Paymentech Moves Forward With Frame Relay Tcp/Ip Communication Technology For Hospitality Clients

Paymentech showcased the communication network service at the Hospitality Industry Technology Exposition and Conference (HITEC) in Atlanta. The nation's third largest credit card processor also provided information related to the challenges of adopting various dedicated communication services for payment processing use.

Dedicated network connectivity provides broader bandwidth for larger transaction and batch volume as well as increased speed for faster authorizations. Network applications such as frame relay with TCP/IP offer a cost-efficient alternative to traditional leased line configurations. Paymentech's Network Services unit manages the frame relay networking and processes authorization and capture transactions.

"The general benefits of frame relay connectivity become more evident within sophisticated POS processing situations," said Rick Taylor, group manager for hospitality at Paymentech. "The adoption of newer technology presents opportunities and challenges. Merchants need to leverage the experience of their vendors, like Paymentech, to work through all issues during implementation."

Paymentech customers and prospects can be among the first in the industry to take advantage of processing payments via a frame relay environment with TCP/IP communication protocol. Paymentech currently installs and supports three basic frame relay configurations: (1) host capture using TCP/IP, (2) terminal capture authorizations with a specialized settlement batch upload using FTP (file transfer protocol), and (3) terminal capture authorizations and batch uploads/host capture authorization using X.25 protocol.

According to Taylor, hotel and resort merchants should approach a communication network configuration as both a financial and technological project. "Working together, the financial director and MIS head can ensure that their vendors - who represent property management systems, POS equipment, network connection hardware, software and middleware, and payment processing systems, - coordinate what is a major, but financially rewarding, undertaking."

Project management includes defining the roles of all POS-related vendors, employing the expertise of specialized payment processors, identifying all the components within the total solution, anticipating compatibility concerns including those related to the interaction of different versions of system software, and determining the level of equipment investment desired by the merchant.

"Venetian is committed to utilizing the latest in card and communication technology," said Steve Vollmer, director of MIS for Venetian Hotel and Resort in Las Vegas. "The application of frame relay with TCP/IP for payment processing is critical to the high volume, highly sophisticated POS environment at the Venetian."

"Electronic payment concerns continue to grow as an important factor in the overall profitability of a property," said Taylor. "That is evident in the attention financial managers are giving to more efficiently manage all aspects of credit card processes, including new technology that may fall somewhat outside the purview of finance and accounting."

With the addition of dedicated connectivity via TCP/IP, Paymentech continues to increase its offering of methods for merchant connectivity, both for authorization and capture of transactions. Paymentech Network Services currently offers traditional dial, dedicated (frame relay), satellite or VSAT, and wireless (CDPD and radio) POS services.

Paymentech, Inc., founded in 1985, provides full-service electronic payment solutions in merchant acquiring, third-party transaction processing and commercial card payment and information programs. The company processed approximately 2.2 billion total transactions and approximately $54 billion in sales volume during calendar 1998. Paymentech is the third largest processor of bankcard transactions and a leading issuer of commercial cards in the United States.