BT Payments and Transactions Professional Services Package for Merchant Acquiring

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1 Bringing it all together BT Payments and Transactions Professional Services Package for Merchant Acquiring The payments landscape is a changing one, characterised by globalisation, regulation, new technology and increasing diversity of consumer payment methods. There is, therefore, a growing challenge to manage the complexity associated with the provision of a secure, high quality, end to end service to all stakeholders in the payments value chain. BT is a provider of payment services to approximately 20 milion retail consumers and a global provider of managed infrastructure to the Card Schemes, Banks and Retailers. As a result BT is uniquely placed to address the vast and varied market for Payments and Transaction processing solutions. BT Professional Services Packages are concise, professional service-led engagements that help form the business case for change. BT s Payments and Transactions engagement responds directly to the key challenges faced by our customers involved in the payments industry.

2 BT Payments and Transactions Professional Services Package for Merchant Acquiring What are the challenges? The payments environment is undergoing substantial change at present. There are a number of key drivers for this change which present challenges to those involved in the payments processing value chain. These drivers include: Technology change the evolution of core technologies is seeing a drive towards ubiquitous IP enablement The Introduction of new legislation in Europe (e.g. Single European Payment Area) is driving the creation of a more joined up infrastructure and consolidation of payment service providers across multiple countries Convergence of devices - smart cards and mobile devices (e.g. phones, PDAs) Fragmented marketplace with many suppliers Emergence of low value payments - presenting a variance on traditional payment processes Linking of payment processing to ticketing, loyalty and mobile top ups Large numbers of mobile phone users in developing countries seen as potential customers for new and emerging payment offerings Proliferation in the number and types of connections between a point of sale and a host data centre Increase in transaction types and volumes resulting in inevitable increases in costs to manage and resolve issues in the value chain Growing concerns at levels of security. Addressing the issues of identity theft and fraud management is an area that cannot be ignored. The Payment Card Industry Data Security Standard (PCI DSS) encompasses a broad set of information security requirements based on internationally accepted security principles. These principles apply to any organisation that stores, processes, or transmits cardholder information. In addition to the direct costs of non-compliance e.g. legal costs, notification costs, card replacement and lost revenue organisations face the following risks: Higher transaction processing fees Financial penalties and fines Loss of ability to process transactions. According to a survey of 100 Eurozone banks over 60% of payments professionals expect their business to have changed out of all recognition by 2010, with Payment Service Directive (PSD) and Single Euro Payments Area (SEPA) being the catalysts for industry change. This provides business opportunities for standardising their payment systems. Survey conducted by Finextra for SAP, 2007 The Benefits of a BT Payments and Transactions Engagement BT s Payments and Transactions Professional Services Package helps put plans in place for an end to end and flexible, managed service for all payments and transactions requirements. These plans will address requirments from point of sale terminals or ATMs, to managing transactions over dial, ISDN, broadband or fixed line. It will also take care of core issues via 1st, 2nd and 3rd line support solutions. The package delivers the following outputs and benefits: Experienced payments consultants - to assist your organisation design and implement the solution Integrated solution roadmap - aligning to your business s goals Fully managed solution - providing fast end to end support and single point of contact, unifying service level agreements Seamless migration - from current solution, including migration from legacy technology to the new digital technologies, ensuring no disruption to users or merchants Reduced operational costs through a reduction in supplier and solution management time Scalable componentised solution - increasing capacity and throughput A truly Global reach - MPLS can now be reached from 168 countries, 116 of them with Native IP from over 1,250 Points of Presence (PoS) Mitigation of risk due to BT s comprehensive process, procedure and standards.

