com/us/company/en/newsroom/ec_decision.html

To learn more about interchange, go to:http://www.mastercard.com/us/company/en/ourcompany/interchange.html

Mike Skelcher, Head of Commercial CardsHSBC Bank plc, Level 37, 8 Canada Square, London E14 5HQ

Tel : 0207 992 5281

HSBCCommercial cards are stronglypositioned to be the solution ofchoice for B2B payments overthe next 10 years, for all businesses ranging from thelocal newsagent to the largemulti-national.

As consumers, we have shiftedour spend away from chequesto card payments at a rapidrate. This shift is being simi-larly reflected in the businessworld. Cards provide conven-ience, flexibility, access tocredit, security and control ofwork-force spend.

Cards also represent anextremely efficient mode ofe-payment. As the use ofe-commerce expands, this will undoubtedly accelerate thegrowth of B2B card payments.HSBC are committed to meeting the evolving paymentneeds of businesses in all market sectors and by all channels. This mirrors our philosophy of being a global,but local bank, understandingfully the requirements of our complete range of business clients.

Adflex Ltd, 284 Warley Hill, Brentwood, Essex CM13 3AB

Tel: 01277 268 755e-mail: [email protected]

Established in 1992, Adflex provide cutting-edge, innovativesoftware and general IT services for a diverse range ofindustries and clients including many blue chip organisations.We specialise in the development of Card Processing softwareand Payment Processing Systems which are approved byall the main acquiring banks.We consider ourselves leaders in this field and offer merchants the ultimate flexibilityin Credit and Purchase Card processing. Our solutions support Level 1 credit/debitcards through to Level 3 Purchase cards (Visa Global Invoice Specification and LineItem Detail) and also support 3D secure in an e-commerce environment.

Adflex ProductsAdflex Virtual Terminal (AVT)Adflex Virtual Terminal is a simple yet powerful windows application that can be runon 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 gatewayremoving 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, takeadvantage of our Bureau Service. Simple send us your invoices in electronic formatand we’ll do the rest for you.

The people we employ are highly trained, plain speaking and experienced in thefield of Payment Card Processing. Whether you are a small owner operated companyor a part of a large multinational, our people will listen carefully to your requirementsand deliver a solution that fits.

W www.cardpaymentsolutions.co.ukwww.purchasingcardnews.co.uk cardpaymentsolutionsE [email protected]

[email protected] +44 (0)161 928 0485

Editorial:You can e-mail all your news, views, features & events for publication to: [email protected]

Advertising:For advertising, feature sales and sponsorship contactPeter Gittins on +44 (0) 161 928 0485 or [email protected] orwww.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 0485Tel: +44 (0)161 928 3502Fax: +44 (0)161 928 1713Mobile: 07793 584166www.purchasingcardnews.co.ukwww.cardpaymentsolutions.co.ukemail: [email protected]

No article may be reproduced in part or in whole without permission of the publisher Purchasing CardNews is published and printed by Caxton House Marketing Ltd. © Copyright: Caxton House MarketingLtd 2007

The publishers are not liable for the statements made and opinions expressed in this publication.

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 6sectors and technologies

The Payments Cards & e-Payment SolutionsConference 2008 - Preview 7

The Payments Cards & e-Payment SolutionsConference 2008 ‘The Next Generation’ 8

The Payments Cards & e-Payment SolutionsConference 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 inControlTM 13

DataCash Acquisition of ACK Limited provides retailers with a one stop shop 14for multi-channel payment processing

‘Search...’ Purchasing Card Capable Suppliers Search Engine & Directory 15


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What is a Purchasing Card?A credit card that is used to purchasegoods or services. When used, the gross,net and vat values are captured whichnegates the need for invoices and providesevidence for vat.

Why Purchasing Card?Purchasing card is the most cost effectiveprocess for purchase to payment that currently exists. The supplier needs tounderstand why their customer wants touse it, and the benefits available to bothparties.

