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Changing Nature of Payment Terminals

More than 6% of New Zealand merchants still use dial-up for their payment terminals.

The number is dwindling, but we’re likely to see it for a long time still. Earlier plans to end dial-up functionality has been put on hold, as some rural areas do not have access to ADSL or fibre-optic networks. Paymark, who provide the switch technology behind 75% of New Zealand’s EFTPOS transactions, says they intend to continue supporting dial-up as long as the copper wire infrastructure is available.

Rural merchants are by no means the only ones still using dial-up, according to Alex Castle of Eftco, a reseller for Skyzer Technology. “Some people are simply set in their ways, or resist new technology, even though dial-up is more expensive to them,” says Alex.

Another problem with a dial-up connection is that it limits the reseller’s ability to keep the terminal updated for security compliance and to remedy faults that may arise.

Even if merchants are not on an ADSL or fibre-optic network or simply don’t have a modem to access those networks, they can still save money and enjoy the benefits of more convenient and versatile mobile terminal functionality that can be delivered via dial-up. All they have to do is to have a SIM card inserted in their payment terminal so that they can dial directly into the mobile telephone network.

“Anyone who still uses dial-up should seriously consider upgrading, at least to using the mobile phone network,” suggests Alex. “But using ADSL or fibre still provides the best functionality.”