Chapter 8: ISDN & Transaction Processing

Virtual Transaction

ISDN offers closed, private networks through public telephone lines - for a growing number of transactions:

Several major oil companies, including BP Oil and others, are using ISDN telephone lines to carry information from gas pumps and cash registers to regional data networks. BP, for example, has ISDN links to more than 500 stations nationwide. It uses ADAK terminal controllers that allow multiple gas-pump and in-station credit-card readers to be linked to a single D channel. Regional computers authorize purchases, control inventory, and schedule timely gas and oil replenishment. "Credit processing with ISDN takes about eight seconds now," says BP Oil's Tony Gibbons, "compared with 25-30 seconds before, and our line costs are significantly less. Higher speeds, greater functionality and lower costs: it's a combination that's hard to resist."

In tests conducted by all major card processors, transaction times have been reduced from 30-plus seconds through dialed analog lines to less than four seconds with ISDN. Costs have been cut to literally pennies per transaction.

Many health maintenance and health insurance companies use ISDN-linked point-of-sale card readers at clinics and physicians' offices to authorize medical insurance benefits.

A growing number of state agencies are using "food stamp debit cards" to reduce fraud and speed payment

Many banks now link remote ATMs through ISDN. D channels virtually eliminate the need for dedicated lines, and make it economical to reach many more locations.

State lottery agencies are experimenting with ISDN for state lottery and numbers games. D channels can replace dedicated analog connections, and make lotto terminals much more widely available.

Colleges and universities use D channels and student ID cards for meal payments, library check outs and more.