We know that traditional procurement methods can be cumbersome, inefficientand expensive to manage. It has been estimated that to purchase an item valuedat £5 can cost some organisations over £50because of the time and people involved toraise an order, get it approved, get it signedoff, be purchased and taken through theaccounts process. The item bought with apurchasing card makes a huge saving intime, process and people involved.

The person making the purchase, the cardholder, has a direct relationship withthe supplier. They can discuss the item,size, colour, quantity, delivery date etc.rather than just the impersonal purchaseorder which does not allow for variation insize, colour, quantity.

Large organisations could have numerousbuyers, several of them buying stationeryfrom several stationery suppliers. Through management information, they can select a single preferred supplier and put all theirorders through just one. Probably earningbigger discounts, certainly reducing theadministrative and accounting issues. The organisation, public or private, introduces a purchasing card scheme using 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 budgetcontrol by card, cardholder, category ofgoods, by week or by month. It also givesvery valuable management information onhow their business is running.

To have a successful purchasing cardscheme, it is essential that they recruit sup-pliers who are purchasing card capable.

What does it mean to the supplier?There are now so many local authorities,health authorities, schools, hospitals andprivate 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 investin a system to become capable. There arebenefits, not just to the buyer, but to the supplier as well.

• Every transaction is authorised.

• 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.

• 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 businessthrough purchasing card capability.

Supplier’s considerationsBefore embarking on becoming purchasingcard 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 theircustomer going to use.

• What level of information does the customer require.

It is critical to find these things out inadvance of making any decisions. Theanswers will shape all future decisions.

There are 3 typical levels of card information.

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.

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 integratedsolution is required. The supplier shouldnote that if they can do level 3, they canautomatically do level 2 and 1, but not the reverse.

Those suppliers who carry out a high volume of transactions may want a systemthat is directly linked to their sales order processing system.

Purchasing cards are almost 95% cardholder not present with the transactionbeing carried out via telephone, fax oremail. Yet in some cases, there will be acardholder present, at a trade counter forexample, so the supplier needs to considerchip and pin technology.

There are costs in systems and time associated with any choice. The suppliermust work with the customer to determinewhat information is needed, and what itmeans to the suppliers business processby introducing new methods.

If the supplier already accepts credit/debitcards, then it should only be a case of discussing the new requirement with hisbank. If the supplier is new to credit/debitcards, then they need one of the main UKacquiring banks to sign them up. The goodnews is that most banks are now workingclosely with major customers to assist withsupplier recruitment.

There are excellent forums, workshops, and industry opportunities which can provide unbiased information in helping thesupplier determine the right decision fortheir business.

Steve WilkinsHEAD OF OPERATIONS, ITS

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RBS leads the way with ‘Tap and Go’ payments for taxis The Royal Bank of ScotlandGroup will launch the first pilotof a ‘Contactless’ debit andcredit card payment service for taxis in the UK.

Cash has traditionally been the preferred choiceof payment for taxis but RBS is leading the wayby introducing new technology to help the UKtaxi and private hire industry adapt to increasingcustomer demand for flexible payment choices.RBS research has revealed that nearly half ofLondoners would take more taxi journeys if theycould just ‘tap and go’, with 42% saying theywould pay by card if they had no cash on them.

RBS, who were the first to launch Contactlesspayment technology in the UK, will pilotContactless card acceptance, in association withMasterCard PayPass, in 25 London based Xetataxis as part of the Contactless London Launchprogramme, with plans to extend the service toit’s whole fleet if demand meets expectations.The technology for the pilot has been developedin partnership with Commidea one of the UK’sleading developers and provider of cardprocessing systems.

Customers wishing to pay using Contactless willsimply hold their Contactless-enabled debit orcredit card up to a secure reader fitted in thecab to make their payment. The Contactless

solution can be used to accept fares of £10 orless meaning customers no longer have to huntfor cash or change for shorter journeys acrossLondon. Contactless cards can be used for faresabove £10; however the transactions will beprocessed in the same way as traditional cards.

