November 5th, 2015 by Elma Jane
EMV-compliant POS systems are now being equipped with NFC technology to accept contactless payments. What does this mean for the future of payments?
EMV lays the foundation for increased card-present and contactless payments security, with EMV, magnetic stripe cards are soon to be a bygone technology. Plastic EMV cards will not have a long lifespan as payments move into a more digital space, security and NFC upgrades merchants and consumers now will carry over into the digital and mobile payments space.
Consumers are constantly looking for more convenient ways to transact, which is made possible by the simultaneous adoption of EMV and NFC. While EMV supports plastic chip cards, payments are going digital and POS systems equipped with NFC technology save consumers from digging through their wallets, making it easier for consumers to transact via mobile devices. Mobile payments should be simple, scalable and affordable in today’s payment landscape and consumers should have the option to securely store and use multiple cards within their digital wallets or applications they most often use.
EMV standards increase security for card-present payments, which are relevant to many consumers today, but the convenience of mobile and contactless payments is the future. In an era of EMV, NFC plays as critical a role in propelling both technologies forward. Retailers and card issuers alike must recognize the opportunity to take advantage of both.
Posted in Best Practices for Merchants, Credit Card Security, EMV EuroPay MasterCard Visa, Smartphone Tagged with: (POS) systems, card present, chip cards, contactless payments, Digital wallets, EMV, magnetic stripe cards, merchants, Mobile Payments, nfc technology, payments
November 2nd, 2015 by Elma Jane
Apple’s mobile payment and digital wallet service will become available for American Express Card Members in Canada and Australia this year, with Spain, Singapore and Hong Kong to follow suit next year.
Card Members in these markets will be able to seamlessly add their small business, eligible consumer and corporate American Express Cards and pay on the go with their iPhone, iPad or Apple Watch devices in stores where American Express and contactless payments are accepted. They will also be able to pay using their iPad or iPhone in participating merchant apps.
Card Members paying with Apple Pay will continue to take advantage of the protection and customer service that American Express is known for. They will also receive real-time notifications and details for their purchases, as well as enjoy seamless connection to the Amex Mobile app for better account monitoring, servicing and access to rewards and offers.
Posted in Best Practices for Merchants Tagged with: Card Members, contactless payments, Digital Wallet, merchant, mobile payment
July 30th, 2015 by Elma Jane
Converge Powers Potential 
Over the next several weeks, we’ll focus on a series of topics to hopefully provide a better understanding of the payment capabilities
Converge can bring you customers. In this article, we’ll zoom in on the card-present product enhancements of Converge first, including bringing EMV and mobile wallet capabilities to in-person payments, and ultimately VirtualMerchant Mobile later this year.
New Peripherals Added to Converge – Ingenico iSC250 and Star Micronics TSP650II Printer
Ingenico iSC250 Signature-Capture PIN Pad – is a signature-capture PIN pad offering the ability to accept PIN-based transactions, like debit card and Electronic Benefit Transfer (EBT), as well as EMV chip card and mobile wallet payments.
The iSC250 will initially ship EMV-capable meaning it’s physically configured with a slot to accept an EMV chip card, but it does not yet have the EMV application to process a chip card transaction.
A simple download process later in the year will allow customers to accept chip cards. The good news is customers can accept NFC contactless payments right away, including Apple Pay and Google Wallet.
Key features of the Ingenico iSC250 include:
- EMV-capable smart card reader to support EMV chip cards; EMV-enabled with a download later in the year
- NFC-enabled for contactless cards and Apple Pay and Google Wallet mobile wallets
- Magnetic stripe capture for all standard mag stripe cards
- Encryption technology to help secure cardholder data at point of entry and throughout the payment network
- Signature Area Display for signature capture with electronic stylus
- Bright color 4.3″ display and backlit key pad for ease of use
Star Micronics TSP650III:
In addition to the new iSC250PIN pad, a new USB printer were also added to the lineup of Converge supported peripherals, the Star Micronics TSP650II receipt printer. Now customers have two options for thermal receipt printing!
ConvergeConnect Makes Device Setup a Snap
A new peripheral and device management software called ConvergeConnect to make it easier for your customers to setup their devices quickly as well as add additional peripherals as their business needs grow. It will be the go-forward device management application, and we’ll be able to bring more and more EMV and NFC devices to market faster, giving our customers even more in-store payment processing options.
