It’s no secret that in today’s world, businesses and consumers are more mobile than ever before. With this evolution there has been increasing demand for more wireless payment devices and solutions. Providing an ideal mobile point of sale experience requires having reliable network connection that doesn’t cost a fortune. CDE makes it easy.  Now payment providers can leverage CDE’s new 4G Wireless Program to provide the 4G data plans your merchants need at competitive pricing.

With CDE’s 4G Wireless Program, POS providers not only have access to low rates for unlimited data plans with AT & T and Verizon, they can also enjoy the peace of mind of knowing their wireless device deployments, merchant activations, and support are being handled by an industry leader in POS solution support.

Whether a POS provider is offering 4G Wireless data plans as the core source of mobile device connectivity, or just as a back-up network connection for landline based or ethernet connected merchants, the CDE 4G Wireless Program is ideal.  Through CDE, partners can purchase unlimited data plans with either AT & T or Verizon, and all the of following:

• Merchant activation
• Full device lifecycle support (including in-field)
• Simple device and data plan ordering in the CDE partner portal
• Easy to use device reporting on all CDE managed devices

The 4G Wireless Program from CDE is yet another step in the company’s path to continue offering solutions to payment service providers that not only help make their lives easier, but also improve the merchant experience.  With this new program, CDE partners can decrease the time between new merchant contract to the merchant’s first transaction, even with the industry’s most advanced POS devices.

1. Usability: Good design is the key to usability in POS systems. If standard reports are buried under layers of obscure menus and screens, your merchants will miss out on efficiency. Unfortunately, you can’t assume that every new POS system meets usability standards. Too often there’s a disconnect between software designers and daily users.  

What’s more, since employee turnover in retail is notoriously high, ease of use is a top concern. POS systems must be easy to learn and intuitive to use. There’s no time to deal with a steep learning curve.

Pay attention to the feedback you receive from your merchants and your call center. If merchants are consistently frustrated in figuring out daily functions, you may need to consider a product that offers better usability. Otherwise, when a better rate comes calling, frustrated merchants will be quick to jump ship. 

2. Customized Options: As merchant environments grow increasingly specialized, POS systems must be able to keep up. Consider the customization options your POS systems can provide to your different verticals. Can your systems handle stackable discounts, comps, loyalty rewards, and more? Can your merchants create and edit custom orders on the fly? And just as important – is it easy? 

3. Inventory Management: Precise inventory management helps your merchants in measurable and practical ways. Your merchants can streamline their product inventory, minimize waste, and ensure efficiency in purchasing.

While most POS systems offer some level of real-time inventory management, a few providers take it to the next level. For restaurants, Revel Systems drills it down to the per-ingredient level. With their “create recipe” function, merchants can specify the exact measurement of each product in a recipe. Whenever your merchant sells a cheeseburger, all the component items are deducted from inventory.

4. In-Depth Reporting – While inventory management is an important aspect of reporting, successful merchants need to be able to manage efficiency throughout their businesses. Look at the reporting options your POS systems offer. Can your merchants generate detailed reports on sales, taxes, labor, transaction types, and more? Can reports be filtered and exported in flexible formats?  In-depth reporting will deepen your merchants’ engagement with their POS systems and with you as a trusted service provider.

5. Managing Returns: All too often, payments can be a two-way street. Managing refunds and returns is an ongoing need for merchants. From simple refunds to exchanges, store credits, online receipts, no receipts and more – make sure your POS systems are up to the challenge. Can products be adjusted back into inventory? Is it easy to process refunds back onto cards?

Managing change can be particularly tricky in food service, where you might need to void or add an item from an in-process order. Once again, a well-designed user interface is key in managing complex needs efficiently.

Final Thoughts: With so many POS systems to choose from, the bottom line often comes down to the user experience. Are your merchants’ systems designed for ease of use and access to daily functions? Do their systems add value with reporting and analytics? By providing your merchants with feature-rich, flexible POS systems, you’ll help strengthen a long-term business partnership. 

If your clients handle payments for large-scale events such as concerts, sporting events, tradeshows and conventions, you know that POS needs are complex. From ticketing to merchandise sales and inventory management, your merchants need the right POS provisioning to manage a successful event. Let’s consider 3 critical POS needs unique to large volume, short term events.  