3 What BT Offers The BT Payments and Transactions Package offers a consultative approach, responding to the specific challenges faced by our customers. We combine our UK financial services capabilities with the international resources of BT Global Services. BT s capability is founded on one supplier for your Payments and Transactions services with service level agreement (SLA) management for all roll-out and management services along with a proven and integrated service management framework based on ITIL standards. Depending on the outcome of the engagement the result can be a complete payment and transactions solution design and a potential implementation of a high speed, low risk roll-out programme. BT provides a number of products and services that support and deliver Merchant Acquiring and Payments. These include: BT Professional Services Payments Consultants to support and deliver an end-to-end payments service BT Expedite BT Expedite is the retail solutions division of BT providing end-to-end management of Point of Sale (POS) estates BT Cardway A shared card payments network that connects banks, payment rocessors and merchants BT Hosting Secure hosting of payment gateways. BT hosts some of the world s most demanding and mission critical web sites and applications BT Global MPLS & Network: Global Network, WAN & LAN The state-of-the-art in IP Virtual Private Network providing the performance, reliability, and security of a leased-line network with the any-to-any scalability and flexibilities of an IP network BT Service Management Capabilities Managing both networks and IT through their lifecycle as a consistent service management process to meet the business requirements of your organisation Payment Card Industry Data Security Standard BT is ITIL compliant, a Qualified Security Assessor (QSA) and an Approved Scanning Vendor (ASV) in Europe and the United States. When Mothercare embarked on the second phase of a three-year turnaround programme to deliver long-term business growth, customer service was key. Improving salespeople s access to up-to-date policy and product information and leveraging customer transaction data were critical factors. A prerequisite was to upgrade the existing IT infrastructure and replace Mothercare s ageing Electronic Point of Sale (EPOS) system to facilitate Chip & PIN card authorisation. Mothercare chose the retail industry s leading Windows-based automation solution: Connected Retailer Store from BT Expedite the specialist retail division of BT. Overview of BT s Payments and Transactions Capabilities BT Expedite Services BT Professional BT MPLS, LAN, WAN, & Broadband BT Cardway Service Management BT Hosting

4 The Process Status checklist Begin your Professional Services Package by completing a checklist on your current payment and transaction processing status. Every organisation is different and your BT Account Manager will discuss with you, at a high level, where any issues may lie. From there we can establish the most appropriate starting point for the remainder of the engagement. The Professional Services Package will address the key challenges faced by organisations implementing payment and transaction systems and refreshes. It draws on BT s wider business consultancy approach and provides support to your organisation throughout the full project life cycle. There are two levels of engagement possible. Although both are based on the same BT capability, these differ in the level of detail that is covered and the purpose of the engagement. The most appropriate level should be decided following a review with your BT Account Manager. Level One: Payments and Transactions Workshop A high level engagement of 2-4 days duration, culminating in a one-day workshop between key stakeholders and experienced BT Payments and Transactions consultants. We will take an holistic look at your payments and transactions infrastructure and offer recommendations on where improvements can be applied to your organisation for short and longterm benefit. Steps Activities Typical Outputs Step 1 Initiate Completion of the Status checklist Initial Conference call or meeting Agreement of scope and objectives with sponsor Prioritisation of activities Identify sources of information Step 2 Initiate the information gathering process Analyse and Clarify Step 3 Evaluate and Review The outcome Documentation and presentation which includes: Analysis of supplied information Clarification of any information provided Workshop with operational heads and functional managers Review and agreement of key Information Presentation of high level recommendations to key stakeholders Assessment of current estate and solutions Assessment of policies and strategic objectives Payments and Transaction recommendations to key stakeholders. Common understanding of organisation s strategic approach to Payments and Transactions solutions, benefits of action and of strategic objectives Identification of Payments and Transactions solutions priorities and production of business vision and technical roadmap Agree the next steps

5 Level Two: Assessment (Approximately 2 3 weeks) A Payments and Transaction Assessment will typically take place over a two to three week period. This will establish a much greater understanding of the payments and transaction strategy of your organisation and opportunities for improving effectiveness and efficiency. Steps Activities Typical Outputs Step 1 Initiate Initial Conference call or meeting Identify sources of information Agreement of scope and objectives with customer CEO or equivalent sponsor Prioritisation of activities Assessment of strategic objectives/focal areas agreed BT will help you create a plan to ensure that all areas of your business have a picture of their roles, responsibilities, and the benefits that successful payments and transactions implementation will bring. The structure remains the same as the Workshop but with a greater level of depth. This level provides a more exhaustive and technical and physical assessment of your organisation s state of readiness to optimise payments and transactions activity. Step 2 Analyse and Clarify Step 3 Evaluate and Review Initiate the information gathering process Analysis of supplied information Clarification of any information provided Workshop with operational heads and functional managers Review and agreement of Key Information Key data gathering staff Common understanding of organisation s strategic approach to Payments and Transactions solutions, benefits of action and of strategic objectives Technical overview of infrastructure Identification of Payments and Transactions solutions priorities and production of business vision and technical roadmap Presentation of high level recommendations to key stakeholders Step 4 Propose and Deliver Technical verification Project planning Target setting at this stage to provide focus, secure commitment and give intermediate milestones on course to the final benefits Presentation of findings, proposed directionn, and BT s solutions to senior stakeholders Draft programme plan for typical deployment Initiation of the implementation in part or whole of the recommendations (outside scope of assessment) Production of client-specific high-level design Agreement and next steps

