Telecheck and
PaymentNet Form Partnership
to Offer First Internet Check Guarantee
Program
Houston (November 17, 1998) -
TeleCheck® Services, Inc., and PaymentNet
Inc. have formed a partnership to offer
merchants the first Internet check guarantee
program that will allow merchants to increase
market share by offering a safe, secure on-line
payment method to consumers who do not have a
credit card, or who prefer to pay by check.
TeleCheck, the world’s leading check
acceptance company, is a subsidiary of First
Data Corporation (NYSE: FDC); PaymentNet is a
leading out-source provider of secure,
Internet-based transaction and payment
processing services for businesses that sell
goods and services via the Web.
The partnership marks the
first time that a check acceptance company will
guarantee consumer checks for merchants who
offer goods and services over the Internet. The
two companies are currently engaged in a pilot
program with selected merchants with a national
market introduction expected in early
1999.
TeleCheck will provide the
electronic check guarantee service, which
reduces the risk of accepting checks for
merchants. With TeleCheck, merchants will never
see a bad check again because TeleCheck funds
the merchant’s bank account for approved
transactions regardless of whether or not the
check is returned by the consumer’s bank.
The merchant receives funds up-front, and
returns are sent directly to TeleCheck for
collection. PaymentNet will serve as the payment
gateway for the Internet check processing. It
provides real-time processing services for
multiple payment media, including credit and
debit cards and electronic checks, for a wide
range of large and small merchants, through an
automated multi-payment, secure
gateway.
"PaymentNet is focused
on lowering the barriers to electronic commerce
and to promoting the advancement of consumerism
on the Internet," said Bruce Hendrix,
chairman and CEO of PaymentNet. "Our joint
effort with TeleCheck to launch the first viable
Internet check processing service is an
important step in that direction. Giving
consumers the ability to securely use their
checking accounts – the most fundamental
payment mechanism in the United States –
for Internet-based purchasing will substantially
advance consumer-to-business e-commerce."
Currently, merchants have
limited options to offer consumers who prefer to
pay by check, or who do not have access to a
credit card. Consumers must mail in their checks
before an order is processed, which delays the
shipment of goods, and can be tedious and time
consuming. For merchants, this method increases
the risk of lost orders if consumers forget to
remit payment or change their minds. Other
options include the merchant printing and
depositing a check based solely on information
provided by the consumer, or processing a draft
as an Automated Clearing House (ACH) item,
although no check guarantee program for these
transactions has been previously available. Now,
with check guarantee, merchants can increase
market share by offering an additional payment
method while retaining peace-of-mind knowing
that the transactions are guaranteed.
"This partnership
enables TeleCheck and PaymentNet to offer a
significant new service to a widely diverse,
fast-growing merchant population," said
Steve Shaper, chief executive officer of
TeleCheck. "On-line sales are expected to
grow dramatically over the next few years, and
consumers will carry their affinity for checks
from the traditional check out stand to the
Internet merchant site. TeleCheck is committed
to reducing the risk in accepting checks for
merchants and is implementing measures to become
the leader in electronic check innovations. This
partnership is one more step in reaching that
objective."
TeleCheck, which provides
check guarantee, verification and collection
services, has recently launched a number of
services in the electronic payments industry. In
June, TeleCheck introduced Electronic Check
AcceptanceSM
(ECASM), which
provides the conversion of paper checks into
electronic items at the point of sale. In
August, TeleCheck announced its acquisition of
key assets of QuickCard Systems, Inc., including
its Checks By PhoneSM service. In October, TeleCheck
and Concord EFS announced agreements for
co-marketing check guarantee services and
electronic benefits transfer (EBT) services; and
earlier this month, TeleCheck announced the
acquisition of key assets of ATA Information
Systems’ recurring payments
business.
PaymentNet, Inc. is an
out-source provider of automated, highly secure,
Internet-based, real-time transaction processing
services for merchants of all sizes and business
approaches. PaymentNet is headquartered in
Pleasanton, California, and can be found on the
Web at www.paymentnet.com.
Contact PaymentNet corporate offices at
925/225-1670.
In 1997, Houston-based
TeleCheck authorized over $98.3 billion in
checks and processed more than 1.9 billion check
inquiries. For more information about TeleCheck
and its products and services, visit the
Internet site at www.telecheck.com.
Atlanta-based First Data
Corporation (NYSE:FDC) is a global leader in
payment services, electronic commerce and
information management products and services.
First Data and its principal operating units
process the information that allows millions of
consumers to pay for goods and services by
credit, debit or stored value card at the point
of sale or over the Internet; by check or wire
money. For more information about First Data,
please visit the Company on the Internet at
www.firstdatacorp.com.
###
Contact:
Jalinna Jones
TeleCheck
(713)331-7359
jalinna.jones@telecheck.com
Scott Collison
PaymentNet,
Inc.
(925) 598-1106
scollison@paymentnet.com |
