Eftpos axes 400 terminals from network
Hundreds of retailers across New Zealand were today disconnected from the computer network which linked their Eftpos terminals to banks, after the network operators said the out-of-date terminals posed risks to the safety and security of transactions.
About 400 Eftpos machines were disconnected from the Paymark network -- cutting off those retailers from processing Eftpos transactions.
"The disconnections come as a result of retailers who, despite months of warning, have not upgraded out-of-date terminals," said Paymark chief executive, Simon Tong.
Until today, the retailers -- ranging from small businesses to large corporate merchants -- operated under agreements with their banks, which allowed them extra time to get their equipment upgraded. But they had failed to do this.
"The message is simple: those retailers who do not upgrade in time will be disconnected," said Mr Tong.
"This particular group of retailers have had time to make the switch, but have ignored our warnings and as a result will be unable to process Eftpos transactions on our network".
A big provider of merchant services, SmartPay last month warned that up to a quarter of the nation's retailers, 35,000 shops, were unprepared for the upgrade.
Paymark said there was a June 1 deadline for all the nation's retailers to switch to the more secure version 6.0 Eftpos terminals. It had previously warned retailers that they would need the new terminals to cash in on the $1.25 billion expected to be spent by more than 71,000 overseas visitors watching the Rugby World Cup later this year.
"Most international tourists use chip cards, so we want to make sure your terminal can process their transactions, and that it's compatible with the latest card technology," Paymark told them.
The newer terminals would reduce the likelihood of electronic card fraud.
Paymark, set up by three banks as Electronic Transaction Services Ltd in 1989, has 100,000 terminals in shops, and processes over 75 percent of all electronic transactions in the New Zealand retail market for about 50 different debit cards.
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Comments and questions9
and the cost for each upgraded terminal is ?
Paymarks competitors are? What price from them?
Duh.....NZPA quality reporting again.
Another example of the failure of the "free-market" and of stripping such necessary services from government supply to private profiteers.
You can buy a compliant terminal from any number of providers. Cadmus Provenco mentioned in the article (via owner SmartPay) are the largest provider. There's a difference between who you use as your eftpos terminal provider, your bank and which processing network they use (Paymark for example).
Draco - WHAT!... are you actually serious?
I would love to understand your justification for the above!
Gee is it the 1st of June already I though it was still March - this year is going fast. I went in to Post Bank this week and they haven't up graded. That's probably a big bunch of the terminals and that will cause a few problems.
Draco, should it also be the Government's responsibility to make sure the photocopier in every private business has enough toner and that there is enough loo paper? The only people at fault here are the business owners who ignored the reminders. i guess receiving payment for services rendered just isn't important to some people.
Pete, why should the reporter do cost comparisons for these negligent business owners? It's not an advertising flyer.
OK Alex..I'm biting. My idle curiosity over what price implications on any business these terminals might be seem to have struck a nerve with you. So lets play the game...I suggest you give away your attitude clearly by using words such as ignored and negligent...wonderful to be able to hold such attitudes in a free market merchant customer relationship...and curiously echoing the bully boy statement of Simon Tong.
Now I smell a rat...for in any market I have witnessed bucket loads of attitude it usually occurs with cartels.
Question - 3x banks, 100k terminals, 75% of transactions...wonder if that sounds a tad monopolistic or anticompetive or cartel like in a miniscule market such as NZ?
I wonder how the lease rates compare to across the ditch or elsewhere?
Alex...thanks for raising this matter from idle curiosity to serious investigation needed....wonder of comcom or business associations have an opinion on the availability & price of these essential busines tools. Thanks for the heads up.
Pete I can barely follow your response.
The fact is that 0.4% of all retailers who are with Paymark failed to complete a process that the remaining 99.6% of Paymark customers were able to. I would think that as a Retailer one of your number one concerns would be ensuring that your Eftpos terminals were up to scratch. Why should Paymark carry the costs and associated security risks involved in having these out-dated machines on lease?
I could understand him perfectly and raises some good points.
In the UK my bank wanted to ensure my security was up to scratch. They gifted me some special calculator and updated all my chip cards for free. Rabobank does the same. Banks appear to be the most profitable link in New Zealands money go round and technology increasingly cheaper. I suggest that banks should now be lending FOC machines to its commercial clients to maintain loyalty. Businesses are falling over daily in this country. The cost of doing business is hardly helped by the banks and their subsidiaries like Paymark. In New Zealand dominant market share always equates to price gouging.
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