Issue #1: Manage High Volume Provisioning

Deploying large quantities of POS equipment in a very short window of time can be expensive, time consuming and risky. Not only do you need a sufficient stock of hardware ready to go, you need the capability to program high volumes of devices securely and accurately. And don’t forget accessory items, such as bluetooth printers, barcode scanners and paper supplies.

Many acquirers benefit from outsourcing deployments to a support partner that specializes in handling high volumes. At CDE, we recently provisioned a client for a large-scale concert venue. We were able to pull a high volume of equipment from inventory, charge the terminals, download, pack merchant kits and overnight ship them – with same day project turnaround. Because this is what we do every day, it was no stretch for us. However, for many acquirers, this type of large-volume turnaround could prove difficult or impossible to fulfill in house.

Issue #2: Prevent Data Breaches

It doesn’t matter what kind of deadline you’re on: there are no shortcuts for PCI compliance. At every point, equipment must be handled and documented according to security specifications. According to the 2018 Verizon Data Breach Investigation Report, POS systems remain a common access point for fraud – from card skimmers to malware. You can’t afford to leave your merchants unprotected. 

Venues such as concerts and sporting events can be an especially tempting target for data thieves. You’ve got a high-volume environment with multiple POIs, minimally trained users, and unlimited opportunities to tap into sloppy housekeeping. But by sticking to compliance guidelines, you can keep thieves’ hands off your merchant’s revenue.

Of course, PCI compliance has its own costs. Increased labor, handling time per unit, secure storage and shipping: these are just a few of the considerations. If maintaining compliance for large volume, quick turnaround events is a drain on your company’s resources, you may consider outsourcing to maintain security and lower your costs.

Issue #3: Plan for Adequate Bandwidth

When it’s game time, your customers can’t afford to go offline. With hundreds (or thousands) of attendees hitting a venue’s wifi, you need to make sure your client will still have the bandwidth they need to process transactions, collect data and manage inventory in real time.

Adequate bandwidth is so critical to the success of your merchants’ events, you can’t take the venue’s word for it. Equipment types and transaction volumes may pull more bandwidth than expected. It’s a good idea to speak with the venue’s bandwidth provider to make sure they can handle the load. From fiber optic to point-to-point and even satellite bandwidth, there are solutions that can meet the needs of even the most remote locations.

In the worst case scenario of transaction downtime, remember that your merchants can still take offline transactions. While it’s not ideal in terms of security or cost, it’s a workable temporary solution, as long as your merchant’s staff knows how to process them.

Large scale events present many unique challenges. Handling electronic payments quickly and securely is at the top of the list. With timely and accurate provisioning and attention to project execution, payment service providers can provide invaluable assistance to customers managing these complex projects.

CDE Solutions specializes in high volume provisioning. If you are interested in exploring how CDE may help you serve your merchants with greater efficiency and lower costs, please click here.

You can’t overestimate the impact of the humble dongle in revolutionizing payments for small merchants. These simple, plug-in card readers have ushered in an entirely new market segment for payments. But as our industry moves toward a software-based focus, is it time to phase out the dongle?  

The short answer: yes, but not yet. For small merchants, there’s no doubt mPOS trends are moving away from proprietary hardware and toward the convenience of off-the-shelf consumer devices. Not only does this shift save money up front, it also enables a host of related benefits: back end business management apps, over-the-air updates, remote monitoring and so much more. For payment providers looking to deepen engagement and build retention, these developments are timely. Dongles are often essential to effect this functionality. 

What’s Next

Practically speaking, we’re still a long way from retiring the dongle. While we’ve figured out how to integrate payment channels securely into commercial devices, we haven’t been successful in moving past a hardware requirement. It’s ironic that in an industry based on convenience, merchants are still fumbling around with plug-in card readers. Granted, a small dongle is certainly more portable (and cheaper!) than a bulky legacy device, but as far as seamless transactions? It’s still a long way from the mark.

PIN on glass is often heralded as the way of the future. But the fact is, even PIN on glass still requires a dedicated card reader. Nonetheless, PIN on glass does point to the growing effectiveness and influence of software-based solutions. In the next few years, we should expect to see some viable all-in-one software solutions, but for now, it’s still hardware all the way.  

