Mastercard Implements Blockchain Technology

Mastercard Implements Blockchain Technology

MasterCard has announced upgrades to its payment processing operations for business-to-business transactions. The company will now allow businesses to use blockchain technology to transfer money via its MasterCard Blockchain API, which recently debuted at the Money20/20 Hack-a-thon in Las Vegas.

MasterCard has joined the growing list of companies using blockchain technology, including Google, Citibank, Goldman Sachs, and others.

Unlike Bitcoin, MasterCard’s blockchain technology does not rely on a cryptocurrency to operate. Instead, it transfers currencies in the same way as bitcoin, with complete ledgers included. In this way, the sender and receiver have transaction records in the currency. MasterCard says the blockchain transfer is safer and faster than the existing system. MasterCard ensures that the new blockchain technology used to process the payments is only shared between those participating in the transaction, with the blockchain guaranteeing an accurate payment record.

MasterCard and Use of Technology in Payments

MasterCard uses technology in business-to-business transactions to address international payment processing needs. Technology could make it less expensive for businesses to pay international bills. When money is sent overseas, it usually passes through several banks before arriving at its final destination and is hit with fees all along the way. MasterCard’s technology could directly connect the buyer and seller, allowing the money transfer to be completed more promptly.

According to MasterCard, the technology can be used to move more than just the transfer of money. It can also be used to track pharmaceuticals and luxury items such as handbags and diamonds by providing what is known as a proof of provenance (Documented evidence of provenance for an object can help to establish that it has not been altered and is not a forgery, a reproduction, stolen or looted art.).

MasterCard and Use of Technology

The technology can be used with other MasterCard APIs for application development purposes, and software development kits are currently available in six languages. The ability to send money via the new technology must be available to the average MasterCard credit card holder. With over 35 patents on file for the cryptocurrency technology, MasterCard is the second Fortune 500 company to use the payment method. It has a settlement network of 22,000 banks and other financial institutions with offices worldwide.

Understanding Blockchain Technology

What is Blockchain?

Blockchain is a decentralized system that acts as a digital ledger, storing transaction records across a network of computers. Its transparency ensures that all participants can view transactions, enhancing trust. Each block in the chain is linked to the previous one, forming an unbroken sequence. This structure and cryptographic hashing make it virtually impossible to alter past transactions, ensuring immutability. Timestamped transaction data provides a chronological order, which is crucial for auditing and accountability.

The decentralized nature distributes copies of the ledger across multiple nodes, enhancing security by eliminating single points of failure. Blockchain’s combination of decentralization, transparency, immutability, and security makes it a groundbreaking technology with applications in various sectors beyond finance, including supply chain management, healthcare, and voting systems.

Key Features of Blockchain Technology:

  1. Decentralization
  2. Transparency
  3. Immutability
  4. Security

MasterCard Blockchain API: The Way Ahead

MasterCard Blockchain API

Exploring Mastercard’s Interest in Blockchain:

Mastercard has been closely observing advancements in blockchain technology for years. Recognizing its potential to revolutionize payment systems, Mastercard actively seeks ways to incorporate blockchain into its infrastructure. They aim to streamline payment procedures, lower expenses, and bolster security through blockchain integration. This proactive stance demonstrates Mastercard’s commitment to staying abreast of emerging technologies and leveraging them to enhance its services. By embracing blockchain, Mastercard anticipates improving efficiency and reinforcing trust and reliability in its payment network.

Partnerships and Collaborations:

Mastercard has strategically partnered with numerous blockchain technology firms and startups to delve into pioneering solutions. By collaborating with entities specializing in blockchain development, Mastercard gains access to their specialized knowledge and resources. These partnerships empower Mastercard to harness its expertise and resources effectively, facilitating the implementation of blockchain-based solutions. Through such collaborations, Mastercard endeavors to stay at the forefront of technological advancements in the payments industry. By leveraging its partners’ expertise and innovative ideas, Mastercard aims to explore and integrate blockchain technology seamlessly into its operations. This approach underscores Mastercard’s commitment to fostering innovation and driving forward-thinking solutions in digital payments.

