• The potential market for offering credit card authorization/check guarantee information services to retailers, financial institutions, and other companies is statistically awesome.

• Over 240 million consumers, using over 700 million credit cards, currently initiate over 7 billion transactions annually at an average cost of over 20 cents per transaction. This places the current credit card authorization services (CCAS) market potential at $1.5 billion in revenues.

• Another way to assess the same market is as follows: consumers currently spend some $300 billion for retail purchases utilizing credit cards. At an average of 3% of the charge amount, total expenditures for all credit card services, including authorization, are $9 billion. The portion related to credit card authorization is 20%; therefore, the 1985 market potential is $1.8 billion (the same order of magnitude as above).

• The gap between the current market and the potential market is very large. INPUT believes that less than 25% of all credit card transactions receive voice or electronic authorization.

• The potential market for check guarantee services (CGS) is even more impressive. Consumers currently write over 20 billion retail checks, the aggregate of some $500 billiion in total annual spending. Expenditures for CGS average 3% of the check amount; this places the potential market at $15 billion.

The gap between the existing market and the market potential for check guarantee services is even greater than that for CCAS. INPUT believes that penetration is currently less than 3%.


INPUT’S market focus report provides the following:

Strategic planning data on current user information services expenditures and forecasts by service type and delivery mode.

Issues that highlight emerging market opportunities and help the reader understand the changes taking place.

Emphasizes the critical importance of compatible financial transaction networks that interconnect financial institutions and commercial
companies with retailers utilizing authorization, POS, and ECR intelligent terminals.

The report also analyzes industry-specific user expenditures for credit card authorization and check verification/guarantee services. Cross-industry expenditures for services not unique to this market sector have been excluded.

The specific credit authorization/guarantee services analyzed in this report include the following applications:

Credit card authorization.

Credit card message switching (interchange) services.
Check verification.
Check guarantee.

INPUT recognizes Iha1 some vendors offer additional credit card related services in conjunction with credit card authorization services (such as credit card application processing, plastic card issuance, card transaction processing, billing, clearance, and settlement). These services are not included in this report.

The research in this report addresses the following issues:

The size and growth of the market for check/credit card authorization/guarantee services.

How the services are delivered.

Why the market is important and how it relates to other financial markets.

The key vendors and their market share.

The changes that are occurring in the marketplace and how these changes will affect services delivery.

The add-on opportunities that can be offered for related products and services.

Vendor market share data for the leading vendors is highlighted in Chapter V, Vendor Profiles.