Growing Convenience

On the bright side, even if your merchants can’t get away from a handful of hardware, at least dongles are becoming more convenient. Wireless card readers that connect via Bluetooth are a convenient option. The Magtek eDynamo is wireless encrypted card reader that allows both dip and swipe payments. For an American public that is hesitant to embrace new technology, the familiarity of swiping is an added bonus.

Step Up From the Dongle

While a dongle may meet the needs of low-volume retailers, most higher-volume merchants need better functionality. Enter the all-in-one mPOS device to supply versatile payment options – even printing – anyplace your retailers need to be. For an example of real-life integration, consider mega-retailer Old Navy. In late 2017, Old Navy rolled out mobile POS devices at selected locations with great success. Not only do these devices effect line busting, they allow employees to place orders for at-home delivery of out-of-stock items, capturing what would certainly have been lost sales.    

Dedicated mobile terminals don’t need to rely on PIN on glass to integrate secure debit payments; they already have that functionality. When combined with the expertise and attention of a payment service provider, dedicated mobile devices provide a sleek, efficient processing solution for many merchants within hospitality, restaurant and retail.

More Ways to Get Paid

As the merchant services market evolves, we’re seeing a consolidation of market control. It’s estimated that the top 10 acquirers in the US account for 80% of processing volume. To gain market share in this hyper-competitive arena, it’s essential for payment service providers to offer a multi-faceted payment solution. As always, the ultimate goal is to provide merchants with more ways to get paid. Mobile solutions, whether through Bluetooth-enabled card readers or all-in-one mobile devices, are an essential component of a successful payments portfolio.

Digital Payments: New Opportunities for Your Merchants

Today’s consumers are driving a shift away from traditional payment forms and banking relationships to innovative forms of digital payments. It’s an exciting time to be in the electronic payments industry, as payment service providers find themselves right at the center of this transformation. Make sure your merchants and their POS systems are ready to meet these market changes.

What’s Different?

The primary driver of change in electronic payments can be summed up in one word: debit. Debit payments outpace credit cards at a rate of 2 to 1, and it continues to rise.  The growth in debit has spurred a major FI investment in payment innovations. We are seeing prepaid card innovations that bring real value to both merchants and consumers.

Debit Innovations: A Solution for the Unbanked

Debit innovations are particularly suited to the needs of the unbanked and underbanked. As it stands right now, America’s traditional credit-based payment system is best suited to a very specific population: established consumers with strong credit ratings. This leaves nearly 34 million households who qualify as unbanked or underbanked out in the cold. 

Making up 27% of households , unbanked and underbanked consumers lack access to typical bank checking accounts or branded credit cards. Instead these consumers must turn to a patchwork of financial solutions to meet their payment needs, such as payday loans or check cashing services. Unbanked and underbanked households often find themselves in a catch-22. They can’t afford traditional checking accounts, but nontraditional payment services often end up costing them even more in high interest rates and per-incident fees. This drain on already-scarce finances makes it even harder for struggling families to move out of poverty.

Over the past few years, FIs have begun addressing the needs of this population with new products such as low-cost checking accounts, secured credit cards, and best of all – prepaid and reloadable debit cards. More and more, unbanked and underbanked consumers are finding reloadable debit cards make good financial sense. By providing consumers with the flexibility and convenience of electronic payments, reloadable debit cards help to remove one more barrier to financial stability.  

Merchant Solutions Prepaid Card Reloading:

Prepaid card reloading services may be an easy and appreciated value-add for your merchants. Consumers can utilize various retail sources to reload their prepaid cards, from large chains like Walmart to family-owned c-stores. Consider developing a partnership with a card loading service to bring prepaid card functionality to your merchants. You may consider Moneygram, Moneypak or even Western Union, among other providers.

Branded Currency: More Than a Gift Card

Another exciting payment innovation is the growth in branded currency (formerly known as gift cards.) The gift card market in the US was valued at $149 billion in 2017, with even more growth expected this year. Your merchants can’t afford to miss out on a share of this revenue.

The fact is, branded currency is much more than just a $20 gift card at Christmas. According to First Data’s 2017 Prepaid Consumer Insights study, branded currency “provides consumers with a secure financial transaction option, allows great physical and digital flexibility, garners brand awareness and loyalty, and provides great data tracking.” And considering that 75% of consumers overspend the value on their gift card, it’s an obvious money maker for merchants.