Contactless payments are already established inmajor cities around the world. In the UK,demand is expected to continue to increase asmore customers are issued with Contactlessenabled cards.

Ron Kalifa, Managing Director at The Royal Bankof Scotland said “With Contactless, customerswill appreciate the convenience and speed ofthe card as well as the freedom from worryingabout whether they have enough money for theirtaxi fare. Drivers will benefit too because paymentis fast and there is potential to attract morecustomers who do not have cash available orwould not normally take a taxi for ‘lower fare’ journeys.”

Geoffrey Riesel Chairman and CEO of RadioTaxis Group, of which Xeta Taxis forms a partadds “We want to offer our customers theultimate flexibility in the way they pay for theirtaxi journey. We know our customers alreadyenjoy the benefits of paying by debit or creditcard and this partnership with RBS Contactless now provides the customer with even greater choice.”

Leigh Clapham, General Manager, DevelopedMarkets, said, “Last year, MasterCardintroduced the first ever Tap & Go payments inNew York’s iconic yellow cabs. By working withRBS on this new pilot in London, we’re makinglife easier for busy consumers in another one ofthe world’s fastest-paced cities.”

Contactless payment is the latest innovation onoffer from RBS to help the taxi and private hiremarket meet consumer demand to pay by card.A recent survey revealed that 77% of taxidrivers said accepting card payments helpedthem meet customer demand, with 78%agreeing card payments made customerpayment 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:[email protected]

?

British tennis star of the moment,Andy Murray, using the RBS cardwith MasterCard PayPass.

e are pioneers in the fast expandingPurchasing Cardmarket providing a

range of bespoke and off theshelf transaction solutions forMastercard, Visa and AMEXPurchasing Cards. Ourindependence of scheme,issuer, acquirer andmanufacturer enables us tosupport all major debit, creditand purchasing cards, andprovide multi-acquirersolutions.

ITS can provide solutions forlow volume B2B transactionsthrough to fully integrated,multi-merchant, multi-currencysystems enabled for Levels 1, 2, 3 and VGIS data.

Terminal pollingBoth magnetic stripe and chip & pin capabilityto process all cards up to level 3 purchasingcards. ITS dials in and collects a file containingyour transactions at a specified time.

Procurer Online (POL)Ideal solution for customers who want to beLevel 1,2 & 3 capable and are looking for theflexibility and freedom to access their owntransaction data. Approved by all the major UKacquiring banks and HM Revenue and Customs,POL is a secure internet based card processingsystem for credit, debit and purchasing cardtransactions that can be accessed from any PCwith web connection.

Transactions are processed in real time via asecure web page provided by ITS, so customerscan cut out the time consuming paperwork orpurchase order and invoice preparation.

We have created an animated demonstration which you can view at www.procurer-online.com/demo

Procurer ERPInterfaced solution for processing credit,debit and purchasing card transactions (level 2 summary, level 3 LID & VGIS).It enables companies to integrate existing orderprocessing or mail order systems with a UKAPACS compliant credit/debit and purchasingcard processing system. The Procurer ERPsolution is provided in several variants, dependingon how a specific merchant wishes to operate.Transaction details can be processed online, inbatch, or a combination of both.

Invoice matching service (IMS)IMS is a service that can be used to associateand match level 3 invoice data with level 1financial information processed through EMV POSterminals. ITS will simply match the addendumdata together with the terminal data, and submitto the acquiring bank in one single file. Thisallows you to benefit from the security of chip &pin whilst being able to provide full addendumdata to your customers.

ITS customers can benefit bysubscribing to our easy to useonline e-Statements service;This contains simple yet effective tools foranalysing and searching the transactiondatabase. The service is updated early eachmorning to show transactions from the previousday that have been processed and submitted tothe acquiring bank(s) for settlement.

