Category: smartSD Cards
March 10th, 2015 by Elma Jane
If you can’t accept credit cards for your business, you are losing out on potential revenue. Most people don’t carry more than $20 in cash with them at a time, and people who use credit cards tend to spend more than their cash-carrying counterparts.
These days you can turn your smartphone or tablet into a credit card reader, but which service should you choose? What do you need to consider when deciding?
NTC is here to help you understand all the intricacies of taking credit card payments with your smartphone or credit card.
Credit card reader or Wedge are useful in a variety of industries and for businesses of all sizes. Arts and crafts business accepting credit card payments at conventions and other events. A pub that gives its servers credit card readers rather than having to pay for everything at the bar. POS systems with a mobile integration can swipe your card on the spot rather than taking credit cards over the phone when ordering delivery.
If you work in one of these fields it might be time to think about getting a wedge:
Arts and crafts vendors: Do you sell your wares at conventions, art shows, and other big events? You could be a book reseller, an artist, a jewelry maker, a clothing retailer, or even a makeup seller.
Food Service: Food trucks were among the earliest adopters of mobile card readers, but there is no shortage of restaurants that are using them now. There are companies both offer POS systems in addition to their mobile card readers, which is perfect for delivery services.
Service providers: If you don’t have a brick-and-mortar office or base of operation where customers visit you, or if you conduct your business in your customers’ homes (carpet cleaners, plumbers, lawn care, mobile dog groomers, exterminators, etc.), a credit card reader/wedge gives you flexibility as well as credibility, as well as added security.
Understanding the Costs of Accepting Credit Card Payments
In the traditional business model, to accept credit card payments you would have to set up a merchant account. A merchant account typically entails a detailed look at your credit history and business.
Credit card companies assess a small fee to merchants for processing payments. With merchant accounts and card readers, the cost is built in and deducted automatically, so you don’t have to worry about paying it yourself. With a merchant account, you typically get lower rates because of the decreased risk.
It’s not just the standard fees that you need to worry about when you want to accept credit card payments. There are costs hidden everywhere, so let’s address some of these issues:
Internet Availability Typically, smartphone and tablet card readers need some sort of Internet connectivity, via a cellular signal or Wi-Fi. Most smartphones these days are capable of becoming Wi-Fi hotspots, so you can create your own Wi-Fi. However, this option relies on your phone’s data plan. The more transactions you make, the more data you use.
Compatibility You also need to make sure that your devices are compatible with the card reader. Check the list of compatible devices before you commit to one service over another.
Also note that you’re going to usually have to enable location services on your phone.
Card Compatibility, Manual Entry Fees, Location There are card readers that seems to work best with a specific device. You’re typically going to pay more for manually entering credit card numbers because of the greater risk – the card doesn’t have to physically be present to complete the transaction.
Likewise, you’re usually going to pay more for accepting international cards, and you’re not always going to be able to accept payments outside the U.S.
Taxes and Tips Several mobile credit card readers will let you add sales tax to the base purchase without requiring you to calculate it, which is handy if you’re not fond of math or just want the transaction to go more quickly.
As an alternative, you can build the sales tax into the listed prices, which some of your customers might appreciate.
Finally, depending on your industry, you may want to check that the credit card reader you use allows your customers to add a tip.
Time to Get Your Money The final cost to consider for credit card readers is more of a convenience fee than anything — it’s the time before you can access your money.
If you’re in a high-risk industry or have a high volume of business, you are probably better off obtaining a merchant account and using one of their mobile solutions.
You’re also going to want to worry about refunds and chargebacks. If, for whatever reason, a consumer complains to his or her credit card company and there’s a chargeback.
Features to look For in Your Credit Card Reader Features-wise, you can at least expect the basics to remain consistent across smartphone credit card readers: you can swipe cards, manually key them in, and issue receipts. It’s the little things that will ultimately set one service provider apart from the rest. Some of the things you may want to look out for include:
Record-Keeping for Cash and Checks Sure, you can manage your cash intake the old fashioned way and let your bank deal with checks. But some credit card readers, (which doesn’t actually require you to swipe cards, but more on that later) will let you create digital receipts for cash and check transactions as well.
