Author Archives: hostmerchantservices

How Can My Business Accept EBT?

EBT (Electronic Benefit Transfer) card payments enable SNAP (Supplemental Nutrition Assistance Program) and TANF (Temporary Assistance to Needy Families) recipients to purchase food and other goods. Replacing the previous “food stamp” system, EBT allows recipients to use a card similar to a debit card to make purchases. The government pre-loads the EBT card with funds, which the recipient can use to purchase SNAP-approved food items.

With more than two and a half billion EBT card transactions annually, accepting EBT payment is a step toward expanding your business. In addition to growing your customer base, EBT transactions also cost your business less than traditional debit and credit cards.

Requirements for EBT Registration

Because EBT cards only work with approved retailers, your business must register with the government before you can accept EBT cards. Your store must meet one of two requirements regarding staple foods: 50 percent of your store’s retail sales must consist of SNAP eligible foods (staple foods) OR your store must offer at least three types of eligible foods in addition to at least two perishable eligible foods. The eligible or qualifying groups are breads and cereals, dairy, fruits and vegetables, and meats, including poultry and fish.

In addition to the traditional brick and mortar stores, qualified farm stands and farmers’ markets can also apply for a SNAP permit. And if you own 10 or more qualified retail food stores, an FNS representative will work with your business directly in lieu of the online application.

How to Apply for EBT Payments

The US Department of Agriculture’s Food and Nutrition Service (FNS) administers the SNAP program and distributes permits to merchants that qualify for EBT cards. If your business qualifies, you’ll first verify your identity by way of a USDA eAuthentication account.

After you activate your USDA account, then you can apply online to accept SNAP benefits. While the application only takes as little as 15 minutes, you may need to research your records for some of the answers. You’ll also need copies of the following supporting documentation, which you can upload online or print and mail to FNS:

Photo identification, e.g. driver’s license, passport
Social Security cards, copies for all owners, partners, officers, shareholders, and spouses
Business license
Your bank’s name and address
Merchant account provider’s name, phone number, address, and website

Payment Terminal for SNAP Benefits

Once your business obtains a SNAP permit, you’ll need a terminal that accepts PIN debit cards, complete with a PIN pad. Your merchant account provider can either provide the required equipment or can program your existing equipment with encryption keys. You will need to provide your merchant account provider your seven-digit FNS Account Number to set up EBT merchant services.

Host Merchant Services

If your business needs support in signing up for EBT Merchant Services, Host Merchant Services will provide your business preferential treatment. Our service team is four times larger than our sales team! We know it’s better to keep our customers happy than it is to find new customers. HMS provides US-based support 24 hours a day, 365 days per year.

PayPal Top Target for Phishing

Over the past 15 years or so, phishing has been an unfortunately effective practice whereby a thief will make an attempt to obtain peoples’ login information to a number of websites. The fact that it’s still being used extensively to this day is a testament to just how effective a scam it is. Vade Secure has recently released the quarterly Phishers’ Favorites report which has unveiled a new top target for phishers in mobile payments leader PayPal.

The top 25 imitated brands were examined in Vade Secure’s report, and it also shined a light on many of the tactics employed by the phishers as they pose as these various websites in an attempt to break security and obtain users’ data and information. Ever since the Vade Secure reports first began in the second quarter of 2018, Microsoft has had the privilege of owning the number 1 spot when it comes to the company most targeted for phishing. As of the first quarter of 2019, however, Microsoft lost that top spot to PayPal. Online streaming service Netflix, with its 158 million subscribers worldwide, is next in line at 3rd place.

There are some fairly scary statistics that come with PayPal’s sudden rise to the top of the phishing ladder. Vade’s AI engine found 16,547 unique PayPal phishing URLs, breaking down to as many as around 180 per day, up almost 70% on the previous year. It wasn’t just PayPal that was making gains in this fashion, either. Of the top 25 brands when it comes to phishing, 10 were financial services brands, such as Bank of America, Chase, and CIBC, all of which were in the top 10.

