MCI MAKES MAJOR MOVE IN TRANSACTION PROCESSING INDUSTRY; Launch of Comprehensive Set of Card-Based Transaction Services Is Latest Push Into New Markets—

Business Wire, April 26, 1995

ATLANTA--(BUSINESS WIRE)--April 26, 1995--MCI has announced a major expansion of its transaction processing offerings, unveiling a complete line of services for the card-based transaction industry that establishes the company as a force in this $20 billion market.

The MCI initiative includes a new transaction processing platform and services geared to provide end-to-end support of electronic financial transactions, including credit authorization, debit card processing, check acceptance, point-of-sale terminal management and billing services.

"The processing of financial transactions is one of the hottest growth markets of the 1990s," said Kevin Bennis, president of MCI's Integrated Client Services Division. "Today more than 90 per cent of all financial transactions are paper-based, but users are beginning to move to electronic methods that are faster and more accurate. As this shift to advanced on-line transaction systems accelerates, MCI will deliver a one-stop shopping approach to providing the customized solutions that are efficient, flexible and cost-saving."

MCI intends to be a leader in this market by combining its telecommunications and networking strength with the transaction processing technology and expertise it acquired with British Telecom North America in 1994, according to Jim MacDonald, vice president of Transaction Services for MCI's ICSD.

"The combination of both the transport and processing functions is a powerful one-two punch," MacDonald said. "We are uniquely positioned to succeed in this marketplace and drive the industry's transition to electronic payments."

MCI's new Transaction Services product line includes:

--MCI TransAction, the flagship offering that covers all aspects

of the transaction process.

--MCI SimpleTran, a processing service that financial

institutions can provide to their smaller merchants which

need to convert from paper-based transactions.

--MCI Terminal Management, an outsourcing program for

point-of-sale equipment.

The cornerstone of MCI's new initiative is MCI TransAction, an all-in-one service that handles every task associated with an electronic payment, from the time a customer's credit card is entered to the time it is verified back to the point-of-sale. Included in TransAction is network transport to and from the point-of-sale; credit card and debit card authorization; check verification; and electronic data capture.

MCI TransAction provides unique flexibility through MCI's Unix-based On Line Transaction Processor (OLTP), the quickest and most adaptable OLTP platform available.

"This Unix-based platform is our strategic weapon. It allows us to be quicker and more responsive in addressing our customers' needs for changes and customization of their applications," MacDonald explained. "It's clearly better and more customer-friendly compared to what's already available in the marketplace."

Connectivity to the MCI network is available through multiple access methods, including Dial "1", 800 service, local "950" service, X.25, leased line or frame relay data.

A related offering, MCI SimpleTran, combines the functionality of MCI TransAction with a simple point-of-sale device. MCI SimpleTran is designed for merchants with low credit card volume, and is available to financial institutions who want to convert these users from a voice- and paper-based system to an electronic transaction system.

With MCI SimpleTran, MCI provides for each merchant an easy-to-use, fully functional card reader device which attaches to a telephone that is pre-programmed for electronic transaction processing. In addition, MCI coordinates the entire project for its customers, including shipment of the SimpleTran devices, installation, activation, merchant training and around-the-clock customer support.

"Moving away from paper-based transactions will never be easier than with SimpleTran," MacDonald said. "MCI SimpleTran will ensure that the many benefits of moving to electronic-based transactions won't pass low-volume users by. MCI's total coordination on behalf of the financial institutions will make this a pain-free process for all merchants."

On the outsourcing side, MCI Terminal Management is designed to relieve financial institutions of the labor- and capital-intensive job of managing and maintaining point-of-sale equipment at their merchant customers' sites. Backed by the experienced staff and resources of MCI, this outsourcing service offers all components necessary for successful POS terminal management, including equipment warehousing; inventory control; deployment, installation and training; terminal testing and programming; repair and equipment swap-out; and 24-hour help desk support.

"Financial institutions no longer have to devote significant staffing and resources to the equipment side of this business," MacDonald said. "Through outsourcing, MCI is letting merchant banks concentrate their resources on what they do best."

MCI's focus on the transaction processing market continues its push into new business opportunities by leveraging its strength in core long distance business. MCI's Integrated Client Services Division is one such example. It was formed in late 1994 to market a range of premium consulting and outsourcing services to large business customers, particularly in the areas of data network management; telemarketing and customer service centers; automated transaction processing; and customized network-based calling services.