Tag Archives: merchant services

VeriFone Solution For Unattended Payments

Merchants who want to offer convenience to customers by providing self-service options often struggle with the dilemma of receiving payments without being in the physical location of their customers. Unattended payment solutions offers merchant services to collect payments securely from customers.

VeriFone UX Solutions For Merchant Services

VeriFone recently launched UX Solutions for unattended payments. The devices are designed to meet the needs of busy shoppers who would prefer to go through a self-checkout instead of waiting in line. These solutions can also be used on vending machines, at gas pumps and anywhere else that self-pay options are offered.

The new devices for unattended payments are expected to be available in early 2014 and include:

  • UX 100 – A pin pad with an integrated LED screen for optimal security. A weatherproof exterior that can be read in direct sunlight makes this device ideal for outdoor self-payment kiosks. Merchants are given the option to upsell to customers through targeted ads.
  • UX 110 – A simple, metal pin pad for parking meters and other outdoor self-pay stations.
  • UX 300 – A versatile card reader that can be used in vending machines and public transportation ticket kiosks. This reader can be used in conjunction with the UX 100.
  • UX 400 – A technologically advanced payment device that provides a high level of security through identity verification features.

An Overview of Unattended Payments

Unattended payment devices are ideal for collecting payments in a self-checkout situation. These devices improve security at checkout to protect the customer from identity fraud. Merchants can free themselves of the liability inherent in accepting unattended credit card payments by utilizing the added security offered by these devices.

Unattended vending machines including parking meters, grocery store self-checkouts, laundry machines and gas pumps are increasingly using devices including smart card readers that add an extra layer of security to the payment process. Chip cards and mobile wallets can also be used with these devices for the convenience of customers.

Self-service payment options at unattended vending machines and checkouts are increasingly necessary in a world that relies more on the convenience and speed of self-checkout. The UX Solutions for merchant services recently launched by VeriFone offer merchants a reliable, efficient and cost-effective solution for accepting multiple forms of payment without needing to be present to accept payment. Added security protects customers and relieves merchants of the liability associated with accepting credit card payments.

Isis Mobile Wallet is Here

Isis Mobile Wallet Debuts Using NFC Technology

A joint venture between AT&T, Verizon Wireless and T-Mobile known as Isis Mobile Wallet has released a revolutionary mobile payments app that promises to change the way people pay for goods and services. The trio of mobile service providers are ecstatic to finally debut this mobile payment platform right before Black Friday and the rush of the holiday shopping season, as this technology lets consumers conveniently utilize their mobile phone to pay for goods and services. Use of the platform makes it easier for merchants to accept a wider variety of payments and the Isis system itself encourages repeat purchases through loyalty programs tied into the app and its software.

The debut of Isis also heralds a huge step forward for Near Field Communication technology (NFC), a topic we’ve been consistently covering since our Official Merchant Services Blog began.

What Is the Mobile Wallet Platform?

The Isis Mobile Wallet platform is a completely free mobile application that utilizes NFC technology to allow consumers to pay for purchases by waving their mobile device in the air at a terminal that captures the pertinent information out of thin air.  The mobile payment industry has been dealing with one large obstacle from NFC recently, as Apple hasn’t made its iPhones compatible with NFC. And so an Isis representative said that iPhone support would come at a later time. Until then, the app is available on all other compatible phones, but users should be aware that downloading the app could cost money if they are not subscribed to a monthly plan with unlimited data.

 

How the Platform Works

The NFC technology used in the mobile payments app allows mobile devices to transfer information when they are tapped together.  Merchants who use devices with this technology can accept payments quickly and securely from customers who have compatible devices. But wait, there’s more.

Mobile payments represent just one of the benefits of the Isis app.  Merchants can offer loyalty rewards to customers through the app.  These rewards can be earned and stored directly on a mobile device. We’ve delved into some of these types of incentives in our coverage of the Barclays bPay app, as well as social gifting articles. The basic idea of what’s happening is the app is giving customers yet another avenue for savings through their mobile device, in hopes to spur more purchases. Discounts are automatically deducted from a sale when Isis is used to pay for a product or service.  There’s no need for merchants to have cards or keychains printed, and customers do not have to worry about keeping track of dozens of loyalty cards.