Piloting Blockchain Projects:

Mastercard is actively testing various blockchain initiatives across multiple sectors of its operations. These pilot projects serve as real-world experiments to assess the viability and efficacy of blockchain technology. Mastercard’s exploration extends to various applications, including cross-border payments and supply chain management. By piloting blockchain projects in diverse areas of its business, Mastercard gains valuable insights into the potential benefits and challenges of integrating blockchain solutions. These initiatives demonstrate Mastercard’s commitment to innovation and willingness to embrace emerging technologies to enhance its services. Mastercard aims to identify practical use cases for blockchain technology through these pilot programs and pave the way for its broader adoption within the payments industry.

Benefits of Mastercard Blockchain Implementation

Benefits of Mastercard's Blockchain Implementation

Enhanced Security:

Blockchain technology enhances security by encrypting and dispersing transaction data across a decentralized network. Mastercard can leverage this technology to fortify its security protocols and reduce vulnerabilities to fraud and data breaches. Through blockchain’s decentralized architecture, sensitive information becomes less susceptible to unauthorized access or manipulation, enhancing overall security measures. By embracing blockchain, Mastercard demonstrates its commitment to safeguarding transactions and protecting user data from potential threats, fostering greater trust and confidence among consumers and businesses.

Improved Efficiency:

Blockchain technology can streamline payment processes and shorten transaction times significantly. Through blockchain technology, Mastercard can optimize the efficiency of its payment network, resulting in quicker and more cost-effective transactions for consumers and businesses. By leveraging blockchain’s decentralized and transparent nature, Mastercard can eliminate intermediaries, simplify verification processes, and expedite settlements. It enhances the overall speed of transactions and reduces associated costs. As a result, Mastercard can provide a more seamless and economical payment experience, catering to the evolving needs of its users and reinforcing its position as a leading player in the global payments industry.

Greater Transparency:

Blockchain technology’s transparency and immutability ensure that transactions are visible and unalterable, enhancing transparency. Mastercard’s blockchain integration can improve trust and accountability within its payment ecosystem, strengthening stakeholder relationships. By leveraging blockchain’s transparent ledger, Mastercard enables stakeholders to access transactional data securely and verify the authenticity of transactions. This increased transparency fosters trust among users, merchants, and financial institutions, enhancing overall confidence in Mastercard’s payment network. Additionally, the immutable nature of blockchain ensures that transaction records cannot be tampered with, further bolstering accountability. Through the adoption of blockchain technology, Mastercard reinforces its commitment to integrity and reliability in facilitating secure and transparent transactions for all stakeholders.

Challenges and Considerations

Regulatory Compliance:

Implementing blockchain technology poses a challenge due to navigating complex regulations. Mastercard must ensure compliance with stringent rules governing financial transactions and data privacy. Adhering to existing regulatory frameworks is essential to mitigate legal risks and provide the security and confidentiality of user data. Mastercard can confidently navigate the evolving regulatory landscape by addressing regulatory concerns, fostering trust and reliability among users and regulators.

Scalability Issues:

As blockchain technology progresses, scalability emerges as a pressing concern. Mastercard must confront scalability challenges to accommodate the increasing transaction volume on its network while maintaining speed and efficiency. Addressing scalability issues ensures that Mastercard’s payment infrastructure can handle expanding demands without sacrificing performance. Mastercard can sustain its position as a reliable and efficient payment provider by implementing scalable solutions in an ever-growing digital landscape.

Future Outlook

Continued Innovation:

Mastercard is dedicated to innovation and continually explores ways to harness blockchain technology. Positioned at the forefront of advancements, Mastercard is prepared to unveil advanced solutions that elevate its services and capabilities as blockchain evolves. With a proactive stance, Mastercard aims to integrate cutting-edge blockchain features to enhance its offerings. By embracing emerging technologies, Mastercard ensures it stays ahead in providing efficient and secure payment solutions, meeting the dynamic needs of its users in an ever-changing digital landscape.

