Posted by Sharon Robb on Mon, Apr 19, 2010 @ 03:46 PM
So we touched on the iphone wireless or mobile processing first - with Verifone's PAYware and of course Square . Revisit these pages for the pros and cons of each, where the products and services are at in development, and of course, the costs.
Let's jump to the top of the line then and discuss processing with a wireless or mobile credit card processing terminal - because it's different and these units have been available for some time.
What's the merchant application? Anybody who processes cards regularly, johnny-on-the-spot. You might be a busy contractor - with subs maybe or run a heating and air conditioning or plumbing service, delivery/service business/,taxi, etc. - you get the picture.
One example of a terminal for this purpose is the Nurit 8020 - an upgrade to the Nurit 8000 from Verifone. Keep in mind there are plenty of wireless terminals to choose from - but this one certainly fits many a wireless application (YES, XBS markets these terminals!).
This is a PCI compliant wireless credit card machine that uses the GPRS (General Packet Radio Service) network; a high speed data transfer service available in the US through carriers like T-mobile, AT & T, Cingular, etc. The dependability of the coverage provided by these carriers is improving, though initially it was limited to metropolitan areas.
So what do you get with the wireless credit card machine that you don't get with iPhone processing? an all in one processing solution - mobile, light weight, compact that includes -
- a thermal printer (drop a paper roll in and away you go)- iPhones do not have printers (they can connect to one via blue tooth compatibility but the solution "grows bulky"). A receipt of the transaction can certainly be "emailed".
- an internal pin pad - for pin based debit (fastest growing payment method today....). iPhones cannot process pin based transactions currently.
- Wireless options include GPRS and Wi-Fi (WAN).
- Large, backlit graphical display, 18 key keypad, touch screen and stylus for electronic signature....
So down to the ditty....what's it cost, as it relates to our iPhone processing options?
The terminal can cost up to $650 - less if you buy from the merchant account provider - who often discount the equipment (at least XBS does). I guess it would be fair to compare that to an iPhone or Blackberry cost - $300 and up possible. Of course the terminal cannot be used as a phone.
You must pay for the monthy wireless connection - $15-$20/month should cover it. If you didn't know - you pay the wireless fee PER terminal. In the case of the iPhone remember - it would be typical to pay for your phone service AND a payment gateway ($10-$20/month). The wireless credit card terminal sends data direct to the Visa/MasterCard network via the GPRS (remember AT & T, T-mobile etc. wireless provider) - NO payment gateway required - no payment gateway fee.
The wireless service charges a transaction fee - .10/transaction approximately. This transaction fee is on top of the transaction fee you owe the payment processor - you do need a merchant account with this terminal. Merchant account fees are dependent on who you do business with - we recommend us.
Time to create a comparison chart I think. I'm on it - next post. In the meantime - for the true, mobile merchant with a host of "hired hands" delivering goods and services that require payment collection at the point of delivery - a wireless credit card processing terminal is a safe bet. It's a swiped, real-time authorized transaction with card present low rates - with a receipt at the ready for your customer. Professional, secure, money in the bank....you can't beat that.
Posted by Sharon Robb on Mon, Jan 11, 2010 @ 10:49 AM
The acceptance of debit cards is a vital requirement for merchant success.
Consider VISA's announcement in May of 2009 that for the first time in the company's history, the volume of debit payments surpassed that of credit cards. Recession news continues to bolster this trend - whether it is due to the diminished availability of credit or a wise consumer approach - all the card networks are reporting healthy growth.
Merchants accept debit cards one of two ways - online - requires a pin pad (PED - pin entry device) or offline (requires a customer signature). Unless the merchants primary sale or average ticket is less than $25 pin debit costs less than signature debit.
So let's talk pin pads which are an indisputable, worthwhile merchant investment given what you've just read.
Pin pads can be stand along devices - connected by cable directly to your credit card processing terminal and set up for easy customer access and interface or integrated within the credit card terminal itself. The debit card is swiped through the pin pad and a 4 digit pin is entered by the customer to authorize the transaction. The transaction is processed through the ACH processing network and the merchant is funded immediately.
Each pin pad has a unique encryption security code. When the pin is entered the pin pad encrypts the number at the point of sale through to the bank, for verification and payment.