Some specific incentives that are tied with the Isis debut: Isis Mobile Wallet customers can use My Coke Rewards and Isis to get three free drinks at select vending machines, while Jamba Juice is giving away 1 million free smoothies to Isis users. Purchases made from an American Express Serve account through the Isis wallet are eligible for a 20 percent discount (up to $200).

A PIN is used to protect personal information if a phone is lost or stolen.  The wallet can be locked when a phone is lost to prevent information from being breached.

Phone Compatibility With NFC Technology

NFC technology requires a cellphone user to have personal payment information stored on their phone.  The sensitive nature of this information means that extra precautions must be taken.  An enhanced SIM card that specifically details that it has been made for secure data storage must be used in conjunction with the application. Interested customers will have to get an enhanced SIM card to run Isis. They will also have to download the app on Google Play or get signed up at retail stores run by the three carriers.

death of e commerce

The Death of E-Commerce? [2023 Update]

I just sat down at my desk and took a few moments to read Antonio Regalado’s fascinating column on E-Commerce from MIT Technology Review. I recommend it to anyone who runs a business, or really anyone who plans to buy something in the next month or two — you know, during the Holiday Shopping Season.

It’s That Time of Year Again

With that holiday shopping season right around the corner the media spotlight on E-Commerce is about to get dialed up a few notches. The standard media grind of finding a new story to keep things fresh, yet rehashing the same old topics over and over again, is really quite fond of the E-Commerce tale since it basically hits every mark needed in a story this time of year. It’s well trod ground (retail sales figures during the time of year when people flock to shop retail), it’s fresh and flashy (buying with a smartphone is the new “it” thing) and it’s easy to write about (everyone’s got a smartphone and in between texts can probably offer an opinion about the story).

So there’s going to be a flood of “E-Commerce, it’s not just for kids anymore!” style pieces written, along with chart after chart of how many billions of dollars are being spent on products through the whiz bang-up new gimmicks of smartypants phones and interwebs tubes (it’s not a truck, but it powers a fleet of delivery trucks!)

It’s this pending recycle of the news cycle that Regalado’s piece really underscores. It’s starts with the subhead of the article, “E-commerce is an idea whose time has come and gone. Here’s why.” A bold statement when placed up against the pending flood of stories that are going to tell us that E-Commerce is (still) the next big thing.

But that’s the hook of Regelado’s article. And it certainly worked its magic on me and got me to read it.

More Than Meets the Eye

Regalado’s point isn’t that E-Commerce is done. It’s more that it’s becoming part of the everyday fabric of retail business. So he’s saying that E-Commerce has been merged into a total shopping experience and is no longer a new gimmick.

The article really slams this point home when it quotes Chris Fletcher, a research director at Gartner (who we here at HMS have used data and graphics from on this very topic). Fletcher told the MIT Technology Review’s Business Report, “we should stop calling it E-Commerce and call it just commerce,” and suggested that it’s really just a part of the shopping experience now.

This quote called up more than a few variants of the corny joke, “In China, they just call it food.” But the point is very well taken this year, and is something we’ve been alluding to for two years now at Host Merchant Services: The whole shopping experience has blending together with Online and Brick and Mortar since the very beginning.

Days of Future Past

This has really obvious but powerful ramifications for our company. As more and more people just accept online shopping as much a part of the process as window shopping or catalog shopping, the amount of credit and debit card transactions continues to increase. Those are the two most common methods of payment in this online environment. And so as the business evolves to the point where popping into a Macy’s ends up auto-texting you a free discount code on your next Macy’s purchase, payment card transactions become the norm.

Keeping an Eye on Heat Mapping

Oh and Regelado’s article really dives into that bit with your location spawning discounts:

” Threatened by the growth of low-cost online merchants, traditional retailers are reacting by following customers onto the Internet. Macy’s does it as well as any. On its website, it installs 24 different tracking cookies on a visitor’s browser. On TV, it runs ads with Justin Bieber that urge millennials to download its mobile app, which tells them which of the chain’s stores is closest to their location. Once inside, they can use the app to scan QR codes on a pillowcase or a pair of shoes. Online orders now ship from the backrooms of 500 Macy’s stores that this year began acting as mini distribution centers.”

