Wireless credit card processing through a WiFi connection is becoming available for businesses in the US. WiFi is simply a standard of connecting devices together to create a wireless network. WiFi delivers broadband speed and function but eliminates wired connections from the system. WiFi promises to deliver the same function, that has made it so popular with computer networking, to credit card processing.

Credit card processing is slowly moving out of the telephone age and into the WiFi age. Several credit card terminals are already WiFi capable or WiFi ready. A WiFi terminal will operate over a wireless broadband connection and offer a convenience never previously seen in credit card processing. Upscale restaurants, shops, and many mobile businesses are already looking into the benefits of WiFi processing…

So far, Verifone is leading the WiFi processing front. While Lipman controls the market for wireless cellular processing with the Nurit 3010, the Nurit 8000, and the Nurit 8000 GPRS, Verifone is actively pursuing WiFi processing. So far, Verifone has designed a WiFi module for the popular Omni 3740, and 3750 and the new Verifone VX 610 is factory available in a WiFi ready version.

What WiFi will do for businesses and who wants WiFi:
Because of the price and networking knowledge requirements that comes with WiFi, it may not be the best solution for all businesses, but for some it is a perfect match. Wireless internet is quickly becoming the standard in many homes and businesses and many businesses who already use wireless networking can easily integrate their credit card processing into it.

The greatest benefits of WiFi terminals are the reduction of cables required for a standard credit card terminal and the convenience of not being tied to any particular location within an establishment. The Verifone VX 610 can also run from a battery, eliminating cords all together. As long as the terminal is within range of the wireless network, transactions can be processed on it. A terminal can be brought to a table, or handed to a customer. A WiFi terminal offers the most possibilities and convenience for virtually any situation. Because there are no additional wireless fees as seen with wireless cellular terminals, WiFi terminals are a much better mobile option for retail type businesses.

What is needed for a WiFi Processing:
The basic components needed for WiFi processing are the same as for setting up a wireless local area network.

• Wireless Modem
• Wireless Router
• Wireless PC Cards (Not required, but you can connect your computer as well as your terminal to the internet
• A WiFi credit card terminal

The wireless modem will connect you to the internet either through a cable or DSL type broadband connection. You will need to get setup with a broadband internet connection with an internet service provider, cable, or phone company.  If you are connecting to an existing internet accessible LAN (local Area Network), then the modem is not needed.

A wireless router will allow your terminal to connect to the internet in addition to any other wireless devices or computers.  Wireless PC cards will allow a computer to connect to the wireless router. Wireless PC cards are available for desktops and laptops, either internal or USB type. Many newer computers include a wireless PC card from the manufacturer.  Then, your wireless terminal will connect to your router and you can process over the wireless connection.

Your processing range is only limited by the range of your wireless router and whether you terminal has a battery or not. The possibilities are endless. Your customers pay from virtually anywhere in your establishment. The entire transaction takes place in real time on the terminal itself.

Coffee bars can accept payment when they bring customers their coffee. Customers at a shoe store don’t have to stand back up after trying on shoes until they leave. Restaurant patrons can pay at the table and see the transaction process without their card ever leaving sight. The customer service impressions that you can make are virtually unlimited.

This was the first time we have had opportunity to attend the industry trade show and as it was so close in Orlando, was to good to pass up. As trade shows go, this was a smaller venue but they had all the major banks and representatives from each of the major areas of the industry. We were able to connect with reps that we deal with on a daily basis and finally have a face to go with the names. What was more impressive is that they recognized our names almost immediately, a testament to their customer service.
We were able to review the latest in technology trends including PCI compliance availability, customizable terminals, and my personal favorite… being able to take payments with your personal Blackberry through an proprietary application.
Now it is back to the office to begin the plan to show how these new technologies can benefit the merchant.
www.sourceonemerchantservices.com

This Green Sheets article really does show case the need to be looking at ALL the different forms of contacting new cleints.  While this services in not directly related to merchant processing, if you are helping clients reach out for business in ways they have not before, then you become the value added asset to them, and not just another processing rep. 

erchants are often not savvy marketers of their own services. They may be clueless about how to use value-adds to capture more sales. In fact, most merchants are in desperate need of help with marketing and exploiting technology to their advantage. But ISOs and merchant level salespeople (MLSs) might ask, So what? It’s not our job to market their business for them.