PayPal, Microsoft and Netflix, just like any bank or any high street store, are holding facilities for data. Data which, eventually down the line, is going to allow phishers the ability to access money. This is why it should come as no surprise to see financial institutions and companies such as PayPal, Microsoft, and Netflix becoming well represented in lists such as the Vade Secure Quarterly Phisher’s Favorites report due to them being the prime targets for such an effort, and also being in charge of the data that those looking to steal data would find most valuable.

And one last thing to consider if you are a merchant and you are worried about security affecting your bottom line: Host Merchant Services Data Breach Security Program. Click that link to download a PDF explaining the value-added service HMS provides its merchants that goes above and beyond just simple PCI Compliance and helps ensure a merchant’s peace of mind.

Advantages of Clover POS

An all-in-one point of sale and payments system, the Clover Station POS makes running your business fast and easy. By accepting more payment types, offering a two printer capability, and a 14-inch display with swivel for customer signatures, the Clover® POS enables your business to focus on your customers.

With the ability to operate via WiFi or offline, Clover POS ensures businesses can still do business under any circumstances, and with built-in encryption-enabled card readers, Clover provides an additional level of security beyond PCI and EMV standards.

Great for small to medium-sized businesses, Clover is intuitive and flexible. All-in-one hardware, including the card reader makes Clover set up and use of their POS solution easy and fast for business owners. Added bonuses like the ability to print, email, and text receipts enables Clover businesses to support customers in all of their needs. With a range of apps to add as a business grows and evolves, Clover can adjust accordingly and seamlessly.

Adding Functionality

Clover offers businesses a variety of apps to increase functionality as needed. The Promos app allows you to build your customer database, allowing businesses to create a mailing list to leverage for real-time offers by way of text, email, and Facebook. The Feedback app empowers businesses to solicit customer concerns and feedback allowing businesses to build on the good and prevent public feedback for the bad. Business-specific apps like the Reward, Happy Hour, and Dining apps assist in specific business goals.

Clover as Business Partner

Clover Flex POS mobile Beyond processing credit cards, Clover POS can also help you run your business. Easy and intuitive, Clover provides functionality that allows business owners to automate payroll, employee schedules, and ordering in addition to tracking sales, creating loyalty programs, stocking inventory, and tracking returns – and beyond.

Marrying POS and data analysis, Clover allows businesses to generate data in real-time with both a dashboard and detailed sales reports. Displaying readable charts and graphs, Clover empowers business owners to quickly and easily track metrics.

Measuring product performance, Clover helps businesses market goods and services by identifying those that sell well and vice versa. Helping businesses discover loyal customers, Clover enables business owners to customize offers and to provide loyalty programs to repeat customers, creating a VIP strategy.

Not only can Clover help businesses schedule employees, it can also clock employees in and out. Businesses can use Clover to measure employee performance and help employers incentivize employees with top worker rewards. Customized user permissions allow employers to control employee access to Clover functions.

Clover can also help businesses track their cash flow, nipping financial issues in the bud. And beyond the scope of the business’s performance, Clover can measure area competitors and leverage local trends to increase foot traffic.

Host Merchant Services and Clover

Host Merchant Services can customize your Clover Point of Sale System to fit your business needs. Whether your business requires a robust station including a tablet interface and printer with the option to add functionality or whether your business only needs a mobile app, turning your phone into your POS, Host Merchant Services offers these and everything in between, including the Mini POS and the handheld POS perfect for a farmers market stand or an intimate restaurant.

Offering complimentary express service, Host Merchant Services provides free quotes. Our payment specialists can provide Clover POS pricing that fits your business.

The Clover® name and logo are trademarks owned by Clover Network, Inc., an affiliate of First Data Merchant Services LLC, and registered or used in the U.S. and many foreign countries.

