Problem Gambling - ATM/EFTPOS functions and capabilities (in gambling venues)  

• D.1 ATMs
• D.2 Web-enabled ATMs
• D.3 Deployment of Web-enabled ATMs
• D.4 EFTPOS
• D.5 Mobile telephony
• D.6 Smart cards
• D.7 Current applications
• D.8 International gambling scene
• D.9 Device-related problem gambling initiatives

D.1 ATMs

ATMs have evolved in both their transactional functionality and their communication functionality.

ATMs initially began as simple cash dispensing machines. While this is still their primary function, they can now offer a wider range of transaction capabilities including account information and fund transfers, and support marketing initiatives through receipt coupons and advertisements. The ability to deliver individually customised messages to the consumer is also now technically possible.

D.1.1 PC-Based ATMs

PC-based ATMs are the most commonly implemented ATM⁴³ . They allow limited one-to-one marketing and customisation, as they are not linked directly to customer databases.

Being PC-based provides programmers with access to a range of PC development tools; allowing vendor ATMs to be customised and applications can be developed in-house. However, these ATMs are not equipped to be easily integrated into banking information systems. This has led to ATMs being treated in a ‘silo’ fashion, quite separate to the rest of the banking channels.⁴⁴

The range of applications being developed for PC-based ATMs has grown from being solely cash dispensing, to dispensing products, providing customer information, and being used in marketing initiatives. The below table lists some of the nontraditional ATM functions currently available:

Table 8: Non traditional ATM functions⁴⁵

Function type	Examples
Dispensing	Stamps, event tickets, travel tickets, phone cards, coupons
Demanded printing	Statements, forms and documents
Advertisements	Bank products and services, non-bank products and services, community service messages

Companies are taking advantage of ATM functionality and are providing a wider range of services to the customer. The graph below shows the percent of United States financial institutions that are offering the non-traditional services. Generally Australia would follow the US pattern.

Source: Dove Consulting 2002 ATM Deployer Study

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D.2 Web-enabled ATMs

Marketing messages that are customised at the individual customer level requires the ATM to be integrated with the bank’s other information systems, such as customer relationship management systems. ATMs now being produced provide the possibility of being integrated into these systems, as they are web-enabled.

The technology underlying web-enabled ATMs allow for greater functionality possibilities, including⁴⁶ :

• additional Internet TCP/IP communications links can aid the interfacing of an ATM with other bank systems, necessary for one-to-one communications over the ATM;
• operating in the Windows NT/2000 framework allows ATM applications to be developed using contemporary tools;
• they can access a broader choice of peripherals (e.g. printers, smart card read/writers); and
• the standardised message standards (ISO 8583 and OFX) improve communication possibilities.

Table 9: Technical improvements in open web enabled ATMs⁴⁷

Enhanced functional environment	Specific advancements
ATM peripherals	Universal serial bus (USB) support for ATM peripherals Windows Open Services Architecture Extensions for Financial Services (WOSA/XFS) standard based ATM peripheral drivers.
Application software	Active XFS based ATM application peripheral interface Windows NT2000 operating system base Object component applications model
Communication software	ISO 8583 international messaging standard Open Financial Exchange (OFX) messaging standard

These improvements translate into ATMs that can provide a wider range of more personalised services to the customer. Specific examples of functions that are being performed by web-enabled ATMs are described below:

Cheque-cashing ATMs

In the United States, 7-Eleven has installed NCR’s V.com TM kiosk. This ATM-based kiosk allows the cashing of paychecks, money order purchases, wire transfers (sending and receiving), bill payment and statement printing. The Internet-enabled terminal can accept cash, checks or credit cards as means of payment.⁴⁸

Personalised ATMs

NCR has trialed major Australian bank software that allows users to customise the ATM screen, such as the colours, graphics, font styles, and placement and appearance of buttons and touch areas. It also allows the user to have a 'usual' transaction option to speed the cash dispensing process.⁴⁹

Talking ATMs

In the United States, Bank of America has deployed 7,000 'talking ATMs' with the aim of having 3,000 talking ATMs operational by the end of 2002.⁵⁰

Smart Cards

Many ATMs are able to read smart cards as well as the traditional magnetic strip cards.

Software has also been developed that allow applications to be uploaded to, or deleted from, smart cards through ATMs, such as Gemplus' GemXpresso Lite and Cards etc’s Arterium software⁵¹.

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D.3 Deployment of Web-enabled ATMs

The spread of web-enabled ATMs has been low. As of May 2001, TowerGroup estimated that only 2% of all ATMs were webenabled, and in Dove Consulting’s 2002 ATM Deployment Study, they found that in the United States only 5% of financial institutions and 6% of ISOs had deployed web-enabled ATMs.