Management Information (MI) reportingITS is able to provide bespoke reports detailingany type or level of information captured duringthe transaction handling process. MI reports areparticularly useful for customers that utilise ourspecialist, Level 4 data handling service.Additional data outside the usual financialroutines can be captured and reported.

Supplier RecruitmentAs leading industry experts, with thousands ofsuppliers using our solutions, we can assistorganisations with supplier recruitment throughseminars and meetings, to outline the benefitsand growth of the Purchasing Card Industry.We determine ‘best fit’ solutions and provideongoing product support through online demosdocumentation and training.

ConsultancyITS is able to provide a full consultancy serviceand can arrange to meet a prospective clientand discuss their particular requirements andService Level Agreements. This can be for anypart of a project or a whole end to end solution.Whatever the requirements, major or minor, ITShas a wealth of knowledge and skills in providingsolutions for credit/debit card systems,Purchasing Card systems and Loyalty systems.

We have strategic relationships with a numberof suppliers, banks and scheme providers, so itis possible that we may be able to achievesignificant savings on a client's behalf.

Contact CentreOur contact centre staff specialise in PurchasingCard expertise and managing clients’expectations. We provide full business hourssupport for all customers as standard and areable to facilitate additional 1st, 2nd and 3rd linesupport depending on customers needs. Ifrequired, clients can talk specifically to theAccount Managers who are experts where theirparticular 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.comor email [email protected]

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ITS is a leading industry expert inTransaction Solutions for all businesssizes sectors and technologiesSpecialists in developing supplying and supporting software & services for any form of transaction handling like B2B addendum EFT Loyalty & Citizen Cards

The Payments Cards & e-Payment SolutionsConference 2008‘The Next Generation’

www.purchasingcardnews.co.uk/conferenceThe Seventh Annual ‘Information Exchange Conference2008’ for Payments Cards & e-Payments Solutions - TheNext Generation - looks forward at all future aspects ofElectronic & Commercial Card Payment Solutions & Services.

The 2008 Conference will stage fourteen individual presentations throughoutthe day highlighting an extensive range of products and solutions on offerthat provide you with the background to innovative payment solutions andservices 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 industry-leading specialist from commercial card schemes, banks, card issuers, andthe 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 Gittinsemail: [email protected] or [email protected]: +44 (0) 161 928 0485 Fax: +44 (0) 161 928 1713www.purchasingcardnews.co.uk or www.cardpaymentsolutions.co.uk

Lancashire County Cricket Club Conference Centre Old Trafford Manchester M16 0PXThursday 13th November 2008 from 10:00 to 16:30 - Registration from 08:45Lunch and Refreshments are provided - Free on-site Car Parking is available

Sponsored by

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In the ten years since the introduction ofthe Government Procurement Card for thePublic Sector, Purchasing Cards havebecome well established throughout thePublic Sector as an easy to implement, costeffective and efficacious means of payingfor all manner of goods and services aswell as an efficient tool for T&E spend,either as “walking plastic” or viacentralised booking.

The next few years however willundoubtedly bring innovation in the natureof products and services offered under the“card” wrapper, not least in response tothe increasing challenges that competingtechnologies 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, federaland municipal levels in many overseas countries, pre-paid debitcards are now gaining a foothold in the UK, offering hugepotential for streamlining payments and money disbursements.

The pre-paid card is simply one holding a fixed value that isdebited from the organisation’s account at the time that the cardis activated.Cards may be either re-loadable and issued to namedindividuals or single use in which case the card expires when

the value is either exhausted or the card is cancelled with there-credit of any outstanding balance.

They are ideal for use where the issue of standard cardswould not be sanctioned, for example to restrict expenditure toan overall budget limit which cannot be exceeded or whereexpenses need to be covered, say hotel and meals for anoccasional traveller, but with a fixed ceiling on whatcan be spent.

Single uses fixed value cards are an ideal replacement for cashand cheques, giving much better security; accountability,acceptability and visibility of spend.

An example might be where emergency or grant paymentshave to be made to individuals such as the issue of schoolclothing 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 UKpublic sector organisations.