AmEx Offering Incentives to Boost Card Acceptance

To keep up with Visa and Mastercard, American Express is offering sign-on bonuses to companies to offset start-up costs. Ranging from $10,000 to nearly $500,000, American Express sign-on bonuses are part of an effort to close the gap of the 1.3 million more U.S. locations accepting Visa and Mastercard in 2018 than those accepting American Express, which is accepted in 10.3 million locations, according to the Nilson Report.

With few, sometimes no conditions, American Express salespeople not only offer these large payments, but they’re also offering discounted swipe fees to companies that agree to accept AmEx. While Visa and Mastercard may pay businesses to offset technology upgrades, sign-on bonuses with credit card companies were heretofore unheard of.

High-End Customers

Known for its high-end clients, American Express had always stayed competitive by charging higher interchange fees. Businesses agreed to these fees as the price of doing business with AmEx customers known for spending more, but Visa and Mastercard’s reward cards lured the high-end crowd from AmEx, leaving the company with fewer big spenders using the card in addition to fewer merchants accepting the card.

Matching Visa and Mastercard in Merchants

With more than three million new merchant locations agreeing to American Express acceptance since 2017, the company expects to meet Visa and Mastercard numbers by the end of the year. More than merchant numbers, American Express stock shares also have some catching up to do with Visa and Mastercard. While AmEx shares rose 32% in the past five years, Visa and Mastercard boast a 190% and 230% increase, respectively.

Market Value

Compared to Visa and Mastercard’s market value ending in positive territory during the last eight years resulting in $386 and $279 billion in market value respectively, American Express’s market value experienced double digit losses during the last decade’s annual performances resulting in one third its counterparts’ value at $98 billion.

How AmEx Did It

Through its OptBlue program, American Express added most of its new merchants through third-party payment processors. Plus, internal sales people gave sign-on bonuses to more than 130 businesses since last year. Because AmEx both issues its cards, as well as operates the network on which the cards run, the company benefits from merchant acceptance on both sides of its business. With a 2016 pledge to reach Visa and Mastercard merchant numbers by 2019, American Express hopes to achieve higher billings and a larger scale of business.

Host Merchant Services: The Power of Knowledge

If your business wants to explore accepting AmEx cards, Host Merchant Services can help you make a decision regarding AmEx or any other aspect of merchant service. We’ll explain everything so you can make an informed decision! We go out of our way to educate our customers so that they fully understand pricing for AmEx, as well as our pricing model in general. Having this knowledge is important to ensure you aren’t overpaying, not just with us but with any processor! After we explain everything, the pricing will be so transparent that you’ll even know exactly what we make as a profit. How’s that for transparency?!

Alipay Launches International E-Wallet, Giving Tourists Access to a Mobile Payment Platform in China

Those who’ve spent any time in China as a tourist will know first hand just how difficult it can be to perform the seemingly simple task of paying for things with a format other than cash.

One of the most popular forms of mobile payments in China is Alipay, and most people will use Alipay to make payments using a QR code on their phone. The vast majority of places won’t accept domestic staples such as Visa or Mastercard, so most travelers would have no choice but to rely on cash until Alipay’s recent intervention.

Gen Z Prefers Mobile Payments App Until Ant Financial, the Alibaba affiliate that runs Alipay’s platform, made the following announcement earlier this month, users of the Alipay platform were required to have a Chinese bank account. Until now, that is, with Alipay announcing a program called “Tour Pass” through which the company will introduce a version of the Alipay app that will launch and feature full support for international debit and credit cards. Once users have download the Alipay app onto their iOS or Android device, they will be able to use their phone number to set themselves up for the international version of the app.

Alipay users will then be able to top off a pre paid virtual card from their Visa, Mastercard, Singapore’s Diners Club, or Japan’s JCB cards and begin spending all across China. The international version will not be available to Hong Kong and Macau users as there is already Alipay HK that they can use. If Hong Kong users need to use the international version of Alipay, they can do so by opening a Chinese bank account through Bank of China from within Hong Kong.

The minimum top-up amount for the 90-day prepaid card is 100 yuan and the balance will be capped at 2,000 yuan. Users will be able to top up the card multiple times.