According to TowerGroup, there are 5 factors driving the conversion to Web-enabled ATMs⁵² :

1. cessation of OS/2 support by IBM by end of 2003;
2. drive to hardware independence;
3. relative ease of development under Windows NT;
4. explosion of machines with new functionality, being driven by the retail market; and
5. inclusion of the self-service channel into an integrated architecture with the banking enterprise.

However, simply having web-enabled ATMs does automatically result in added functionality. For an ATM to provide one-to-one services that are tailored to the individual’s account profile and transaction behavior, the ATM needs to be integrated with other bank systems.

Progress towards one-to-one marketing appears positive:

• the number of ATMs worldwide that were dedicated or equipped for one-to-one marketing is predicted to increase from less than 1000 in 2001 to 80,000 in 2005⁵³ ; and
• the chart below shows that 50% of large financial institutions in the United States want to link their CRM systems to their ATMs to provide a personalised experience to users⁵⁴. Generally Australia would follow the US pattern.

Source: Dove Consulting 2002 ATM Deployer Study

D.3.1 Different types for different purposes

Different models of ATMs have developed to suit the purpose and situation in which they are used. For example:

• on-premise ATMs⁵⁵ tend to offer relatively extensive financial transaction and customer information services, are relatively larger, and have a higher cash dispensing capacity;
• ATMs located in busy retail areas tend to be slimmer with limited account functionality. This market encompasses the growing non-bank owned ATMs; and
• ATMs located in small stores tend to be small, have restricted cash capacity (usually refilled by the merchant), and are offered as an alternative, or in place of, EFTPOS or credit.

Table 10: Three ATMs that are currently available in Australia that vary greatly in their purpose, size and functionality:

Product criteria	HERACLES by Diebold	EASYPOINT 53 by NCR	Nano Cash by TRANAX
Purpose	On premise/Off-premise large shopping mall	Off-premise shopping mall/large retail merchant	Off-premise small merchant
Functions	Cash dispensing Cheque book ordering Balance details Account enquiry Envelope deposit for cheques & cash Business deposit Transaction statement printing Passbooks updating Electronic fund transfer Electronic purse	Cash dispensing Balance details Internet-enabling ‘Self-Service TouchPoints’ e.g. iATMglobal.net allows online movie, event or travel ticketing and other web-based facilities.	Cash dispensing Balance details 2nd cassette can be used for additional products (stamps, phone cards) denomination.
Card reader & access	Motorized magnetic card reader/writer plus chip card contact	Dip card reader	Swipe type card reader
Printer	Impact or thermal receipt printer Passbook printer with turn page	40 column graphics thermal printer Capacity up to 145mm receipts	80mm wide thermal printer
Customer Interface	10' LCD Infrared proximity sensor Speakers for enhanced audio capability Touch screen option	7.5' VGA color flat panel screen	6' LCD with 256 color 320 x 240 resolution 10 advertisement screens
Cash Dispenser Module	Up-to 4 cassettes	1 or 2 denomination options	1st cassette (1500 #notes) 2nd cassette option (500 #notes or products such as stamps, phone cards).
Other features	Wide range of communication options (X25, ISDN, TCP/IP) Diebold Professional Services for customer specific application development Web applications UPS or card return on power failure option PC memory extension option CD-ROM 48X option	Modem 56K V.90 Internal modem	56K modem and dial up connection
Dimensions	Height: 1475mm. Width: 670mm. Depth: 893mm.	Height: 614mm Width: 470mm Depth: 470mm	Height: 521mm Width: 277mm Depth: 500mm
Sample unit picture

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D.4 EFTPOS

EFTPOS terminals also vary in functionality to cater for different merchant uses and situations. For example some EFTPOS terminals are designed to be mobile, some have applications that allowing the terminal to process loyalty scheme transactions, and more EFTPOS machines are extending past the basic magnetic strip credit and debit cards to also read smart cards.