POS Integration Depending on your needs, you might want to look for a service that has easy POS integration.
E-Commerce Integration Likewise, look for easy integration with an online store, if you have one. Easy integration is ideal for centralizing your accounts.
Accounting Integration & More Do you use an accounting service? If so, you might prefer the ability to transfer your data directly from your card swiping service to your accounting software.
Invoicing If you do custom orders, offer services, or provide goods to a business, you’re all too familiar with invoices. With some services, you can generate invoices through them and send them to clients via email. The biggest advantage to this is simply that you get your money quicker because there’s no need to cut a check and send it through snail mail.
Voids and Refunds It’s unfortunate, but you do need to make accommodations to process refunds and void transactions. Sometimes your finger slips on a key and you don’t notice until afterward, and sometimes the customer just changes their mind. Make sure that you understand how to use these features in whichever service you choose.
Card Reader Design Needless to say there is more than a bit of awkwardness trying to balance a phone with a 5.1-inch screen in your hand while also stabilizing the card reader while swiping the card. Especially when you’re working with limited table space. It’s worth looking at the card reader and the device it’s attached to and making sure that the design works for you.
Permissions for Multiple Users Do you have several employees? The ability to give permissions to multiple users comes in handy here. With it, you can enable employees (or your friends) to accept payments without giving them full access to your account. This is great if you happen to have multiple booths at events, or if you send multiple employees out on location and each one needs to be able to accept payments.
Accepting credit card payments doesn’t have to be a terrifying prospect, even if you’re running just a small-time business. You can get a mobile credit card reader for free in many cases, and while you won’t pay the lower fees associated with traditional merchant accounts, the costs are still readily manageable. What you need to consider are the hidden costs — not necessarily in the service providers, but the ones that come from using a data connection, or requiring Wi-Fi. How soon you get your money should also be a top priority.
Posted in Best Practices for Merchants, Credit Card Reader Terminal, Mobile Payments, Mobile Point of Sale, Smartphone, smartSD Cards Tagged with: (POS) systems, card reader, chargebacks, credit card reader, credit cards, e-commerce, high risk, merchant account, Merchant's, mobile card readers, mobile integration, POS, processing payments, Service providers, wedge
May 6th, 2014 by Elma Jane
Mobile commerce platform provider ROAM, an Ingenico company has expanded its mPOS solutions to include chip-and-PIN acceptance with the RP750x mobile card reader. The reader allows mPOS players to get to market quickly with their own custom-branded solution, providing merchants with a powerful set of features that include device and fraud management, remote application configuration, and an mPOS application that can be localized for any language and currency in any country. Features include: Backlit display, EMV PIN pad, magnetic stripe reader, NFC reader and smart card reader. Configurable through the cloud, enabling direct shipment from factory to any country. Connects with smartphones, tablets and feature phones via Bluetooth or audio jack. Customizable for branding and form factor. Just Slightly larger than a credit card, a compact form factor. PCI PTS 3.1 with SRED, EMV Level 1 and 2, Visa-ready (Compliant with the latest industry standards).
Posted in Best Practices for Merchants, Credit Card Reader Terminal, e-commerce & m-commerce, EMV EuroPay MasterCard Visa, Financial Services, Mobile Payments, Mobile Point of Sale, Near Field Communication, Payment Card Industry PCI Security, Point of Sale, Smartphone, smartSD Cards, Visa MasterCard American Express Tagged with: bluetooth, Chip and PIN, cloud, compliant, credit-card, currency, EMV, fraud, magnetic stripe reader, Merchant's, mobile card reader, Mobile commerce platform, mPOS solutions, nfc, PIN pad, smart card reader, Smartphones, tablets, visa
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
August 13th, 2013 by Admin
MasterCard who has endorsed Google Wallet on the Sprint network will now endorse the ISIS network for mobile wallet solutions. Both Google and Sprint have not joined ISIS and it is interesting to see card issuers invest in both platforms. With Verizon, AT&T and T-Mobile in alliance with ISIS, could Sprint be next? Google? Well count Visa and MasterCard as Isis partners. After securing American Express both Visa and MasterCard will now have their credit cards available in Isis’ Wallet. What will be in your mobile wallet?
