Wireless Payment Processing for Your BusinessLike every other technology under the sun, payment processing is going wireless. But is it a good investment for your business?
Q:Wireless point-of-sale terminals and related software have gottenconsiderable publicity lately. How can I determine if they're aworthwhile investment for my business? What are the differences andbenefits between wired and wireless terminals and software, and howdo I choose?
A:Thegrowing popularity of wireless point-of-sale terminals is nosurprise, given that the mobile work force in the United States isexpected to reach 47 million by 2003. This group of users iscomposed primarily of business owners who need to travel forbusiness yet want to offer credit and debit card payment options totheir customers.
Wireless mobile solutions enable merchants to process credit anddebit card payments conveniently and securely, anywhere they go.These terminals offer mobile merchants portability and transactionflexibility, allowing them to use a number of devices to processswiped credit card transactions or e-commerce sales throughInternet-based payment gateways. In addition, by using a wirelessdevice to process payment transactions, these merchants enjoy alower, discounted rate compared to keyed entries. Plus, wirelessterminals can capture card information offline and storetransactions for later transmission, an important benefit formerchants who find themselves in remote locations. But can yourcompany can benefit from this technology? It depends on yourproducts and services and the kinds of payment options that bestserve your customers.
The transaction time for accepting a card with a wirelessterminal can actually be less than with a standard land-lineterminal, depending on the coverage and the type of mobile device.Some wireless applications allow merchants to move their cashiersand check-out stations to any location in the store, unlike a fixedlocation that's tied to a land line and a power supply.
Wireless remote technology now includes multifunctional devicesthat combine cellular phones, PDAs and point-of-sale transactionterminals with various peripherals and software, allowing merchantsto merge several pieces of point-of-sale equipment into one unit.This reduces the purchase of redundant hardware, provides aconvenient manner for performing several business tasks and offersmerchants the option to transmit a transaction from any location.LinkPoint International, Kyocera and MST all manufacturemultifunctional terminals that swipe both magnetic stripe and smartcards, a versatile feature that allows business owners to furtherexpand their customers' payment options.
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Processing credit card payments online requires the right tools.Internet-capable PDAs have become a popular vehicle for creditcard transaction processing. Many mobile merchants, who relyheavily on these devices for business communications, now performcredit card transactions on the same pocket-sized unit.
A number of companies offer cost-effective peripherals andsoftware, including Scanning Devices and LinkPoint International,which can convert any PDA into a transaction-processing terminal.These wireless-processing terminals give merchants the option toswipe customers' cards or accept e-commerce transactionsthrough Internet gateways.
Merchants who are reluctant to abandon their wired terminals mayprefer adding external devices, such as those offered by U.S.Wireless Data, AIRPAL and IVI Checkmate, which convert standardland-line terminals into remote devices. When plugged into standardterminals and cell phones, these devices perform as wirelessterminals and allow merchants to have the best of both worlds--theconvenience and mobility of a wireless terminal yet the coverage ofa wired one.
As you explore the world of wireless technology, make sure theterminal you purchase offers the following benefits:
- Ability to process secure ATM/debit card transactions.
- Support for Address Verification Service.
- Purchasing card capability.
- Electronic benefits transfer (EBT) capability.
- Integrated network modem (and the capability to supportadditional networks).
- Built-in thermal printer with drop-in paper loading.
- Support for debit, credit, charge and stored-value cards, aswell as loyalty programs.
- Ability to connect to peripherals, such as bar-code wands andcheck readers, through an RS-232 interface.
- Easy-to-read backlit LCD display that supports non-Englishfonts.
- Long-lasting, rechargeable battery pack.
This is just a preliminary glimpse into the wide world ofwireless terminals and their complementary peripherals andsoftware. Before you purchase one, speak to other business ownerswho use them, read industry articles and request product literaturefrom the manufacturers. Look beyond the technology and find thewireless terminal that best suits your business needs.
Cardservice InternationalSenior Vice President ofSalesJohn Burtzloffis in charge of sales strategy andexecution and thus is responsible for managing all aspects of thecompany's marketing, communications, telesales, checkguarantee, new accounts and sales support activities.
The opinions expressed in this column are thoseof the author, not of Entrepreneur.com. All answers are intended tobe general in nature, without regard to specific geographical areasor circumstances, and should only be relied upon after consultingan appropriate expert, such as an attorney oraccountant.