Legacy peripherals, like magnetic stripe card readers, check imagers and the Epson ReadyPrint T20 printer will continue to be managed using the Device Assistant.
Customers may have to use both ConvergeConnect and Device Assistant depending on their peripheral configuration.
A new Peripheral Device Installation and Setup Guide was developed to help customers install and manage their peripherals for both applications.
Converge Mobile with EMV on the Horizon
Work continues on the new VirtualMerchant Mobile app to be branded as Converge Mobile, and releasing the Ingenico iCMP in the third quarter. The Ingenico iCMP accepts EMV and NFC transactions, including contactless cards and mobile wallets, like Apple Pay. Stay tuned as more information becomes available.
Posted in Best Practices for Merchants, Credit Card Reader Terminal, EMV EuroPay MasterCard Visa, Mobile Payments, Near Field Communication Tagged with: card-present product, cardholder, chip card, contactless payments, data, debit card, EBT, Electronic Benefit Transfer, EMV, mag stripe cards, mobile wallet, nfc, NFC transactions, payment network, payments, PIN pad, PIN-based transactions, smart card reader, VirtualMerchant Mobile
February 27th, 2015 by Elma Jane
Here are the Frequently Asked Questions:
You’re probably finding yourself staring at your old credit card machine and worrying about the cost of buying a new machine. The transition doesn’t have to be an expensive one, but it pays to be educated as you consider this important upgrade.
Things you need to know in the form of a brief FAQ.
Where To Buy an EMV Credit Card Terminal?
All the same places you can buy or rent a non-EMV terminal, for the most part. The vast majority of the time supported EMV machines can be reprogrammed just like their non-EMV predecessors. While credit card terminal tampering has occurred in the past, it is not common and is even less easily achieved with new EMV terminals.Terminals have built-in anti-tampering features to prevent this. Your provider is free to either charge a reprograming fee, or simply refuse to reprogram outside machines. While they can reprogram, there’s no law saying that they have to.
Is It A Must to Have an EMV-Compliant Machine?
NO BUT THERE IS RISK. NFC (Near Field Communication) is the technology used by digital wallets for contactless payments. NFC EMV terminals can be considerably more expensive than standard EMV terminals. You can buy a separate NFC reader without replacing your existing EMV terminal.
Does an EMV Chip Card Reader Cost Much?
NOT VERY MUCH! These terminals are really not more expensive that the old terminals. You can find them as cheap, especially if it’s refurbished. There’s no reason to sign on to an expensive non-cancellable lease. If you’d rather rent than own, at least look for inexpensive rental options. If you want a wireless terminal or an NFC-capable terminal, the prices will be a little bit higher. But for baseline EMV-compatible chip card readers, it’s a pretty minor investment even for a very small business.
Does EMV Terminal Upgrade Really Needed?
Technically? No, but it would be like buying a new computer and not getting a virus protection program. Worse because you have financial data on. Your CUSTOMER! Practically? You should!
If you stick with your old non-chip credit card terminal, you will still be able to run transactions. All chip cards are also equipped with the same magnetic stripe used previously, so you can still swipe them. The difference is that if one of those chip cards that you swipe is used fraudulently, you will now be liable. The rationale behind this is that if you had upgraded your terminal, the fraud could have been prevented. Therefore you are held accountable. You might be tempted to think that your small businesses is unlikely to be a victim of such fraud because it hasn’t happened in the past. But consider that all of the big retailers will be upgrading to the EMV terminals, which is likely to drive fraudsters to more vulnerable outlets (ie, small businesses). So I don’t want to be a fear-mongerer but for the fairly small business expense of a terminal upgrade you get a lot of fraud protection. If it prevents just one instance of fraud in the years to come, it has likely paid for itself many times over.
For most merchants, it’s not that expensive or difficult to switch over to EMV equipment and the insurance that the switch will provide you with is well worth the effort. So start thinking about it, and don’t wait until the last minute. The last month before the liability shift occurs in the US, equipment providers will be backed up with orders, making the transition less smooth. So there’s no time like the present to start looking into chip card machines. It might even be a good time to think about switching providers.
Posted in Best Practices for Merchants, Credit Card Reader Terminal, Credit Card Security, EMV EuroPay MasterCard Visa Tagged with: chip card readers, chip cards, contactless payments, credit card machine, credit card terminal, credit-card, Digital wallets, EMV, EMV compliant, EMV machines, EMV terminal, magnetic stripe, Merchant's, Near Field Communication, nfc, NFC reader, NFC-capable terminal, wireless terminal
September 17th, 2014 by Elma Jane
Commuters using the London tube network can now tap their contactless bank cards on the ticket barriers to pay for their journeys, further displacing cash on the capital’s transit system.