Many mobile wallet providers are looking at the various options for electronic transaction processing. Will NFC beat out all the others? It’s hard to say but with Apple having yet to release an iPhone model with the chip on board, it could be a yet unseen technology that wins out. QR Codes and Carrier billing are gaining traction for devices without NFC installed and SmartSD cards are coming equipped with NFC to extend devices that have a card slot available.
With device limitations, mobile wallets are still in flux. There are approximately 5 different types of mobile wallets today. There are digital bank accounts similar to prepaid credit cards offered by banks and mostly used for person to person or P2P payments. Mobile payment apps that link payment accounts like those offered by Starbucks or PayPal. Card containers like Apple Passbook store credit cards and loyalty rewards card information and can even fill in forms requesting that information. Similarly, Credential and Card containers store credit card and loyalty rewards but also store identity credentials.
True mobile wallets directly mimic a physical wallet and allow the customer to chose between various credit cards, debit cards even electronic benefits transfer or EBT cards at the point of sale. These wallets are typically app based for both iPhone and Android smartphones and tablets. These wallets can link account information to a point of sale terminal via NFC or other methods for a secure electronic transaction.
Branding and Banks
In recent times Visa, MasterCard and American Express signs at the point-of-sale was a branding element designed to instill confidence for the consumer. With digital wallets becoming the interface for payments, this branding may fade into the background. Yet payment card issuers find themselves in a precarious position. The big three are participating in multiple digital wallet programs in order to not be excluded. This early in the game there are multiple movers and shakers like Square, PayPal, Lemon, Google and now banks and cellular carriers getting into the game, no one knows who consumers and merchants will eventually prefer over the others. It’s like a wait and see game that forces them to play. As banks enter the arena they are favored to win because of the solid loyalty they enjoy from their customers. Though they may not be fair in other categories, they win the security of their customers.
Posted in Credit card Processing, Digital Wallet Privacy, Electronic Payments, Mobile Payments, Mobile Point of Sale, Near Field Communication, Point of Sale, Smartphone, smartSD Cards, Visa MasterCard American Express Tagged with: American Express, Android, Apple, AT&T, google, Iphone, ISIS, MasterCard, PayPal, Square, Starbucks, T-Mobile, Verizon, Visa MasterCard American Express
The SD Association has a new ‘smart’ idea. New Micro SD cards, popular for use in Android smartphones and tablet devices, will soon be available. The new MicroSD cards will carry the NFC Secure Element which allows Near Field Communications smartphones communicate with a chip on the Micro SD card. These are mainly used in a digital wallet for electronic transactions known as m-commerce. The new SD Cards also support on-board applets for smartphones as well.
Many newer phones are shipping with NFC Radios mainly used with digital wallets. For security, Near Field Communication requires a special authentication method prior to encrypted communications. Now that can be be placed on a Micro SD in addition to additional memory for the smartphone or tablet. The card can also store small digital wallet applications for digital payments when combined with an NFC enabled phone or tablet. These are seen by consumers as a way to ditch plastic cards in favor of digital wallets, and you can also transfer the electronic wallet to different devices as you please.
Additionally the SDA supports Micro SD cards that have both the Secure Element security chip on board as well as a Near Field Communications Radio on the chip to give NFC capabilities to devices that don’t come with the technology. Changing devices seems even easier with these cards as they enable NFC on multiple devices as the user transfers the card. If the MicroSD card owner switches cellular carriers, the card can easily go from the old phone to a new one and the digital wallet user never skips a beat.
The SD Association claims that microSD cards account for 95% of all mobile memory card shipments and that 78% of all mobile phone shipments today have the microSD memory card slot. With the latest round of MicroSD cards with NFC radios and without, they hope new e-commerce and m-commerce applications are built to run on the memory cards. This greatly levels the playing field from vendor lock in as both cell phone carriers and device makers have their own aspirations toward digital payment systems.
Posted in smartSD Cards Tagged with: Android, Digital Wallet, e-commerce, m-commerce, Micro SD, microSD, near field communications, nfc, radio, Security, smartphone, smartSD Cards, tablet
