Integrated POS systems significantly level the field between small businesses and large corporations with deep pockets. However, many merchants never explore what their systems have to offer. Sure, it’s easy to carry on with business as usual and leave POS systems to handling payments. But merchants need to know that they are leaving profit on the table as well.

Integrated business software tools and apps can provide a real advantage to your merchants. Here are some important POS system features merchants should know in order to maximize efficiency.

Loyalty Programs

Consumers today are all about loyalty. In a world of endless options, there’s a backlash against mass-produced anonymity. Consumers want to do business where they are appreciated, and they want to get value for their money. Digital loyalty programs are a win for both of these objectives. It’s important to teach merchants how to use their loyalty options to roll out user-friendly and effective loyalty programs.

Labor Management

Managing employee work schedules and payroll functions is easy with tablet POS systems. There’s no need for a separate time clock; employees can simply clock in on the tablet. Real time hourly data can be exported to your merchant’s accounting software or payroll/scheduling service of choice. Using labor management features built into the POS cuts down on both hardware redundancy and wasted time. 

Inventory Management

Integrated POS systems are second to none for inventory management. Real time inventory levels, reporting and predictions are easy to produce. This level of control improves supply chain efficiency for your merchants, decreasing overhead and minimizing waste.

Your merchants’ POS systems may come loaded with every feature under the sun, but these tools are only profitable if merchants use them. During your onboarding process, make it a priority to teach merchants about the tools at their disposal. For existing merchants, it’s a good idea to touch base regularly to review the options they have available. This customer service investment can result in ongoing dividends in loyalty for your merchant relationships, as a deeply engaged merchant is more likely to remain committed to their payment service provider in the long run.

For years, we’ve been hearing that checks are dead. It seems that most consumers have ditched their checkbooks (except for the slowpokes in front of you at the grocery store.) So why should retailers consider accepting check payments? These four reasons may encourage you to promote check acceptance to your merchants:

Continued market demand Much to the surprise of doomsayers, the decline rate of checks has largely flattened out. For reasons ranging from insufficient payment alternatives to persistent consumer preferences, check use has stabilized among consumers.  While it’s undoubtedly true that checks will eventually go the way of the telegram, for the next several years we can expect consumer checks to keep the same market penetration as ever. The Federal Reserve Bank reports that 3% of consumer retail transactions are made by check in a given month. While that may be a small number nationwide, if it happens to include your merchants’ customers, it could add up to a sizable chunk of revenue.

Customer appeal As always, the goal in payments is to make it easy for customers to pay. Checks appeal to certain groups of consumers. Consider your merchants’ clienteles and the payment options they may desire. National chains like Joann Fabric attract older consumers that have a history of everyday check use. Discount chains like Dollar General appeal to consumers that may not have the option of paying with credit cards. Check out this list of national chains that welcome checks. You might be surprised how extensive it is.

No more bounced checks Bounced checks no longer need to be a deal breaker for your merchants. Be sure to let your merchants know about check verification services. By processing paper checks electronically at the point of sale, your merchants can deposit checks with guaranteed acceptance and minimal handling. Rates are typically lower than card transactions, and the funds are available within 24-48 hours.  In light of this, many merchants may wish to reconsider checks as a positive payment feature.

Faster handling Historically, accepting checks has been a physically tedious and time consuming process for merchants. Fortunately, check scanning options have really improved over the past few years. Many all-in-one POS systems don’t require a separate check scanner at all. Instead, their built-in cameras can be used for image capture and electronic check processing. For POS systems that do require a separate check scanner, today’s hardware options are faster and easier to integrate than ever.

Clearly, accepting checks isn’t for everyone. But for many merchants, checks can actually be a profitable option. Don’t let common objections like bounced check fees and physical hassle dissuade your retailers from considering checks. In the right merchant setting,  checks can be a relatively frictionless  and profitable feature of a well-rounded customer payment portfolio.

The rise in internet-connected devices brings terrific benefits to retailers: easier inventory management, increased data collection, targeted customer promotions and much more. But this same connectivity can leave retailers vulnerable to data breaches due to hackers and malware. When considering implementing IoT applications in a business setting, retailers need to manage risk with these 4 approaches.