Industry Collaboration:

Mastercard acknowledges the significance of industry collaboration in promoting the widespread adoption of blockchain technology. By collaborating with various stakeholders such as banks, merchants, and technology providers, Mastercard seeks to expedite blockchain integration into the global payments ecosystem. Through partnerships and joint efforts, Mastercard endeavors to leverage collective expertise and resources to drive innovation and advance blockchain solutions. Mastercard aims to facilitate the seamless integration of blockchain technology by fostering collaboration within the industry, ultimately enhancing efficiency and security in the payments landscape.

Conclusion

Mastercard’s implementation of blockchain technology marks a significant milestone in the evolution of digital payments. Mastercard is poised to enhance security, improve efficiency, and drive innovation in the payments industry by embracing blockchain. As blockchain continues to disrupt traditional business models, Mastercard’s proactive approach ensures it remains at the forefront of technological innovation.

FAQ

  1. How does blockchain technology enhance security in payments?

    Blockchain encrypts transaction data and decentralizes it across multiple nodes, making it highly secure and resistant to tampering.

  2. Can blockchain technology improve transaction speeds?

    Yes, blockchain has the potential to significantly reduce transaction times by eliminating intermediaries and streamlining the verification process.

  3. What are some potential applications of blockchain beyond payments?

    Aside from payments, blockchain technology can be applied to various industries, including supply chain management, healthcare, and voting systems, to name a few.

  4. Is blockchain technology regulated?

    While blockchain technology is not regulated, its applications in finance and other industries are subject to existing regulatory frameworks governing data privacy and financial transactions.

  5. How does Mastercard collaborate with blockchain technology firms?

    Mastercard collaborates with blockchain technology firms through partnerships, joint ventures, and investment initiatives to explore innovative solutions and pilot projects.

Millennial's Financial Services

How Banks Are Adapting to the Demands of Millennials

Millennials between 18 and 34 are a significant market segment for banks and other financial institutions to attract and retain. More than 83 million millennials are now in the U.S., representing one-quarter of the country’s population and a larger share than baby boomers. Most millennials have spent their entire lives with technology and have very different desires and demands regarding financial services than previous generations.

What is the key to attracting and keeping pace with millennial’s financial services? Researchers say it offers better services, products, and experience than its competitors.

Millennial’s Financial Services – Bias To Digital Services

Research firm CCG Catalyst conducted an extensive survey of millennial consumers to learn more about how they use banking services and what they want from a financial institution. With a reputation for living on their phones, it’s unsurprising that the study found millennials prefer digital services. 44% said they send money digitally, 68% use online banking, and 39% use remote deposit capture for checks.

Still, the survey found that millennials still use traditional services: 46% also use checks. Many also regularly use ATMs and put money away in a savings account. While millennials use traditional services, they don’t want them to be average; they want them to be better. Millennials seek premium features like no fees, high-interest rates, and transparency.

The bottom line of this survey is that while millennials want more automation from their financial institutions and greater control, they still want a human connection when necessary.

What Makes Millennials Switch Financial Institutions?

A recent research study by Harris Poll asked Americans about their perceptions of banks and what would make them conduct business with one institution over another. The study found that 83% of millennials would switch to a different financial institution if it offered better rewards, such as cash back on purchases or a high-interest rate on a checking account. 65% of millennials would consider switching to a smaller credit union or bank if it offered mobile services. Almost half of millennials also said choosing a locally owned institution over a national chain is essential.

Not surprisingly, 93% of millennials said no-fee banking is essential when choosing a financial institution. While a convenient location is almost as important, millennials are more likely to sacrifice their area if the institution offers online tools.

What Are Millennial Entrepreneurs Looking for?

What Are Millennial Entrepreneurs Looking for

Despite more student loan debt than other generations, stagnant wage growth, and a higher cost of living, millennials are optimistic about finances, and a growing number are starting their own business. 49% of millennials want to become entrepreneurs in the next three years, and over half would quit their jobs in the next six months with the right resources.

The problem is that these “right resources” are challenging to find. Over 40% of millennials feel that major financial institutions are unlikely to give them a small business loan due to their age, forcing many to rely on personal credit rather than business loans.

