Over 20% of annual user expenditures will, by 1990, be utilized for VAN services handling over four billion electronic interchange transactions.
3. CHECK VERIFICATION/GUARANTEE SERVICES FORECAST
User (retailer) expenditures for check verification/guarantee services, will nearly triple, approaching $850 million annually over the forecast period (see Exhibit 111-10).
The market will greatly benefit from installation of point-of-sale (POS) and electronic cash register (ECR) terminals that can handle check guarantee as well as credit authorization services. This portion of the market will grow from just over 25% in 1985 to approach 50% by 1990.
Total check dollar volume, verified and/or guaranteed, will exceed $55 billion, still well under 10% of the total retail check volume forecast for 1990, a growth rate approaching 30% annually. Price competition and economies of scale will hold the growth of total user expenditure for verification/guarantee services to 23% annually.
INFORMATION SERVICES DELIVERY
CREDIT CARD AUTHORIZATION SERVICES (CCAS)
Credit card authorization systems for retail establishments are illustrated in Exhibit lll-l I.
The most basic form of credit card authorization service is voice services. The retail establishment dials a local number or more usually into WATS.