There is one question that merchants continue to ask our team of experts at CardConnect: ‘How do we capitalize on new payments technology in the most cost-effective way?’
One of the most important things to remember is that in order to capitalize, you want to appeal to the mass market. To do this you need to create an environment that entices younger consumers, but continues to serve generations that may be less tied to, and less familiar with, the latest tech trends.
You may have seen our previous post on the Consumer Shopping Behavior where we touched on the need for businesses to adopt the right security solutions and omnichannel retailing. Recently, we’ve been getting lots of questions about how retailers can get ahead in payments, so we thought we would share more tips – complete with thoughts incorporated from two CardConnect experts.
We are still seeing cases where merchants are falling victim to fraud due to a lack of adopting secure payments technologies. If you using a system that does not accept chip and pin technology, you are putting your business at risk of financial disaster. Now, more than ever, there is an urgency to utilize EMV technology.
EMV technology is the technology behind chip card acceptance. Every transaction that is made with a chip card generates a unique code which cannot be used again. This makes it almost impossible for hackers to replicate your data. Using chip card readers ensures that a merchant is protected during card-present transactions. Crucially, it can help prevent the issue of chargebacks. Regardless if the customer made the purchase or not, merchants are responsible for chargebacks. More importantly, there is no recourse for a merchant to validate a transaction through the chargeback process using a signed customer receipt.
The cost of an EMV terminal shouldn’t be a reason to delay improvements to the security of your business. For example, the CardPointe Terminal, which is our stand-alone countertop terminal, is great for retailers and restaurants. It is an affordable solution for chip cards, with prices starting at $170. Alternatively, for those requiring on-the-go payments, our Cardpointe Mobile Device retails for $25 and is EMV ready. Simply download and pair it with our app, available on iOS and Android.
"If the cardholder claims they didn’t make the transaction – and in fact they did – the merchant is 100% financially liable for the chargeback because the merchant simply did not utilize the technology to protect themselves.” Michael Mertz, Chief Sales Officer at CardConnect.
PCI-validated point-to-point encryption (P2PE) solutions have emerged as a necessity for any size and type of business. Data breaches are continuing to occur, making the need for security in payments paramount for every merchant and ISV. As the need to gain consumer trust becomes even more difficult to do, CardConnect has developed and created solutions to protect every transaction using a powerful combination of PCI-validated P2PE and patented tokenization, securing sensitive data, and most importantly, the trust of a customer.
“After a multitude of breaches from household name companies in recent years, consumers are left wondering who they can trust with their data. No merchant wants to be the next one with a data breach or to operate an environment that isn’t secure.” Michael Mertz, Chief Sales Officer at CardConnect.
The most important thing a merchant can do is complete their PCI Self-Assessment Questionnaire (SAQ). Depending on their environment, CardConnect provides solutions that can minimize PCI scope and reduce the length of the SAQ from 100 to approximately 30 questions. Once a merchant completes the SAQ, they are provided with a seal that they can use to showcase their PCI compliance, aiding in giving customers peace of mind.
Using CardConnect’s Bolt solution, the integration of P2PE devices is made easy - a simple API brings the power of P2PE to any POS, mobile or SaaS application.
Integrated payments are the most efficient and cost-effective way for a merchant to operate. It used to be commonplace (and for some, it still is) for merchants to have an inventory system that was separate from their POS system and credit card terminal. However, due to industry advancements, merchants can now integrate everything into one system, including payment acceptance, providing a seamless, faster checkout experience for the customer.
“In the past 12 months, we have noticed a significant shift in the industry towards integrated payments as demand from both merchants and software vendors for an all-in-one solution has materially increased.” Rich Wheeler, Director of Integrated Sales at CardConnect.
“Leveraging multiple gateways or service providers as a merchant or software vendor to facilitate multiple payment types or methods is becoming a thing of the past.” Rich Wheeler, Director of Integrated Sales at CardConnect.
Mobile payments, also known as NFC, are changing the face of payment acceptance across retailers. The reason for this is simply: security and data protection. It’s important to rethink customer touch points to ensure a secure, hassle-free transaction when using a mobile device. According to the 2016 UPS report on online shopping, 65% of shoppers are concerned about having their personal information and data stolen by using their mobile device to make purchases.
Utilizing a secure method of mobile payment acceptance is guaranteed to help you capitalize in this fast moving digital landscape. Many consumers are already using their mobile device to make purchases, and experts have predicted mobile payments revenue to surpass $1 billion by 2019. Adopting an omnichannel payments system now, with the ability to accept mobile payments will position your business for the next wave of future payments acceptance.
“The biggest constraint for the merchant is the simple cost to acquire all the technology to accept mobile wallet but you will see a tipping point in the next couple of years. The consumer is going to demand the acceptance of mobile wallet for simplicity and ease of payment.” Michael Mertz, Chief Sales Officer at CardConnect.
Mobile payments also allow the merchant to manage transactions on their own smart device. Part of the CardPointe platform is a native mobile app, which ensures merchants can check in on their business wherever they are – making it even easier to stay connected in this mobile world.
Adopting a payments system that accepts Apple Pay, Android Pay and Samsung Pay is crucial to the future success of your business. Mobile payments, otherwise known as Near-Field Communication (NFC) Technology, are fast becoming the only way to pay, with total revenue predictions expected to exceed 1 trillion dollars by 2019. NFC technology enables merchants to better facilitate the customer experience, whilst ensuring the safety and protection of sensitive data.
“Today we would be hard-pressed to find devices being manufactured that don’t have Apple Pay and Android Pay acceptance available,” said Wheeler. “Contactless payments will become more prevalent in the future and it’s smart to employ a payment solution that allows for growth.” Rich Wheeler, Director of Integrated Sales at CardConnect.
When a merchant adopts mobile payment solutions, they are positioning themselves ahead of the competition.
This is an exciting time in the world of payments. If you more have questions, feel free to get in touch with us by filling out the form below.