Royal Bank of Scotland have recently announced the UKlaunch of “Approval to Buy”, MasterCard’s exciting andinnovative product which brings an hitherto unknown degree ofpre-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-useapproval workflow can be set for each transaction givingorganisations complete control over the purchase and paymentin contrast to standard card practice where the supplier initiatesthe transaction and its value.

One of the major constraints of standard P Card is the fearthat it can be used for unauthorised or off-contract purchases. Incovering this, “Approval to Buy” adds a completely newdimension to Purchasing Cards and opens up many new areasfor use.

Payments Cards & e-Payment Solutions Conference“The Next Generation”‘The times - they are a changing - in more ways than one’


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“GPC III”The current GPC II agreement expires in March 2010 andOGCbs have just released an OJEC notice asking forexpressions of interest from those wishing to provide the nextgeneration of cards and associated solutions/services for the UKPublic Sector - with the aim of having new frameworkagreements in place by the second quarter of 2009ready for the start of 2010.

This tender is significantly different from the previous twoiterations of GPC. It is clearly designed to maximise the rangeof products and services offered and perhaps, more importantly,to achieve a broader span of providers than in the past, astrategy that should attract more innovative and competitiveproposals from bidders.

It is particularly noteworthy that OGCbs are seekingresponses from “issuers” and solution/service providers ratherthan “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 andAssociated Services

• Lot 2: Prepayment Cards, Contactless Cards andAssociated Services

• Lot 3: Software Integration, Expense Management andAssociated Services

Bids can be for one, some or all of the lots depending on theresponders’ portfolio of products and interest in any particularpart of the tender.

So what doesthis all mean forthe players in thismarket?

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 afar changing and ranging choice of awards.

The Public Sector will need sufficient knowledge to be able tomake informed decisions. Many users will be looking forwardto the opportunity to take up the new offerings to expand theircard programmes whilst others might simply what to stick withthe basic P Card or T&E product but move to an issuer whoprovides a better version or added benefits such as web basedcard management solutions.

The timescale means that all existing GPC users and some ofthe rest who are contemplating starting card programmes willhave to start thinking about what they want to do come January2010. Some may choose to stay with their existing bank eitherwithin 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 tomake knowledgeable decisions for the products/services thatbest meet their needs.

Choice is a good thing but it will present users with adilemma on how to effectively gather sufficient marketinformation to make the right choice from a plethora ofproducts and providers.

Issuers and software/service providersNow those providing any of the products/services outlined inthe lots above have a limited window of opportunity in which to respond to the expression of interest.

continued over...

Payments Cards & e-Payment Solutions Conference“The Next Generation”

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This may be either directly on their own behalf, be part of theoffering of another bidder or indeed under both scenarios.Those lucky enough to be included in the frameworkagreements when awarded in 2009 will have a big marketingand selling task on their hands.

Both existing and potential new Public Sector organisationswill be seeking hard and fast information on the products andservices that the new GPC framework makes available and thedifferences/advantages each has.In many cases their knowledge will be sketchy, particularly inrespect of relatively new concepts when they may not yet fullyappreciate their applicability and benefits to their organisation.

Having said that, there is already pent up demand for such aspre-paid cards and more sophisticated card managementsystems, so although the framework start date of Jan 2010 mayseem a long way away it is during 2009 that many potentialcustomers will be looking at the market and making preliminarydecisions on which way they will jump.

P-Card MarketBasically the “Card Market” can be split into two camps, PublicSector organisations that have an existing card programme andthose that don’t.’

Both areas can be sub-divided into those Public Sectororganisations that may be considering alternatives to P-Cards,such as P2P and e-invoicing and those organisations that are notat present.

Organisations that have existing P-Card programmes are goingto be interested in learning about solutions which enhance thebasic 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 thebasics of a standard card programme. Some of the largerorganisations will also be questioning whether cards make senseif competing P2P is affordable although it may be that theadded value extras may push these down the card route.

