The Rise of Contactless Payments and NFC Amidst the COVID19 Pandemic

Payment Processing Terminal How has COVID-19 Changed the Way Consumers Spend Money?

So much has changed in the face of COVID-19, including how consumers pay. Already, small businesses have seen a 27% increase in the use of contactless payment versus prior to COVID-19. Businesses that didn’t accept payments like Apple Pay before are also quickly adapting to keep up with the increased popularity of the payment system. In fact, the total usage of contactless payments in the United States is expected to be eight times higher than before.

Increased Use of Contactless Payments

ApplePay, GooglePay, and other contactless payments are gaining acceptance.

Even before COVID-19, money had a reputation for being ‘dirty.’ While the World Health Organization hasn’t necessarily banned the use of paper money, they’ve highly suggested thorough hand washing after touching cash. The Federal Reserve has even created a money sterilization program for money coming in from certain countries.

Many businesses are accepting cash less and less and turning to credit cards and contactless payments as their preferred method. Even restaurant chains, such as Burger King are advertising their plea for use of contactless payments and Walmart changed their procedures at the self-checkout that allows for touchless checkout when using Walmart Pay.

Consumers don’t want to touch cash and neither do the cashiers any longer. Using contactless payments eliminates one more touchpoint between parties that could potentially spread the virus, even with the use of a credit card. While the US was one of the last to adopt contactless payments as a common payment method, its popularity is quickly increasing.

The Issuance of Contactless Cards

With the sudden increase in contactless payments, card issuers must reissue cards to a much larger audience than before. Prior to COVID-19, card issuers waited until cad expiration or customer request to issue a contactless payment card because of the low usage rate. Today, though, the need is much greater and will require more consumers to have the capabilities.

Studies show that those in the 18 – 24-year-old bracket and the 25 – 44-year-old bracket are the most likely to use contactless payments most often. The other age brackets may seem resistant, simply due to a lack of education on the concept. With the idea becoming more widespread, however, the use is expected to greatly increase.

How Contactless Payments are Used

COVID19 Pandemic Has Merchants Looking for Solutions

Today, contactless payments are used for just about any purpose from ordering your food in the drive-thru to paying for your order in line at the grocery store. The idea is to eliminate one point of contact between employees and consumers, therefore, reducing the spread of the virus.

While many consumers aren’t familiar or just weren’t interested in using contactless payments before, it’s quickly catching on and becoming more common. With greater advertisement and education of the product and acceptance of it at retailers, restaurants, and services everywhere, the idea will catch on even faster and cash will become the least likely form of payment for most businesses and consumers in the United States. Knowing how contactless payments work and adapting isn’t just a way of accepting new technology; it also helps increase the safety of doing business.

How to Survive COVID19 by Sharing Costs with Cash Discount Merchant Services

Cash Discount Merchant Services COVID19 Under the financial stress and burden resulting from the effects of the pandemic, businesses may be more receptive to sharing the cost of credit card fees with their customers. Even under normal circumstances, credit card processing is expensive for businesses, especially small businesses with tighter budgets.

To improve cash flow, as well as to prevent closing up shop for good, businesses can share the costs of credit card processing by participating in cash discount merchant services.

Cash Discount Merchant Services

COVID19 Pandemic Has Merchants Looking for Solutions

Unlike a credit card surcharge, a cash discount involves charging a service fee on all transactions while providing a discount for customers who pay with cash. While surcharges add a fee to the price when paid with a credit card exclusively, a cash discount program does as the name implies: provides a discount to purchases paid in cash.

Merchants can offset credit card processing fees by applying a service fee to all products with a cash discount program. At the same time, merchants provide discounts to customers who pay with cash or check. When merchants employ a cash discount program, credit card customers see an extra line item on their receipt for the service fee.

Not only does cash discount merchant services incentivize customers to pay with cash or check, but a cash discount program also allows merchants to pass the cost of credit card usage to the customer.

Cash Discount Program Compliance

Businesses must apply a fee on all transactions if they choose to use cash discount merchant services. When customers pay with cash, check, or an in-store gift card, the business then discounts the price by the amount of the fee.

There is no law prohibiting a cash discount program as long as the business notifies customers of the program in advance of their purchases. This is unlike surcharge fees, which are prohibited in many states.

Businesses must post signage notifying customers of the added service fee on all transactions with a discount for cash payments. To ensure compliance, a best practice is for businesses to post notifications throughout their business, including by the door and at the register.