Fares are cheaper than cash, with users being charged adult pay as you go fares and benefiting from daily and Monday to Sunday fare capping. Customers without bank cards will continue to benefit from cheaper fares through Transport for London’s Oyster card.
This is not the end of Oyster and it’s not the end of cash, but it is a significant dent in the market for cash.
The move follows the abolition of cash on London’s buses and covers all tube, overground, DLR, tram and National Rail services that accept Oyster.
The shift to contactless has future-proofed the capital’s transit system for up-and-coming innovations in payments. You can already use your mobile phones to make your payments and tap and go through the tube turnstiles, and in the future it will open up many other connected devices as well, whether that’s smart wristbands or smart watches.
An incredible response to the launch of contactless payments on London Buses with nearly 19 million Visa contactless journeys made since it launched in 2012. Today’s launch will be another major boost to contactless usage leading to the three-fold increase expected in the next year. To coincide with the rollout, Londoners are invited to sign up for 10,000 free bPay contactless payments bands. Its wearable device will let commuters pay for their journeys with a wave of their wrists and help avoid card clash.
Posted in Best Practices for Merchants Tagged with: bank, card clash, cards, contactless bank cards, contactless payments, customers, devices, mobile, mobile phones, network, payments, phones, smart watches, smart wristbands, Visa contactless journeys, wearable device
May 12th, 2014 by Elma Jane
New iPhone and VeriFone-made shell combination that can accept chip and PIN card payments. Apple’s revamp in its in-store mPOS system
In 2009, Apple introduced its EasyPay mPOS technology. It consists of an iPod Touch and a shell made by Infinite Peripherals that includes a card swiper and a barcode scanner.
As first reported by 9to5mac,the iPod is now being replaced by an iPhone while VeriFone is being brought in to provide a new shell which will cater for chip and PIN payments as the US finally gets ready for the switch to EMV. The shell also has a spot above the PIN pad that opens the way for NFC contactless payments, according to Forbes. Apple has long been expected to equip the iPhone with NFC but has so far ignored the technology.
Separately, mPOS giant Square has ditched its Wallet app, pulling it from the Google and Apple stores. The app has failed to take off since its launch in 2011, despite the support of Starbucks. It has been replaced by Square Orders, which lets users order and pay ahead at participating merchants and then pick up their goods when they are ready.
Posted in Best Practices for Merchants, Mobile Payments, Mobile Point of Sale, Point of Sale, Smartphone Tagged with: app, Apple stores, Apple's, barcode, barcode scanner, card, card swiper, chip, contactless payments, EasyPay, EMV, Forbes, google, in-store mPOS, Infinite Peripherals, Iphone, iPod, iPod Touch, Merchant's, MPOS, mPOS giant, mPOS system, mPOS technology, nfc, NFC contactless payments, PIN, PIN card, PIN card payments, PIN pad, Square, Starbucks, swiper, verifone, Wallet app
April 15th, 2014 by Elma Jane
Amsterdam, Netherlands-based Cardis has been piloting its technology in Europe with Raiffeisen Bank in Austria and Sberbank in Russia. They are now focused on the U.S., as this is the fastest growing mobile payments market in the world, where there’s a huge opportunity. Integration of technology with a large U.S. processor and with a major U.S. retail brand, which will be launching a mobile site and mobile app using Cardis solution.
Cardis International is planning an April launch in the U.S. for its technology, which enables merchants to accept low-value contactless or mobile payments without incurring high processing charges. Cardis is able to bring down the processing cost of low-value payments, the company said, by aggregating multiple transactions into a single payment.
The problem
Contactless card and NFC-based mobile payments are typically for low amounts, and yet still use a card processing infrastructure that was designed 40 years ago when the average credit card transaction was $100.
Traditional card processing systems require each transaction to be individually processed through the payment system, including authorization, clearing and settlement. The resulting variable costs of processing each transaction are independent of the transaction amount and too high for low-value payments, particularly in low-margin industries such as quick-service restaurants. QSR restaurants often have a 3 percent profit margin, yet, for low-value contactless payments, the processing cost could be as high as 6-7 percent of the transaction value.
