Press Release

Customer Update: DUKPT Interlink and STAR

The following provides an update on Concord’s progress regarding the mandates set forth by Interlink and STAR debit networks for enhanced key encryption security.

Concord, our merchants and you – the POS Dealers - have been working together over the past months to migrate to the DUKPT solution. After a careful review of the progress made to date it was realized the tasks necessary to complete this migration would no doubt extend pass the original 1/1/04 deadline for many customers. Therefore, as a sponsoring financial institution for both Interlink and STAR networks, Concord received extensions for EFS-sponsored merchants until January 1, 2005.

This extension only relieves Concord and its merchants of the possibility of non-compliance fines being levied by Interlink and/or STAR. It does not remove the liability for any key(s) that may become compromised and result in fraudulent activity. Any financial impact from such a breech will be passed along to the respective merchant. This includes re-encryption, deployment, etc. of all compromised devices.

This extension should not be viewed as a reason to slow any DUKPT conversion plans. Concord is well aware the POS System Dealers are playing a key role in the conversion process to DUKPT. We applaud your effort to this point and encourage your continue working with your respective merchants to upgrade in an effort to meet the enhanced key encryption security (DUKPT) mandates set forth by the debit networks.

Any plans that have been made based on the previous date of January 1, 2004 should be kept on target.

Interlink and STAR have indicated that processors need to submit conversion plans for all customers that will not meet the above listed compliance dates. Concord understands the many challenges of upgrading to DUKPT, and would like to work in partnership with you to develop these conversion plans

Thank you for your attention to this important compliance issue.