Options for consideration.

• Existing programmes that has met the challenge of P2Pand continues to see a need for card payment solutions

• P2P systems with Payment Cards as an embeddedpayment method.

• Lodged (hosted) Cards, this can tie in with P2P, be standalone or part of a standard card programme.

• Pre-paid cards, rechargeable and one-shot use

• Web based Card Management solutions

• Pre-approval

• Lodge Cards for enhanced travel MI

• “Card and e-Payment - the next generation”. It could bebuilt around a hub - the card platform - with variousofferings hanging off it.

Assuming that there is an extensive range of products andsolutions on offer under the new contract and the public sectorappreciate that there are no barriers to them taking up any ofthem, then there will presumably be a “no holds barred”marketing campaign by all and sundry during 2009 to keep orwin the business!

The Manchester ‘Payments Cards & e-Payment SolutionsConference’ on November 13th offers an early opportunity forpotential suppliers to present their offerings to an influentialaudience of public and private sector key personnel who will beinvolved in the decision making on how they develop their P-Card programmes.

For delegates it will be an equally succinct chance for them tohear about some of the products & services that are likely to beavailable under the OGCbs framework(s) and meet with manyof the providers, the start of the information gathering process.

Choice is a good thing and competition amongst providers willhopefully lead to even more innovation to overcome thelimitations that have constrained the maximum potential ofcards being achieved in the past.

The new GPC framework(s) aim to give Public Sectororganisations more choice and much increased opportunities toeasily embrace the Next Generation of products & services.

All rights reserved © Caxton House Marketing Ltd. July 2008

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The Payments Cards & e-Payment SolutionsConference 2008General Information

Sponsored by

DirectionsLancashire County Cricket Club is situatedjust 2miles South of the Manchester city centre.

By RailFrom Manchester Piccadilly Station 10 min by Taxi

By MetroFrom Manchester Piccadilly Station 15minby Metro to Old Trafford two stops from thecity centre (take the Altrincham service)

By AirFrom Manchester International Airport20mins by Taxi (allow an extra 15mins at peak times)

By RoadFrom M6 Jn19 North & South follow A56signs to city centre.

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 Parking24 Hour Car Parking is available for delegates attending the Conference or staying overnight at the Old Trafford Lodge

Information For All DelegatesCloak RoomA secure cloakroom situated at the entranceto the conference area will be manned from09:00am until 21:00pm on the day of the Conference.

Secure StorageSecure storage can be provided for a temporary period: - Contact Conference Office.

Mobile PhonesWe would advise delegates to have theirmobile phones switched off during the seminars, presentations and workshops.

Lunch and RefreshmentsWould you please advise us of any specialdietary requirements (vegetarian, allergies,Hilal or Cosha prepared foods) by Monday 3rd November 2008.

Refreshments and Bar Refreshments will be available throughout theday. A complimentary drinks reception, courtesyof Purchasing Card News, will be held at theend of the days agenda, a pay bar will beavailable from 18:00hrs until 21:30 hrs.

Delegate PassesThe delegate’s pack and name badges will beavailable at registration from 08:45hrs onThursday 13th November 2008.

Delegates are advised to display their namebadges whist attending the conference.

Conference AgendaCaxton House Marketing Ltd reserve theright to amend the conference agenda, timings and dates up to four weeks prior to the event.

NoteLancashire County Cricket Club is privateproperty and their terms and conditions forsecurity and access do apply, admission tothe conference is by invitation only from theapproved Conference booking form.

Caxton House Marketing Ltd and Lancashire County Cricket Club cannotaccept any liability for loss or damage to personal property.

For further Conference information pleasecontact the Conference Office:

Conference OfficeTel: 0161 928 0485 e-mail: [email protected]

MBNA and Manchester CityFootball Club, working withMasterCard, have announcedthe launch of Europe’s first pilotprogramme to issue seasonticket holders with a reloadableMasterCard® Prepaid withPayPass™ contactless card,which can be used both to gainaccess to the City of ManchesterStadium utilising the existingsmart card technology* onmatch days and to purchaseitems inside and outside the ground.