6 The Outcome Having gone through the Payments and Transactions Package, BT will be able to make recommendations as to how you can successfully implement your payments and transactions strategy, based on an analysis of the business goals and architecture. The key deliverables of the Workshop and/or Assessment will be: Prioritisation of strategic objectives; to ensure that the initial focus is in the right area so that the business can start to see the benefit as soon as possible High level solution options report; to provide an understanding of the solutions available to help deliver the strategy Quick wins; to identify and prioritise a series of quick win options to deliver business benefit and gain wider buy-in in the coming months Recommendations; to demonstrate how the payments and transactions strategy may be fully realised and what the next steps need to be. There are specific tools and solutions that can be chosen to best meet your organisation s requirements, depending on your situation and the work done during the engagement process. In some cases there may be an opportunity to conduct a full payments and transactions roll-out. BT s Capability BT Professional Services payments consultants are on hand to support and deliver an end-to-end payments service. In addition to our payments industry experts, we have a wealth of finance sector consultants who can advise on more general business areas and have access to a vast array of professional services resource to aid the deployment of a payments solution. These include project management, solution architecture and business analysis resource. BT Expedite capability has a focus on retail, providing solutions to more than 60 of Europe s leading retailers to streamline processes, optimise information and meet the evolving merchandise and service expectations of multi-channel shoppers. BT Expedite services include the design, roll-out and servicing of all software components, the network, access, hardware procurement and maintenance, project management and consultancy, service management, hosting and roll out. BT Cardway has evolved into a secure, resilient shared service infrastructure with links into all of the UK acquiring institutions. The function of BT Cardway has extended over time from the authorisation of payment card transactions derived from point of sale terminals and cash machines to cover areas such as mobile top up and dynamic currency conversion. IP enabled, Cardway is actively engaged with the Card Schemes, APACS, the Acquiring Banks, and the specialist payment processing companies. BT Global MPLS & Network: Global Network, WAN & LAN is a state-of-the-art IP Virtual Private Network providing the performance, reliability, and security of a leased-line network with the any-toany scalability and flexibilities of an IP network. BT MPLS is an Applications-Aware network that delivers not only mission-critical data applications requiring exacting performance, but it s also capable of delivering multimedia and IP Voice, a business quality voice service delivered as part of a converged voice and data solution. Payment Card Industry Data Security Standard: BT is both a Qualified Security Assessor (QSA) and an Approved Scanning Vendor (ASV) in Europe and the United States, and we have developed a unique and powerful five stage PCI compliance programme, which has been implemented with clients over the last four years. BT Service Management manages both networks and IT through their lifecycle as a consistent service management process to meet the business requirements of your organisation. BT s process is underpinned by the Information Technology Infrastructure Library (ITIL) best practice which is the most widely accepted approach to IT service management in the world. BT Hosting: Secure hosting of payment gateways. BT hosts some of the world s most demanding and mission critical web sites and applications. Server space is available in a variety of data centres located across seven European countries all of which provide the highest levels of physical and network security, resilience and environmental integrity.