1. Manage Remote Access

Most major data breaches happen through remote access. Thieves manage to hitch a ride into a retailer’s network using the access gained from a third party. That’s how the infamous Target breach of 2013 was accomplished: thieves used an HVAC vendor’s remote access to break into the network and steal 41 million customer payment card accounts.

Eliminating remote access isn’t the answer. Remote access is an essential tool for business productivity. As IoT continues to expand, remote access applications will only increase. Any business using remote access must take the necessary steps to segment their network to protect cardholder data and limit vendor access to only pertinent areas of the network. Securing remote access isn’t a place to take shortcuts.

2. Regulate Connectivity

Between IoT connectivity, remote vendor access, work from home employees and much more, a business might have countless devices accessing their network on any given day. And there’s no way to know what sorts of security standards these devices were (or weren’t) built with. Therefore, policing has to happen on the retailer’s end. It’s crucial to develop a company-wide security policy, providing for secure connections and delineating which devices are permitted to connect. In the largely unregulated world of IoT, anything less is an open invitation to thieves.

3. Maintain Compliance

Take it from the experts: the best thing a business can do to protect itself from risk is to follow established security protocols to the letter. PCI standards are complex, but they’re both effective in protecting payment data, and regularly updated to combat new threats. Europe’s rigorous GDPR standards protecting personal privacy will likely make their way to our shores over the coming several years as well. In the meantime, by following best practices such as minimizing storage of sensitive data, securing data in silos or other approved means, and transmitting data only through approved encryption methods, businesses can minimize opportunities for breaches.

4. Watch and Wait

Over time we can expect the wildly unregulated world of IoT to be brought in line. As manufacturers pay more attention to the security they’re programming into their IoT devices (and as they’re penalized for failure to do so) we’ll see more uniformity and control in the ways devices connect and in the services they can perform. Until then, businesses need to exercise extreme caution in protecting themselves and their customers from IoT related breaches.

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.

From local independent retailers to global hospitality brands, the point of sale industry is highly diverse. As a payment service provider, you need to know where your customers are headed, so that you can help them meet their current and emerging needs. Let’s look at 3 top business verticals and what they want in a point of sale system.

1. Restaurants

Tablet Systems Versatility is the name of the game for restaurants, and tablet systems help business owners keep all the plates spinning. Tablet systems can be customized for every food service setting, from food trucks to fine dining. Not only do they handle payments, tablets are true business workhorses, providing labor, inventory and back office management apps. Inexpensive and easy to use, tablet solutions will continue to lead the pack for food service.

Maximum Mobility In a fast paced restaurant setting, efficiency is the absolute goal.  When recommending POS hardware to your restaurants, show them that mobile devices are a great time saver in getting tables turned over fast. Tableside tablets streamline ordering, sending the order straight to the kitchen. And when it comes to payments, mobile card readers mean that credit cards never leave the customer’s sight, providing fraud control and peace of mind.

Wireless Connectivity Bluetooth has proven to be an essential feature for POS printers and other accessories. With bluetooth connectivity, servers can place a receipt printer wherever it’s most convenient for workflow, rather than hardwired to a computer. Bluetooth also provides flexibility for scales, barcode scanners and other items that your merchant might need. With a little training, you can help your merchants optimize their POS systems using bluetooth. 

2. Hospitality

Transaction Security: 87% of data breaches in hospitality result from POS system compromise. Thus, POS security is a top concern in hospitality. You can help put your merchants’ minds at ease by explaining the security measures their POS systems employ, from point to point encryption to tokenization. It’s also a good idea to educate merchants about common fraud schemes such as emails phishing and skimmer installation.    

Personalized Experience: In travel, consumers place a high value on a personalized experience. With open API design, many new POS systems allow easy integration of purchasing data into a client’s loyalty program profile. A comprehensive data set can really help your merchants provide a superior and personalized guest visit. 