But think again. If educating merchants on effective marketing strategies helps them become more successful, who do you think it ultimately benefits in the end? Answer – everyone.

Assisting merchants with marketing can pay big dividends to ISOs and MLSs over time. It helps increase portfolio size and volume along with driving retention and ISO-merchant relationships that last.

There is no better way to strengthen relationships and cultivate additional sales than by helping merchants succeed through planned and targeted programs designed to generate repeat business and increase cash flow.

Some might say, No way. It’s too much work and it’s not our core business. It will bog down our agents and hurt sales. The answer to that is times are changing and assisting in merchant marketing has become an essential component to doing business.

ISOs should employ follow-up teams after sales are completed that contact new merchants and brainstorm ways of helping them generate more income through marketing or value-added solutions.

Following are marketing ideas to help merchants:

Online advertising

Merchants benefit from marketing online. Many online providers offer affordable, easily implemented solutions. The goal for ISOs and MLSs is to promote the right online services to merchants. After merchants are signed up, they can be directed to the appropriate online vendor. In many cases these Web service providers are more than willing to share in revenues if ISOs are throwing them business.

Local advertising

Some merchants already focus on local marketing, but they may not be aware of the myriad advertising possibilities. A few examples: local newspapers, Better Business Bureau listings, sports sponsorships, school and charity events, business lead meetings, flyers, TV ads and so forth. The key for ISOs is that they align with third-party marketers that can manage these channels for merchants. Creating effective alliances will limit ISOs’ direct involvement.

Direct mail marketing

Merchants can also generate business by routinely sending out special offers and welcome letters to potential new customers. A great way of doing this is by ISOs helping merchants create welcome letters to be sent once a month to new home buyers in the area. Letters can welcome new families and offer special promotions to attract them to merchant locations.

New home buyer listings can be purchased from multiple lead sources and letters can be easily distributed using services that specialize in direct mail campaigns. Aligning with a few of these types of providers can offer merchants that extra marketing help they need.

E-commerce

More and more merchants are tuning up their sales efforts by utilizing online shopping carts. This solution best fits the retail and restaurant sectors and can greatly increase sales. Unfortunately, not all merchants take advantage of online carts because of cost, time or lack of knowledge. ISOs can easily align with providers; extra profits can also be earned for referrals.

Cash advances

Through merchant cash advances, merchants may be able to expand or buy additional equipment/supplies or put dollars into marketing their businesses. Nothing new, right? The goal is not to go after the sale only, but to help merchants see cash investments as a way to grow businesses and increase efficiencies.

Rewards or loyalty

Selling rewards or loyalty programs to merchants and then walking away with no follow-up hamstrings merchants to a 50 percent chance of success with these programs. But such prepaid card solutions can be profitable for merchants if ISOs and MLSs take a hands-on approach.

E-commerce Web sites 

Many payment providers already offer e-commerce and Web site services to merchants. This is another great way to increase residuals and earn online accounts. ISOs can partner with Web designers that will handle sales and support for merchants.

Online blogs

Localized or business-specific blogs can aid merchants in attracting business. Blogs now promote just about every town across the United States and are growing in popularity. Such blogs serve as a low cost, or in some cases free, resources that will build relationships within communities. But merchants must dedicate a few hours a week to manage blogs and add new content. Chambers of commerce Merchants can easily join local chambers of commerce, from which they often gain business and free advertising. This can be combined with special chamber offers that attract new customers from local areas. Often chambers promote businesses active in their communities.

Drawings or raffles

Merchants can promote local drawings or raffles that bring in new customers and are easy to launch and manage. These programs often create a sense of excitement with consumers and get patrons to join mailing lists that can be used toward future marketing efforts.