Omnichannel marketing is the buzzword associated with this. But it’s something we’ve been discussing at HMS for awhile now. Our partnership with Barclay’s Mobile app opened this slick marketing tactic up to us ages ago. It’s really quite clever. The business uses its connection to your phone (and thus your own transaction history, your GPS location, as well as data that it can find in various places like social media) to track your buying habits.

I remember the first time the heat mapping aspect of Omnichannel Marketing was explained to me by HMS Tech expert Ken Hemmel.

He described a system where I’d be walking along on Main Street in Newark, which was where the Barclays app was being targeted, and I’d pop into a restaurant. I’d buy a meal and have a glass of a particular wine with that meal. The information would then prompt my phone the next time I walked past a wine and spirits store that was participating in the program. And I’d be given a coupon code to save money on a bottle of that kind of wine I had with my meal. This would combine transaction history, with GPS location and turn into an aggressive marketing tactic to get my business.

A Whole Store in Your Pocket

Another salient point Regelado’s article made really resonated with me personally. The article cites US Census economic data and states that only 5.2 percent of US retail purchases were made online in 2012. But then the article cites the effect of online research, noting that 80 percent of BestBuy customers said in a survey that they already searched for price information online before making a purchase in person. And that a third of them do so on a phone while inside the store.

So the last two purchases I made at BestBuy were an HD TV, which I searched for information on while in store, and a computer which I was shopping for online before I went there. I fell right into those statistics. I wanted to comparison shop and read reviews before making the purchase and had the device right there in my hand that let me do exactly that.

The only thing that held me back from ordering either  of these items completely online was impatience. I wanted the item that day. Which is exactly what Relegado’s article also gets into:

“But now [Amazon] and other Internet companies, including eBay and Google, are investing in same-day delivery—getting goods to people just hours after they order them. With their drop boxes and fleets of delivery cars, they’re bidding to eliminate one of physical retailers’ main advantages: immediate gratification.”

The suggestion is that technology is pushing retailers to evolve. They embrace social media, and online power, and create a shopping experience once again tailored to meet the needs and convenience of their customers.

Been There, Done That?

It reminds me of Warren Ellis and Darrick Robertson’s groundbreaking comic book, Transmetropolitan. Set in a Bladerunner-on-acid style future and revolving around a pastiche Hunter S. Thompson-inspired Gonzo journalist named Spider Jerusalem, the comic had a very humorous but also telling take on marketing and advertising in our near future. It suggested neural advertising bombs delivered directly to our brains, tracked by our own viewing habits, to offer us the products we’d be most interested in. As deft and powerful as that future marketing blitz was shown to be in the imaginary world of Transmet comics, the reality is we’re about to be in on the beta test of that entire concept with the way retail is evolving through E-Commerce.

swipe fee

Swipe Fee Suit Ongoing After Fairness Hearing [2023 Update]

A $7.25 billion settlement relating to credit card interchange fees continues to encounter stiff opposition from a number of major retailers and several significant retail trade associations.

Case History

The antitrust case against Visa, MasterCard and several issuing banks stemmed from a dispute relating to the percentage of credit card transaction fees that retailers must remit to the credit card processing network. The fees generally range from 1.5-3 percent and are shared with the bank that issued the card.

Also known as “swipe fees,” these charges serve to underwrite the supporting infrastructure that allows businesses to accept and process credit cards. Large retailers and supporting associations have repeatedly complained about the costs associated with accepting credit cards and the fees for merchant services.

These grievances resulted in a number of lawsuits filed in 2005, which were eventually consolidated into a single case known as the Payment Interchange Fee and Merchant Discount Antitrust Litigation.

There were 139 parties involved as plaintiffs, and the case was active for over eight years. In July 2012, a settlement was reached that provided $6 billion in damages to affected retailers and another $1.2 billion for a temporary reduction in interchange fees. As a further concession, Visa and MasterCard eliminated certain rules for merchant services that prohibited surcharging, which is a practice that allows retailers to recoup credit card costs by passing them on to the consumer.

