2013 update of 2010 blog article Compare wireless payment solutions for silent auctions.  After the Durbin Amendment fixed debit card rates, the need for pin debit wireless, especially in the non-profit world which tends to have very low fraud risk, is virtually non-existent.

wireless terminals vs mobile payment solution comparison:

1. Wireless has a built-in receipt printer. Mobile sends receipts via email or wireless printer.
2. Wireless can sometimes dial out where a mobile hot spot doesn’t exist. This situation is becoming more rare as venues ensure mobile internet access to compete for event hosting.
3. Wireless terminal hardware costs range from $400 refurbished to $1000 new. Mobile swipe card readers range from free (with service) to $300, though most are in the $40-50 range. Wireless receipt printers start at $250 and up.
4. Wireless terminal printers are built-in. Wireless WIFI Thermal Printers for mobile devices are $165 to $800, with $250+ typical.
5. Wireless terminal networks are typically $20 hard cost per month per device, plus a wireless transaction fee.  Mobile swipe solutions may be standalone or scalable simply by purchasing more readers, with one fee regardless of the number of units.
6. Wireless terminals support pin debit which reduces dispute period from 120 to 14 days, usually not a significant benefit for fundraising due to low fraud. Merchants don’t pay MASTERCARD & VISA ASSESSMENT FEE  dues and assessments on pin debit, currently $.001100 BASIS PTS TIMES total debit volume. Mobile pin debit is in development infancy.

wireless terminals vs mobile payment solution other:

1. Wireless terminals require merchant account downloads. This can be tricky so terminals are not usually updated after deployed, which also rquires sending the unit out if pin debit encryption is needed. Mobile payment apps work in the cloud. Users may need to update apps from time to time, but processing is in the cloud so there is nothing related to download.
2. Some wireless terminals can store transactions and send later, for example, after connectivity is restored. Caution: PCI Compliance may be in question as recent related data breaches have occurred in 2012-2013.
3. Scalability. Cloud solutions provide unique scalability to temporarily add users and manage their permissions, and potentially integrate tightly with other payment sources such as online donor and event registration pages.

mobile card reader- universal for iphone, ipad, droid

The Federal Reserve Banks of Boston and Atlanta through their Payment Strategies and Retail Payments Risk Forum Groups have released a paper based on several meetings of the Mobile Payments Industry Workgroup over the last two years. This paper updates the original version issued in 2011 and reflects on the evolution of the mobile retail payments industry over the last two years, which has witnessed considerable changes including collaborative efforts across a diverse set of industry stakeholders despite a market still characterized by considerable fragmentation, increased channel and technology convergence, participation by new non-bank entrants, and continuous technological innovation and experimentation. The paper concludes that while the market is still nascent, progress is being made towards achieving benefits within this ecosystem such as improved security and fraud reduction, cost efficiencies, value-added services, revenue and monetization opportunities, and data privacy. As a result of changes in the mobile payments landscape, the MPIW has updated its original strategic principles and has carved out a long-term vision that embraces technological disruption and is committed to interoperability and ubiquity but realizes the need for a concerted effort to develop industry guidance and standards to ensure a secure and cost-efficient ecosystem.

U.S. Mobile Payments Landscape – Two Years Later

(pdf)

If one thing is certain, it’s the uncertainty of what the mobile payment space will look like five years from today. Professional sports organizations seeking new payment technology, while improving PCI Compliance (Payment Card Industry Data Security Standards), need to consider whether the company they partner with will still be around in the future.

I recall back in the mid-90′s, working as a trailblazer bringing professional sports and related parties onto the internet. So many companies came and went. Yahoo, DoubleClick and Real are still in business. About a thousand other hot companies have long since disappeared.  Similarly the entire payment industry is going through a transformation, with hundreds of companies vying for a position in mobile payments or some other slice of the payment pie. Even big Google Wallet couldn’t generate a dominant marketshare. It’s a safe bet that 90% of them will fail, and some of them already have.

A little history might help breen caution. For over a decade, ISO’s, or Independent Service Organizations, grew dramatically. Instead of obtaining a merchant account from one of a few options via the big banks, businesses could buy the same product, or nearly the same product,  from an ISO, but often with lower mark-ups over interchange fees. As the economy grew in the last decade, a large number of companies borrowed against their residual earnings. When the economy tanked, businesses went under, and many businesses were over leveraged. There is a contraction underway in the ISO industry. The mobile payments space doesn’t typically have the revenue stream, and instead often relies on angel investing. A contraction will come for them as well.

What does an ideal mobile payment solution look like? The equipment makers and others pounded the drums for NFC, but to date, it’s made little movement. Ideally, both the consumer and merchante will benefit from any new payment solution. It needs to create efficiencies, and improve security.