Just the beginning

The marketing strategies just mentioned represent a small portion of possible solutions that ISOs and MLSs can offer merchants. Many other ways exist of bringing value to merchants without ISOs having to support their marketing efforts directly.

Partnering with good public relations or marketing firms that offer these types of solutions is the easiest way for ISOs to go. But researching low-cost, effective marketing options for merchants is essential.

The best way to begin mapping out marketing campaigns is by holding brainstorming sessions to come up with good ideas that will likely add value to merchants and help them succeed. So get your team involved. Identifying the types of merchants that would utilize these solutions is important. Then aligning with third-party marketing partners and value-added providers is critical to the cohesiveness of your efforts. It’s a good idea to create a simple, one-page information worksheet for MLSs to gather from merchants upfront. This is an excellent way of getting the right feedback from merchants to generate the right questions and probe merchants on what they are currently doing to promote business.

It can also include qualifying questions designed to find out if merchants can utilize marketing services ISOs already offer. But launching marketing solutions for merchants will not work without ISOs and MLSs having a true desire to help merchants. The formula must include ongoing sales efforts, quality vendor selection and useful services. Initiatives will not take-off unless merchants feel confident in partnering with ISOs.

The goal is to build enough value that merchants view your ISO’s services as more beneficial than your competitor’s, and that your services go beyond just processing electronic payments. ISOs who realize this merchant marketing need have already begun transforming the standard sales approach to include these types of additional, value-added services from which merchants can benefit.

So take the challenge. Begin researching marketing packages or a menu of solutions targeted toward helping merchants increase business and sales.

Come up with distinctive names for programs, such as the “Merchant Marketing Club.” And make sure every merchant is pitched upfront on your marketing program, or at least on the back end after the install. Internal teams may have more time to support merchants and work with them to find the right mix of solutions.

The goal for ISOs and MLSs should always be to help merchants and, by helping them, help themselves. Working together, ISOs and merchants will reap the rewards of true business partnerships for years to come.

During a transaction, the credit card terminal will connect to the processor and then within seconds, a result response will come back to the terminal. Though this is a simplified description of the process, it should make clear that the terminal must be connected to some sort of telecommunications network in order to work at all. There are many different types of terminals out there, but they can all be separated into three categories based on how they connect to your Merchant Account processor.

Dial-up, phone line based terminals: This is your basic terminal which you’ll find in a majority of small to medium sized businesses. If you do some research, you’ll find that these are overall the least costly machines and the ones that have been around the longest. In order to use this type of equipment, you’re business will need a dedicated, analog phone line. By analog, I mean a regular landline, not digital or Voice Over IP.. By dedicated, I mean that it shouldn’t be a phone line which is part of a greater office phone system, such as a PBX or IP-PBX System. Though your office can use one of these, you should speak to your phone people about getting a dedicated phone line which is separate from your system. Many times, a merchant will already have a fax machine which runs off of a dedicated line. One good thing to note is that almost all dial-up credit card terminals come with an extra phone port so that they can share the phone line with a fax machine or a single phone. The one problem here is that you wouldn’t be able to use your credit card machine and your phone or fax machine at the same time. The next type of terminal connectivity eliminates this problem

IP-based terminals: These terminals work off of your broadband internet connection, and they are great for merchants who use Vonage or other Voice Over IP solutions. Basically, you’d attach your terminal to a Cable Modem, DSL Modem, or into your IP Router in order for the terminal to process transactions. Two great advantages to IP terminals is that they process transactions faster and that they allow you to process transactions and leave phone lines open, allowing you to conduct business without having to wait to free up a line or receive phone calls without worrying about disrupting your credit card terminal. There are also two disadvantages: Firstly, these terminals are usually more expensive than dial-up terminals. Secondly, if you’re experiencing problems with your IP-terminal and need to perform a download to correct programming problems, you may need an analog phone line. Though your terminal will work over IP for authing credit cards, there’s a great chance your processor won’t have the ability to have your terminal pick up your merchant information over IP. It’s been my experience that many merchants who use the internet or VoIP for their phone service won’t have a backup analog phone lines for situations like this. I’d advise you to invest in a phone line for this very reason. It can prevent downtime your business would experience from your Internet Connection or VoIP connection being down.

