Article

Use of ATM testing software is on the rise

While ATM deployers are interested in offering new services, they are leery of upsetting ATM users with anomalies at the machine. The handful of companies that produce ATM testing and development software seem to be benefiting from this concern.

June 26, 2003

As ATM transactions become more complex -- advancing beyond the standard cash withdrawals, envelope deposits and balance inquiries -- there are more chances that something will go wrong.

While deployers are interested in offering new services, they are leery of upsetting ATM users with anomalies at the machine. The handful of companies that produce ATM testing and development software seem to be benefiting from this concern.

Their clients include ATM networks, transaction processors, software providers, manufacturers and deployers -- practically everyone in the ATM food chain. Their software is designed to help prevent glitches that can occur when a change is made at the ATM or the host -- whether it's adding a new language to screen options, audio capability, check imaging or the ability to run Triple DES encryption.

Y2K and beyond

Several of the companies experienced an uptick in business when the ATM industry was readying for Y2K.

Y2K was "a great excuse to buy testing tools," said Pete Goebel, an account manager forLexcel. "We were able to develop and deploy hundreds of additional testing solutions to the members of governing networks throughout the United States and internationally during Y2K. The fact that the majority of those users are still using the software for day-to-day testing is the real success from that period of growth."

Lexcel has installed 2,200 testing systems in 79 countries, including 1,256 in the United States.

To prepare for Y2K, most customers purchased licenses for Lexcel's Payment Network Simulator, which helps users recreate what will happen during an ATM's interaction with an EFT network.

Because networks typically charge $250 to $300 an hour for any online testing time in their laboratories, Goebel said, it makes sense to minimize the amount of time spent there.

"We consider our product a pre-certification tool," he said. "If you work with our software over a period of weeks or months beforehand, you can uncover any obvious bugs that need to be addressed. That way when you get to the lab, those are going to be truly quality, solid hours."

Financial institution acquisitions and mergers, as well as activities in the transaction processing space -- such as banks switching processors or moving processing operations in-house -- have led to a more recent increase in inquiries about Payment Network Simulator, Goebel said.

Goebel said that after Y2K, the Lexcel sales team introduced some of the company's other tools to new clients, such as the ATM Simulator, which allows users to recreate an ATM environment on a desktop PC.

Kathy Cameron, director of sales and marketing forParagon Application Systems, said that Paragon has experienced double-digit sales growth every year since 2000, with 2002 its strongest year yet.

Privately-held Paragon does not release sales or revenue figures. However, Cameron said the company has 140 clients who have each purchased, on average, four software licenses from Paragon.

The right tools

"Once you've tested with a simulator, you'll never go back to manual testing," she said. "Undertaking a major conversion project without a simulator is like building a house with a hammer -- but no pneumatic tool."

Paragon's WorkSmart ATM Suite includes ConfigBuilder, ATMulator and FASTest, all Windows-based tools. They can be purchased separately or as a package, Cameron said.

ConfigBuilder allows users to create ATM configurations, with the same graphics, fonts and customer lead-throughs that will be seen at the ATM. This includes items such as MPEG video, FLC files (for animation) and .WAV files (for audio).

It comes in especially handy, Cameron said, when updating ATM screens with features such as multiple language options. "You can save the copy with all of your graphics and logos, and just change the text each time you add a new language."

ATMulator emulates sending a transaction to the host, so that users can see the receipt data and screens sent by the host. The alternative, Cameron said, is to have someone stand in front of an ATM, sometimes for hours, running different types of transaction scenarios. Transaction processors and deployers who drive their own ATMs are the usual ATMulator clients.

An ATMulator feature called Paragon Wizard allows users to recreate device faults. Cameron said this is an obvious improvement over the manual process of actually jamming card readers or tinkering with dispensers.

FASTest extends ATMulator to quality assurance testing. An ATMulator log or customer host log can be imported and manipulated to create a quality assurance script, allowing users to run the script of transactions with different cards automatically.

For example, Cameron said, ACI has more than 100 errors stored in FASTest scripts. Every time ACI makes a change to its BASE24 software, it can run the device faults to ensure they have not changed.

Level Fourhas experienced a boost in business due to the UK's mandate to convert all cards and card readers to the EMV standard by 2005. Martin Macmillan, the company's chief executive, said business doubled in 2002 and is on track for a threefold increase this year.

Upsetting the apple cart

Nearly all of that increase is due to British banks' concerns over EMV. Compared to Y2K, he said, the EMV conversion is far more complex. "The hardware and the software both change in one go; every stage of the transaction changes. It really does upset the apple cart."

While Triple DES is "obviously on the horizon," with similar deadlines to the U.S., Macmillan said that it is a somewhat less complicated change than EMV. Earlier this year, Level Four launched a Triple DES Plug-In for its ATM Channel Development Suite that includes support for remote key distribution and management.

Level Four's products include the ATM Developer, a toolkit that allows users to design ATM interfaces and the requisite hardware support on a laptop, and the ATM Simulator, which allows users to plug a laptop into the host and simulate an end-to-end transaction.

Macmillan said that automated ATM testing has become more important in the past 12 to 18 months, as deployers finally began introducing new transactions such as mobile phone top-ups and envelope-free deposits.

Macmillan, Cameron and Goebel all said that their companies are keeping a close eye on emerging standards and protocols such as IFX (Interactive Financial eXchange), a specification that will eliminate the need for proprietary message formats such as Diebold's 911/912 and NCR's NDC. A major driver of business that they all expect to continue is banks' need to complete more conversions and implementations with no increases in staff.

"Testing tools become more instrumental because of the productivity they bring," Goebel said. "Speed to market and innovation are of no value if the new applications don't function properly due to lack of testing."

"ATM experience is hard to find and many financial institutions are in the middle of hiring freezes. Anything that allows existing personnel to do more without actually adding bodies is attractive," Cameron agreed.

Lexcel supports NCR, Diebold, Fujitsu and Triton ATMs. Level Four supports NCR, Diebold and Wincor Nixdorf. Paragon Application Systems supports NCR, Diebold, Fujitsu and Wincor Nixdorf. Cameron said her company is also interested in supporting Triton, Tidel and Tranax and has had discussions with those manufacturers.

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