Bancnet in link-up talks with US-based Cirrus

Bancnet is in negotiations with the US-based Cirrus network for a possible link-up that would connect the local network with over 700,000 automated teller machines (ATM) worldwide.

Chinatrust first vice president Gerry Munda yesterday revealed that Bancnet had initiated discussions with Cirrus, an international ATM network that links various banks in over 135 countries worldwide.

According to Munda, Chinatrust had originally considered going into negotiations with Cirrus to link its newly-launched Ultimate Deposit Account and allow its depositors to access their account from anywhere in the world.

"But we found out that Bancnet is already in talks with Cirrus so we decided to wait for that initiative to fall through," Munda said.

Munda did not disclose details of the negotiation between Bancnet and Cirrus but said there was demand for such a link-up in both corporate and individual accounts.

Cirrus is one of two major global ATM networks, aside from the Plus network. The Cirrus Network currently has over 780,000 ATMs worldwide; and the Visa/Plus has over 750,000.

Both networks allow cross-currency exchange and all cash withdrawals, regardless of size, are exchanged based on the wholesale exchange rate which is usually reserved only for very large interbank exchanges.

This rate is often two to five percent better than the applicable rate on traveler’s checks at a local exchange counter. In addition, local banks or money change bureaus also add on transaction fees which can easily eat up another two percent.

Bancnet, on the other hand, is the biggest bank network in the country, linking 32 banks that serve a total subscriber base of at least five million ATM cardholders.

In 1993, Bancnet accepted an interconnection agreement with the other consortium, Megalink.

Bancnet also allowed BancNet cardholders to pay bills for utilities, cable TV and telecommunication companies, insurance and even make donations to various charities through the ATMs.

Bancnet also launched its Point of Sale System which allowed credit card authorization and cashless shopping in all major department stores, supermarkets and specialty shops using the ATM card.

With its strong presence already established locally, Bancnet has started making interconnection arrangements with international ATM and POS networks such as Cirrus, Maestro and Plus so that Bancnet cardholders can use these ATMs and POS facilities abroad while cardholders of said networks will also gain access to different products and services of Bancnet. – Des Ferriols