|
IBM and CompuServe Network Services Team-up; Deliver Instant, Secure, Web-based Electronic Commerce
PR Newswire - October 13, 1997 10:26
CSRV IBM %CPR %MLM %PDT V%PRN P%PRN
Payment information is encrypted, transmitted and authorized in real-time
over the Internet
SOMERS, N.Y. and COLUMBUS, Ohio, Oct. 13 /PRNewswire/ -- Under a
partnership announced today by IBM and CompuServe Network Services, merchants
and payment card processors on the CompuServe Network will now be able to
authorize payment over the Internet when a transaction takes place.
Currently, when a consumer makes a purchase at a Web site, the order is
accepted but the credit or debit card is not authorized right away, as it
would be at a cash register. This poses a potential risk for the merchant,
who may have to stop shipments to consumers whose cards are not approved
during the traditional batch authorization process.
Now, with IBM's CommercePOINT Gateway*, CompuServe Network Services
customers can complete Web-based sales and verify a credit or debit card
through an Internet transaction using the Secure Electronic Transaction (SET)
protocol. CommercePOINT Gateway uses SET to encrypt or "scramble" a
consumer's account information as it is transmitted, and it can only be
deciphered by the card processor. Order and payment information is
transferred to merchants through additional server software.
Huge Market Evolving
By all counts, online commerce is growing dramatically. By 2001,
consumers are expected to spend more than $220 billion for products and
services purchased online, up from $2.6 billion in 1996, according to
International Data Corporation (IDC) market research.
"Keeping pace with the rapid growth in electronic commerce is an issue for
every company who is considering web-based sales," said Peter Van Camp,
president, CompuServe Network Services. "As consumers become more willing to
buy everything from tour packages to kitchen appliances online, merchants want
to make sure that transactions go through smoothly and securely, so that
customers return again and again. Now, CompuServe Network Services customers
can easily expand into online sales, if they choose."
CompuServe Network Services has integrated CommercePOINT Gateway into its
existing CompuServe Transaction Services Network, so there is no need for
customers to reconfigure their networks or change the way they do business to
take advantage of instant authorization for Internet transactions.
"CompuServe Network Services has been a key innovator in handling online
payment transactions right from the start," noted Janel Crabtree, group
manager, managed network services. "Providing Secure Electronic Transaction
(SET) services through the Internet is a natural extension of our technology.
Now, we can offer customers one more way to drive sales while solving long-
standing security issues with SET."
"By using our CommercePOINT Gateway, CompuServe Network Services brings
the security of SET to a broad base of merchants and banks, making the
Internet a secure place to conduct e-business," said Mark Greene, vice
president of IBM Electronic Payments and Certification.
Pricing and Availability
Beta trials of the CompuServe CommercePOINT Gateway solution are currently
underway at a number of banks, financial institutions and retailers. SET
Wallets, enabling consumers to take advantage of the technology, can be
downloaded from the visa.com, mastercard.com and ibm.com web sites. The full
production launch is slated for January. Pricing, based on a per transaction
charge according to time on the network, is planned for announcement later
this year.
About CompuServe Network Services
Established in 1982, CompuServe Network Services, a leading global network
integrator, provides more than 1,250 companies with complete, fully integrated
and managed Internet, intranet, and extranet connectivity solutions in
105 countries. A division of CompuServe, Inc. (Nasdaq: CSRV), CompuServe
Network Services provides the network for CompuServe's CSi online service and
SPRYNET direct Internet access service. Additional information on CompuServe
Network Services can be found on the World Wide Web at
compuserve.net.
About IBM
As the industry's leading provider of secure electronic business
solutions, IBM was the first to bring to market a comprehensive suite of
secure end-to-end electronic commerce solutions, the CommercePOINT* family of
products and services. IBM is a leader in the development of Internet
technologies and is dedicated to helping customers and developers exploit the
potential of network computing. More details about Net.Commerce and
CommercePOINT Payment can be found at ibm.com.
* Indicates trademark or registered trademark of International Business
Machines Corporation (NYSE: IBM).
SOURCE CompuServe Network Services
/CONTACT: Janet Brumfield of CompuServe Network Services, 614-723-1060,
or jbrumfield@csi.compuserve.com; or Trink Guarino of IBM, 914-766-1067, or
guarino@us.ibm.com; or Lisa Jacobson of Miller-Shandwick Technologies,
617-351-4189, or ljacobson@miller.shandwick.com/
/Web site: compuserve.net
(CSRV IBM)
In CLM003, IBM and CompuServe Network Services Team-up, moved earlier
today, we are advised by a representative of the company that the first graph,
first line, should read "Under an agreement announced today" rather than
"Under a partnership" as originally issued.
/PRNewswire -- Oct. 13/
(CSRV IBM)
|