Opting Out

Almost immediately, opposition to the swipe fee settlement began to emerge. The primary objections centered on the belief that the agreement does not provide any meaningful reforms to the current model. Many merchants believe that market forces will not allow for credit card surcharges since consumers will object to the added fees. Other retailers oppose the stipulation in the agreement that prohibits future swipe fee lawsuits.

As a result, major retailers such as Target, Nike, Home Depot, Lowes, Starbucks and Best Buy ultimately opted out of the settlement. Major trade organizations, including the National Restaurant Association (NRA), have voiced significant opposition to the agreement. In fact, the NRA strongly encouraged its constituent members to reject the settlement and highlighted the potential negative impact it could have on the emerging mobile payments market.

Many retailers ultimately declined to participate in the settlement. Since the total number merchants who opted out exceeded 25 percent of the collective annual U.S. retail transaction volume, MasterCard and Visa could have elected to withdraw from the deal. However, they chose to continue with the process.

In September 2013, a fairness hearing was held in U.S. District Court under Judge John Gleeson that allowed dissenters to present final arguments. Gleeson is expected to issue a decision on the settlement sometime in mid-January 2014.

Recent Developments

After assessing their options, Target Corp. and 17 other retailers filed a separate lawsuit against Visa and MasterCard in May 2013. The plaintiffs charged that the banks and credit card companies have engaged in an “illegal and anti-competitive scheme.” They contend that the Visa Check Swipe Fee settlement did not adequately address the basic issues of the original case.

In the most recent action relating to the new litigation, Visa and MasterCard argued in federal court that the pending antitrust action initiated by Target Corp. is prohibited under the terms of the July 2012 settlement deal. The defendants contend that the retailers have misinterpreted the terms of release relating to the previous case for the sole purpose of instigating additional litigation.

MasterCard and Visa strongly reject the plaintiff’s arguments and contend that the Visa Check swipe fee settlement case preempts any new action relating to interchange fees, which they contend were adequately addressed under the previous settlement.

The Saga

To review the full extent of this ongoing saga, you can read our previous coverage of this settlement:

  • The Big Cash Comeback
  • Don’t Call it a Comeback
  • NRF Opposes Interchange Settlement
  • Interchange Settlement Nears Preliminary Approval
  • Merchants Appeal Key Part of Interchange Settlement
  • Interchange Settlement Given Preliminary OK
  • Challengers Awaiting Final Approval
  • What Does the Future Hold for Interchange
icloud keychain

iCloud Keychain to Now Store Credit Card Data [2023 Update]

Apple’s recent software update includes a new product called the iCloud Keychain. With the feature, consumers can save sensitive information in a secure online file. Specifically, Keychain will save passwords and credit card information for all of their Apple devices. The program also helps Internet users create safer passwords.  Given the new functionality allowing users to store credit card data and synchronize with the cloud, we thought this functionality would be of particular interest to our customers and blog readers.

Keychain Details 

The Keychain service operates on Safari in iOS as well as OS X Mavericks. Once it has helped a consumer select a secure password, it will store the information and synchronize it to the consumer’s iOS and Mac units.  The software upgrade also makes credit card processing easier for consumers as Keychain saves the user’s credit card number and expiration date. To abide by MasterCard and Visa regulations, the program is unable to store the Card Verification Value, or CVV, code.

As a result, consumers will still need to input this information manually. Users should keep in mind that the software can only operate in Safari on Mac. Therefore, users of Chrome or FireFox will need to use a different password storage provider. In addition, consumers must have the iOS 7 upgrade installed on their devices.

Installation Overview

While installing the OS X Mavericks upgrade, the system will automatically ask the user if he or she would like to establish iCloud Keychain. When the user approves the setup, the program will direct him or her through the security key creating and linking process. If consumers prefer to establish the program manually, then they can access Keychain through the iCloud settings screen on a Mac device. Once a user has accessed the program, he or she will need to enter the password information manually into the system for the Apple program to save it. Keep in mind that other devices can be added to the program. However, the system will require approval for each extra unit. Once Keychain receives authorization, it will automatically begin updating on that unit. If a user decides to remove Keychain from his or her device, then the cancelation procedure is easy to complete. To remove the program, just click on the settings option and turn off the “Approve with Security Code” feature. Users who change their mind can easily reactivate the program.

