CREDIT CARD AUTHORIZATION SERVICES FORECAST

User (retailer) expenditures for credit card authorization services will, as shown in Exhibit III-9, more than double over the forecast period, exceeding $800 million annually by 1990. Totally electronic delivery (POS, ECR, and computer-to-computer) will, by 1990, become the dominant method of delivering processing services.

Approximately 80% of over four billion authorization transactions will be processed by totally electronic means. User expenditures for credit card authorization services will experience the greatest growth in point-of-sale (POS) and electronic cash register (ECR), rising from 20-30% of total processing services expenditures over the five-year forecast period.

Growth will result from a concerted effort by market participants to more than double the authorized portion of total credit card transactions to greatly reduce fraud and other losses.