Financial institutions are in an excellent position to help millennials close this gap toward owning a business. One survey found that three-quarters of millennials will pay more for financial services and products to ensure the success of their business. To get there, financial institutions need a long-term approach to guide millennials toward economic stability and greater availability of mobile tools and technology. Millennials don’t just need greater availability of small business banking services; they also demand more convenient and faster lending experiences.

In today’s fast-paced digital era, banks are constantly evolving to meet consumers’ changing needs and preferences, particularly the millennial generation. Born between the early 1980s and mid-1990s, millennials have emerged as a significant demographic segment, wielding considerable influence over various industries, including banking.

Challenges Faced by Traditional Banks

Challenges Faced by Traditional Banks for millennial's financial services

While adapting to the demands of millennials is essential for banks to remain competitive, they often encounter various challenges along the way.

Resistance to Change

Traditional banks may need more support for digital transformation initiatives from legacy systems, outdated processes, and organizational culture. Overcoming these barriers requires a commitment to innovation and a willingness to embrace change at all levels of the organization.

Competition from Fintech Startups

The rise of fintech startups poses a significant threat to traditional banks, as these agile and tech-driven companies are adept at meeting the evolving needs of millennials. To stay ahead of the competition, banks must foster a culture of innovation and agility and leverage partnerships or acquisitions to integrate fintech solutions into their offerings.

Strategies Implemented by Banks

To address the challenges posed by millennials’ changing preferences, banks are implementing various strategies to enhance customer engagement and satisfaction.

Digital Transformation

Banks invest heavily in digital transformation initiatives to modernize their operations and streamline customer interactions. By digitizing processes, reducing paperwork, and offering omnichannel experiences, banks can improve efficiency and deliver superior service to millennials.

Enhancing Customer Experience

In addition to digital channels, banks focus on enhancing the overall customer experience by providing personalized support and proactive communication. Whether through AI-powered chatbots or dedicated relationship managers, banks aim to build long-term relationships with millennial customers based on trust and transparency.

Technological Innovations

Technological advancements play a crucial role in shaping the future of banking and meeting the evolving needs of millennials.

Mobile Banking Apps

Mobile banking apps have become indispensable tools for millennials, offering features such as real-time account access, bill payments, and budgeting tools. Banks continually enhance their mobile apps with new features and functionalities to provide a seamless banking experience.

AI and Chatbots

AI-powered chatbots are revolutionizing customer service in the banking industry, providing instant assistance and personalized recommendations to users. Banks can deliver highly responsive and efficient customer support round the clock by leveraging natural language processing and machine learning algorithms.

Social Responsibility and Sustainability

Millennials are increasingly conscious of social and environmental issues and expect the companies they engage with to share their values.

Ethical Investing

Banks respond to this trend by offering ethical investing options, such as sustainable funds and socially responsible portfolios. By aligning their investment strategies with millennial values, banks can attract socially conscious customers and drive positive societal change.

Community Engagement Initiatives

Furthermore, banks are actively involved in community engagement initiatives, supporting local causes, and volunteering efforts. By demonstrating a commitment to social responsibility, banks can foster goodwill and loyalty among millennial customers who value corporate citizenship.

Financial Education Initiatives

In addition to providing financial products and services, banks are prioritizing financial education initiatives to empower millennials with the knowledge and skills needed to make informed financial decisions.

Online Resources and Tools

Banks are developing educational resources like articles, videos, and interactive tools to help millennials improve their financial literacy and achieve their long-term goals. By offering accessible and engaging content, banks can equip millennials with the necessary skills to navigate complex financial landscapes effectively.

Educational Workshops

Furthermore, banks organize educational workshops and seminars on budgeting, investing, and debt management. These events provide millennials with valuable insights and practical strategies for managing their finances responsibly.

Conclusion

In conclusion, banks are adapting to the demands of millennials by embracing digital transformation, enhancing customer experience, and promoting social responsibility. By leveraging technology, innovation, and a customer-centric approach, banks can stay relevant in an increasingly competitive landscape and meet the evolving needs of today’s generation.

FAQs

  1. How are banks catering to the digital preferences of millennials?

    Banks invest in mobile banking apps, online account management, and contactless payment options to provide seamless digital experiences.