Mobile and contactless cards offer consumers a convenient form factor. But they don’t solve the problem that low-value card payments are very expensive for merchants.
As an ever-increasing percentage of transactions have become cashless, card processing fees have become a significant cost. Costs that are based on the number of transactions, rather than their value. With average per person expenditures of $5 or under, feels each swipe fee much more than a business where customers spend $50 or more. But not accepting credit/debit cards for low-value transactions isn’t an option as many of customers don’t carry cash anymore.
Aggregation
Cardis’ solution is to act as an aggregator of low-value payments, sending a single batched transaction through to a processor instead of multiple low-value transactions. As there is no per transaction processing of individual low-value purchases, the cost-per-transaction is significantly reduced.
Cardis provides its technology as a software plug-in to payment service providers for contact-based and contactless card payments, mobile wallet transactions and NFC payments.
There are two models. For card payments, it will aggregate multiple purchases by an individual cardholder at a single merchant on a post-paid basis up to a specific amount, for example $20. To guarantee payment to the merchant, since the aggregated transaction is processed at a later date, it will pre-authorize an amount, for example $15, the first time the customer makes a purchase at that merchant.
Alternatively, merchants can opt for Cardis’ prepaid system. This involves the consumer setting up a prepaid account hosted by Cardis’ sponsoring bank that is topped up via ACH (automated clearing house) transfers. Using the Cardis prepaid account on a smartphone provides the digital equivalent to cash.
With its post-paid solution, merchants will save 30-50 percent per transaction compared to conventional card processing fees, while its prepaid solution saves merchants 80 percent per transaction. With the post-paid solution, it will only aggregate a customer’s purchases at a single specific merchant. But, as the prepaid solution aggregates the customer’s purchases across multiple merchants, this enables to offer a much lower processing fee to the merchant.
Cardis provides an audit trail enabling consumers to track individual transactions that are aggregated using its technology. Consumers don’t lose any of their card protection rights and guarantees by agreeing to let a merchant aggregate their payments through Cardis. They can always charge back any disputed transactions.
Cardis sees opportunities for digital content providers such as online music stores and games providers to use its aggregation technology. It can integrate solution with existing digital wallets.
Raiffeisen
In 2012, Austria’s Raiffeisen Bank launched a pilot of Cardis technology for NFC-based Visa V Pay debit card payments in partnership with Visa Europe. Raiffeisen’s MobileCard mobile payment product uses a secure element stored on an NFC-enabled MicroSD card inserted in a mobile phone. Although Cardis supports secure elements stored on SIM cards as well as on MicroSD cards and on the cloud, Raiffeisen opted for MicroSD cards, as this is an easier solution to implement.
Raiffeisen cardholders participating in the pilot use MobileCard on average three times a week, with an average transaction value of ($5.70). Merchants accepting MobileCard are seeing 40 percent to 70 percent lower merchant processing fees for an average transaction value of ($5.43) to ($13.60).
Spindle
In October 2013, Spindle, a U.S. mobile commerce company, signed an agreement with Multi-max, a manufacturer of vending machines for mid-size and small offices throughout North America, Europe and Asia. Spindle will integrate its MeNetwork mobile commerce technology into Multi-max’s line of K-Cup vending machines for rollout across the U.S.
The MeNetwork solution will incorporate all card-based payment acceptance services, as well as mobile marketing services. Spindle’s partner Cardis will provide low-value payment processing services for purchases at K-Cup vending machines.
Posted in Credit card Processing, Credit Card Security, Digital Wallet Privacy, e-commerce & m-commerce, Electronic Payments, Gift & Loyalty Card Processing, Internet Payment Gateway, Mobile Payments, Mobile Point of Sale, Near Field Communication, Payment Card Industry PCI Security, Smartphone, smartSD Cards, Visa MasterCard American Express Tagged with: accept, ach, aggregated, aggregation, aggregator, authorization, automated clearing house, average transaction, batched, card payments, card processing infrastructure, card processing systems, card-based payment acceptance, cardholders, clearing, contactless, contactless payments, cost-per-transaction, credit card transaction, debit card payments, Digital wallets, high processing charges, low-value payments, merchant aggregate, Merchant's, microSD, mobile app, mobile commerce, mobile payment, Mobile Payments, mobile site, mobile wallet transactions, nfc-based, payment service providers, pre-authorize, prepaid, processed, Processing, processing cost, processing fees, processor, settlement, smartphone, transactions, transfers