Cost of Cash Discount Program

Versus adding credit card fees retroactively during the accounting process, the merchant servicer pays the service fees on the merchant’s behalf. The merchant servicer will choose the best program for the business depending on sales volume and average ticket size. For businesses that maintain a certain level of business, merchant service providers can even offer free payment processing.

Host Merchant Services

If your business is considering implementing cash discount merchant services, Host Merchant Services can help with every step of the way. HMS delivers fantastic service without the headaches. When you work with HMS, we consider you part of the family. As part of our family, we want your business to grow. That’s why we offer exceptional service with no contracts and no hidden fees. Businesses stay in the HMS family for our high-quality service and super low rates. You won’t find exceptions in fine print. How can Host Merchant Services help your business navigate the challenges posed by the pandemic?

Tips for How to Sell and How to Keep Your Business Afloat During COVID-19

covid19 coronavirus sales merchant services While you don’t need to stop selling during the COVID-19 pandemic, you will need to change your approach to selling. At least for a few months and possibly longer, you’ll want to shift the way you sell whether you’re an agency owner who does all of the selling or if you have team members selling on your behalf. Adapt your sales strategies to this new reality with the following selling tips:

Making Adjustments

Sales can be challenging during COVID19

First things first, let’s adjust your mindset. This process will take more time than you’re accustomed to, and it will most likely be harder than you’re accustomed to. If your plan is to still be in sales post-pandemic, you’re in this for the long haul. Adjust your mindset and attitude accordingly.

Keep in mind your clients and potential clients may not have their own business at the top of their mind, let alone what you’re selling to them. This is where you practice patience, as well as compassion and empathy. For both your clients and your sales team, adjust as necessary. Do more listening than speaking. Always keep in mind that the person you’re talking to, whether it’s your client or your sales team member, may have a sick member of the family or may have even lost someone to COVID.

Providing Value

Your value proposition will most likely be different under pandemic circumstances. In addition to updating your value proposition, you’ll also want to update your persona to match the circumstance. As always, place yourself in your buyer’s shoes to determine the best approach. By juxtaposing the priorities and roles pre-pandemic with the top issue preventing leaders from achieving priorities adjusted to reality under the pandemic, you can use your client’s description of the issue in your own rhetoric under your adapted persona.

By supporting remote teams and empowering managers to coach remotely, you can leverage the new normal when decision makers push back during outreach. Always keep in mind where your prospect is located, their industry, and the market they serve when making outreach. Be empathetic to prospects located in COVID-19 hotspots and industries heavily impacted by the virus.

Host Merchant Services

During these turbulent economic times, depend on a stable and reliable payment processor to partner with your business to minimize the impact of worldwide instability. Payment processing should be the least of your concerns. Delivering personalized service and clarity, Host Merchant Services takes the time to explain your payment processing. We want you to understand your monthly statement, and we will ensure that your statement matches our promises during our sales presentation. If you do have questions, you can reach a live representative any time, any day. HMS offers wonderful customer service, as well as great rates.

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.

Ways to Choose a Credit Card Processor for an Auto Shop

Do you own or manage an automotive business, such as a repair shop, dealership, body shop, or tire retailer? There are many different industry-specific problems that can arise especially when it comes to credit card processing services. When choosing a credit card processor, it is important to pick a partner that really understands your business. You want a partner that can provide a the service you need to accept payments easily, so that you can focus on making your customers happy.

Large Tickets

As an automotive business, you probably process transactions that are quite a bit larger than a typical retailer or restaurant. While oil changes and routine services might be under $100, undoubtedly you will process transactions that run into the thousands, if not more sometimes. Did you know that some processors sometimes hold large transactions unnecessarily and can sometimes delay funding for days? While it is sometimes necessary to validate transactions, you want a merchant services partner that offers great service and can get this done quickly without delaying your funding.

Next Day Funding

Cash flow is important for all business, but especially for automotive businesses. When you’re buying parts and paying your staff, you need to get funded quickly to meet expenses. It is important to pick a merchant services company, like Host Merchant Services, that offers fast next day funding on your transactions.

Check Processing

Checks are a thing of the past, right? Not at all! Sometimes customers want to pay via check, but you don’t want to take the risk of a bounced check costing you valuable revenue. Check processing services allow you to easily process, deposit, and evaluate risk on checks. Or take it a step further and get check guarantee services, so you know with 100% certainty that the check will clear. Don’t let other processors tell you that you don’t need this service, just because they don’t offer it. With Host Merchant Services you get a free check reader with all check processing accounts.