This move allows Ant Financial to further extend its reach and dominance across the domestic Chinese market and cement themselves a place in China’s ever-growing tourism industry. In 2018, Chinese tourism saw an increase of 4.7% on their numbers from 2017, which works out to 30.5 million additional foreign visitors, to bring the total to 141 million. Ant Financial estimates that these 30.5 million tourists spent around US$73.1 billion while in the country on food, shopping, lodging, and other things.

Alipay’s biggest competitor in China’s cashless economy is WeChat Pay, run by Tencent Holdings. Both Alipay and WeChat Pay have a higher than 90% penetration rate amongst online users, according to a report from 2018 on China’s third-party mobile payments market. WeChat Pay has also announced plans to introduce access to their mobile payment platform for international visitors, only with additional support for American Express customers.

Upon Tencent’s announcement, Visa tweeted: “This partnership means that we’ll be working towards an environment where Visa cardholders will be able to use their Visa card in China at the millions of places where WeChat Pay is accepted, instead of having to rely on cash.”

Macy’s Website Hacked

This week, major U.S. department store chain Macy’s revealed that they were targeted by a malicious online cyber attack that attempted to steal the payment information of their customers.

The macys.com website became infected on October 7 with what they’re only referring to as “unauthorized code” on their “My Wallet” and “Checkout” pages. This allowed the cyber thieves to capture credit card data from unaware customers attempting to use either of those two pages. Macy’s has stated that it wasn’t until a whole week after the site was compromised, on the 15th of October, that they became alerted to the breach.

Cyber Security Data Breach Protection The information that the attackers were able to access included detailed personal information, such as the customers’ full names and addresses, email addresses, their phone numbers, and financial information such as credit card numbers, credit card security codes, and the card expiration details of those that typed the information into one of the pages that had been compromised.

In a statement released by Macy’s, they have confirmed that they are investigating the incident while adding that they have taken preventative steps that will hopefully go some way in avoiding this sort of situation happening again in the future. In addition, Macy’s has insisted that it was only a small amount of their macys.com customers who were affected by the hack and they will be providing any customers who were affected one year of credit monitoring for free.

In another statement released by a Macy’s spokesperson, they said the following: “We are aware of a data security incident involving a small number of our customers on Macys.com. We have investigated the matter thoroughly, addressed the cause and have implemented additional security measures as a precaution. All impacted customers have been notified, and we are offering consumer protections to these customers at no cost.”

First spotted around 2010, intrusions such as this – known as Magecart attacks due to the preference of attackers to target Magento e-commerce platforms – have seen a sudden upsurge over the past two years. Magecart attacks typically involve attackers compromising the legitimate online store of a company in order to siphon customers’ account details and credit card numbers while making purchases by placing malicious JavaScript skimmers on payment forms.

Cybersecurity firm RiskIQ recently published a report on the Magecart cyber thieves in which they stated the following: “Magecart is a rapidly growing cybercrime syndicate comprised of dozens of subgroups that specialize in cyber attacks involving digital credit card theft.”

E-skimming attacks have become so widespread in recent years that over 18,000 domains have been affected, and the FBI has had to issue a warning to businesses cautioning them of the cyber threat and urging that they have sufficient barriers put in place to ensure that they are fully protected should an attack occur. Methods such as keeping software up to date, segregating critical network infrastructure, enabling multi-factor authentication and keeping an eye out for phishing attacks have all been suggested by the FBI in their warning.

And one last thing to consider if you are a merchant and you are worried about data breaches affecting your bottom line: Host Merchant Services Data Breach Security Program. Click that link to download a PDF explaining the value-added service HMS provides its merchants that goes above and beyond just simple PCI Compliance and helps ensure a merchant’s peace of mind.

What to Look For in a POS

Finding a new point of sale system for your business can be a tricky undertaking. Before you jump the gun on something that may not quite be right for your business, however, take the time to read ahead and learn just what questions you should be asking when looking for a new point-of-sale system.