Table 11: Three EFTPOS terminals that are currently available, that vary in the types of cards that they accept and the additional functionality that they offer

Product criteria	Omni 3300 by Verifone	K71i KeyPay by Keycorp	K23-506 by Keycorp
Purpose	Smaller merchant	Medium to large retail merchant (K71 series has 50% of Australian market)	Large retail chains requiring advanced schemes.
Transaction types	Debit, credit, loyalty, EBT Can support multiple applications, such as payment and loyalty.	Debit, credit and smartcard Has up to four mini smartcard modules (ID-000) that provide simultaneous support for multiple smartcard schemes including Visa Cash and Mondex.	Credit, debit and smartcard Internet Capable: advanced multiapplication and Internet TCP/IP communications capability. Can support applications such as loyalty, messaging, advertising and ticketing.
Features/Options	32-bit microprocessor Flash memory: 1 MB (expandable to 2 MB) SRAM: 512 kB (expandable to 1 MB) 128 x 64 pixel graphical LCD display Magnetic Card Reader: Triple track (tracks 1, 2, 3), Peripheral Ports: Two RS-232 ports and two telco ports support peripherals including PINpads, check readers, smart card readers and bar-code wands Printer: Integrated thermal printer with graphics capabilities High-speed dial modem	Smartcard reader Line x 16 character LCD display RAM: 128 kB (can extend to 512kB) Flash memory: 512 kB (can extend to 896kB) Magnetic card reader: Two track RS232 serial link (for host communications) RS-232 serial link (for printer or ECR) Options Graphics LCD 122 x 32 dot matrix 128 x 64 dot matrix Two track magnetic card reader RS-485 serial link	EMV Customer smartcard reader RAM: 256 kB Flash memory: 2 Mbytes Magnetic card reader: tracks 1 /2, 2/3 Real time clock SAM (security access module) slots RS232 interface
Sample unit picture

Some of the more advanced EFTPOS services that have been implemented in the United States include extending the processing of payment instruments beyond cards, tightening security by incorporating photo identification, and numerous wireless developments. Examples of these are provided below:

Processing Multiple Payment Instruments

QuikCash Plus Web,⁵⁶ produced by Global Cash Access (GCA) has been installed in casinos in the United States.

The EFTPOS terminal allows casinos to process multiple types of financial transactions through the one device, including debit, credit cash advance, TeleCheck cheque guarantee, Western Union(R) Money Transfer(SM), QuikCredit and Central Credit.

The manual input of customer information is also minimised as it uses GCAs database to match customer profiles for automatic printing of customer names and addresses. The database holds data on over five million gaming customers.

Vital’s POS Check Service,⁵⁷ by Vital Processing Services accepts credit, debit, EBT and cheque transactions in the United States.

Vital Processing Services performs the authorisation and capture, to clearing and settlement of check transactions. They also fund, bill and statement merchants for the cheque transactions.

Photo Identification

True ID System,⁵⁸ by Hypercom and Identico Systems displays the customers’ photo when performing transactions.

The customer’s photo ID is scanned into the system when they provide a cheque, debit or credit card to the merchant and stored with the payment information. On subsequent uses by the customer, the system displays the stored photograph of the customer on the POS terminal.

Wireless

PowerSwipe⁵⁹, by Creditel, is a card-reading device that attaches to a mobile phone, allowing credit card terminal capabilities for both smart cards and magnetic stripe cards.

Wireless solution using infrared & smart cards⁶⁰ is being developed by Visa International and SK Telecom (SKT) in Singapore that will allow transactions using Visa debit or credit payments to be conducted over mobile phones.

Visa cardholders and SKT subscribers will be able to make payments by beaming an infrared signal from the mobile phone to an infrared receiver on point-of-sale terminals, vending machines, subway stalls, tollgates, buses and other payment locations.

The cardholder's payment details are stored on an EMV chip within the handset.

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D.5 Mobile telephony

Mobile telephone users can purchase a product and have the bill added directly to their mobile phone account. Examples of the use of this technology include:

Magic4 has developed a bar-coding solution that enables financial transactions to be conducted via mobile phones through SMS messaging, and billed to the mobile phone account⁶¹.

NextPark⁶², by Voicebit Ltd is a parking control scheme operating in Finland.

Drivers register as a NextPark user on the Oulo Telephone Company website. When parking, the user dials the NextPark number and states how long they want to park for.

Users can pre-pay, have the bill invoiced to an address, charged to a user's phone bill, or settled on the NextPark website.

NextPark also provides a service warning of parking expiration via SMS, and a parking history monitoring page on their website that shows a record of parking locations, length of parking stay, and the costs.

Pepsi Cola Germany⁶³: To purchase a drink from the vending machine, the customer dials a toll-free number displayed on the machine, the customer is authenticated as being a registered user and is able to charge the purchase to the phone account.

Coca Cola⁶⁴: To pay for drinks from Coca-Cola vending machines at Central Station in Sydney, consumers dial a telephone number using their Telstra mobile, make a selection of drink which is then dispensed, and the cost of the drink is added to their mobile phone bill.

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D.6 Smart cards

D.6.1 Technical details

Capacity

Smart cards vary in the amount of memory that they contain, which affects the number and types of applications that can be run. Consequently, smart card prices also vary.

