Citibank And Microsoft Debut Module For Retail Management System

Citibank and Microsoft on Monday unveiled a payment-processing module for the Microsoft Retail Management System that the companies say will help small and midsize businesses reduce merchant service costs.

Smaller Microsoft RMS customers--businesses with between one and 25 stores--can buy the packaged applications and service from Microsoft. The system links the point-of-sale, inventory, pricing, purchasing, customer-service, accounting processes, and online payment processing services. The deal with Citibank will let retailers use the system for credit-card processing as well; Microsoft will provide a credit-card swiping device that's compatible with cash registers and integrates with other back-office applications at no cost. Citibank will provide a competitive rate for processing the transaction. Currently, retailers must rent credit-card equipment from their own banks, paying a set-up charge and monthly fee, and pay the bank a processing fee.

Microsoft says the package will help smaller retailers cut costs in excess inventories and accounting and sales tracking, and will also reduce credit-card processing costs and errors.

Microsoft introduced Retail Management System in September after obtaining the technology when Microsoft Business Solutions acquired Sales Management Systems and its QuickSell line of products in May 2002. Pricing begins at $1,290 for a one- to three-user version.