Don’t Lock Yourself In

Watch out for term commitments, or worse, the dreaded equipment lease. With Host Merchant Services you get free equipment and never get locked in to a term commitment or saddled with a non-cancellable equipment lease. Sometimes unscrupulous merchant services companies can charge thousands of dollars in lease fees for equipment that Host Merchant Services provides for free.

Conclusion

There are many options for credit processing for automotive companies and there are many specifics in the auto industry to consider when looking for payment processing. Host Merchant Services can provide you with the services that are specifically tailored for the needs of your business. Don’t pick a generic one-size fits all payment processor – choose Host Merchant Services for the top customer service rating in the industry, and solutions for automotive business that are second to none.

Fitness Studios Are Adapting Their Business Models to Survive COVID19 Shutdowns

Among the many industries adjusting to life under the coronavirus pandemic, fitness studios have found ways to compensate for shutdown orders. From online classes to equipment rental, fitness studios remain flexible in their fitness offerings for their clients. Whether studios offer classes on Instagram or interact with students on Zoom, instructors and studios are making efforts to stay connected to their clients while helping them stay fit and healthy under stressful circumstances.

Virtual Classes & Equipment Rental

Fitness Centers are Adapting their Business Models to Adjust to COVID19

In addition to offering virtual classes, fitness centers are also renting equipment to compensate for canceled memberships and the end to on-premise retail sales. Largely dependent on physical locations and on-site staff, fitness studios have now shifted to free classes on Instagram live. Others have turned to selling bikes on pre-order with the promise of on-demand virtual classes later in the year.

A subscription service partnering with boutique fitness studios, ClassPass offers live workouts via bookable classes while also providing a venue for users to donate directly to their favorite studios, which the company is matching at $1 million.

Fitness Instructors Adapt

Fitness instructors have found ways to train clients in alternative locations with a heavy dose of Lysol and latex gloves while startups are recruiting fitness instructors to lead virtual workouts in an effort to form team bonds while everyone is working remotely.

Some instructors are using Zoom to create a sense of community allowing students to not only interact with their favorite instructor but to also create a sense of fun and camaraderie among students. Staying in touch with fellow students that have attended the same classes for years is a strong pull for students to maintain memberships despite classes being held online and despite an alternative atmosphere without the inspirational music or proper weights.

Payment Processing in Virtual World

In order to accommodate the online offerings, fitness studios are recruiting payment processors that can facilitate online payments, as well as contactless payments for safe re-openings. If fitness studios want to transition to an online business model, they will also need to accept payments online. Fitness studio payments will need to transfer to digital to complement the virtual offerings. Finding gym merchant services is key to successfully making the transition.

Host Merchant Services

Host Merchant Services offers state-of-the-art POS systems personalized for your business. From fitness studios to online retail and everything in between, HMS provides businesses the tools they need to be successful. For payment processing, HMS can help your business accept all credit and debit cards with the lowest transaction rates on the market. We are able to retain customers with our low rates and excellent customer service – not our contracts. With 24 hour customer service, seven days a week and 365 days a year, we require no term commitment, and we charge no up-front fees or hidden fees. Nor do we charge application or setup fees. An industry leader, Host Merchant Services is always here for you.

Related reading on gym and studio payments: our fitness and gym payment guides.

How Might COVID19 Affect the Credit Card Processing Industry?

How Might Coronavirus Affect the Payments Industry?

Not handling cash is one measure consumers are taking to avoid the risk of exposure to Coronavirus, or Covid-19. Contactless payments are already on the rise as consumers find avenues that allow them to avoid touching possibly high-risk payment terminals. Payment processing by self-checkout may become more popular for consumers avoiding human interactions.

Cash Contagions

Map of Coronavirus (Covid-19)

According to a U.S. Air Force study of U.S. banknotes in Ohio from 2002, 94% showed traces of bacteria such as E. coli, Salmonella, and Staphylococcus aureus. Of the 43.4 billion U.S. banknotes in circulation in December 2018, the $100 bill is the most popular and the $1 bill second most popular, according to the Federal Reserve.

While the U.S. has yet to follow suit, Chinese authorities have required Chinese banks to sanitize cash via ultraviolet light or high heat and then store the cash for seven days in non-infected areas and 14 days in infected areas. The Chinese government also printed bank notes equaling Yuan four billion, or $572 million, for distribution in Wuhan where Coronavirus originated.

In addition to credit card processing that eliminates human interaction, as well as the avoidance of cash, vendors also are making way for an increase in online sales.