Merchant Solutions: Physical and Digital

It’s smart for payment providers to integrate branded currency into your retail solutions portfolio. Make sure merchants understand how easy it is to offer gift cards, and the added revenue they can expect from new customers, repeat visitors, overspends, and even unredeemed cards.  

While it’s easy enough to produce physical cards, be sure to offer your merchants the option of digital gift cards as well. By integrating a barcode reader into the POS system, your merchants can support increasingly popular digital gift cards. Consumers appreciate the versatility of digital gift cards; this growing industry brought in $15 billion in 2017. After all, it’s much simpler to flash a barcode on a smartphone than to fumble through a pile of plastic cards. And with gift card management apps like Gyft, consumers find it easy to organize and redeem their digital accounts.

Debit Choices: Wide Appeal

Prepaid debit cards and branded currency (gift cards) aren’t limited to any one market segment. Just like the unbanked, consumers with good credit find prepaid cards to be a useful and convenient means to control and transfer money without any long-term interest strings attached. And when you combine physical and digital gift cards with purchase discounts and loyalty points, these products are a win for all consumers. Now is the time to build the functionality in your merchants’ POS systems to support these payment innovations.

Mobility is the future of payments. More and more, consumers expect the convenience of paying when, where and however they want. For the most part, manufacturers have been quick to respond to this need. But there’s still one glaring fault: mobile PIN entry

Mobile solutions for processing debit transactions or enabling two-factor authentication are limited. Sure, consumers can enter PINs on dedicated mobile terminals, but when it comes to POS tablet systems or smartphones, merchants are left high and dry. Right now, tablet systems process debit as credit. That’s a workaround, but it’s not a long term solution. And as far as two-factor authentication is concerned, there’s just not an option.

Enter PIN on glass. PIN on glass is a promising solution to bring true mobility and payment security for merchants of all sizes, but it comes with significant risks and limitations. Read on to decide if this technology is right for your merchants.

Benefits

PCI recently announced new standards to enable software-based PIN entry. The ultimate goal is to enable consumers to securely enter their PIN on any commercial off-the-shelf device. Since PIN on glass is a software-based solution, merchants will enjoy much greater flexibility and cost savings. Merchants can use the same device for transactions and PIN entry, eliminating the cost and hassle of a separate PINpad.

What’s more, PIN on glass brings the opportunity to implement two-factor authentication efficiently. Two-factor authentication is beneficial for fraud prevention but the American public is notoriously resistant to adding any friction at checkout. PIN on glass could be a relatively quick and painless way to slip in this security measure.

Risk Factors

PIN on glass is not a foolproof solution, however. If past experience is any predictor of future behavior, merchants are right to be concerned about security. Hackers have proven resilient in breaking through firewalls in the past – from compromising SSL and TLS protocols online, to infiltrating merchant servers through phishing and remote access attacks.

Despite the best assurances of PCI, what’s to say that PIN functions will truly remain secure and separate in tablet systems? It’s a dilemma for payment providers. PIN on glass solves many of the pain points of mobility, but security rests on merchants following all the rules and maintaining rigorous compliance.

Limitations

As we all know in real life, human error is hard to eliminate. And let’s face it, software-based PIN entry running alongside other payment functions on the same device is an awfully tempting prospect for thieves. Because of this, PIN on glass may only be appropriate for merchants in very controlled settings.

Right now, PCI’s PIN on glass solution requires merchants to use a special secure card reader for PIN. Surely this must be an interim measure, as the whole purpose on PIN on glass is to bring mobility to more merchants, not fewer. Ultimately, the industry needs a PIN software solution compatible with a variety of off-the-shelf tablets, without the need for an additional piece of hardware.

Further, merchants participating in PIN on glass will need to participate in a monitoring service to keep the device up to secure specifications. Considering the extremely sensitive nature of PIN transfer, this is not an area to cut corners, and yet we know too often that’s what merchants tend to do.

PIN on glass is a promising technology, but for now, it’s not a practical solution for most merchants. In time, we expect the industry to produce simple, secure, software-based PIN solution. Until then, it might be best for your merchants to hold on to their PINpads.