  2. What challenges do traditional banks face in adapting to millennials’ preferences?

    Traditional banks may encounter resistance to change and competition from fintech startups, which may require them to innovate and modernize their operations.

  3. What role does technology play in shaping the future of banking?

    Technology like AI and chatbots enables banks to deliver personalized services, enhance customer engagement, and streamline operations.

  4. How are banks addressing the social and environmental concerns of millennials?

    Banks offer ethical investing options and engage in community initiatives to demonstrate their commitment to social responsibility.

  5. What resources are available for millennials to improve their financial literacy?

    Banks provide online resources, educational tools, and workshops to empower millennials with the knowledge and skills to make informed financial decisions.

Real-Time Payments Network approved! What Is It?

Real time payments realtime credit card processing
DOJ Approves Creation Of Real-Time Payments Network

The DOJ has approved a real-time payment network suggested by two dozen banks who want to provide faster payments to merchants using their merchant services. The DOJ wanted to make sure that this was not a move that would consolidate too much power in too few places and that there is no risk involved with the program. With the new real-time payments system, purchases and funds can be available immediately. This announcement is sending waves through the payment processing community as service providers rush to offer real-time payments.

In a statement that it released in late September, the DOJ stated that it felt that the payment processing system proposed by the banks may actually have a pro-competition impact on the market. They also noted that the system would help to repair and rebuild an aging payments infrastructure that is long overdo for some upgrades, and it’s about time.

Merchants are happy to hear about the real-time payments network as it means that they can have funds available quicker than they otherwise would have. Customers should be happy as well. The new system allows for the instant transfer of money between banks with instant recognition and status updates. That means if you need to transfer money from one bank to another, hit send and boom – it’s there. No more waiting for charges or payments to clear, it all happens instantly.

Yes, there are great implications for merchants and customers a like but when will it be ready? Banks and payment gateways are racing to get on board with the new payments network. Banks at both ends of the network (sending and receiving) for any given transaction must be setup for the new system for it to work. It is estimated that half of all payments will be over the real-time payment network by the end of 2018. You will start seeing it sooner, though. As more banks and gateways get on board you will notice more and more funding between banks happening instantly.

To me, the worst part of our financial infrastructure is the wait time on certain payments. I would think, “why in our modern world does it take 2 days for a debit card payment to process, or 3 days for a transaction to post”. The constant battle of keeping up with what is “processing” or “not posted” yet got me into trouble with my bank accounts more than once. Maybe finally we won’t have to worry so much about processing times and delays. For a merchant it means you won’t ever have to write a check that isn’t funded until the next day ever again. You will have funds from the same day available and ready for use – and that’s music to my ears.

ecommerce graphic computer 1

Online sales boom, Walmart Expects 40% Increase

Walmart e-commerce increase ecommerce

Walmart is Betting on Stronger Online Sales for 2018

In preparation for its annual investor’s conference, retail giant Walmart hinted at a future when the company would be a strong competitor to Amazon, the absolute global leader in online sales and ecommerce operations.

Investors reacted very positively to the news, including a projection by Brett Briggs, Walmart’s Chief Financial Officer, who believes the company will see an increase of 40 percent in online sales over the next two years. By the end of the press conference, Walmart’s stock had gained 4.5 amidst heavy trading.

Ecommerce has thus far been a hit-and-miss affair for Walmart, the most recognized American brand in discount retail stores. The retail chain made a series of investments in digital assets around 2009 and 2010, but they did not work out as expected because they needed further development. At one point, Walmart was leading in online sales of digital music, particularly in the country and western genres; however, the company fell short of getting into the streaming revolution.

Ecommerce services e-commerce

Now that the company intends to increase its ecommerce footprint in the next two years, some analysts are concerned about Walmart’s announcement as it relates to brick-and-mortar stores in the U.S. In 2018, the company will only expand by 10 Supercenters and 15 neighborhood stores; this is effectively a 50 percent reduction compared to the current pace of expansion.