Keychain Offers Convenience

Credit card processing is easier for consumers who have Keychain on their iOS and Mac devices. The Apple program is secure and helps users create better passwords to safeguard sensitive information. Keychain is a system feature that provides extra security and overall convenience.

3

Tokenization Makes Card Use Safe

Safeguarding Stored Cardholder Data with Tokenization

In this era of connectivity, consumers are increasingly concerned about the safety of their personal data. Leaders in the merchant services industry are actively engaged in developing new ways to protect customer information. Here at Host Merchant Services, we commit to security by providing our clients with tokenization, the most secure type of cardholder information storage available today. This system has enormous potential for any company that regularly utilizes credit card processing.

Tokenization involves taking in cardholder data and returning a token, a string of letters, numbers, and characters that represents and stands in place of the original data. Each token serves as a pointer for cardholder information, which is securely stored offsite in a cloud-based database. Since tokens do not contain cardholder data in and of themselves, they are essentially immune from the threat of hackers and identity thieves.

Tokenization And PCI Compliance

Tokenization and PCI Compliance

Through data tokens, merchants can safely store customer information with payment gateway providers like Host Merchant Services. This system is particularly well-suited for companies that charge customers on an ongoing basis. For example, businesses that offer subscriptions or memberships generally charge clients around the first of the month.

Storing large amounts of cardholder data for this purpose can create PCI compliance headaches. Essentially, when a merchant retains and stores a customer’s card information, it changes the level of compliance they have to adhere to for PCI DSS standards. You can review PCI Compliance in more detail here, but Tokenization helps to alleviate some PCI issues for merchants and boost transaction security at the same time.

Instead of storing cardholder data on-site, merchants can store tokens and simply pass these tokens to their payment processors at the appropriate times. Upon receiving these tokens, processors use the tokens to pinpoint cardholder data and generate unique credit card transactions. This system is fast and efficient while minimizing the risk of fraud and identity theft.

Helping  Businesses Small And Large

Helping  Businesses Small and Large

Token systems are ideal for smaller companies seeking to reduce their PCI compliance burdens while maintaining impeccable customer security. That said, companies of all sizes use data tokens to simplify their operations. For example, a tokenization-based payment processing system is useful for closely managing even a large-scale customer rewards program. The ability to store the tokens securely while not compromising customer cardholder data, lets a large company deftly keep track of and maintain their rewards program.

As credit card processing becomes ever more critical for modern commerce, many more companies will adopt this robust system of safeguarding customer data. Here at HMS, we are proud to offer tokenization as an integral part of our Transaction Express payment gateway.

A payment gateway is a system of technologies and processes that allow merchants to electronically submit payment transactions to various payment processing networks (i.e., the Credit Card Interchange and the ACH Network). Payment gateways may also provide merchants with transaction management, reporting, and billing services. Payment Gateways essentially bridge the gap between web-based payment options and credit card processors.  To take payments in a store, you must have a merchant account, to take payments online you must have a payment gateway.

Beyond the in-house Transaction Express gateway, Host Merchant Services also supports a variety of other Payment Gateways for your payment processing needs. We are able to customize a payment processing solution that fits your own individual needs. Here is a brief list of the Payment Gateways we support directly.

Services like the ones Host Merchant Services offers demonstrate how the payments industry is working tirelessly to prioritize information security.

Benefits Of Tokenization In Payments

Benefits Of Tokenization In Payments

Tokenization within the realm of payment gateways involves substituting payment information, like credit card numbers with an identifier or token. This token serves the purpose of enabling transactions without exposing the data. There are advantages to using tokenization in payment gateways;

