The Pathways Group, Incorporated has reported certification of its Point of Sale terminal software Smart SCRIP v.1.4) and its back-room management software system for transaction processing Fund Master. The Pathways software platforms enable the Delta-21 POS terminal, manufactured by Schlumberger, to process smart card transactions and credit card transactions seamlessly within the same software processing platform.
Merchants will now be able to accept both types of payment transactions using the same system (Hardware and Software) and will be able to take advantage of the Pathways umbrella to receive volume credit card rates for relatively small numbers of local transactions. Additionally, participating merchants will be able to benefit from the extensive array of accounting reports and controls afforded by the proprietary Pathways system.
Certification of both the hardware and the software was awarded by First Data Merchant Services (FDMS). In order to certify LAN/WAN software for processing credit card transactions, First Data requires that the software being certified is able to reliably upload transactions from individual merchant POS terminals. The LAN/WAN software must determine the appropriate format required by FDMS for each transaction depending on its type, e.g., sale, refund, etc. It also must determine whether or not the data from the card was entered manually or magnetically captured. It then must submit an online batch of transactions using a proprietary communications protocol implemented by First Data.
When processing credit cards, detailed information contained in the magnetic stripe on the cards is stored in the Pathways Smart Card System Database (Fund Master), along with approval codes and other data received directly by the POS terminals from First Data when a merchant seeks authorization for a transaction. Likewise, transactions involving smart cards are captured on the merchant terminal and are processed through the same transaction gateway at Pathways.
This comprehensive retention of data enables Pathways to quickly ascertain the validity of any transaction. Attempts at fraud are immediately identified, resulting in the inclusion of the card in a blacklist which is subsequently downloaded to the POS terminals of merchants enrolled in the Pathways Merchant Network. This system also services transactions being processed by the proprietary network of Pathways ticketing equipment (TIKITBOX) nationally.
The significance of this achievement is that this certification puts Pathways on the leading edge of the Smart Card revolution, with a product that supplements existing credit and debit card infrastructure without having to “retool” or rewrite expensive software systems. Further, the technology that has been developed by Pathways is not currently matched by any other transaction processor in the country.
Carey F. Daly II, President and CEO of Pathways was quoted as saying, “This is a major accomplishment for our company. Our merchant base will now have the ability to process credit and smart card transactions in one database without special handling. They will receive all of the benefits of our back room processing, which includes merchant specific reporting tailored to their business, a comprehensive suite of on-line inquiry tools reserved for their use, monthly transaction reports and full transaction tracking on our processing center’s archive database system.
These capabilities as well as the First Data certification represent unique accomplishments for Pathways within the smart card processing industry. Our next step will be to develop a Bank Debit/ATM transaction system to integrate into our Fund Master product”.
The Pathways Group, Inc. provides clients with innovative and unique solutions for securely creating, capturing and processing data and electronic transactions using custom application software and hardware systems. The company was established in 1987 by Carey Daly and has evolved into a leader in the development of custom software and hardware for electronic banking, data and transaction processing, and smart card applications. Pathways creation of proprietary “back room” systems allows for the capture and processing of data and transfer of funds via “ACH” protocol, the standard used in the banking industry for transfer of funds in retail, medical and institutional environments.
Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. Actual results may differ materially from those projected in any forward-looking statement. Investors are cautioned that such forward looking statements involve risk and uncertainties, including, but not limited to, dependence on the developing smart card marketplace; market acceptance of the company’s products; the rate at which the company’s customers deploy smart card solutions; and dependence on third party marketing arrangements. A description of the risks and uncertainties attendant to The Pathways Group Inc. and other factors which could affect the company’s financial results are included in the company’s Securities and Exchange Commission filing on Form 1-A.Details