VAN NETWORKS: KEY TO SERVICE OFFERINGS

VAN NETWORKS: KEY TO SERVICE OFFERINGS

• Nationwide, value-added networks (VANs) are the key to the successful marketing of any financial transactions service including CCAS and CGS.

Sears and J. C. Penney are entering the marketplace by piggybacking CCAS/CGS on existing networks.

TYMNET has made arrangements with MasterCard for VAN services for MasterCard electronic transactions.

AT&T-lnformation Services has enormous potential for becoming a significant market participant.

• To reach into the retail marketplace, networks have many entry nodes.

Data entry nodes must be capable of handling a variety of terminals, protocols, and message formats.

Programmable communications intelligence in newer terminals has proved very effective.

• CCAS and CGS data networks must interface with each other and with interchange networks to effectively route transactions. Little standardization exists; message-protocol conversion is a must at each interface which creates unnecessary overhead.

• Nevertheless there is a growth trend toward network integration. Visa and MasterCard are comtemplating integrating their national interchange networks (were this to happen they would reap enormous cost savings benefits).

VAN NETWORKS: KEY TO SERVICES OFFERINGS

• Multiple Entry Points Critical

– Terminals

– Protocols

– Message Formats

• Message/Protocol Convention at the Interface

• Trend Toward Network Integration

– Transaction Interchange

– Credit/Debit Card

– Voice/Data