Norwest Corporation and Subsidiaries - Page 74

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          The second approach, the one used by Norwest, involved direct               
          access to the checking (or other) account for debiting, skipping            
          the processing middleman.  This latter approach gave Norwest                
          greater control over the product and its use.  Although by the late         
          1980's the credit card processing version of the debit card product         
          had been used throughout the United States, it was not available in         
          the nine States in which Norwest competed--and thus, Norwest chose          
          to use the direct access approach.29                                        
               To build the debit card system and links to Visa,30 NTS, which         
          applied Norwest's Software Development Methodology, relied on the           
          Base 24 operating system that ran Norwest's automatic teller                
          machines (ATM's) and the Visanet module, which was jointly                  
          developed by Visa and ACI, the vendor of Base 24.  The Visanet              
          module was necessary to connect the Base 24 operating system to the         
          Visa debit card system.  Norwest was the first bank to acquire,             


               28(...continued)                                                       
          night).  This requires extension of short-term credit by the                
          issuing bank to the customer, a risk banks generally consider               
          appropriate for 60 to 80 percent of their customers.                        
               29   First Data Resources (FDR), the credit card processor             
          used by Norwest for its credit cards, lacked experience with the            
          debit card product at the time Norwest entered the market.                  
          Further, Norwest was not comfortable with FDR's having direct               
          access to its checking accounts.                                            
               30   As part of their partnership in developing the debit              
          card system, Visa provided Norwest with technical manuals,                  
          transaction simulators, and an access point communications                  
          device.                                                                     





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