How Well Does the POS System Work Between Your Retail and Online Store?

Data provided by the National Retail Federation shows that as many as 6 out of every 7 consumers will be researching a product online before deciding to buy it from a brick-and-mortar store, and it goes without saying that any business with a presence both in-store and online will have an edge. You should think of an online store as a store that never closes, and with the right point of sale, you can get your brick-and-mortar store online and available to new customers. If you will have an online and retail presence, make sure you choose a point of sale system that can work together with both channels of your business with a consolidated back-end. Most systems simply aren’t equipped to work with both online and offline sales.

Does the POS System Work Well For Your Staff?

A point of sale system is only as good as the employees who will be using it. It’s a good idea to try a system before investing in it and get input from your staff. Is the system intuitive? How much training will it require? Does it have the potential to improve productivity and customer experience? No matter what system you choose, be prepared to train employees on how to use it and its features to make sure customers aren’t kept waiting and you can benefit from features like inventory management.

Are Reporting and Analytics Offered?

Gone are the days where a merchant would be flying somewhat blind. With a good POS, you’ll be able to keep track of exactly how well your business is doing, what is selling and what isn’t, and even which employees have the best sales. You can even create and track employee schedules and manage inventory directly through the point-of-sale system.

Can the Point of Sale System Help You to Run Targeted Ad Campaigns?

Unfortunately, fewer than 1 in 10 new prospects will actually make a purchase. On the other hand, more than 6 in 10 returning customers will. Because of statistics such as these, today’s leading marketers are crafting more custom-targeted ads and focusing on what the customers actually want to know. With the right point-of-sale system, you can improve relationships between you and your customers and send more relevant communications. Depending on the features, you can use the system to determine which of your marketing campaigns have brought in customers or send win-back offers to customers who haven’t been back in a while.

Will the Growth of Your Business Be Supported by the Point of Sale System?

One of the most important things to consider with any new technology is the long-term costs and what your future needs will be. It isn’t enough to choose the simplest and cheapest option that works with your merchant services provider; you’ll soon outgrow it and regret the investment. You’ll need to make sure you purchase a scalable system that can grow along with your business.

Frequently Asked Questions

What is a POS system?

A POS (Point of Sale) system is a software and hardware combination used by businesses to complete sales transactions. It commonly consists of functionalities like tracking stock, generating sales reports, handling payments, and managing customer interactions.

What should I look for in a POS system?

When choosing a POS system, consider the following factors:u003cbru003e● Functionality: Make sure the system aligns with your particular business requirements, including the ability to track inventory, efficiently manage employees, and seamlessly integrate with other software solutions.u003cbru003e● User-friendliness: Seek out an intuitive interface that is simple to navigate and train your staff on.u003cbru003e● Payment processing: Check if the system supports various payment methods, including credit cards, mobile payments, and online transactions.u003cbru003e● Reporting capabilities: Determine if the system provides detailed sales reports, inventory insights, and analytics to help you make informed business decisions.u003cbru003e● Scalability: Consider whether the POS system can grow with your business, accommodating additional locations, products, or users.

Should I choose a cloud-based or on-premise POS system?

When selecting a POS system, you should consider whether a cloud-based or on-premise solution is more suitable for your needs. Cloud-based systems offer the advantage of accessibility from any location with an internet connection, along with automatic updates and remote data backup. Conversely, on-premise systems provide greater control over your data and may be preferable if you have limited or unreliable internet access. To make the right choice, assess your business requirements, budget, and IT infrastructure.

What about customer support and training?

It’s crucial to assess the level of customer support and training offered by the POS system provider. Look for providers that offer reliable customer support channels, such as phone, email, or live chat. Additionally, inquire about training resources, including user guides, tutorials, and in-person or virtual training sessions, to ensure your staff can effectively use the system.

How much does a POS system typically cost?