  1. Enhanced Security: Tokenization provides security for information by preventing access and reducing the risk of data breaches. Since intercepted tokenized data is useless without the tokenization system it holds no value for attackers.
    PCI DSS Compliance; Compliance with Payment Card Industry Data Security Standard (PCI DSS) is crucial for businesses that handle cardholder data. By minimizing storage and transmission of information tokenization helps reduce the scope of PCI DSS compliance audits.
  2. Risk Reduction: Replacing card details with tokens significantly decreases the risk of transactions. Even if a token is somehow intercepted it cannot be easily exploited for transactions without access, to a system.
  3. Simplified Compliance: Tokenization assists in meeting regulations related to data protection and privacy.
    It ensures that customer data, which is sensitive is handled securely and in compliance, with requirements like GDPR, HIPAA, and others.
  4. Efficient Operations: Tokenization simplifies the process of integrating payment gateways into systems. By eliminating the exposure of card data during transactions developers can focus on integrating with the tokenization system making it a straightforward process.
  5. Building Customer Trust: Businesses that prioritize the security of payment information are likely to gain customer trust. Tokenization showcases a commitment to safeguarding customer data fostering trust and confidence in the brand.
  6. Convenient Recurring Payments: Tokenization proves advantageous for businesses offering subscription services. Once a card is tokenized it can be utilized for recurring payments without customers needing to enter their card details.
  7. Accelerated Transactions: ** Processing Speed;** Since tokenized transactions do not involve transmitting the information they can be processed rapidly resulting in enhanced efficiency, in payment processing.
  8. Support, for Multiple Channels: Tokenization can be used in payment channels, such as mobile and in-store transactions. This flexibility makes it a versatile solution for businesses that have payment requirements.

In essence, tokenization in payment gateways offers a security measure that minimizes the chances of data breaches and ensures adherence, to regulations. Improves the overall effectiveness and reliability of payment procedures.

nfc

NFC loyalty down by contact for Google [2023 Update]

Google Wallet dropped NFC Loyalty Points and Gift Cards

Google recently announced fundamental changes to its Google Wallet service. On August 21, Google Wallet stopped supporting NFC redemption for gift cards and merchant loyalty points. In these competitive times, more and more businesses have come to rely on loyalty programs to spur consumer activity. By simplifying the point-of-sale experience, NFC payments are supposed to optimize loyalty programs for mobile shoppers. The new changes to Google Wallet may make some companies rethink joining Google’s bold experiment in merchant services.

Though Google says it is looking for new ways to process loyalty and gift cards, no details are available as of yet. Nor has Google revealed a specific reason for scaling back its mobile wallet service. Furthermore, this newest change caps a string of high-profile personnel shuffles and policy changes for Google Wallet. In the wake of embarrassing security issues, Google discontinued its virtual prepaid debit cards last year. Since prepaid cards are gaining popularity very quickly, Google’s move inspired curiosity and controversy alike. In May, many observers were startled by the sudden departure of Osama Bedier, the vice president and public face of Google Wallet.

The story of Google Wallet demonstrates the complex pitfalls of pushing technological innovation in merchant services. For years, Google has boosted NFC technology as a game-changer for the mobile wallet industry. Though the company remains officially committed to NFC-enabled point-of-sale transactions, the changing dynamics of Google Wallet could herald future troubles for the payment system. In 2013, the public is increasingly worried about privacy and security issues. As details emerge about corporate involvement in NSA snooping and surveillance, many are wondering if Google is fully committed to safeguarding customer data. For many, these concerns may overshadow and obscure the security advantages of Google’s NFC-powered transactions.

Deeply invested in NFC technology, Google’s course is innovative yet arguably too experimental for many companies. Even forward-thinking carriers and vendors have limits to their adaptability. If Google Wallet’s limited market share is any indication, many smaller merchants are still unsure about the practicality of adopting NFC payments.

AlignCloud and HMS partner up

Host Merchant Services, an industry leading provider of payment processing and e-commerce services for small and medium businesses, announced a promising new partnership with cloud consulting firm AlignCloud. This partnership is the product of extensive research and collaboration and the bold new alliance  represents an exciting opportunity for customers to benefit from the combined expertise of these two companies.

AlignCloud tailors services for cloud providers and end-users alike. From cloud readiness assessment planning to cloud vendor management, AlignCloud provides indispensable services for all cloud customers. For cloud hosting providers, AlignCloud can help providers train sales staff, draft sales plans and fully engage with Web marketing and SEO. With its focus on the cloud and web hosting market, AlignCloud is a natural referral partner for Host Merchant Services.

