Credit card processing is evolving from dial up terminals to web based virtual terminals, even for the retail environment. These hosted solutions are not all alike. Addressing just the pin debit function for payment processing, CenPOS and SkipJack perform differently. The hardware set up for each in this scenario is a virtual terminal, magnetic stripe card reader and pin pad.
- The Skipjack user must look at the consumer card and ask if it will be ‘debit or credit’.
- The CenPOS user will automatically prompt the customer for their pin number IF it fits the merchant settings.
What’s the difference?
With Skipjack, employee decisions at the point of sale impact merchant risk and cost of accepting credit cards. With CenPOS, the customers and employees are prompted automatically to achieve the desired result at the point of sale. CenPOS is an intelligent payment platform that routes transactions based on merchant settings for risk tolerance and payment costs.
Statistically, CenPOS merchants achieve a national average of over 75% pin debit conversion. Merchants can verify this information for their account in the executive dashboard, and also create alerts for their conversion rate, such as if it falls below a certain percent. While I don’t know other product statistics, published reports of aggregate retail merchants are substantially lower- less than 30%; most businesses I encounter have under 10%.
What’s the merchant benefit to increase pin debit conversion?
- 14 days for a dispute period vs 120 day for signature debit.
- Tougher to lose disputes.
- Dues and assessments do not apply.
- Additionally, the Durbin Amendment requires 2 debit networks on every card. With CenPOS least cost routing, the debit transaction will be routed to the lower cost network, according to all applicable rules.
DISCLAIMER: This review uses publicly available information posted on the competitive product web site as of 7/01/2012. The article does not address all features, just the pin debit conversion. Skipjack is a registered trademark of Skipjack Financial Services, Inc.
EDITOR CHRISTINE SPEEDY COMMENTS:
- According to their web site http://www.skipjack.com/solutions.aspx?cmsphid=85781357|4347063|2831168, “PIN-based debit is currently available only for Canadian merchants.” However, I don’t think that is accurate.
- Regardless of the features you need, CenPOS generally outperforms Skipjack when all the facts are compared, especially for automotive and business to business applications.
- API is available to integrate into ERP and other software packages.
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