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Computer peripherals industry

Bank of America and Hypercom Launch Pilot Program to Test Signature Capture Technology

Strategic Insights

— 1 min read

Bank of America, a pioneer in bank credit cards, is conducting a six-month pilot program in partnership with Hypercom, a leading manufacturer of point-of-sale (POS) products, to test Hypercom's CS7 digital signature capture pad. The program aims to examine the consumer operation and acceptance of signature capture technology in the marketplace, with a focus on eliminating chargebacks and reducing credit card fraud. Two hundred small- and mid-sized retailers are participating in the pilot, using Bank of America's credit card transaction processing services. By capturing signatures digitally, merchants and banks can improve security and reduce costs associated with retrieving sales drafts.

Key Takeaways:

  • The pilot program involves 200 small- and mid-sized retailers who use Bank of America for credit card transaction processing services.
  • The CS7 digital signature capture pad will capture signatures digitally, eliminating the need for merchants to fulfill sales draft retrieval requests.
  • The pilot program is designed to examine the consumer operation and acceptance of signature capture technology in the marketplace.
  • By capturing signatures digitally, merchants and banks can improve security and reduce costs associated with retrieving sales drafts.
  • The Bank of America pilot program includes Visa USA's VisaNet processing system for authorization and settlement of the financial transactions.
  • The CS7 incorporates full PIN pad functionality for debit card processing and optionally supports a customer-activated card reader and graphic display.

Statistics:

  • 200 small- and mid-sized retailers are participating in the pilot program.
  • The Bank of America/Hypercom pilot program is designed to run for six months.
  • BankAmerica Corporation has assets of $197.2 billion, operating more than 1,900 branches and 5,000 ATMs in 10 western states.
  • Hypercom sells its products in 29 countries through 36 global distributors.
  • Hypercom has manufacturing facilities in Phoenix and Sydney, Australia.

Sources:

  • "Bank of America and Hypercom Launch Pilot Program" (Business Wire, May 9, 1995)
  • Hypercom, Inc. press release (May 9, 1995)
  • BankAmerica Corporation annual report (1995)

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