Magazines Archives - 2010 Sep

NZ retailers need to step up EFTPOS upgrades
Story 7 - Retail Technology

NEW ZEALAND payments solution provider, Paymark, revealed last month that Kiwi retailers remain slow to upgrade their EFTPOS (electronic funds transfer at point of sale) terminals in order to meet with global security standards.

The company disclosed that about 59,000 terminals, with over 27,000 terminals in Auckland alone, required upgrades in order to process payments in accordance with new global standards released by Visa and MasterCard last year.

“Retailers need to recognise that this is a very real issue and one that, if not addressed, will affect their bottom line. Without the upgrade, retailers will not only be in breach of these standards, but will also be unable to process certain types of local and international card types as well as face disconnection from the Paymark network,” stated Paul Whiston, Paymark’s head of sales and marketing.

In collaboration with four main Australian-owned banks, the payments provider set a 1 June 2011 deadline for over 80,000 businesses that utilise 100,000 EFTPOS stations to be upgraded, ahead of the Rugby World Cup 2011 event, to be held in 13 venues nationwide.

Noting that the upgrades have also been hampered by the downturn, Whiston revealed that each terminal costs between NZ$1,200 (US$839) and NZ$1,500.

However, he added: “There are a number of upgrade options available that provide different capabilities and technologies. Many of these technologies aren’t suited for the majority of Kiwi businesses; most need a simple upgrade, not an entire makeover.”

John Albertson, CEO of the New Zealand Retailers Association, also stated: “A retail outlet without an effective EFTPOS terminal is in real trouble. What’s going to make it worst is the influx of people from the World Cup with new-generation cards. We need to get those numbers to come down pretty quickly because we are just not going to have the resources if we leave it to the last minute.”

While Paymark has the capacity to deploy “contactless” solutions in the market, Whiston said that, currently, this technology is not a necessity for Kiwi retailers. “Rather than spending unnecessary money, we urge retailers to talk with their banks or EFTPOS provider when deciding on the best upgrade option for their business,” he concluded. ra

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