What’s Next for Mobile Credit Card Processing?

Everyone’s talking about mobile credit card processing.

Magazine editors, blogger and pundits are constantly forecasting the next development, the next startup to seize the industry, and how it will all affect merchant service providers. With so much buzz, it’s hard to keep up.

But the gist is that consumers are slowly adopting mobile payments, and that this rate should soon increase. A recent survey by MarketLive survey showed that during the 2012 holiday season, 16 percent of consumers planned to do all or most of their shopping on a tablet or smartphone. This was up from 3 percent in 2011.

Not Just One Option

When many merchant service providers think about mobile credit card processing and mobile payments, they think of Square. The company has been in the news a lot recently. They announced a partnership with Starbucks (Square will process all debit and credit card transactions for the company). They announced fixed merchant pricing. And they launched a television ad campaign.

Although Square is the big name in mobile processing right now, remember that there are many other options available. Your processor can offer you other solutions to compete with Square, including ePN Mobile, Magtek QwickPAY, VeriFone PAYware Mobile and TSYS Mobile Payment Acceptance.

The Jury is Out On...

Mobile Wallets. There’s a lot of buzz around them and many options have been launched, but consumers aren’t adopting them quickly. Furthermore, there aren’t many standards for mobile wallets, so some in the industry are questioning their security.

Near Field Communications (NFC). Near Field Communications is a type of technology that some in the industry have praised as the next big thing for mobile processing. But at a recent conference, many of the speakers were not as optimistic. NFC isn’t the only way data can be exchanged between mobile phones and POS systems. So the future of mobile payments doesn’t necessarily depend on it.

And the Future Holds...

Mobile credit card processing is in flux right. No one really knows the future. But you can count on one thing: the technology that becomes king will be the one consumers like best.

Most likely, it won’t be a simple option. It will probably include coupons and tie in to loyalty programs, offering extra value to the consumer instead of just being another way to pay.

What you think the future holds for mobile credit card processing? Which solution do you think will grow to dominate the industry? How will it affect you? Leave a comment below. We’re eager to hear your predictions.

 

Jeff Zimmerman is Vice President of Product Management and Marketing at Clearent. He has 15 years of experience in finance, marketing and product management, and has held management positions at Network Solutions and Intuit. Clearent is staying on the cutting edge of mobile credit card processing (http://www.clearent.com/financial-institutions/products-services/) and as one of the fastest growing merchant service providers, (http://www.clearent.com/about/) offers an array of different mobile payment solutions.

4-Step Routine to Create the Best Merchant Services Program

We all have a daily routine, and whatever it may be, we consistently follow it. It helps us keep our lives in order. It makes us feel good. It just works.

And just as we should all follow our personal routines, Independent Sales Organizations (ISOs) and agents should follow routines of their own to get the most productivity out of their merchant service program. So to help you develop the best merchant services program possible, we’ve created this simple, 4-step routine.

1. Stay up-to-date

Like many other industries affected by the rise of the digital age, things constantly change in the world of merchant services. New technology is being produced, critical regulatory changes are taking place and your customers may be talking about you in a digital social sphere.

2. Make time to make sales calls

You know your portfolio isn’t going to just build itself. However, many ISOs fall into a trap of complacency when it comes to sales. They think that because their portfolio is adding to their bottom line, then there is no point changing anything. Building your portfolio with one or two successful merchants can do wonders for your profits. Yet to realize true organic growth, every day you should set aside a time to call prospective merchants and see if you can help them.

3. Follow-up with your customers

If your merchant has just been set up, call them to see how they’re doing and see if they need anything else. From a customer service perspective, staying in touch with your merchants is the best way to gain their trust and make them feel valuable. Managers of the best merchant services programs will consistently check on their customers.

4. Know where your merchants stand

It is important to know which of your merchants you’re at risk of losing. The best merchant services provider will be able to provide you with data that will help you figure out which merchants may be seeking a more profitable merchant services program. Additionally, checking on your merchants’ sales volume each day is a quick and painless process, and if you find a merchant that is dissatisfied, see if you can meet them halfway to salvage what profits you can.

Jeff Fortney is Vice President of ISO Channel Management at Clearent™. His career includes over 35 years in financial services, with the last 17 focused on the debit and credit card processing industry. As one of the best merchant services programs, Clearent is a valuable partner to many ISOs and agents. If you’re looking for a new partner for your merchant services program, Clearent will be sure to give you and your merchants high-quality service, competitive pricing and sought-after products and services.

Should merchant service providers attend trade shows?

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Should merchant service providers attend trade shows?

Whether or not to attend trade shows is a typical question that comes up among merchant service providers. The fact is, there is no simple yes or no answer. One has to analyze the cost to make a decision on whether the outcome will justify the expense.

 

There are five different trade shows in the world of merchant processing. The regional shows include those hosted by the Northeast Acquirers Association (NEAA), Southeast Acquirers Association (SEAA), Midwest Acquirers Association (MWAA) and the Western States Acquirers Association (WSAA). The Electronic Transactions Association (ETA) hosts the national show. To decide which to attend, it is good to have an understanding of the differences of what makes each show different.

 

 

Regional or National?

The regional shows are much smaller than the national show, and are even tailored to smaller ISO or MLS. In a large national show, smaller merchant service providers may be overloaded with an abundance of information – more than they can take in. However, in a smaller, regional show, they may leave with more great ideas for selling credit card processing solutions and information about the future of the industry.

 

Who should attend the show?