CenPOS is a fast growing payment technology network that streamlines the payment experience for merchants and consumers alike. It has several advantages over other solutions:

1. CenPOS is non-disruptive to operations. It routes transactions to existing financial partners, including credit card and check processors.
2. CenPOS supports multiple channels. Kiosk, mobile, retail POS, ecommerce and more.
3. CenPOS reduces PCI burden.
4. CenPOS is scalable and flexible.
5. Integration options vary widely by need.
6. CenPOS started years ago as a company to create efficiencies for consumers and merchants. The others are playing catch up.

When all the facts are considered, CenPOS is the most robust solution on the market today, and with continual innovation, markets will drive future enhancements.

About CenPOS: CenPOS is an innovative payment processing network that streamlines the payment experience for both merchants and customers. It’s multi-channel support and SaaS model, has catapulted a shift in payment technology adoption in a variety of industries. CenPOS is fast, easy to use, and requires no capital investment to implement. For CenPOS sales call Christine at 954-942-0483 or click here for more information.

iPhone app credit card payments screenshots below are from the CenPOS retail app available for free download at iTunes. The two methods to use the retail app, do not include the restaurant and tip option, which are configured in the merchant set up.

SCREENSHOT 1:  RETAIL SWIPE. The standard screen is ready to capture data via magnetic card reader attached to the iPhone. The receipt can be emailed, or printed.

SCREENSHOT  2-3: OPTIONAL ADDITIONAL ACCOUNTING DATA. Next to the amount field is a small graphical image. Because this merchant has optionally chosen to collect additional data about the sale, the icon can be pressed and the clerk can assign transaction amounts to different accounting codes.

 The accounting codes are used throughout different sources, such as the virtual terminal, or via an API.  Merchants can use exsiting templates, such as the school/religious file, or provide one of their own to upload. Benefits include saving time assigning data later, as well as real time reporting to a remote location, such as multiple schools and churches reporting back to the archdiocese.

SCREENSHOT  4:  KEY ENTERED TRANSACTIONS. This images shows part of the different data captured when a transaction is key entered vs swiped. This is a key differentiator for CenPOS. Key entered transactions have a greater burden of proof for merchants to prove it was the cardholder making the transaction. Absent of magnetic stripe data, and based on merchant rules, CenPOS will automatically prompt for additional fields and send the transaction with the right information for qualified card not present interchange rates.

The CenPOS works with your existing processor, and is fast, easy, and requires no capital investment to implement. Call 954-942-0483 or click here for more information.

How are you using innovative technology to connect with Gen Y buyers? This generation of 18-32 year-olds covet technology, yet I’m astounded by the volume of auto dealerships that are still operating the same way as 10 and even 20 years ago with respect to accepting payments. I recently visited a busy dealership in Maryland. Bustling with activity would be an apt description. Getting everyone in was fast and efficient. Checking customers out, not so much.

Service advisors work their butt off to give customers a great experience. And then what happens? Customers are sent to the dreaded cashier line where the wonderful happiness diminishes a bit more with each minute they wait, or worse, when they overhear another customer loudly complaining about a negative experience. The service advisor loses control of the future customer survey the minute the customer must interact with another employee before leaving the facility.

I understand why a dealer might hesitate to expand who accepts payments. The last thing a a business owner wants is to increase risk by having more people handling cash, credit cards and checks. Everything that person does at checkout can impact EBITDA. Yet dealers will often try to eliminate cashier lines first by allowing service advisors to accept credit cards.  The typical “innovative” web-based solution simply replaces a dial-up credit card terminal with a card reader, and doesn’t address the potential negative impact on EBITDA.  Further, each user will print an end of day report and put all the receipts in an envelope. The controller then has significantly more daily reports to reconcile,  more piles of paperwork to store, and more challenges finding receipts for customer disputes. Giving service advisors a card reader with a virtual terminal is not an innovative solution to satisfy Gen Y, nor to drive higher profitability!

Here’s how dealers using CenPOS, a cloud payment processing solution, are meeting Gen Y needs:

• In-store, each service advisor and F&I manager has their own credit card terminal to check-out customers.  A critical differentiator, CenPOS automatically drives all customer and cashier/user actions to mitigate fraud risk, mitigate future dispute risk, and optimize interchange rate qualification, the largest expense associated with accepting credit card payments. For example, CenPOS will typically increase pin-debit vs signature debit from less than 10%, to over 75%. (See related articles for benefits.)
• Parts managers quote prices over the phone then immediately send a request for payment via text or email. The customer clicks the link to a unique secure  web page, pre-filled with sale information for faster checkout. The customer enters payment information, or chooses a stored payment method (the TOKEN tab) if they’re a regular customer that previously saved their payment information. Pick-up or delivery is then expedited.
  
• Service advisors are delivering invoices via email and text to customers who want to pay before pick up. The customer can click and pay, including selecting a stored payment method.  Pick-up is expedited on arrival. During regular hours, the service advisor can quickly hand over the keys and send customers on their way.  After hours, anyone in the dealership can hand over the keys and paid invoice. This is especially helpful with dealers near colleges; college students often have parents paying the bill.