The pricing of a POS system can differ based on various elements, such as your business size, the desired features, and the pricing structure offered by the POS provider. Some providers charge a monthly subscription fee, while others may have a one-time purchase cost. Additional costs to consider include hardware expenses, payment processing fees, and potential add-ons or integrations. It’s essential to evaluate the total cost of ownership and return on investment when choosing a POS system.u003cbru003e

What is Interchange Plus Pricing in Credit Card Processing?

To increase transparency in the pricing of credit card processing, credit card processors offer interchange plus pricing, which is often compared to a wholesale processing fee. Under the interchange plus pricing format, businesses pay interchange fees and processing costs separately. Visa, MasterCard, and Discover charge the interchange fee, and a business’s credit card processor charges the processing cost. This model is unlike tiered pricing, which rolls all costs into one large payment leaving a business at risk of overpaying via hidden costs and surcharges.

Tiered Pricing Versus Interchange Plus Pricing

Tiered pricing, which was once the most common credit card processing service, groups interchange fees into rate tiers. Also known as bundled pricing, tiered pricing involves qualified, mid-qualified, and non-qualified rate tiers, giving the model its name. Credit card transactions are categorized according to card type, card category, transaction method, and more, which impact the tier level in which the transaction is placed when processed.

merchant services refund policy Rather than pay interchange fees directly, businesses pay credit card processors according to these tiered rates. The processors then pay the interchange fees on behalf of the businesses. Instead of listing the actual interchange fees, credit card processors list only the qualified, mid-qualified, and non-qualified rates under tiered pricing.

Rather than revealing the actual cost, credit card processors can place transactions in the more expensive non-qualified category, thereby increasing business costs while simultaneously keeping the same rates. An alternative to tiered pricing, interchange plus pricing bills interchange fees directly to businesses. Then, businesses pay the credit card processor a fixed percentage separate from the interchange fees. The fixed percentage markup and the interchange fees combine to form lower costs to businesses.

Interchange Plus Pricing Benefits

In addition to the lower costs presented by interchange plus pricing, the model also offers transparency to businesses. Credit card processing is easier to reconcile under the model. Eliminating surcharges and hidden costs, interchange plus pricing’s “interchange pass through” leads to optimized interchange costs, which is often compared to a wholesale model. The markup is equivalent to a membership fee in exchange for wholesale interchange prices.

Interchange +

The simplicity of interchange plus is in the name itself: “Interchange Plus.” A business pays the interchange rates, which are set by the major credit card companies. The “plus” is the markup charged by a business’s credit card processor. Within the simplicity of interchange plus pricing, businesses can further minimize costs by choosing a processor that offers a low markup.

Host Merchant Services

Before taking our first customer, Host Merchant Services studied the numbers and decided Interchange Plus pricing is the most cost-effective pricing model for businesses, not to mention the most transparent. We educate our customers to ensure they fully understand the pricing model. Knowing the details prevents businesses from overpaying with us or with any credit card processor. Host Merchant Services even explains where our profit lies in the pricing structure to be fully transparent in all directions. Pricing fairness and transparency is our strategy in helping our customers find success with their businesses.

What is “Friendly Fraud” and How Can My Business Handle It?

Friendly fraud can be summed up as an honest mistake: reporting a charge as fraud when a customer did indeed make that purchase. Often times this happens unwittingly either by another member of the household or by the cardholder themselves long since forgotten. Instead of working with the merchant to obtain a refund, customers file a chargeback with their credit card company, resulting in the bank issuing a refund on the merchant’s behalf although the merchant did not commit a mistake.

Various Reasons for Chargebacks

Whether they claim the product wasn’t delivered or the product didn’t match the proper description of the item, a customer can file a chargeback for these and other reasons. Sometimes customers simply do not know the difference between a return with the merchant and a chargeback from the bank. Other times, virtual shoplifters leverage the chargeback rules in their favor by ordering goods, receiving those goods, and then not paying by disputing the charge also known as chargeback fraud.