Omnichannel Integration: Hotels are taking a lesson from retailers, and incorporating in-app options into the hotel experience. Using their phone, customers can check in remotely, place room service orders, and purchase items in the self-service store. Customers can even unlock their room doors using a supplied barcode. Encourage your merchants to explore these omnichannel strategies to build loyalty.

3. Retail

Niche Growth Outside of commodity purchases, consumers are turning from megastores to local, personal shopping experiences. Because of this, now is a great time for small retailers to roll out into their communities. And with comprehensive, all in one POS solutions, overhead costs are cheaper than ever. Today’s POS systems come packed with tools to help your retailers run their businesses efficiently.

Instant Access Cloud based POS systems are a perfect fit for small retailers. Business owners can access data and reporting anytime. And with automated software updates and security patches, your retailers can trust the security of these important systems.

Digital Loyalty Programs Loyalty programs are an enormous draw with young consumers, but no one wants to keep track of a membership card. Digital loyalty programs are a great way to deepen customer engagement. Most tablet POS systems provide comprehensive loyalty programs that can track purchases, email promotions and apply discounts seamlessly. Take the time to educate your retailers about the options they have at their fingertips.

Final Thoughts

While each vertical has its own category-specific needs, we can see several themes in common. POS systems will continue to expand in versatility, offering mobile solutions as well as multipurpose business management tools. Cloud-based software and data access will grow in popularity for all types of businesses. And finally, businesses will continue to focus on providing a personal touch in customer interactions, aided by data collected at the point of sale. By guiding your merchants toward POS systems that meet these needs, you can help ensure their success and yours in the future.

Merchants are intensely concerned about payment security. And rightly so, considering the destructive costs of data breaches. However when you try to explain PCI compliance, you probably notice their eyes glazing over.

If you want a busy merchant’s cooperation, you’ve got to be able to explain payment security in terms that are simple and direct. Unfortunately, in the busyness of merchant services, security terms and concepts can be sometimes become a little fuzzy for all of us.

Let’s review some data security terms and what they mean to you. By understanding the foundations of payment security, acquirers can communicate the priority of PCI certification to your merchants, as well as making sure your payment solutions are meeting merchants’ needs.

Here’s What You Need to Know:

PCI SSC: PCI SSC (Payment Card Industry Security Standards Council) is an independent group that sets, develops and modifies globally accepted payment card industry security standards. PCI is supported by all the major brands, although merchants may not be quite so enthusiastic about the work involved in meeting requirements. Remember that the PCI SSC website is an invaluable resource for merchants and acquirers alike: you can find everything from basic information pamphlets to in-depth technical requirements.  

PCI DSS: PCI DSS is the list of data security standards merchants must follow. PCI DSS standards vary based on the merchant’s payment scenario. As security risks and payment technologies evolve, these standards are regularly revised, so it’s important to make sure your merchants remain in compliance with changes.

PCI SAQ: The PCI SAQ (self assessment questionnaire) is a document merchants are required to complete annually and submit to their acquirer. This document, along with a signed AoC (Attestation of Compliance) certifies that the merchant is in compliance with PCI standards. There are several different SAQ categories based on a merchant’s payment scenario. It’s important for your merchant to follow the applicable SAQ.

EMV: Standing for Europay, Mastercard, Visa, EMV is a consortium supported by the 5 major payment brands that governs standards for chip card payments. EMV is responsible for the widespread adoption of tokenization as an encryption form for chip card transactions, and the resultant 75% drop in card-present transaction fraud.

Encryption: Encryption is the general term referring to the process of converting data to a code using an algorithm and a key. Secure encryption of PAN data is critical for payment security, and there are several methods by which it is accomplished depending on the processing environment. Encryption and tokenization are both effective means of protecting cardholder data, but in general tokenization is preferred due to faster processing times. Which leads us to…

Tokenization: Tokenization is a cryptographic method by which sensitive data is replaced with a token. The data can’t be decrypted without a token key, stored securely in at the processing end. Tokenization is used quite successfully in EMV chip card transactions, as it renders stolen data useless. Tokenization is also used in CNP channels, though not exclusively. Visa Checkout, Masterpass and Paypal all utilize tokenization for ecommerce payments.