By combining a single platform for all payment acceptance points with electronic signature receipts, and remote access to all data, controllers gain efficiencies even when the number of users who accept payments grows ten-fold, or more. Satisfying Gen Y with CenPOS technology, will also satisfy operations, and ultimately, the dealer-owner.

About CenPOS “Creating efficiencies through payment innovation”
Founded in 2009, Miami-based CenPOS is a SaaS payment technology provider. CenPOS is an intelligent payment processing network that streamlines the payment experience for businesses and consumers by using state-of-the-art technology to replace inefficient, outdated payment systems.

About Christine Speedy, blog author. Christine is an authorized CenPOS sales agent and has been helping automotive dealer groups improve the customer experience since CenPOS launched. CenPOS Global Sales: Christine Speedy (954) 942-0483.

Dealer Solutions brochure

If your business has been impacted by Sandy and you need a way to process credit cards locally or from another site, please accept my offer for a free mobile technology solution.

• Free virtual terminal.
• Obtain a smartphone or ipad reader from any source ( or we can sell you one cheap if needed) for retail card present sales.
• Free e-invoicing- use our invoice creator or we’ll send yours.
• Free iPhone, iPad, iTouch, or Droid compatible mag stripe card reader for any new car dealer or car repair shop, durable goods retailer, or building supplies company. 1 per location.

What is not included:

If you’re starting a new business to help storm victims or work in those areas, and need a new merchant account, we cannot help you. This offer is for existing businesses only, who already have their own merchant account and just need a way to keep their business going. 

PS search for DISASTER  to read related articles.

^ Christine Speedy

Accept credit cards on your smart phone or mobile device using your existing merchant account and the CenPOS payment network. The CenPOS mobile app is free. There are no additional fees above standard CenPOS usage rates. CenPOS is sold as SaaS and merchant rates vary by business volume and type of use.

ID-Tech makes a wide variety of reliable  mobile swipe products that are compatible with CenPOS mobile apps. Visit their web site for other options.

 TOP 3 recommended MOBILE CREDIT CARD READERS:

1. http://www.idtechproducts.com/products/mobile-readers.html. The Shuttle, Two-Track Secure Mobile MagStripe Reader- is compatible with almost everything. Works with new and old Apple products like iPhone 3, 3G, 4, 4S and iPad 2, iPad 3, and tablets. The rubberized grip that touches the top of your smart device keeps it from slipping. Most other products on the market do not address this simple fix to an old problem- if the reader moves while swiping, contact may not be good and the user has to swipe a second or third time. Choose this if you are looking for low cost, versatile mobile reader. $48.50 at barcodesinc.com.
2. The Linea-pro 4 turns iPhone and iTouch into a powerful point of sale solution. It includes a 1D or 2D barcode scanner, a 3-track magnetic stripe reader, and a rechargeable battery extender in a compact protective case. As you can see from the picture, it’s nicely wrapped around your iPhone or Itouch. Purchase at Infinite peripherals or contact your CenPOS relationship manager. Choose this if you’re a heavy user and want a slim design, or integrated bard code reading, or integrated drivers license reading.  MSRP $599 and up.
   
3. The iMag is an encryption capable MagStripe reader, also made by ID Tech. There are multiple versions, including one for iPhone 4. Encrypted MagStripe Reader for iPhone 3G/3GS, iPhone 4, and iPod Touch. (Reads tracks 1, 2, and 3, bi-directional reading capabilities. For the power Apple user on a budget, the slim sleeve becomes a part of the phone and attaches at the bottom so you can still use your headset if desired. $61 at barcodesinc.com.
   

Notes: CenPOS mobile app is free. Merchants need to contact CenPOS sales to open an account, which includes free virtual terminal, free mobile app, 7 years of data stored, remote user management, and many other benefits. CenPOS is a scalable hosted payment processing network supporting multiple payment methods. The CenPOS gateway connects to your existing merchant account. Merchants can purchase hardware from any source. Global Channel Sales & Business Development, Christine Speedy, 954-942-0483.

Members of the Organisation of Eastern Caribbean States (OECS) are invited to try our updated mobile payment application, supporting pay at the table, where allowed by law.  The mobile payments applications support sale amount and tip, plus surcharge fee as a percentage or fixed amount, along with custom data capture options. Open to OECS members in Antigua, Barbuda, Dominica, Grenada, Montserrat, Saint Lucia, Saint Kitts and Nevis, Saint Vincent and the Grenadines.

Partial feature list of private cloud based payment network:

• Secure card swipe
• Signature capture- stored for 7 years
• Custom rules based fraud features
• Custom rules based automated alerts
• Remote user management
• Remote supervisor override
• Dynamic Currency Conversion supported
• Robust multi-location reporting

For more information, and compatibility with your existing merchant account, please contact Christine Speedy.