The Manchester City FC MasterCard PrepaidSeasoncard with PayPass will replace thestandard season ticket currently issued tosupporters. Approximately 3,500 season ticketholders in the North Stand Level 2 have beenchosen to take part in the trial, which will lastuntil the end of the season during which timebars and stands in that area will acceptTap&Go™ payments for purchases under £10.To pay, participating fans simply need to taptheir Manchester City FC MasterCard PrepaidSeasoncard against a specially equippedPayPass reader, greatly reducing queuing timesfor small purchases by removing the need toinsert the card, enter a PIN, or fumble for change.

As a prepaid card, fans can also choose to ‘topup’ the Manchester City FC MasterCard PrepaidSeasoncard , as they would a prepaid mobilephone, and use the card anywhere in the UK forcontactless and Chip & PIN payments where theMasterCard PayPass or MasterCard acceptancelogos respectively are displayed.

Cards can be loaded with additional funds either online at www.mcfc.co.uk, over thephone on 0870 062 1894, or via a PayZonepoint at retailers.

Duncan Martin, Head of Retail at ManchesterCity Football Club, said: “Once again ManchesterCity Football Club is leading the way oninnovative solutions for improving the match dayexperience for supporters. This technologyallows Manchester City supporters to access thestadium electronically and make purchasesunder £10 quickly, all by using just one card.This will help reduce queuing time and allowsupporters to get into their seats for the game.”

Brendan Jones, Product Executive at MBNA,said: “MBNA is delighted to work with ourpartner, Manchester City, to help deliver the firststadium contactless prepaid card in Europe.These cards are used in stadiums throughoutthe US and we are delighted to be the firstissuer to introduce them into the UK market.”

John Bushby, General Manager, MasterCardNorthern Europe, commented: “In a Europeanfirst, a single piece of plastic will enable footballfans to gain access to and make payments attheir home ground. A tap of your MasterCardPayPass card takes less than a second1 and ourextensive experience in US stadiums hasalready shown the time and cost efficienciesthis technology can bring to both fans andonsite retailers, in terms of the speed,convenience and safety of contactlesspayments, compared to cash.”

In the UK alone, there are currently in excess of20 billion payments under £10, with a value ofapproximately £200 billion a year 2. PayPass isthe new faster, more convenient and safe wayto pay for these everyday small purchases of£10 or less.

Prepaid is one of the most rapidly growingsectors in the payments industry, with totalspend on prepaid cards in the UK estimated to reach $34billion by the end of 2010 3.Their popularity is driven by the financialfreedom they offer to cardholders, who canaccess the security, convenience and globalacceptance of a payment card simply bypurchasing it over the counter, without needingto link it to a bank account.


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he Royal Bank ofScotland (RBS) andMasterCard Worldwideannounced they have

joined forces and implementedMasterCard’s state-of-the-artpayment platform,MasterCard inControl.

MasterCard inControl builds on MasterCard’sunparalleled global processing platform andcombines enhanced authorisation controls withan intelligent routing capability and personalisedrealtime communication features including alertfunctions, for both Commercial and Consumerproducts. The Royal Bank of Scotland will be thefirst in the world to leverage the new paymentplatform’s purchase control module to provideadvanced functionalities for their corporatecustomers, including multinational corporationsso they can better manage, analyse and controlprocurement expenditures.

RBS will be marketing the purchase controlsolution to their customers as “Approval toBuy?” the new offering is the result of ayearlong collaboration between the two parties.Initially, RBS will be offering “Approval to Buy”to corporate customers in the UK, enabling themto streamline and automate their purchasingand accounts payable processes while keepingfull control on how company money is spent.“Approval to Buy” will be able to generateunique purchasing card numbers for defined,oneoff purchases within a particular time frame,

such as a period of days. For example, a virtualcard can be made operational for staff memberswho need to make miscellaneous purchases orwho are not at a level of authority to own acorporate card.