7 Status Checklist The following questions will help determine the most effective starting point for a BT Payments and Transactions engagement with your organisation. Please answer Yes, No, or Partially by checking the appropriate box, or providing the relevant details. 1. Organisational awareness and commitment Is there a formal owner of payments and transaction strategy within your organisation? Is there awareness across Senior Management of the impact of any current issues being faced in the payments and transactions area? 2. Current and planned payments and transactions initiatives and commitment Do you have plans for payments and transactions solutions? Is there a central point of budgetary control for such solutions? 3. Current infrastructure Have you identified potential cost saving opportunities within your payments and transactions estate? Are you planning changes in the next 12 months which could impact your payments and transactions estate? Is your payments and transactions Infrastructure disparate as a result of expansion or departmental mergers? 4. Current Payments and Transactions considerations How many merchants form your estate? What are the merchant s current access methods? Are you considering changing merchant s current access methods? What access methods do you/your merchants wish to consider? Where are the transactions being delivered to? Have you experienced challenges in the payments and transactions arena? If you have answered yes to the above please list major areas where you experience challenges or issues. How many terminals form your estate? How many transactions do you have per month/year? Do you have plans to centralise and/or rationalise your payment processing units? Are you planning to add to the services you currently offer your customers? Please provide any further information that would be pertinent to our discussions: Is your merchant estate distributed across geographies? If Yes, what is the geographic distribution of your merchant estate?

8 Why BT? BT has been providing networked IT services to the financial services industry for over 25 years BT Global reach: MPLS can now be reached from 168 countries, 116 of them with Native IP from over 1,250 Points of Presence (PoPs) BT runs Europe s largest communications research facility, The Agile Bank, at Adastral Park, a state-of-the-art facility where retail banks can experience the latest customer service applications BT has a global Professional Services practice with over 10,000 full-time, qualified IT practitioners and consultants BT Global Services is a market leader in providing Secure Networking consultancy and solutions, with a security practice with over 1,400 fulltime, qualified IT practitioners and consultants BT has been identified by Gartner as a full service provider of Business Continuity solution capabilities BT manages operational risk for a global networked IT infrastructure. Our major strengths are in risk assessment, control and risk treatments in the ICT arena BT is trusted to run mission critical networks for high security organisations such as the Ministry of Defence BT runs Visa s CEMEA transaction network which processes 100 million transactions every day BT has over 20 million retail customers and therefore significant experience and expertise in delivering solutions and support to SME customers. Offices worldwide The telecommunications services described in this publication are subject to availability and may be modified from time to time. Services and equipment are provided subject to British Telecommunications plc s respective standard conditions of contract. Nothing in this publication forms any part of any contract. British Telecommunications plc Registered office: 81 Newgate Street, London EC1A 7AJ Registered in England No: PHME Further Considerations BT offers Professional Services Packages in Rapid Site Provision, Multi-channel Optimisation, Security, Unified Communications and Collaboration and Work Anywhere. Some examples of other services we offer: Data Centre Virtualisation and Consolidation reduces capital costs by removing unneeded equipment. Running costs of the reduced estate, such as power supply and air conditioning, can be lowered, and existing equipment runs more efficiently BT s Sustainability Practice has developed the Carbon Impact Assessment to systematically analyse the carbon footprint of a company. The Assessment provides a clear view of organisations biggest challenges in reducing energy consumption and how IT can be used to address them Collaborative working tools can contribute to the success of your business by improving team efficiency and productivity, and lowering infrastructure costs in terms of buildings and rooms as employees can communicate more effectively and efficiently without the need for face to face interaction When thinking about payments and transactions solutions it may also be a time to consider critical operational risk such as security of networks and identity management maturity. Business continuity practices are also vital to protect brand image and reputation. About BT s Professional Services Packages BT s Professional Services Packages are concise, service-led engagements focused on key services and technologies that are of critical importance to organisations in specific sectors within the networked economy. These services and technologies combine to form a wider infrastructure model, each representing significant advances and long-term efficiency for the organisations deploying them. BT s Professional Services engagements can be used as an integral part within an organisations roadmap along their development journey. They enable the customer to assess, test, plan and establish the validity of each service or technology in manageable parts. Each engagement is formed of defined stages with clear outcomes and will provide the necessary information, not only for the technical aspects of deployment, but also for the commercial justification of infrastructure or network changes. The Payments and Transactions Package is a powerful tool in developing business advantage and agility, but even greater gains can be made if a holistic view of the organisation is taken. What next? For further details please contact your BT Account Manager who can discuss your options in more detail. We can take you through the benefits and implications that would directly affect your organisation. In addition, we can help to build tangible examples that are more valuable to your business stakeholders.