Shopping Online

Along with museums and educators making their content available online, vendors are experiencing an increase in online sales in China. Alibaba added 10 servers to fulfill the demand, mimicking the spike in online sales resulting from the 2003 SARS outbreak.

Car buying and visiting a health care professional are now available virtually via apps providing a virtual test drive or offering vital signs monitoring. Virtual assistants and delivery apps are helping seniors who are disproportionately affected by the negative outcomes of the Coronavirus do their grocery shopping and other errands without leaving the safety of their homes.

eCommerce Fills the Void

As eCommerce filled gaps left by traditional banking and business during the 2008 financial crisis, the innovations of the eCommerce booms are here to mitigate the impact of the Coronavirus potential pandemic by leveraging the technology that allows workers to work remotely, that allows consumers to make money by participating in side gigs like selling their clothing online, and that reduces the cost of B2B payments, both making and receiving.

The payments industry can rise to the occasion by embracing contactless payment options for brick and mortar operations and expanding online payment options for what will be an ever-increasing demand to live a virtual life during the next six to 12 months while the world waits for a Coronavirus vaccine.

Host Merchant Services

Host Merchant Services will help you find the online shopping cart software that works most efficiently with your payment processing setup. And we’ll help keep your shopping cart working smoothly. Founded on fantastic service in 2008, Host Merchant Services is structured around a strong backbone of customer service. 12 years and thousands of happy merchants later, customer service is still our number one priority. In fact, our merchant support team is FOUR TIMES the size of our sales team! We don’t believe in hold queues either, so you’ll never have to wait in line. When you’re with Host Merchant Services, you’ll get first-class treatment!

How Ghost Kitchens are Impacting the Quick Service Restaurant Industry

How Ghost Kitchens are Impacting the Quick Service Restaurant Industry

In the ever-evolving world of quick service restaurants, the growing demand for food delivery has led to an increase in ghost kitchens, which operate exclusively for delivery service. No servers, no tables, no chairs, just a kitchen in service of delivery orders.

Third-Party Delivery Services

The cultural shift toward food delivery in lieu of takeout opened the door to third-party delivery services such as DoorDash, which currently holds 35 percent of the third-party delivery market overtaking GrubHub. Of course, third-party delivery services charge a fee for the delivery, as well as for the expanded reach. With an up to 30 percent fee for each delivery, third-party delivery apps make an already tight margin barely worth the added business for restaurant operations. Increases in rent for an optimal site selection plus increases in the costs of insurance and goods were already cutting into restaurant revenue. Delivery fees charged by third-party services contribute to the downward spiral when some restaurants even lose money on each delivery order.

Ghost Kitchens Cut Costs

In response to the razor-thin margins resulting from high delivery fees, members of the restaurant industry adopted the ghost kitchen model, eliminating the need for a dining room, as well as for everything in a dining room, including china, cutlery, tablecloths, and tables. With only a kitchen space and a third-party app, a restaurateur can fulfill the needs of the online food ordering consumer. With third-party app representatives propositioning existing restaurants to branch out with a delivery-only addition to their current offerings, both the market and the delivery services are growing the options to fulfill the needs of consumers who can’t find the cuisine they want, according to searches on the delivery apps.

Technology Needs

Overcoming logistics and the technology required to run a delivery-only operation are challenges standing in the way of the ghost kitchen. From ordering accuracy to delivery radius, the relationship between the ghost kitchen and its partner delivery app can make or break a virtual kitchen operation. Leveraging the technology to reach the highest potential, as well as to not lose money despite demand, may be equally important as the food itself. Something as simple as accurately reflecting menu options on the delivery app can create miscommunications and flawed orders between the kitchen and consumer. If a ghost kitchen can successfully master its underlying technology, their delivery business is in a position to thrive.

Host Merchant Services: What Your Restaurant Needs in a Payment Processor

If your restaurant is adapting to the evolutions of the delivery world, Host Merchant Services can guide you in the next best steps for your success in a competitive market. Whether you need an entirely new point of sale system or a solution for your current system, HMS offers a suite of services to suit your restaurant’s needs. From wireless equipment, payment by check, recurring billing, to online payment gateways, HMS has everything a restaurant needs for serving customers in both traditional sit down establishments and catering services.

Host Merchant Services provides customer support for restaurant credit card processing 24 hours a day, 7 days a week, 365 days a year. We know we need to work as much as you do to properly support an industry that can operate nearly 24 hours a day. That’s why we have operators standing by to answer your call any time of day.