P2PE: Point to Point Encryption is a data security standard that ensures the encryption of cardholder data at the point of the transaction terminal. Developed by PCI, P2PE is the gold standard for data security. Merchants who meet P2PE standards are ensuring the greatest security for themselves and their customers, although meeting these specifications is no walk in the park for acquirers or merchants.  

E2EE: End to End Encryption is a catch-all term for various encryption solutions used in the market that encrypt data from the merchant’s terminal. E2EE is not the same as P2PE. E2EE is not supported by PCI and does not qualify merchants for a PCI scope reduction. E2EE effectiveness depends largely on the compliance of the providers involved in the transaction chain, and there is no group providing oversight or ensuring implementation.

When possible, P2PE is a better security option for your merchants; however P2PE is not available for all payment scenarios. In these cases, it is reasonable to offer merchants an E2EE solution.

Merchant services is no job for slackers. It’s a juggling act of processing, billing, customer service and marketing. And when you throw in ever-changing security requirements? It’s easy for the details to get lost in the shuffle. With a good understanding of data security, you can explain these concepts effectively to your merchants. In the long run, clear communications will mean better security for your merchants. Make sure the facts aren’t being obscured by the buzzwords.

The rate of change in POS technology is a terrific assist for business growth. New payment technologies, innovative hardware and elegant software applications give merchant acquirers opportunities to strengthen relationships and increase retention. Launching a new product in merchant services requires some market-specific considerations. Consider these 7 steps:

1. Solve the Problem: When considering a new product to add to your merchant services portfolio, remember the distinction between features and benefits. Merchants don’t care about features; they care what these features will do for them. How will this product solve a problem your merchants have? How will it increase your merchants’ efficiency and profitability? In your marketing materials and customer contacts, make sure to translate features into practical benefits.

2. Define Your Audience: Before rolling out a new product, determine which merchants can benefit. Every product isn’t suitable for every merchant, and you don’t want to waste your merchants’ regard with junk promotions. Take time to clearly delineate your target audience and your purpose so that the launch stays on focus.

3. Craft Your Messaging: Effective merchant messaging is the key to success for POS product launches. In merchant services, messaging must be especially practical and simple. It doesn’t matter how sophisticated the new technology may be; the decision maker is likely an overworked business owner trying to juggle multiple priorities and keep all the plates spinning. When dealing with busy merchants, your marketing message must be simple, direct and focused on the bottom line.

4. Define the Process:  Preparation is your best tool to ensure a smooth launch.  Take the time to establish a written product launch plan, clearly delineating marketing goals, team responsibilities, product development, sourcing, pricing, sales strategies, and implementation. What’s more, having a general roadmap is a great investment for the success of all future product launches.

5. Test Your Products: When you’re getting ready to roll out a new product or service to your merchants, don’t leave anything to chance. Even if it’s as simple as adding time clock functionality to a tablet system, you can’t assume a rollout will be problem-free. All new products and services, even the least complex, must be thoroughly tested in real-world conditions. The last thing you want is to promote a product that doesn’t work in the field. By taking the time to test and evaluate your products, you can protect your reputation and build retention rates.  

6. Prepare Your Team: A successful product launch requires as much internal preparation as it does external planning. Major rollouts, no matter how exciting, involve change – and change causes upheaval and stress. It’s essential to foster a spirit of collaboration and excitement to gain the buy-in of your team. By clearly delineating responsibilities and defining expectations, you can help make the internal product launch process as smooth and positive as possible.

Despite your best efforts, you can expect that any product launch will experience some hiccups. Your customer support team must understand the product inside and out, and be ready to assist merchants with implementation and troubleshooting from day one.

7. Measure Your Progress: With a well-considered product launch plan, you should expect great results. But it’s important to establish goals and evaluate accordingly. Be sure to solicit feedback from merchants and from your team, and analyze the date you collect. That way, new product launches will build your merchants’ profitability and deepen your relationship as a valued payments partner.