Walmart has a clear advantage in terms of its large network of stores around the country; as the company continues to expand its e-commerce offerings, customers can pick up their orders at a store near their homes, schools or jobs. This added convenience is something that Amazon had considered when it evaluated the acquisition of gourmet supermarket chain Whole Foods earlier this year.

The Arkansas-based company has also announced that it is working with Google and its smart home automation division to develop voice apps for the Google Home smart speaker. The search engine giant has been slow to catch up to Amazon, the current leader of the smart speaker segment. While Google was more concerned about making its Home speaker a control center for smart appliances, Amazon expanded the online shopping functionality of its Echo speaker. Now that owners of Google Home devices are able to order Walmart items with by means of voice commands, the e-commerce world is going to get more interesting and competitive.

Upgrade Your Point of Sale System
European-Countries-Trend-Cashless

European Countries Trend Towards Cashless Societies [2023 Update]

In the United States and other countries around the Americas, “Cash Only” signs can still be found in many retail establishments; however, the opposite situation can be observed in Sweden, a country where hundreds of bank branches no longer accept or store cash deposits.

Sweden is on track to becoming the first truly cashless society, and other nations in Europe are also moving towards a future where electronic transactions enabled by payment processing networks are the preferred monetary settlement methods.

No Cash? No Problem in Europe

In 2016, a market research study conducted by payment processing giant Visa showed the extent of cashless electronic transactions in Sweden, where consumers are three times more likely to use debit cards or their smartphones to pay for anything from snacks to groceries and from rent to concert tickets. What is interesting about Sweden is that this is a country where consumer credit is nowhere near as popular as it is in the U.S. Swedish people simply love paying with debit cards and smartphones; they have simply fallen out of love with their national currency, the kronor.

Another European country that seems to be headed towards a cashless future is Greece, and this is surprising due to the restrictions on money transfers imposed by the government during the financial crisis of 2015. Over a period of two years, Greek consumers did not trust electronic transactions because they were handled by the banks they had grown to mistrust; by 2017, however, people in Greece had become tired of handling cash. These days, bank account holders in Greece demand services such as mobile transfers and smartphone wallets that they can link to their banks.

In April 2017, Dutch banking giant ING surveyed 15,000 European account holders to gauge their feelings about using cash in the 21st century. Not surprisingly, one out of every three survey respondents indicated their desire to stop using cash altogether; in fact, many respondents stated that they think payment processing networks are advanced enough to handle 100 percent of all transactions.

Final Words

What is interesting about the ING survey is that countries such as Italy, Turkey and Poland are where people feel the strongest towards a cashless future. These happen to be the nations with the highest incidence of money laundering and corruption, which may explain why their citizens feel that doing away with cash will improve the current situation by removing temptation and forcing greater transparency.

Apple store chicago 1

Retail isn’t Dying, it’s Evolving

Millennials cause retail to evolve
The Retail Industry is Far from Dead

For all the talk about how e-commerce has advanced to the point that online shopping has obliterated the brick-and-mortar experience, the evidence cited in this regard is tenuous at best. Those who believe that e-commerce will make shopping mall disappear will often mention the meteoric rise of Amazon and the fact that Cyber Monday creates more revenue than Black Friday; the problem with these assumptions is that they do not take into account what is really taking place at the retail level.

Apple Retail Concept StoreIn recent weeks, tech giant Apple has unveiled some very interesting expansion plans for its Apple Stores, which have been crucial for the company’s massive success since 2010. Apple wants to offer more than just gadgets and repairs at its stores; the company plans to hold town hall meetings, give programming classes and even partner with café brands, perhaps Starbucks. Apple’s new location will have a large aesthetically pleasing courtyard with trees that shade you from the interior lighting. The goal is to become a location where people want to gather. The products and services will be viewed a secondary reason for being there.

Speaking of Starbucks, the company is once again considering expanding its menu with craft beers, select wines and gourmet foods. Again, becoming a location for not just coffee drinkers to hang out at. Even Nordstrom is talking about opening locations on the west coast that won’t sell clothes – instead they’ll focus on spa and beauty services in a, you guessed it, fun environment to hang out with the girls.