HMS also explains how payment processing works. Providing a comprehensive package including credit card processing and financial transaction services to restaurants, we will custom design a flexible credit card processing solution to fit the needs of your restaurant.

And when we do demonstrate your payment processing scenario selections, HMS also offers your restaurant several point of sale options, including Clover, Vital, Bonsai, SwipeSimple, and more to fit your specific operation. If your restaurant is already equipped with hardware, HMS provides an easy point of sale integration.

With our low rate guarantee, HMS provides a Free Rate Analysis to show where you can save on your restaurant payment processing. If HMS can’t save your restaurant money, we will give you a $50 Gift Card. The best pricing model on the payment processing market, Interchange Plus Pricing will help your restaurant’s bottom line.

Host Merchant Services will even provide your restaurant free equipment via our free equipment program to qualified merchants along with receipt paper at wholesale prices. We are your restaurant’s credit card processing solution.

Restaurant Payment Resources covers ghost kitchens alongside tips, POS and card fees, all in one place.

Cayan Charges PCI Non-Compliance fee

Cayan charging customers PCI non-compliance fee Cayan processing, one of the largest payment processors in the country, informed its customers that they will be charged a $125 PCI non-compliance fee starting in March 2020 if they are not PCI compliant. The fee is not one-time but monthly. This means customers deemed not compliant with PCI standards will be charged $125 per month every month until the customer becomes PCI compliant. This news comes just a few months after Cayan charged its customers a $125 “infrastructure fee” in addition to a rate increase.

What is PCI compliance and non-compliance?

First, let’s start with the basics. PCI DDS stands for “Payment Card Industry Data Security Standard” (PCI for short) and was created by the card brands to help ensure the security of credit card transactions. To be PCI compliant each merchant is supposed to fill out a questionnaire that shows the systems used to process credit cards are secure. It is not a difficult process by any means. In fact, many processors include PCI compliance with each merchant account free of charge. Note: The card brands that created “PCI” do not charge for non-compliance, but some payment processors, like Cayan, choose to.

Why is Cayan Charging for PCI non-compliance?

That’s a good question since Cayan doesn’t have to charge it’s customers the completely unnecessary $125 PCI non-compliance fee. The company claims that it’s for the security of their systems. This makes sense, but then why wouldn’t Cayan make PCI compliance mandatory with each account? Unfortunately, many merchants are not going to see the notice and will be hit with a $125 PCI non-compliance fee. For smaller businesses, this can be a major hit to their bottom line.

How To Stop Cayan Fees

The good news is that CAYAN is allowing upset customers to cancel their accounts without penalty within 30 days of receiving the statement containing the fee! Here’s what Cayan says in the notice: “IF YOU OBJECT TO THESE FEES, YOU MAY TERMINATE YOUR AGREEMENT WITHOUT PENALTY BY PROVIDING WRITTEN NOTICE IN ACCORDANCE WITH YOUR AGREEMENT WITHIN 30 DAYS OF THE DATE OF THE STATEMENT CONTAINING THIS FEE.”

What to do now?

Fees like these, charged by big processors, are a prime example of why it is so important to find a payment processor that has integrity and transparency. Host Merchant Services makes sure all of its merchants are PCI compliant, free of charge, included with their merchant account. Beyond that, there are no hidden or surprise fees ever and merchant’s rates are locked in for life. That means we will never turn around and charge our customers unnecessary fees or rate increases. Finding the right processor can save a lot of time and hassle. If you’re upset and looking for a straight forward solution Give Host Merchant Services a call (877) 517-4678. You will be pleasantly surprised by the high level of service, low cost, and no obligations.

Where Can I Use Apple Pay – 2021/2022 Update

Apple Pay allows Apple iPhone 6, 6s, 6, 7, 8, 6 Plus, 6s Plus, 7 Plus, 8 Plus, SE, X, XS, XS Max, XR, 11/Pro, 12/Mini/Pro/Max, 13/Mini/Pro/Max and Apple Watches to pay for good and services with a built in NFC chip. Apple Pay has made huge leaps in acceptance in 2021 and 2022, and contactless and NFC payments are gaining traction in general. Here is a list of the retail stores, apps (both retail and transit), colleges and universities, and nonprofits currently accepting Apple Pay in 2021, 2022, and beyond:

Get started accepting Apple Pay for your business here!

