In a recent article titled :, VeriFone Omni 3600 CDMA Terminal Wins
Wireless Technology Innovation
            Award Presented by Executivos Financeiros Magazine in Brazil
            VeriFone and Visanet winners of E-Finance 2003 Award for the 
            implementation of the Omni 3600, the first wireless terminal in the 
            world to use the CDMA 2000 1X technology 
VeriFone was awarded for placing wireless POS in Brazil. Now I know
that merchant acquisition is done in many ways. ex. in US, banks and
independent sales organizations sign up merchants based on rates and
services for banks (thus each merchant has 1 terminal), in Mexico,
banks place their terminals at every merchant location thus merchants
have 4-5 terminals, in India, Reliance is trying to change the point
of sale/credit card paradigm by going wireless by-passing the landline
challenges.
How do Brazilianbanks accept credit card payments? How is it that
VeriFone launched so successfully? In the US each device (wireless)
has to be certified by each processing bank and this could take months
and thousands of lines of software. Our answer is a Gateway whereby
the Gateway is certified by the processing banks and we just have to
built software once from a device to the Gateway/ What is the
difference between the two countries, scenarios, or possibly paradigm
of  cedit card acceptance?

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Request for Question Clarification by aht-ga on 06 Feb 2004 16:17 PST

amps1954-ga:

It appears that VeriFone did the same thing as you have proposed, by
working with Visanet (Brazil's largest payment processor). Brazil,
over the past few years, has adopted a similar credit card processing
method as in North America, but with dramatically fewer players
involved. So, it seems VeriFone only had to certify their equipment to
Visanet's requirements, in order to ride on Visanet's existing payment
processing relationships with the credit card issuers and banks.

http://www.verifone.com/news/press_rel/html/pr100703_brazil.html

It also helps that they have explicitly targeted merchants who
previously did not have credit card acceptance arrangements.

http://www.verifone.com/news/press_rel/html/pr070903_brazil.html
(this is the press release you reference, see the statement from
Visanet regarding targeting new markets)

As well, Visanet 'owns' over 50% of the credit card processing market
in Brazil, according to this EDS case study:

http://www.eds.com/case_studies/case_visanet.shtml

It appears to me that all of this contributed to the ease of
deployment for this Brazilian solution.

Can you clarify whether there is anything specific about the VeriFone
and Visanet project that you are interested in?

Regards,

aht-ga
Google Answers Researcher

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Request for Question Clarification by aht-ga on 26 Feb 2004 22:38 PST

amps1954-ga:

Have you had the opportunity to review my Request for Clarification?
If so, please advise what sort of information I can provide to help
you with this question, so that I may post an Answer.

Regards,

aht-ga
Google Answers Researcher

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Clarification of Question by amps1954-ga on 27 Feb 2004 09:53 PST

Great job-quick and thorough. thanks a lot

amps1954-ga:

I interpret your clarification to mean that the Research I provided
has helped you. Therefore I am re-posting it as the Answer in order to
help complete this transaction. If you require any additional
information for this Answer, please let me know using the Request
Clarification button.

Here is the information I originally posted:

---------------------------------

It appears that VeriFone did the same thing as you have proposed, by
working with Visanet (Brazil's largest payment processor). Brazil,
over the past few years, has adopted a similar credit card processing
method as in North America, but with dramatically fewer players
involved. So, it seems VeriFone only had to certify their equipment to
Visanet's requirements, in order to ride on Visanet's existing payment
processing relationships with the credit card issuers and banks.

http://www.verifone.com/news/press_rel/html/pr100703_brazil.html

It also helps that they have explicitly targeted merchants who
previously did not have credit card acceptance arrangements.

http://www.verifone.com/news/press_rel/html/pr070903_brazil.html
(this is the press release you reference, see the statement from
Visanet regarding targeting new markets)

As well, Visanet 'owns' over 50% of the credit card processing market
in Brazil, according to this EDS case study:

http://www.eds.com/case_studies/case_visanet.shtml

It appears to me that all of this contributed to the ease of
deployment for this Brazilian solution.

---------------------------------

To summarize, Verifone chose the right partner to work with. Visanet
dominates the credit-card processing market in Brazil. In the US, this
scenario would be quite different as there are multiple strong,
regional credit-card processors who have heavily penetrated the
retailer sector with their wired (sometimes proprietary) solutions.
The need to certify with each of these would slow down any company
like Verifone attempting to launch new wireless solutions.

I hope that this information helped!

Regards,

aht-ga
Google Answers Researcher

quick, accurate, and succinct- I couldn't be happier