Urban Outfitters, the trendy clothing store for the Millennial generation, recently acquired a gourmet pizza chain. It is clear that Urban Outfitters intends to provide a shopping experience that may include offering pizza and Italian delicacies to customers. It is also important to note that the clothing chain’s young customers are less likely to pay with cash; which is why they are expanding to accept EMV and NFC so they can pay with everything from Apple Pay to debit cards. The Millennial generation leverages electronic payments more than any other market segment, and thus it makes sense for Urban Outfitters to upgrade its merchant services.

It is clear that the American retail industry is in a transitional period that is shifting to meet the desires of the Millennial generation. Companies are creating concept locations that are supposed to be a fun hangout spot rather than the place to buy a smart phone or a cup of coffee. This business model seems logical. Give the younger adults a place where they can congregate, and they will inevitably spend money on whatever is around. The top 10 retailers in the U.S. are department and discount store chains; Amazon is the only e-commerce giant in this club, and even Amazon is getting into the brick-and-mortar world with its recent purchase of Whole Foods.

Retail is here to stay. It definitely won’t be the same retail that we grew up with, it will be better. It’s possible that the old retail shopping was, on a whole, so un-enjoyable and non-aesthetically pleasing that it pushed people to e-commerce. If retail does evolve to give the shopper an exceptional experience, e-commerce might just take a hit. The fact that giants like Apple and Amazon focusing on physical locations means retail has huge opportunities that merchants can capitalize on. I for one am excited. So, here’s to the future of retail. A new retail that will pull you away from your computer and make you want to shop in reality again.

 

VR changing Retail Shopping 1

Virtual Reality is Shaping Retail and E-commerce… Re-commerce?

Virtual Reality Shopping
What Virtual Reality Means for Merchants and Retailers

The video game industry has already made the most out of augmented reality and virtual reality, two advanced technologies that were originally developed for military applications; has the time arrived for the retail and e-commerce sectors to embrace them?

Augmented and virtual reality technologies, respectively known as AR and VR, are indeed making inroads in the retail sector, and their future is very promising. Long before the wildly popular AR mobile game Pokemon Go made its debut, footwear brand Converse was already using The Sampler, an interesting AR app that allowed shoppers to use their smartphone cameras for the purpose of seeing how a pair of sneakers would fit them before heading to the store. In the case of VR, IKEA and Lowe’s have both introduced virtual experiences for shoppers who can don headsets for the purpose of decorating their home interiors; this is a classic example of VR being used to drive store traffic and add excitement to the retail shopping experience.

Continue reading →

Heartland Charges Customers 2 1

Heartland Payments Charging $299 EMV Non-Acceptance Fee

Heartland Payments charging EMV non-acceptance fee

 

EMV cards have been in a talking point for the last couple of years. In 2015 card companies started switching over to EMV “chip” cards. Two years later we’ve all seen these cards, and probably have at least one by now. The chip side of an EMV card gets inserted into a credit card machine ensuring a more secure transfer. This is due to the fact that fraudsters can recreate magnetic stripes but not EMV chips, therefore making them harder to steal and use. Now that merchants have had two years to switch to EMV capable credit card machines, many merchant services providers including Heartland Payments will start implementing EMV non-acceptance fees.

EMV Non-Acceptance fees

In November Heartland Payments, one of the largest merchant services providers in the US, will start charging $299 EMV non-acceptance fees to it’s customers who do not yet accept EMV payments. This may not seem like a big issue – just get a new credit card machine, right? Wrong. Many merchants have point of sale systems that they have put tens of thousands of dollars into that do not accept EMV chip cards. That leaves the merchant with a large bill to upgrade their point of sale system that they may have just purchased and are most likely still in a contract for. The other options are A) adding on an EMV pin pad to the existing point of sale system which may cost hundreds of dollars and will remove integrated payment processing from the point of sale system or B) pay the EMV non-acceptance fee. Unfortunately, paying the fee may be the cheapest option besides the fact that you will be forced to upgrade to EMV at some point.

Why are merchant services providers charging EMV non-acceptance fees?

Ingenico iWL250 EMV Credit Card MachineWell, it depends on how you look at it. The banks are saying it’s an incentive to switch over to EMV because EMV is safer for both the merchant and the customer. Others see it as a money grab – just another fee that merchant services providers can charge for.