• 32K smart cards allow the same card to be used for multiple applications⁶⁵.
• 64K or 128K cards are available for high-capacity applications⁶⁶.
• Gemplus has produced a prototype card with 256MB of flash memory⁶⁷.

Applications can be loaded onto the smart card by the vendor, prior to issuance, or by merchants post-issuance. Post-issuance, software development kits are available that allow developers to upload new applications via EFTPOS terminals, ATMs and the Internet⁶⁸.

Platforms

Table 12: Three main smart card platforms⁶⁹:

Vendor	Platform Name	Primary Use
Mondex	Multos	Financial smart card applications
Microsoft	Windows for Smart Cards	Network security applications
Sun Microsystems	Java Card	GSM & m-commerce applications

Transaction Method

Smart cards can be classed as either contact, or contact-less, depending on how the transaction is performed.

Contact smart cards require insertion into a smart card reader with a direct connection to a conductive micro module on the surface of the card (typically gold plated). It is via these physical contact points, that transmission of commands, data, and card status takes place. Financial institutions dealing with high value transactions typically use the contact style architecture.

Alternatively, contactless cards simply require a close proximity to readers to register transactions via antennae in both the reader and the card providing a link between the two.

Most contactless cards also derive the internal chip power source from this electromagnetic signal. The range is typically two to three inches for non-battery powered cards, and this is ideal for applications such as mass transit, which require very fast card interface.⁷⁰

Information Access ⁷¹

Smart cards can be designed to allow different modes of access:

• Anyone can access - Some smart cards require no password and anyone holding the card can have access (eg. to the patient's name and blood type on a MediCard, which can be read without the use of a password).
• Cardholder only - The most common form of password for cardholders is a PIN (Personal Identification Number) and increasingly biometric-based access.
• Third party only - Some smart cards can only be accessed by the party who issued it (eg. an electronic purse can only be reloaded by the issuing bank).

The architecture of smart cards can divide information on the card into different sections to assist in securing the information accordingly:

• information which is read only;
• information which is added only;
• information which is updated only; and
• information with no access available.

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D.7 Current applications

Accessing benefits⁷²

Smart cards have been used in Andaluca, Spain, to administer benefits since 1994 (called the TASS project) through public kiosks.

The card holds personal identifying information, which may include the cardholder’s fingerprints. When accessing benefits from the kiosk, the cardholder’s fingerprints are scanned and checked against those stored on the card, verifying the cardholder’s identity.

The data collected from the transactions can be analysed to show how the services are used.

About 20% of 6 million cardholders are enrolled to use the kiosks.

Reward programs⁷³

ANZ is using a smart card loyalty system produced by Axiomatique International, Welcome Real-time's Asia-Pacific subsidiary. The cardholder’s recency, frequency and monetary value behavioral data will be stored on smart cards issued by program participants, which can be updated at each transaction.

Direct marketing software in the merchant's POS terminal interacts with behavioral data in the card to deliver targeted rewards.

ANZ is upgrading 1 million Visa-branded credit cards and 80,000 POS terminals to accept smart cards.

Visa has also developed a Smart Rewards Platform, which integrates payment and rewards transactions at in-store checkouts as well as online checkouts.⁷⁴

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D.8 International gambling scene

The United States have implemented many innovative gambling payment devices that aim to provide customers with faster, more convenient, access to funds. Global Cash Access is the core provider of payments devices to casinos and gambling institutions in the United States. Below is a description of some of their products.

Casino Cash Plus 3-in-1 ATM⁷⁵

This ATM has a roll-over feature which provides a user, who is first denied a standard ATM transaction, the option of obtaining funds via a POS debit transaction and/or a pinless credit card cash advance.

QuikPlay ATM⁷⁶

In essence, the QuikPlay ATM is a miniature ATM attached to every machine.⁷⁷

A full rollout of the QuikPlay ATM to the market is anticipated by first quarter 2003. As described by GamingHub:⁷⁸

‘The first part of the action is wireless, as the player swipes a debit card and punches in a PIN to request cash from the player's own bank account.

The return approval (via land line) bounces back to the casino server and the funds are delivered through the slot monitoring system.

The machine's EZ Pay printer then splits out a bar-coded ticket than can be reinserted to get the credits, or used in any other machine on the EZ Pay system.’

Customers are able to control spending via daily limits that they set with the ATM card issuer as well as by limits set by the QuikPlay System.

The ATM also supports GCA's Self Transaction Exclusion Program (STEP), which allows gaming patrons to exclude themselves from access to their own funds from cash access devices in the GCA network.

