Transport Value Proposition Contents: What is Transport? Transport is a patented connectivity service Datawire Defined that transports financial transactions securely and reliably over Datawire Value Proposition the public Internet to payment processing systems. Using the Internet as the backbone, it transmits data between clients Datawire Advantages (merchants, payment aggregators) and many payment o vs. Dial or ISDN processing hosts globally. o vs. SSL Gateway Transport is a cost-effective alternative to o vs. VPN dial-up, VPN, MPLS, and direct circuit connectivity methods. Summary While this product can be used to transmit any type of data, provided the appropriate connections have been created, it is primarily used to transmit financial transactions from point of-sale-terminals to payment processors. First Data utilizes Transport as the IP connectivity method of choice for its First Data FD line of terminals. This proven technology is transporting billions of transactions annually, supporting hundreds of thousands of merchant locations with no network outages since its inception in 2001. Decreased Datawire Costs Value Elimination Proposition of dedicated phone lines Shared communication feeds among multiple check-out lanes Faster communication times, which significantly reduces traditional dial-up costs Merchant leverages their existing Internet connection Reduction in POS Transaction Time Increased Reliability Increased Security On average, dial transactions take 15-20 seconds. Transactions transported through Transport take on average under two seconds (including host processing time). Transport is built on a global distributed network Transport uses patented least-cost routing algorithms Full network redundancy No network outages since product s inception in 2001 Every transaction is monitored in real time Fully PCI-DSS compliant Merchant connects into the Transport network via SSL Transaction is further encrypted and routed across the Transport network Increased Reporting Monitors the source of the transactions and details the transaction delivery route 2011 First Data Corporation. All Rights Reserved. All trademarks, service marks and trade names referenced in this material are the property of their respective owners.
Communication Trends The growing trend toward debit, credit, loyalty and gift cards replacing cash, combined with the introduction of IP-enabled POS terminals, is allowing merchants to find new sources of savings in their payment processing costs. The value to merchants using the Transport network are performance increases and cost reductions resulting from the elimination of dedicated phone lines and shared communication services among multiple checkout lanes. For example, an IP terminal or a PC-based POS application, both enabled to Transport, can transport transactions in the sub two-second range, compared with an average of 15 20 seconds using dial. Based on this value proposition, small and large merchants across all market verticals who use terminals or POS applications are increasingly switching to IP-based networks such as Datawire Secure Transport because of their ability to provide a faster, less expensive and more secure way of transporting their transactions. The Transport value proposition centers on the delivery of a secure, reliable, real-time network to move transactions over the Internet while enabling the merchant to leverage any form of broadband Internet connection (DSL, cable, wireless, etc.). Transport connects merchants, using hundreds of point-of-sale applications and devices, to a wide variety of payment processors and merchant acquirers. The value passed to the processors and merchant customers includes cost savings, faster transactions, and the ability to leverage their existing broadband investment. Transport provides significant value relative to traditional PSTN, ISDN, leased line methods, as well as other IP-based solution offerings. The following table highlights the differences:
Communication Features Transport Traditional Dial or ISDN SSL Gateway VPN or Direct Circuits Communication Connectivity Uses merchants existing broadband Internet connectivity Merchants use separate dial-line to connect Requires a 3 rd party SSL company or service Direct circuits ordered through telecom carrier Equipment No extra hardware or equipment needed to connect to a private IP network No dial or ISDN lines needed Dedicated dial line needed No extra hardware needed by merchant Processor or aggregator may require servers Merchant typically requires special Processor/VAR will need special Equipment Integration Time Reduced lead time to connect with processors, resulting in quicker time to market Standard carrier telecom setup Contingent upon the SSL provider Increased lead times to order and set up circuits through carriers Security PCI-DSS compliant Utilizes SSL encryption into the private IP network Each transaction from the POS network is authenticated prior to entering the Transport network Due to distributed architecture, Transport is less prone to distributed denial-of-service (DDOS) attacks Shields the processor from malicious entities on the Internet Transaction goes over dial in clear text May be susceptible to DDOS attacks May not be PCI-DSS compliant Processor s VPN end point potentially subject to DDOS attacks Direct circuits may be clear text
Transaction Times Approximately 2 3 seconds. Significantly faster than dial counterparts Employs efficient and intelligent routing using Transport s patented routing algorithms Approximately 10 18 seconds traffic and connection method May run into Internet architecture and For VPN, may run into Internet architecture and Reliability No network outages since product inception in 2001. Network design deploys geographically distributed and carrier diverse nodes All components of the network are fully redundant Patented lease costs routing algorithms are used to route around Internet Contingent upon the dialline and carrier s of the dial network Depends on SSL provider s architecture. May run into routing providers Full redundancy requires circuits or VPN s using different telecommunication carriers. Reliability depends on architecture Pricing Leverages Internet connection cheaper than traditional network connectivity. Benefits both merchant and processor Pay for dial transactions in 6 second click intervals Requires dedicated dial or ISDN lines using standard rates SSL pricing varies per SSL Processor may have network Cost of special Cost of dedicated circuits Cost of special Merchant/processor may have network Transaction Reporting Provides end-toend visibility for each transaction at the application layer, including routing across the Transport network, latencies, network time and host time N/A May not provide full transaction routing information May not provide full transaction routing information Cannot provide endto-end visibility for each transaction
Summary Overall, Transport is a great connectivity method for IP terminals and point-of-sale systems. It reduces communication costs by leveraging the merchant s existing Internet connection while increasing the level of security, reliability, and reducing the overall transaction time a proven technology that is being used by First Data and other large payments processors. Please contact your Relationship Manager or sales representative to learn more about Transport.