Top pin based debit benefits -
- Reduced Processing Fees
- Fast settlement of funds
- Fewer chargebacks - PIN based debits are not subject to chargebacks
- Transactions cannot be downgraded - as they often are with credit card transactions that don't qualify for the best rates
If you already have a pin pad - you should be on alert that in July 2010 new VISA equipment compliance requirements will be in effect. Is your equipment up to date? See the PCI Security Standards website list if you're not sure - your PED must be an exact match with the specs on the site. If you have don't see your device listed, you have the wrong version or you have questions about whether your pin pad is meeting PCI DSS standards - don't wait until July - call XBS @800-347-1090.
PED security is a real issue. It doesn't take much imagination to grasp the value of cardholder data combined with a debit PIN - the information would give thieves the ability to drain a bank account. The technical savvy of today's criminal is mind boggling and apparently encryption cracking services and decoding ability has kept pace with security measures.
NOT ONLY does your POS PED need to be on the list - but VISA is further mandating an update of the PED with what's called TDES (triple data encryption standard)- a stronger, more robust encryption standard that serves to reduce further risk of theft of valuable cardholder data.
Many recently deployed integrated PED's are TDES capable but still must have the TDES keys injected. Older integrated PED's may not support the new standards and will have to be upgraded to more recent equipment, integrated or, possibly an external pin pad, with a TDES key injected prior to use/shipment.
Moral of the story? Secure, pin based debit can increase your revenues and cash flow.
- Start processing pin debit and lower your processing costs
- Ensure your current or new device meets all upcoming July 2010 VISA mandated security requirements and is PCI DSS compliant.
WIN WITH PIN!
(couldn't resist!)
Posted by Sharon Robb on Tue, Dec 08, 2009 @ 02:50 PM
Free equipment, free credit card processing terminals! An online search for merchant accounts, credit card processing or credit card terminals and printers creates a brouhaha of results such as these.
So is this a good thing?
A word or two - about credit card processing "equipment".
A free standard credit card terminal and/or credit card imprinter, software or some lower end free solutions are fine for newly processing or low volume merchants. Understand that free is a relative term however, and accepting these programs ties you to the loaning merchant account provider and payment processor for the length of use. Usually a few additional "conditions" in the paperwork. Might work.
Keep in mind however, that in the overall equation of credit card processing - the free equipment offer is a small component - while the merchant account itself - pricing, fees, how the application is processed and set up - is what largely determines a merchants monthly costs to process sales via credit cards.
Yes XBS has free equipment programs - but free equipment doesn't meet the needs of every business -not by any stretch of the imagination.
Credit card processing equipment has changed radically with technological advances over the past 40 years, - think about it.
When I worked my way through college waitressing and tending bar I used a credit card imprinter for restaurant charges. Walked around with a wad of credit card receipts in my apron (if any went lost there went the merchants sale and money!) to be accounted for, tallied and I suppose - literally mailed out to the payment processor in the morning by the bookkeeper - talk about labor intensive! and secure? ah, not. I'll bet those funds didn't hit the business bank account for a good 7-10 business days - what a drag.
Compare that to todays equipment and security requirements (PCI DSS) by card associations- processing credit card transactions in real time with secure data encryption methods, via the internet, phone lines or cell phone service. Funding in 24-72 hrs depending on your processor. Transaction authorizations in seconds (they used to expect merchants and their employees to pour through outdated books of bad cards - get real!).
There is immeasurable value in these advances - lower costs - processing and labor, increased cash flow, integration with additional POS equipment and accounting systems. Heady stuff! In addition to all the benefits - like most technological advances (think computers) - costs are not as high for these products as they once were. Investing in state-of-the-art credit card processing equipment for a busy, viable, growing business - is a worthwhile endeavor.
Watch out for proprietary equipment! Some equipment and solutions only work with specific processors. Today's equipment should be reprogrammable so that should you need or want to - you can change payment processors.
Again, like computers, credit card processing terminals have operating systems (progressive versions) and a certain amount of memory. Two terminals can appear to be the same when in reality they have different performance, function and memory capability, a factor that can influence some of the wildly varied pricing you may see across the internet - vendor by vendor.
Due diligence please to equipment! Todays equipment costs, like the capital investments we make in computers and other hardwares and their operating systems, typically create tomorrows savings, efficiency's and streamlined processes.
What is important, is that you get the best value for your business. That may or may not be, free credit card processing equipment.