Banks argue over card security plans

By KEVIN TAYLOR

The logo of a new security system for electronic payments will appear on many eftpos terminals and bank internet sites early next year, but rivals say it is just a rebranding exercise.

The system, Paymark, was uveiled yesterday by Electronic Transaction Services, owned by ASB, BNZ, National Bank and WestpacTrust.

The company claims to do nearly 90 per cent of New Zealand's eftpos transactions - although competitor Eftpos NZ says it now has nearly 20 per cent of the market.

Paymark will involve tougher certification for electronic payment systems, including eftpos terminals and the internet.

The system, backed by the four banks, excludes ANZ, which owns Eftpos NZ.

An Eftpos NZ director, Peter Marshall, said yesterday that Paymark was just a rebranding exercise.

He said it did not match the investment ANZ had made in new smart card technology and in bringing its systems in line with eftpos protocols which the rest of the world was adopting.

Electronic Transaction Services general manager Ron Brown said new cards, payment technology and interfaces were constantly emerging. "From the internet to digital television, preferred payment channels are always changing.

"Before using these channels, consumers and merchants will be reassured by Paymark that the channel or device will work, the system is certified, is secure and it is reliable."

Paymark would integrate eftpos and other forms of electronic payment, such as the internet, by providing a mark of security assurance for users.

But Mr Marshall said all eftpos transactions used the same protocols, and Paymark was merely a branding exercise in response to ANZ initiatives.

ANZ is about to introduce new smart-card-capable "E-Klick" terminals for thousands of New Zealand merchants.

This month, the bank started its "Zed" credit card, which includes an embedded chip offering better online security.

Mr Marshall said ANZ had made a substantial investment in smart card technology and new terminals, worth $70 million.

Mr Brown said Paymark was future-proofed because it could include new technologies such as mobile phone and digital TV payment channels.

The four banks will be working with retailers and Electronic Transaction Services to start Paymark from early next year.