No automatic EFTPOS disconnections on 1 January
Monday 29 October 2007
No automatic EFTPOS disconnections on 1 January 08
No EFTPOS terminals will be disconnected from the EFTPOS New Zealand network without customers having had plenty of advanced warning and ample opportunity to upgrade their terminals reassures Peter McLeod, Managing Director of EFTPOS New Zealand. Introduction of new security standards and microchip technology has required changes to both the EFTPOS network and individual EFTPOS terminals used by retailers. In some cases older terminals will need to be replaced, although the majority can be upgraded to support the new requirements.
The EMV and 3DES terminal upgrades will be compulsory for all merchants. EFTPOS New Zealand’s network processes around 30% of all EFTPOS transactions in New Zealand, and is one of two network that operate the “switch” platforms required to enable eftpos transactions. Paymark is the other provider.
“Customers will have a grace period beyond the 1 January 2008 deadline to meet the new EMV and 3DES security standards” says McLeod.
“This is in recognition of the deadline falling right in the middle of the busiest time of the year for many businesses”, says McLeod. McLeod is speaking out in reaction to recent comments from some terminal providers suggesting that thousands of terminals will be disconnected or simply switched off on the 1 January deadline date.
“This is incorrect and we want to reassure merchants and customers that they have absolutely no cause for concern.”
“Upgrading all the terminals held by our customers is a big undertaking and we are working with one group of customers at a time. While every effort is being made to complete these upgrades by 1 January 2008, a contingency period is required and we will be keeping customers fully informed of progress.”
As the owner of the platform, Eftpos New Zealand controls the timeframe in which terminals need to be upgraded on its network, and the date on which non-compliant terminals will be disconnected.
A number of merchants rent their terminals from EFTPOS New Zealand, and the company is currently upgrading all those terminals at no extra cost to those rental customers. Customers on the EFTPOS New Zealand network which own their own terminals or use terminals rented from other providers must make their own arrangements to upgrade their terminals. “However, these won’t be unilaterally switched off on 1 January 2008 in the event that the upgrade has not been completed” says McLeod, “but we encourage those customers to complete the upgrade as soon as possible.”
Every customer on the EFTPOS New Zealand network with a non-compliant terminal will receive a communication from the company in November and further communications will be sent in early 2008 to those still not upgraded. “No terminals will be disconnected without us first having given customers plenty of warning, and every opportunity to upgrade”, says Mr McLeod.