HMS CEO Lou Honick has aptly summarized the buzz surrounding this collaboration. “Our expertise in e-commerce, payment cost optimization, and security meshes perfectly with AlignCloud to create compelling offerings,” Honick said of the AlignCloud partnership. AlignCloud clients can now seamlessly access secure, reliable merchant services, PCI compliance solutions, and e-commerce.

In the business world, demand for cloud services has reached an all time high. As mobile devices become more important for business, public worries about information security keep pace. Cloud Hosting is a type of hosting platform that allows customers powerful, scalable and reliable hosting based on clustered load-balanced servers and utility billing. Web hosting services allow individuals and organizations to make their website accessible via the World Wide Web.

For AlignCloud’s customers, HMS has designed services to insure absolute peace of mind. According to AlignCloud CEO Stacy Griggs, the program will provide clients with “lower rates and better service for credit card processing, mobile payments and merchant services.” The experts at HMS combine technical knowledge with uniquely dynamic customer service. Through expertise in data security and fraud reduction, Host Merchant Services promotes more confident commerce, both for businesses and customers alike.

A cloud hosted website can be more reliable than alternatives since other computers in the cloud can compensate when a single piece of hardware goes down. Also, local power disruptions or even natural disasters are less problematic for cloud hosted sites, as cloud hosting is decentralized. Cloud hosting also allows providers to charge users only for resources consumed by the user, rather than a flat fee for the amount the user expects they will use, or a fixed cost upfront hardware investment.

For Host Merchant Services, the partnership with AlignCloud is part of their successful strategy to partner with the web hosting and cloud services industry. Companies like AlignCloud can better serve clients by integrating credit card processing into their offerings. Through Host Merchant Services, AlignCloud customers will experience hassle-free credit card processing with 24x7x365 hour technical support and responsive website.

Clients of AlignCloud can also earn extra revenue by referring their customers to the program.

Are Credit Card Rewards Points Programs Harmful?

Over the course of the past ten years, credit card providers have ramped up their efforts to woo consumers with point-based loyalty programs.

Custom gift cards and loyalty cards are a great way to encourage repeat business and so many merchants have embraced the concept that the credit card providers have pushed. These redeemable Transaction Cards let customers make flexible decisions when purchasing goods or services from a merchant.

Early in the history of credit cards, most financial institutions were too dignified to offer game-like rewards systems involving point accumulation. As time went by, it became increasingly clear that nearly all types of credit card users were energized and excited by point systems. In the early part of the last decade, easy credit led to a dizzying proliferation of rewards programs. Although credit limits and eligibility requirements have tightened in recent years, credit card issuers maintain loyalty programs as integral parts of their marketing initiatives.

On an individual, case-by-case basis, rewards programs create very attractive incentives for customers. The public record abounds with stories of individuals who use reward points to gain earn free flights, hotel stays and other financial advantages. Collectively, some loyalty programs inspire widespread exploitation and abuse.

Since point-based reward programs are textbook examples of gamification, it is little surprise that many program members are gaming these systems irresponsibly. These individuals have perfected cunning “ghost transactions” that earn points without adding real value to the economy.

One popular technique is to purchase numerous gift cards with credit, only to use the gift balances to pay off credit card balances in a circular fashion. Though most of these schemes are technically legal, they consume manpower and resources in an exploitative manner. Point churning is a zero-sum game that leads to more expensive payments processing for retailers. Ultimately, many of these increased costs are passed on to the general public.

Point system abusers only account for a small percentage of loyalty program members. Even for ordinary users, rewards programs aren’t always as beneficial as they first appear. Individuals who use loyalty programs need to read and understand the fine print of program rules and regulations. In many cases, gains from cashing in points are fully offset by the costs of using additional credit. At their best, loyalty programs are engaging systems that spur responsible spending. However, economists argue that aggressive rewards programs can distort incentives and upset natural credit use patterns.

Here at Host Merchant Services, we are sensitive to how responsible credit card use contributes to the health of the broader economy. We provide our customers with tools to better understand and fulfill the needs of the public. Flexible, responsive payment processing encourages consumers to use credit with caution and care.