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D.9 Device-related problem gambling initiatives

Blocking social welfare benefits⁷⁹

Global Cash Access (GCA) offers an option for states that issue Electronic Benefit Transfer (EBT) cards to block access at the company's network of ATM and EFTPOS terminals.

STEP program

Self Transaction Exclusion Program (STEP) allows gaming patrons to exclude themselves from access to their own funds from terminals that are part of the GCA network.

‘Think’ program⁸⁰

Includes:

• Point-of-decision messages on the devices;
• Pre-recorded message played on telephone handsets;
• 24-hour, toll-free help line number for the NCPG hotline; and
• Other consumer and employee education materials that may be used by gaming properties as optional elements of the program.

43. Richard Bell, 'The Rise and Evolution of ATMs – A Brief History,’ TowerGroup, February 2000
44. Richard Bell, ‘The Rise and Evolution of ATMs – A Brief History,’ TowerGroup, February 2000
45. Source: TowerGroup
46. Richard Bell, ‘The Rise and Evolution of ATMs – A Brief History,’ TowerGroup, February 2000
47. Source: TowerGroup
48. NCR http://www.ncr.com/repository/articles/self-service/new_age_atms.htm
49. NCR http://www.ncr.com/repository/articles/self-service/new_age_atms.htm
50. Brian O'Connell, ‘Next-Generation ATMs Proliferate; Got fees? Big banks see Web-enabled ATMs as cash cows,’ Corporation Bank Technology News, section: NEWS, Vol. 15, No. 4, Pg. 7, April 2002.
51. A. Briney ‘A Smart Card For Everyone?’ Information Security, March, 2002; ‘Acer Selects Arterium for its Smart Card Management Bureau’ PR Newswire February 10, 2002.
52. TowerGroup, ‘Kalignite…..’
53. Brian O'Connell, ‘Next-Generation ATMs Proliferate; Got fees? Big banks see Web-enabled ATMs as cash cows’. Bank Technology News, Sec: News, Vol. 15, No. 4, Pg. 7, April, 2002 – Referencing Celent Communications’ March 2002 report ‘Advanced-Functionality ATMs: The Next Generation.'
54. EFT REPORT, ‘EFT Network Strategies Shift to Address New ATM Realities,’ Vol. 25, No. 5, March 6, 2002 – References Dove Consulting’s ‘2002 ATM Deployer Study’
55. An on-premise ATM is the term used to define financial institution owned ATMs that are located at the bank branch.
56. CardFlash, ‘GCA Signs 76 QuikCash Contracts,’ 5 April 2002
57. CardFlash, ‘POS Check Service’ 5 August 2002
58. CardFlash, ‘POS Photos,’ 9 May 2002
59. CardFlash, ‘Phone Payments,’ 05 April 2002
60. ‘Visa And SKT Launch First Wireless Payment System Using EMV And Infrared’ Canadian Corporate Newswire, May 22, 2002
61. http://www.magic4.com/press/pr/singapore-250401.html - Magic4 Internet Site
62. http://www.voicebit.fi/news_show1.asp?id=62 - Voicebit Internet Site and Presswire
63. PR Newswire European, ‘Brooktrout and CTI LABS team with Pepsi Cola Germany at CeBIT to deliver a mobile fulfillment solution for consumers,’ 13 March 2002
64. Australian Financial Review, ‘Dial-a-Coke Flags Mobile E-commerce,’ 25 July 2001
65. A. Briney ‘A Smart Card For Everyone?’ Information Security, March, 2002
66. ibid
67. ibid
68. ibid
69. ibid
70. Gemplus Smartcard Basics http://www.gemplus.com/basics/index.htm
71. KPMG Consulting
72. C.Bowen ‘Welfare Agencies Seek Benefits From Chip Cards’ Card Technology, January, 2002
73. ‘ANZ rolls out first smart card application’ Cards International, January 11, 2002
74. 'Visa U.S.A. (What's New)’ Chain Store Age Executive, June 2002
75. CardFlash, ‘Casino ATM Clients,’ 10 May 2002
76. CardFlash, ‘ATM Slots’ 23 April 2002
77. GamingHub, ‘Debit Cards At The Slots Closer Than Ever’ 6 March 2002 http://www.gaminghub.com/jsps/featuredarticle.jsp
78. GamingHub, ‘Debit Cards At The Slots Closer Than Ever’ 6 March 2002 http://www.gaminghub.com/jsps/featuredarticle.jsp
79. NewsEdge, ‘Global Cash Access Offers States Option to Block EBT Cards At Gaming Locations,’ 3 May 2002. & Global Cash Access Internet site (http://www.globalcashaccess.com)
80. CardTrak, ‘Think Before You Withdraw,’ 30 April 1999

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