Bank of Nova Scotia Jamaica Limited (BNS) on Thursday launched proprietary software requiring merchants to pay for a revised service that allows them to automatically deduct payment from their customers who are credit-card holders.

Elena Villafana-Sylvester, who departed the bank Friday in another round of management shuffles at the big bank, said recurring payments service (RPS), as the system is called, will streamline and deliver new efficiencies to merchants processing multiple transactions.

Her position as vice-president of electronic financial services and retail banking was made redundant.

BNS, also known as Scotiabank, said RPS is best suited to utilities and other businesses that bill clients on a regular basis, as well as insurance companies, which collect premiums in instalments.

Subscribing merchants are required to sign a new addendum to the Scotiabank merchant agreement, then buy and upload the software called ICVerify.

cuts out uncertainty

Elena Villafana-Sylvester, then vice-president electronic financial services and retail banking at Scotiabank, Jamaica, explains the recurring payments service software to Kerine Davis from Shopper's Fair, Greater Portmore, at the product launch held at the Scotia Training Centre, Kingston, on November 12. - Rudolph Brown/Chief Photographer

The software starts at US$500 (J$45,000), but there is also a licensing fee the charge for which, said Villafana-Sylvester, "will depend on whether it is a single user or multiple users with multiple locations", as well as a "monthly residual charge to the merchants, depending on collections".

The new system cuts out some of the uncertainty of customers paying their bills and is being sold by Scotiabank as a receivable management tool.

No longer will companies have to rely on customers making it into their offices to make payments, said BNS. Still, the value is limited by the number of credit-card holders, which in Jamaica numbers between 250,000-300,000, with Scotiabank laying claim to almost 50 per cent of the market.

Insurance giant, Sagicor Life Jamaica, has that many customers, which was quoted at 250,000 in 2007, while the Jamaica Public Service Company has more than 400,000, and National Water Commission 450,000, though only 332,600 of them are said to be active accounts.

Customers will have to agree to the automatic deductions by signing up with respective merchants offering the facility.

Only international credit cards, like MasterCard, Visa and America Express, will be recognised by ICVerify, notwithstanding the bank through which the card was issued, said Villafana-Sylvester.

Locally issued KeyCard is excluded.

Scotiabank's software builds on a system already in existence whereby customers of some companies authorise automatic credit-card payments in settlement of monthly bills.

RPS will permit both fixed and variable deductions for insurance companies, utility companies, stratas collecting maintenance fees, security companies, and companies offering hire-purchase facilities, among others, the bank said.

According to Wayne Hewitt, senior vice-president of corporate and commercial banking with BNS, the benefits to customers will include increased convenience, improved security, and rewards earned from use of their credit card.

There is no charge to customers to sign up, nor for monthly deductions from their credit cards, Villafana-Sylvester said.

greater control

For merchants, she added, the system can generate reports indicating whether or not transactions have been successful and gives them greater control over when bills are settled.

"It puts control over accepting payments into the hands of merchants. Today, they have to wait until clients come in. Now, they can initiate payment themselves," Villafana-Sylvester said.

At the launch of the new system, Scotiabank also engaged a number of merchants in training in credit-card fraud and credit-card security features with a refresher on best practices for merchants using electronic commercial services.

avia.collinder@gleanerjm.com