The more experienced the merchant service providers, the better. Although this may seem counterintuitive, it’s true. Trade shows will be filled with experts who understand the industry as well as the lingo. Attending a trade show before you’ve been in the business for a few years can be overwhelming. If you are overly excited to get started with trade shows and learning as much as possible, try working with a processing mentor for a year to increase you knowledge of credit card processing solutions beforehand.

 

Considerations Before Registration

Budget: Travel and hotel expenses can add up and they are the two largest expenses associated with regional shows. Typically, regional shows are inexpensive to attend as they generally only last one day. If the venue is close enough, you may even save more money by not having to book a hotel room.

 

 Expectations: Decide beforehand what you plan to take away from a specific show. Are you looking for any highly specified information? Have these goals and objectives in mind and remember that a trade show is a learning experience, not a vacation.

 

Look up any specific speakers prior to attending the show and come fully prepared to take notes. You may find yourself with many new credit card processing solutions and ideas. However, be sure to compare the possible takeaways with your budget to ensure that what you will be getting out of this outweighs the cost of attending – especially for national trade shows. 

It will be easy to get swept up in meeting new people and visiting the exhibits, but be sure to keep your goals in mind throughout the entire show.

 

About The Author

Jeff Fortney is Vice President of ISO Channel Management at Clearent. His financial services career stretches back over 35 years, with the last 17 years being focused in the debit and credit card processing industry. Clearent offers a variety of credit card processing solutions, including wireless options and next day funding. Find out how the right merchant service providers can make a big difference for your customers.

 

 

 

New Goals for Your Credit Card Processing Service

As we embark on another year, New Year’s resolutions are in full swing for consumers, as well as companies, everywhere. Now is a better time than ever to evaluate your previous successes and areas for improvement within your credit card processing service.

When re-evaluating your business in preparation for a new year, it’s important to stay completely focused. Coming up with a generic statement or goal won’t be of much use to you. Try to think of specific areas that need improvement and come up with a few very specific and realistic goals for the future. Both large and small business credit card processing companies can only improve if objectives are set in place.

This is especially true in the world of payments. In order to identify true success and failure, it takes a detailed analysis of those factors that will directly impact your income. It’s best to think specifically in terms of ROI. Ask yourself if you made the returns you expected to make from your merchants.

When returns are less than you expected, it boils down to two main reasons: The actions taken by your credit card processing company and your own actions. Here are a few areas to evaluate so you can get your credit card processing service back on the path to success.

First review your profitability by merchant and identify those who are adding modest profits to your bottom line. Now think about why you priced those merchants they way you did. There may be an obvious reason why they’re underpriced. For example, perhaps you anticipated the merchant processing a lot more volume, and that’s unfortunately not the case. If so, take steps toward success by adjusting the merchant’s pricing.

Next analyze your credit card processing company and keep in mind the actions of your credit card processor as they may be impacting your returns. Examine these items with your current small business credit card processing partner.

1.    Review your pricing specifics

Your pricing may not actually be as good as you thought at the beginning. Fees may be starting to stack-up, there might be higher monthly costs than you imagined or lower splits. It’s good to get a firm grip on the financials as you move forward into a new year.

2.    Make sure you’re getting the support you need

Your credit card processor is your partner and they should be acting like one. They should be available to provide support and guidance that sufficiently meets your needs.

Remember, it’s never too late to dig into these areas. After all, you just might find that you’ll be on your way to a more profitable 2012.

About The Author

Nick Karcher is a Relationship Manager who supports both current bank partners as well as those institutions that want to know what makes Clearent a different kind of payment processor. Offering some of the best credit card processing services, Clearent provides the kind of passionate service that others can’t. With an abundance of technology at our disposal, we offer small business credit card processing solutions that can provide clients with the necessary tools to really make a difference.

 

Procrastinate No More: Make Decisions Today – NOT Tomorrow

The easiest way to eliminate today’s “to do list” is to put off items for another time. Be it a simple task like mailing some thank you cards or a life changing decision like planning your retirement options, it is much more simple to push it back rather than sitting down and working on it. Procrastination often occurs when a task is either too menial to matter, or is so daunting you don’t know where to start.

It is the latter that hurts people more in the long run. A common complaint among today’s banking industry involves providing merchant services for small businesses. Although many bankers report being unsatisfied with their current merchant services provider, there is little turnover. Starting the process of finding another provider or fearing the result from confronting them prevents many from finding a provider they like. Similar scenarios are found in all professions, and all have negative results, the most common being merchant attrition and reduced income. So how can procrastination be overcome? 

When dealing with this problem it is important to examine the products and services offered to your clients. Are these products innovative? Does each member of your company have a thorough understanding of these products? Is your provider staying on top of the industry? These are all questions that should be addressed on a regular basis. 

Reviewing your portfolio is your next step. Knowing the state of your portfolio at all times is key. Is it growing or shrinking in terms of total revenue and your total number of merchants? One simple way to find out where your portfolio stands is to conduct a portfolio check up. This will help you keep your finger on the pulse of your business.  

Aggregation of information is the next huge hurdle. With so many sources to choose from, most wonder why they should even start. However, quality information can often come from individuals you already know. In the case of our banker friends who can’t find the right provider, starting information would actually come from the provider they’re currently using. Your merchant services provider should have all of your pricing information at their finger tips, including your Schedule A. They should also be able to provide you with a current profitability report.

Your own team members are a good source to determine exactly how well you’re doing in your own market. Are you adding merchants at a rapid pace? Are your products competitively priced? Answering these simple questions takes little effort, and will jump-start your work on what has previously been an undesirable task.