Viaduct has come up with a cost-saving solution to help retailers respond to changes in EFTPOS technology and the increased risk of card fraud.

Viaduct, one of New Zealand's leading independent EFTPOS companies, launched a compliance guarantee on 1st July 2010 resolving EFTPOS compliance issues caused by the move to chip card technology.

Wellington-based Viaduct director Mark Unwin says 70,000 EFTPOS terminals across the country need to be upgraded in time for next year's Rugby World Cup.

"By upgrading, retailers ensure that they can accept all chip cards in the market and reduce the opportunity for fraud and loss."

The move to chip card technology has meant unexpected upgrades to some EFTPOS terminals incurring additional costs at a time when many retailers are looking to reduce their spending.

Brett Walters, at BNZ National Managing Partner Working Capital Services and Transactional Banking, says the move will be welcome option for retailers.

"We are delighted to protect our customers from any on-going upgrade compliance costs through our exclusive arrangement with Viaduct."

He says the bank is committed to upgrades of certain terminal types to meet international requirements that ensure the inter-operability and integrity of our EFTPOS system.

"Our partnership with Viaduct means their compliance guarantee allows BNZ to provide our customers with protection from any potential security risks posed by outmoded technology and supplies certainty in their terminal costs."

While terminals had been upgraded in preparation for chip card issuance, Mark Unwin says there have been issues with EFTPOS terminals in the New Zealand market accepting chip cards.

"Many terminals were upgraded before the cards were actually issued so there have been some inter-operability issues which has resulted in occasions where the terminal will not accept the chip card."

As a result some overseas visitors have had trouble using these EFTPOS terminals and, more seriously, it has increased the risk of fraud.

"It has been frustrating for retailers - they had assumed they had an upgraded terminal but now they have had to upgrade their terminals again."

Viaduct's compliance guarantee offers BNZ customers piece of mind for their lease period, with the benefit of New Zealand's best price EFTPOS with no upgrade charges, guaranteed.

"This will improve card acceptance and reduce risk from fraud, and we'll cover terminals connected to Paymarks's EFTPOS network for telecommunications or scheme mandates for the term of the lease," says Mark Unwin.

He says the venture with BNZ is a first and a relationship he hopes will continue to develop into the future.

"BNZ is being very proactive and has its customers' best interests as a priority. For us it is of genuine benefit that BNZ is recommending us as a supplier of EFTPOS terminals for their customers," says Mark Unwin.