Wireless terminals: No in-depth explanation necessary. Just like a cell phone, these credit card terminals access a cellular network such as GPRS or CDMA to send info to the credit card processor. Although these are usually the most expensive of the three connectivity types, they are definitely worth it for merchants who process a volume of credit card transactions at trade show sales events or in on-site situations like a plumber or carpenter who comes to your house to make improvements. With this terminal, you will have the piece of mind knowing whether or not a customer’s card will go through at the actual point of sale instead of writing down their information and bringing it back to your office to be keyed in. Not only will it give you piece of mind, but swiped credit card accounts generally get lower rates than those of a MOTO or Keyed Face to Face merchant account would so it may end up saving you money in the long run.

As if on Que from my presentation on how important PCI secirity is in the new world of 2009 and onward, here is an atricle I picked up from another blog that warrents attention.  Read below.

Heartland payment systems today has been reported to have been victim to one of the largest credit card data breaches in history.

Heartland discovered malicious software that was recording credit card information as it was being sent to heartland for processing. Heartland processes roughly 100 millions transactions per month, for 250,000 US businesses.

The data stolen includes the digital information encoded onto the magnetic stripe built into the backs of credit and debit cards. Armed with this data, thieves can fashion counterfeit credit cards by imprinting the same stolen information onto fabricated cards.

Right now it is currently unknown how much data has been collected, how/if it has been used, or how long the malicious software was recording information. The current largest data breach in history was about 45 million card number by TJX (TJ Max and Marshals) which cost the retailer almost $2 Billion dollars. Depending on how much data was lost, this breach could surpass the cost of the TJX breach.

I’ve been reading comments on various blogs and new sites on the internet and so far there is a lot of backlash and anger from consumers and businesses. We’ll see in the near future how this breach will affect Heartland, but it seems safe to assume that this will be an extremely costly event for one of America’s largest ISO’s.

***UPDATE***

http://www.nytimes.com/2009/01/21/technology/21breach.html?_r=1&emc=tnt&tntemail0=y

The software on the Heartland’s network was installed as early as May. Based on the volume of transactions, as many as 600 million card numbers were potentially vulnerable, although the actual number stolen was likely less than this. With that sort of exposure, and the sheer number of merchants that process with heartland, it’s not impossible that every single card holder in the US was exposed in this data breach.

This is a fantastic place to start for anyone that wants the basics fof PCI requirements.  2009 is the cut year for implementation of ALL compliance requirements.  Merchants must be compliant or face fines that can be heafty. 

http://www.nabpci.com/assets/pdfs/pci_ssc_quick_guide.pdf

Compliance with the Payment Card Industry (PCI) data security standard is required of all merchants that store, process, or transmit cardholder data. A “merchant” is defined as any entity accepting payment via any form of payment card. The program applies to all payment channels, including retail (brick-and-mortar), mail/telephone order, and e-commerce. The PCI standard is endorsed by all credit card brands within their respective programs, including Visa (CISP and AIS programs), MasterCard (SDP), American Express, DiscoverCard and JBC.

The PCI Data Security Standard consists of twelve basic requirements and corresponding sub-requirements.

Certification of Compliance

Separate and distinct from the mandate to comply with the PCI Data Security Standard is the certification, or validation, of compliance whereby entities verify and demonstrate their compliance status. It is a fundamental and critical function that identifies and corrects vulnerabilities, and protects customers by ensuring that appropriate levels of cardholder information security are maintained.

McAfee’s interactive PCI Wizard walks you through each step of the certification process- including identifying what needs to be scanned, preparing the required security policy documents, and completing the self-assessment questionnaire. Unlimited online and telephone support from our expert staff is also included.

Compliance validation requirements are based on the annual volume of transactions, the potential risk, and exposure introduced into the payment system by merchants and service providers.