After a false start, retailers should be getting ready now for a major debit card migration. Liz Hamson reports
Retailers have 18 months to upgrade their systems to handle the Maestro debit card, which will replace the Switch card in 2007.
The transition, advertised on TV by two cartoon penguins amusingly dubbed Penny Gwynne and Ivor Fish by Switch insiders, is back on schedule after delays connected with chip and PIN technology.
S2 Card Services, the company that runs the Switch debit scheme, says that 380,000 merchants have already signed up for Maestro and a further 370,000 should come on board this year.
More than 13 million cards have now been co-branded, with the Maestro logo appearing alongside Switch on the front of the card. The rebranding is intended to transform Switch, which was launched in 1988 and now boasts 24 million card-holders in the UK, into an international brand to rival main competitor Visa.
S2 Card Services chief executive Roger Alexander explains: “Switch grew despite itself almost from a scheme in which just three banks were involved (NatWest, Midland and the Royal Bank of Scotland) to one that involved both primary banks [those issuing Switch cards] and secondary banks [those accepting Switch transactions]. As cards became increasingly global we realised that we didn’t have the capacity.”
Maestro, on the other hand, did. MasterCard International, which operates the European debit scheme, agreed to help Switch move to a system that could handle larger numbers of transactions as long as the predominantly UK brand migrated to Maestro. By summer 2005, all UK retailers must have upgraded their systems. Those owning their PoS terminals will be responsible for their software upgrade while the banks will complete the upgrades for bank-owned terminals.
The transition will be undertaken in conjunction with the change to Chip and PIN.
Alexander admits the rebranding fell behind because the banks were slow to distribute the terminals and chip cards and had a “communication issue”. However, the problems are being resolved, he says, and retailers that have not already been contacted should hear soon from the banks about both Maestro and Chip and PIN.
The first Maestro-only cards will be issued in June. Retailers should display the Maestro logo prominently to alert shoppers to the migration, says Alexander: “Consumers look for visual confirmation that the card they want to use is accepted at a retail outlet. While people generally assume that virtually everyone accepts Switch, the change of brand may bring uncertainty, so displaying the logo prominently is important as a customer service.”
Retailers have 18 months to upgrade their systems to handle the Maestro debit card, which will replace the Switch card in 2007.
The transition, advertised on TV by two cartoon penguins amusingly dubbed Penny Gwynne and Ivor Fish by Switch insiders, is back on schedule after delays connected with chip and PIN technology.
S2 Card Services, the company that runs the Switch debit scheme, says that 380,000 merchants have already signed up for Maestro and a further 370,000 should come on board this year.
More than 13 million cards have now been co-branded, with the Maestro logo appearing alongside Switch on the front of the card. The rebranding is intended to transform Switch, which was launched in 1988 and now boasts 24 million card-holders in the UK, into an international brand to rival main competitor Visa.
S2 Card Services chief executive Roger Alexander explains: “Switch grew despite itself almost from a scheme in which just three banks were involved (NatWest, Midland and the Royal Bank of Scotland) to one that involved both primary banks [those issuing Switch cards] and secondary banks [those accepting Switch transactions]. As cards became increasingly global we realised that we didn’t have the capacity.”
Maestro, on the other hand, did. MasterCard International, which operates the European debit scheme, agreed to help Switch move to a system that could handle larger numbers of transactions as long as the predominantly UK brand migrated to Maestro. By summer 2005, all UK retailers must have upgraded their systems. Those owning their PoS terminals will be responsible for their software upgrade while the banks will complete the upgrades for bank-owned terminals.
The transition will be undertaken in conjunction with the change to Chip and PIN.
Alexander admits the rebranding fell behind because the banks were slow to distribute the terminals and chip cards and had a “communication issue”. However, the problems are being resolved, he says, and retailers that have not already been contacted should hear soon from the banks about both Maestro and Chip and PIN.
The first Maestro-only cards will be issued in June. Retailers should display the Maestro logo prominently to alert shoppers to the migration, says Alexander: “Consumers look for visual confirmation that the card they want to use is accepted at a retail outlet. While people generally assume that virtually everyone accepts Switch, the change of brand may bring uncertainty, so displaying the logo prominently is important as a customer service.”
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