Mobile Credit Card Processing with a Wireless Credit Card Terminal.

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. 

 

 

 

VeriFone's PAYware Mobile - Mobile Processing with Apple's iPhone

So we promised to continue our "mobile merchant account" discussion, starting by unveiling the latest and the greatest (see our take on Dorsey's Square for the iPhone).

Next up is what the payment's world is touting as Square's competitor in the marketplace - VeriFone's PAYware Mobile (VPM)- a complete processing solution for yet again - Apple's iPhone.  What's the ditty? 

Three components of the VPM solution:

A durable card reader that slips over Apple's iPhone.  Allows merchant to to process card present transactions - lowering the cost and risk of the transaction.

The PAYware Mobile Gateway - a secure payment gateway for transaction processing - connected to the First Data platform but touted as compatible with other processors with some "app manipulation" (we're okay with First Data!)

The PAYware Mobile App - a free application downloadable to your iPhone - when paired with the gateway and card reader - enables the iPhone to accept secure credit card payments - anywhere, anytime.   

So what's the difference between Square and this brand new smoking hot mobile processing solution from VeriFone?

• Square's still in Beta.  Testing 1, 2, 3.  PAYware is on.
• Security - VeriFone is a trusted leader in POS solutions in the electronic payments industry AND the PAYware Mobile card reader encrypts the data at the swipe - (see PCI DSS folks). Square security is iffy - no encryption that we no of....Mr. Dorsey specializes in social media - i.e. Twitter, NOT credit card processing.
• Currently - the VeriFone solution only works with the iPhone 3G or 3GS -Squares method (hardware plugs into the headphone jack) is preparing for further mobile device compatibility.  Reviewers so far however, seem to like the solidity and fit of the VeriFone card reader when compared to the Square.
• Costs - So far VeriFone is noting a $49 activation fee and $15/month for the payment gateway and .17/transaction fee
• Merchant Account - you need one.  Doesn't come with the product.  Hmmm - this means -

1. VeriFone PAYware Mobile costs are on top of the costs you are already paying for your merchant account or will pay when you get one.
2. It negates some of the unknowns and drawbacks we outlined regarding Square, it's costs, (not sure) and limitations, i.e. ticket parameters, reserves, lack of fund control, timeliness of funds, impact on cash flow (again - we just don't know and when it comes to business and money - we NEED to know).

We still contend - like others, that Dorsey's Square seems far more suitable for the now and again, person to person payment than for a small business looking to increase revenues and cash flow with quick, efficient, and SECURE credit card processing through use of Apple's iPhone - all depends on your needs I guess.

That get's back to what we do! Electronic payment professionals at XBS assess the needs of each individual business we work with - we'll tell you straight up and point you in an "educated" direction. 

When it comes to processing electronic payments, ignorance is not bliss - it's risky.   

 

Ecommerce, SSL and SSL Certificates

I've put this blog off - it can be confusing stuff.  But frankly, given the number of merchants involved in online sales or ecommerce - now's the time.  You need an SSL certificate if you sell online, supply a site log in, process sensitive data or simply want to instill trust.

SSL was introduced in 1994 - and stands for Secure Socket Layer.  SSL is the standard for ecommerce transaction security enabling encryption of all of your customers sensitive data, including credit card and other uniquely identifying information.  Todays recommended minimum encryption standard is 128 bit and in order to provide this you'll need a SSL certificate with SGC (server grade cryptography) capability.

SSL Certificates.  This digital certificate sits on your secure web server and is used to to perform the actual encryption. Each certificate has what is called a private and public key.  The private key encrypts data, the public key deciphers it.  When a customers web browser points to a certified domain - the SSL technology authenticates both the domain and the browser.  A unique session  "key" is established as is an encryption method and a secure transaction can be made. 

There are different types of SSL Certificates such as -

• organizational validated (ov)
• domain validated (dv)
• most recent - extended validated (ev)

SSL Certificates trigger the browser to display a closed padlock and the https prefix in the browser window.  With an EV certificate, besides a more vigorous application process, the browser bar is color coded green to indicate the top validation in SSL and turns red when an unsecure or untrustworthy site is encountered.

Where do you get an SSL certificate?  XBS recommends SSL certificates issued by CA's or certificate authorities.  These businesses verify your domain name, your business and your authority to apply for such a certificate amongst other things based on the type of certificate applied for. 

Your e-commerce payment gateway can make life a little simpler by providing you, the online merchant, with a customizable payments page hosted on their site.  This is the least expensive method, as it uses the gateways SSL certificate (shared) instead of your own.  In addition, the gateway's server stores the sensitive data on it's own PCI DSS compliant server leaving the merchant risk free (regarding data storage). There's a few cons though, the biggest one being your customer leaves your site at the time of payment, as well as a loss of control in the order process.  This might be a great, cost effective approach for a new online merchant. 

If you have a busy site though - you'll probably want your own payments page with your own SSL Certificate.  Pricing is all over the place, and providers offer a variety of types of certificates - so due diligence as usual.   Your web developer or merchant account provider (XBS) can easily assist you in your purchase. Certificates must be renewed.  Some gateways such as authorize.net provide certificates at deeply discounted prices through partnerships with providers.

SSL technology is not an option for ecommerce merchants, it's a must have.  This article only touches on the basics of secure socket layer technology.  Statistics show that our customers are becoming internet savvy and will increasingly refuse to do business with ecommerce merchants who don't display SSL basics and signage. 

So be secure and prosper.

Payment Gateways - What are They?

The payment gateway is a secure financial service that can route the funds from a businesses check and credit card transaction or sale to the same businesses bank account - my words. 

In more depth? the payment gateway facilitates the transfer of payment information between the payment interface (retail terminal, website shopping cart, virtual terminal, etc.), the card associations (Visa, MasterCard, Amex, Discover), the card issuing bank for authorization of the payment transaction and finally - the merchant bank, for funding!

The payment gateway encrypts data for security (PCI DSS) and check card validity (provide authorization for the transaction).  This activity is seamless or invisible to the merchant and customer and remarkably takes place in just seconds.

Gateways today come with real time reporting on credit card transactions visible through a web portal by the merchant.  Most include shopping carts and virtual terminals or are compatible with popular shopping cart packages and softwares.

A payment gateway can be used in retail store processing, internet credit card processing and many other types of processing.

In ecommerce or internet credit card processing for example, payment data is forwarded to the payment gateway via your websites shopping cart and a secure (SSL) connection.  The payment gateway facilitates seamless, fast, credit card transactions and in the end, merchant funding (money in the bank).  The time from sale or transaction processing, to authorization and batching out (product shipped) to merchant funding is typically 2-3 days.  

There are a quite a few payment gateways for merchants to choose from such as Authorize.net, Sage, eprocessing network and more, each with unique features, capabilities, add-ons and costs, so sorting through which one is best for your business requires research or professional advice.

The payment gateway is just one piece in a complete credit card processing solution.

It's easy to see how complete merchant solutions for processing electronic payments i.e. coordinating your best options with best business practices by connecting a variety of virtual services such as financial (payment gateways, ach processing, merchant accounts) and telecom (landline and cell phone service) to hardware or equipment, softwares and websites, to banks (several in one transaction!)for secure transfer of electronic funds (think Star Trek) with seamless security and speed - might seem tricky, even overwhelming.

It is!