In addition to the cost of the goods, merchants also pay chargeback fees, lose shipping costs, and spend time and money disputing charges. Making up 40 to 80 percent of a business’s losses in fraud total, friendly fraud results in merchants eating the costs.

Minimizing Friendly Fraud Incidents

Merchants can implement several practices in preventing chargebacks including keeping an open line of communication with customers. This will help customers get in touch with the merchant rather than the bank when they need to return a product or service.

Merchants should also make their billing descriptor easy to identify. The name of your business on a credit card statement should trigger a memory of a legitimate purchase rather than trigger alarm that someone is fraudulently charging goods to a customer’s card.

merchant services refund policy Merchants can display the refund policy on their website outlining the timeline in which the customer must return the product. If merchants offer refunds and cancellations immediately, customers won’t need to resort to filing chargebacks with the bank. Merchants can make it easy for customers to return a product with pre-paid shipping labels. Also, merchants can notify customers of recurring payments to prevent a surprise charge and the resulting call to the bank.

In addition to using delivery confirmation as a business practice, merchants can also keep a paper trail of all transactions to further inform customers of the details of the purchase. By offering details about the transaction, merchants can help customers recognize the purchase. This practice will dissuade fraudsters with ill intent from pursuing fraudulent purchases from the merchant with the current and future purchases.

On the front end of the transactions, merchants can collect as much customer data as possible to help keep track of the order history. In this same session, merchants can use a software requiring customers enter their complete credit card information, as well as allowing customers to review the order and then verify the purchase.

Merchants can also use data to notice trends with repeat offenders of friendly fraud. With heavy doses of data and communication, merchants can make cuts in their friendly fraud costs, as well as improve their relationships with customers.

ApplePay Faces Challenges in Europe

Various technology giants have been looking at the emerging mobile payments sector with great interest, particularly if they have already claimed some market share with regard to mobile devices, apps, and services. The big three in this regard are Apple, Google, and Samsung, and it could be said that Apple is in the best position to remain a leader, but this does not mean that it will be an easy undertaking.

Ready for Success

Gen Z Prefers Mobile Payments App ApplePay seems to have all the ingredients to carve a nice slice of the mobile payments pie: the iPhone continues to be one of the most popular mobile devices in the world, and virtually all of its models in use today have Near Field Communications (NFC) technology, not to mention the recent introduction of the Apple Card and the heavy promotion of its various digital payments options. Although the North American market is one of the most lucrative for Apple’s ambitions with regard to smartphone payments, adoption is always quicker in Asia and Europe, and it is in the latter market where the company seems to have run into a snag.

According to a report published by CNBC, European Union regulators who oversee business competition and antitrust issues have been receiving complaints related to ApplePay, enough for Margrethe Vestager, director of the EU Competition Commission, to announce that her office will be taking a closer look into the way Apple is entering the mobile payments market in the bloc.

Cause for Concern

One of the issues that EU regulators are likely to consider is the way Apple creates mobile ecosystems that rely on exclusivity for their growth. The iPhone and the iPad are locked into a single operating system, and it so happens that the iOS Wallet app does not allow users to integrate payment options that are not controlled by Apple. To make matters even more complicated for Apple once EU regulators start looking into ApplePay, the NFC chip of iPhones is actually disabled during some point-of-sale transactions, thus leaving users with the option of using the payment service preferred by Apple.

Recent statements by executives at Apple Park are not making things easier on the company with regard to anti-competitive behavior. After the Apple Card was rolled out with the underwriting of investment banking giant Goldman Sachs, Apple made it clear that skyrocketing growth was on the horizon, and that this method of payment could soon overtake the market share held by PayPal.

Even though the EU is already looking into claims made by music streaming service Spotify against Apple, this is hardly the only technology giant being investigated for potential antitrust activity. Facebook and Google are also being looked into by EU regulators with regard to their offerings in the bloc, particularly the former with its intentions of providing a digital currency system that will enable payment transactions and money transfer services to users of Instagram, Facebook, and WhatsApp.