It does make sense that EMV payment processing is safer, but it doesn’t make sense that the shift to EMV should cost merchants hundreds to tens of thousands of dollars. Many merchants don’t even have a need for the upgrade for example; if they are already keying in transactions on a non EMV capable terminal, or are low risk of counterfeit and fraud such as charities or religious organizations.  Such companies shouldn’t be charged for EMV non-acceptance.

As for those who do need the upgrade, payment processing and merchant services companies should provide compliant hardware without cost to the customer. Here’s the good news; the non-acceptance fee isn’t mandatory in the industry. Some payment processing companies are making sure their customers are taken care of free of charge.

Can I get out of paying?

Yes. Merchants can easily switch their payment processing to a company, like Host Merchant Services, that will not charge you an EMV non-acceptance fee. You will probably end up with a better rate and spending less overall by making a switch. Even if a merchant has a point of sale system with another company, the payment processing can most likely be switched to another service provider that won’t charge an EMV fee. If you don’t know if your payment processing company is going to charge you, give them a call and find out. Many companies hide EMV compliance fees in their contracts and you might not know until it’s too late.

Are EMV compliance and PCI compliance the same thing?

No.

PCI compliance has to do with secure processing of cards, not accepting EMV. For example, using tokenization rather than storing customer data in your system has to do with PCI compliance. EMV compliance is just having the ability to accept a chip card using a credit card machine that accepts EMV chip cards.

How is Host Merchant Services handling EMV compliance?

Good business practices.

Host Merchant Services values their customers and make sure that all of them are EMV compliant at no cost. If they have a point of sale system that can’t accept EMV, Host Merchant Services will find a solution. Merchants are never charged hidden fees and we don’t try to get extra money from our customers. In fact we have a lowest cost guarantee. We will match or beat any company or you get $100.

Host Merchant Services also offer Bonsai point of Sale systems, all of which accept electronic payments including EMV, NFC, Apple Pay, Android Pay and PayPal.

 

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Stocks and Bitcoin Battle for Millennials’ Investing Dollars

 Bitcoin vs the Stock Market

Though the high-profit potential of Bitcoin and other cryptocurrencies offers irresistible bait to that powerful under-36 demographic we call millennials, it’s not time to write the stock market obituary just yet. Popular stock market apps have made online trading of stodgy old Wall Street firms seem cool and new again. The truth is that this generation has shown an affinity for cryptocurrencies and the stock market that will likely drive digital trading trends for the foreseeable future.

Millennials Love Stocks

Even though Bitcoin and other kinds of digital currency are the sexy new beast of today’s trading world, only an insane analyst would think that the stock market will assume a secondary position of importance any time soon. As long as actual business drives the world’s economic engine, stocks will stay popular with millennials traders. They have stood the test of time, which appeals to any investor who chooses a balanced approach. Stock apps are popular with young traders because it’s free and plugs them directly into the trading space without fees or commissions of any sort. For this self-directed generation, the trade-off in fewer research or tools is an easy one to make.

And Millennials Love Cryptocurrencies Too

Bitcoins Cryptocurrency Bitcoin and its brethren have a few things going for them when it comes to popularity with the under-36 crowd. First of all, it’s new, techie, and the latest shiny object. This generation, the first to spend their lives in an internet and smartphone world, automatically love it. Digital currency is only nine years old as an industry, but the past few years have seen the potential for incredible returns the like of which we haven’t seen since the dot-com boom and bust of the late 1990’s.

The Bottom Line

Regardless of the generation, smart investing still equals smart investing, and though the particular assets might change, tried and true principles remain the same. Expect millennials to continue their stock-investing ways for the majority of the portfolio, with a much smaller percentage dedicated to holding cryptocurrencies. It’s the same theory as that implemented by previous generations who loaded up on proven stocks but reserved a portion of their money to take chances on small companies with bright prospects. One thing is certain. Millennials have taken over the reins and will steer the direction of trading trends for the time being. You can bet that will include both stocks and digital currencies.