You can use Apple Pay to pay for goods at the following stores with millions more:

ACE
Albertsons
Apple
Baskin Robbins
Best Buy
Chevron
Chick-fil-A
Costco
Crate & Barrel
Disney Store
Duane Reade
Dunkin Donuts
ExxonMobil
Foot Locker
GAP
Kohls
J Crew
Jersey Mike’s
jetBlue
Levi’s
Macy’s McDonald’s
Nike
Office Depot/OfficeMax
Panera
Petco
Petsmart
Pizza Hut
Safeway
Sephora
7 Eleven
Staples
Starbucks
Subway
Target
Texaco
Trader Joe’s
Walgreens
Walt Disney World
White Castle
Whole Foods

These apps and websites accept Apple Pay, along with many more:

Airbnb
B&H – photo, video, pro audio
Chipotle
Dunkin Donuts
Etsy
Fandango
Groupon
Grubhub
Hotel Tonight
Hotwire
Instacart
Jet
Lululemon
Lyft
MLB
Panera
Seamless
Sephora
Staples
Starbucks
StubHub
Target
Ticketmaster
Wish

Use Apple Pay when using these transit apps:

Caltrain San Francisco Peninsula and Santa Clara Valley
*CTA and Pace Chicago metropolitan area
MBTA Boston metropolitan area
Metrolink Los Angeles metropolitan area
MTA Metro-North and Long Island railroads New York metropolitan area
NJ TRANSIT New Jersey and New York metropolitan area
RTC Las Vegas metropolitan area
RTD Denver metropolitan area
*TriMet, C-TRAN, and Portland Streetcar Portland and Vancouver metropolitan area
Ventra (CTA, Pace, and Metra) Chicago metropolitan area

*Tap and pay via Apple Pay

The following colleges and universities accept Apple Pay:

The University of Alabama
Duke
Oklahoma University
Temple University
*Johns Hopkins University
*Santa Clara University

*Coming later this school year

Donate by way of Apple Pay to the following nonprofits, in addition to others:

American Red Cross
Children’s Miracle Network Hospitals
Chron’s & Colitis Foundation
Global Giving
RED
Jude Children’s Research Hospital
Save the Children
United Way
WNET New York Public Media
WWF

Naturally, these apps that come standard on an iPhone accept Apple Pay:

Apple Music
Apple News+
App Store
Books
iCloud
iTunes Store

If you’d like to learn more about how to use Apple and Google pay click the link here!

MasterCard Cautions Negative Q1 Revenue Impact from Coronavirus

Mastercard Cautions Negative Q1 Revenue Impact from Coronavirus

Earnings releases were tinged with a coronavirus theme during companies’ conference calls as decision-makers fear the negative effect of the coronavirus on travel and e-commerce globally. While many companies say it’s too early to assess the coronavirus impact, some companies offer an analysis of sales loss and an earnings hit.

Mastercard Prediction

Mastercard Inc (MA) warned investors that the effects of the coronavirus outbreak could negatively impact first-quarter revenue, as well as overall 2020 revenue on Monday, February 24. After the announcement, MA closed down $15.03, 4.42 percent, and dropped further $4.68, 1.44 percent, during after-hours trade.

Expecting the year-over-year net revenue growth to be roughly 2-3 percentage points lower than their previous estimate if the coronavirus outbreak continues until the end of the quarter, the company now projects revenue growth to be 9-10 percent in the first-quarter based on a currency-neutral basis. The news follows Mastercard’s better than expected fourth-quarter results, which showed consumers using credit card processing for holiday shopping.

First-Quarter Earnings Expectations

General Electric’s description of the coronavirus as an “evolving variable” is an apt summary of companies’ approaches to describing the potential negative effect the virus will have on first-quarter earnings. With many companies adjusting earnings and managing expectations of investors and with companies interconnected with China and even partially housed in China, coronavirus is playing a central role in anticipated disruption, as well as the current disruption in the world economy.

Global Impacts

First identified in Wuhan, China at the end of 2019, COVID-19, also known as the coronavirus, is spreading across the globe, infecting more than 100,000 and killing more than 3,000 people. Efforts to contain the virus and the resulting effect on human behavior have disrupted supply chains.

Both manufacturing and supply industries in China, as well as in other countries in the region, are already slowing and even stopping business despite Chinese banks loaning money to companies and communities afflicted by the virus and despite the Chinese government working with tech companies on systems to determine the health of workers. The resulting stock market sell-off on Monday, February 24 was the worst in two years with fears of a worldwide economic slowdown due to coronavirus

Host Merchant Services