Steve Abrams, Global Group Executive,Commercial Products, MasterCard Worldwidecommented: “With the first live transactionsgoing through the MasterCard inControlplatform, RBS’ corporate customers will soonsee the tangible benefits of more transparencyand better control over their spend. Byleveraging the purchase control module withinthe broad capabilities of MasterCard inControl,RBS takes advantage of our multifaceted andinnovative solution to better meet the needs oftheir customers.”

Raghav Prasad, Head of Commercial Cards atRBS, said, “We identified there was customerdemand for transaction controls that can betailored to individual staff and businessrequirements. We wanted to offer customers theflexibility to undertake transactions withinparameters reflecting the specific needs of theirbusiness. With MasterCard inControl, we wereable to utilise the advanced controls and flexiblefunctionality to design our ‘Approval to Buy’solution which is tailored to meet our customer needs.”

RBS will be working with their customers tosetup the appropriate software so that eachpurchase can be duly authorised throughinternal control and procedures.

The unique card number provides corporationswith convenience and security for all purchases,including those made through ecommerce, mailorder and telephone. Additionally, companiescan more easily reconcile their expenses toensure all corporate spending can be analysedand properly accounted for.

Jorn Lambert, Group Head of Commercial &Consumer Products, MasterCard Europeindicated, “RBS recognises the value andflexibility that MasterCard inControl allows themto provide to its customers and we are delightedto have RBS be the first issuer to implement theinnovative platform. We have worked closelywith them for many years to help grow theircommercial card portfolio. Now, with theimplementation of MasterCard inControl, webelieve RBS brings change to this industry byaddressing fundamental customer needs with arange of businessforward solutions.”

RBS’ “Approval to Buy” solution will be offeredto customers in the UK during the next 12months. It will be brought to additionalgeographies, tailored to specific customer needs shortly thereafter.

T

RBS Joins Forces with MasterCard toImplement MasterCard inControl™

Innovative platform provides RBS’ corporate customers withadvanced controls to better manage purchasing expenditures


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DataCash Group Plc, the AIM-listed Payment ServicesProvider, is pleased toannounce that it has completedthe 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

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 thisacquisition creates. We intend to grow theservice provision to the users and the re-sellerswho work with the ACK product suite byproviding a simple and cost effectivemechanism to enable them to avoid thecomplication and expense of running paymentservices in house. Furthermore the combinationof the ACK suite and the DataCash serviceaddresses the uncertainty of changes in thecompliance rules that retailers continue to faceand provides affordable scale on demand.”

DataCash Acquisition of ACK Limited provides retailers with a one stop shop for multi-channelpayment processing


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‘Search...’ Purchasing Card Capable Suppliers Search Engine & DirectoryMaking connections between Suppliers and Buyers

Log on to: www.purchasingcardnews.co.uk and click on P-Card Capable Suppliers Directory

earch... The Purchasing Card CapableSuppliers Search Engine and Directorypresently contains over 7000 MasterCard and Visa Purchasing

Card Capable Suppliers at Level 1, 2 & 3.

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, designedto assist both Private & Public Sector buying, purchasing and contractingpersonnel recruit from the Purchasing Card Capable Suppliers listed.

Search Has been developed to offer a solution to supplier recruitment, byproviding an on-line directory and search engine that profiles yourbusiness activities, products and services to thousands of industry buying,purchasing and contracting personnel on a regular basis.

For further information please contact:-Purchasing Card News, Castle Hill Farm, Castle Mill Lane , Ashley,Altrincham, Cheshire WA15 0RBTel: +44(0) 161 928 0485 Fax: +44(0) 161 928 1713

Email: [email protected] www.purchasingcardnews.co.uk

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• Business Categories

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• Merchant Category Codes

• Purchasing Card Level 2 & 3 Capable Suppliers

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cps news no43

Documents

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ec decision

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