New Wave of Contactless Payments Speeds Up Profits

New Wave of Contactless Payments Speeds Up Profits
by
Lynn Walford

Contactless payments create a whole new field of payment options for merchants. Contactless payments are quick, simple and pave the way for greater profits. A smart computer chip, with data and an antenna is embedded into a credit card, debit card or fob. When the card or fob is tapped on a radio frequency reader, the reader sends out a radio signal that activates the card, the information on the card is read and the payment is processed without a signature for purchases less than $25.00 with no chargebacks to the merchant.

“Merchants don’t need to worry about compatibility with their present systems or security” said, Mohamed Khan, President and Founder of ViVOtech, Santa Clara, Calif.-based developer of contactless software, transaction management systems and readers.

“We have been working closely with processors, card issuers and terminal providers to create an open system using the IS0 14443 standard. It uses secure encryption technology. The contactless card doesn’t leave the customers’ hands therefore it is more secure and there’s no skimming of data,” assured Kahn who sees contactless as a great opportunity for merchants to increase revenue. He envisions contactless payments as a replacement for cash because they are faster, more convenient and cost less due to less shrinkage and less labor involved.

There are two types of contactless readers available: Peripheral Contactless Readers (PCRs) that plug in to existing POS terminals, and Integrated Contactless Readers (ICRs) that replace traditional readers and offer both magnetic-stripe- and contactless-reading capabilities. Merchants can purchase either type of reader. The PCRs usually cost around $150. Some merchant service providers such as Acies, however, are offering deals competitive plans and free readers with terminals.

David Robertson, Publisher of The Nilson Report (Carpinteria, Calif.) estimates that there are 12 million contactless cards currently in circulation in the U.S. He predicts that first contactless successes will be at the brand name retailers and then merchants in the areas where cards are deployed will follow suit when their customers ask to use their contactless cards.

Customers are asking for contactless in the New York Metro area where many cards have been “dropped,” says Oleg Frier CEO and President Acies, Inc, a New York City-headquartered national payment processing and financial services provider. Other areas where there are substantial contactless readers and cards include Atlanta, Philadelphia, Denver, Dallas and Orlando, says Khan.

Studies show the speed and added value of contactless payments because typically when someone does not pay with cash the amount of the transaction increases. Visa trials showed their contactless card transactions were 25% faster than cash. MasterCard PayPass trials showed an increase in transaction amounts and 12 to 18 second reductions in payment times for drive-thru transactions. Aite Group reports that CVS, the drug store chain, has found the average contactless transaction takes 12.5 seconds, versus 26.7 seconds for magnetic-stripe card payments and 33.7 seconds for a cash transaction.

Merchants who have a small time frame to service customers, such as fast food restaurants, coffee houses, movie theatres, drug stores, convenience stores and drive-thrus can benefit greatly from contactless payment methods. McDonald’s, AMC Theatres, CVS, Meijer, Duane Reade, Regal Entertainment, Ritz Camera, Arby’s, Cold Stone Creamery, Eckerd, Carl’s Jr., Good Times Burger, KFC, RaceTrac, Subway, Sonic (Drive-In Restaurants) and Walgreens have installed contactless readers. Convenience stores are gearing up to accept contactless payments. Contactless readers are being installed in 5,300 7-Eleven stores and 350 Sheetz stores. WaWa markets is installing over 2000 readers in its 540 stores co-branded with a credit card and loyalty program.

Card associations are also gung-ho for contactless payments.

“It takes a village to launch a new technology, at Visa, we have an absolute commitment to assure success of contactless payments,” said Elvira Swanson, Visa spokeswoman. Visa, with four million Visa Contactless cards in circulation, offers collateral materials, online demos, and merchant support teams to help educate merchants.

“This is the real thing. Contactless is beyond the ‘chicken and egg’ concept stage now, when you look at how many financial institutions have made the decision to offer contactless and the number of national merchants accepting it,” said T.J. Sharkey, Vice President, Business Development, U.S. Acceptance, MasterCard International. MasterCard is supporting contactless in many ways. Merchants who accept contactless payments are listed at the MasterCard Web site where there are demonstrations on how their Tap N Go, PayPass cards work. Television commercials illustrating their PayPass cards are airing nationally.

Banks issuing contactless cards include Citibank, MBNA, HSBC (debit cards), JP Morgan Chase, Key Bank (debit cards) and Citizen.

There have been several pilot contactless programs in sports stadiums including San Francisco, Seattle, Baltimore, and Philadelphia. Recently, another form factor of contactless has been added into the mix, with the trial of NFC (Near Field Communications) contactless payments from cell phones at the Philips Arena in Atlanta. Season ticket holders with Chase-issued Visa credit accounts and Cingular Wireless accounts can make contactless payments by simply holding their Nokia mobile phones equipped with Philips' NFC semiconductor chips and ViVOtech software near one of the 150 terminals. NFC is compatible with ISO 1443 readers has other features such as the ability to transmit a coupon to a reader.

“Contactless payments are the wave of the future and will change the way the world pays for purchases,” Khan said enthusiastically.
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Lynn Walford (lw@freelancewriternow.com) is a freelance writer based in Los Angeles who writes about technology and financial services. She admits to using her ATM card to pay for single items on the dollar value menu at McDonald’s. For more information go to http://www.freelancewriternow.com.

How to Find and Hire a Great Freelance Writer/Copywriter

How to Find and Hire a Great Freelance Writer/Copywriter
by
Lynn Walford

Seek and Ye Shall Find?
Sometimes finding a good writer can be harder than finding a soul mate because writing and copywriting are subjective arts and if you are not a writer, you can not see the difference between a good writer and an excellent writer. If you are looking for a writer on the Web by searching on terms such as writer and copywriter, there are few things you should look for once you find a writer’s website:

Excited, Delighted or Uninvited?
Excellent writing entertains and excites, quickly and concisely. When you read the writer’s website you should be drawn in. Does she ask the reader questions? Does he understand what you want? Does she seem friendly? Does he have relevant experience? Does she list what kinds of services she offers?

Location, Location, Location
Often businesses hiring a writer want to look for someone nearby so they search, writer, Los Angeles if they live in Los Angeles, if the writers don’t show an address or location where they work, you’ll never find then. You’ll be able to get a general idea of where the writer is by either the contact page or by references to work completed.

A Bad Writer Ain’t Hard to Find
If you notice grammar and spelling mistakes you are probably on the wrong page. Also if the style and design of a writer’s website looks bad, even if their writing looks good, you should be wary. Good writing is neat and pleasant looking.

Ample Parking and Samples
Excellent writing on the Web, gives the reader plenty of potential to stop, park, click and look for a while. If the writer doesn’t link to more writing and industry resources, she/he is less professional than the ones who do know that linking is best form of networking around. You ought to find several kinds of writing samples. If you don’t find the kind of samples you like, e-mail or call the writer and ask for exactly what you want.

RSVP
Response is also important to you and the writer. Although a few second e-mail response-time is possible, a day or overnight return time is reasonable. If you want a faster response, be sure to tell the writer that you are in hurry and on a deadline. When writers don’t respond in a timely manner, they miss out on your work.

Check References
Once you locate the name of the writer, do not hesitate searching for other references of the writer on the Web. Type the name in a search engine with an appropriate word such as writer. For example, when I searched my name Lynn Walford with the word writer, along with my website http://www.freelancewriternow.com, a photo of me standing next my former editor Michael Goldstein at a Mediabistro Justice Magazine party appeared. I never saw the photo until I searched my own name! Of course writers and authors names should also appear on magazine articles and bylines in other media. I also found myself in an article on naming books by Robin Quinn at the PMA website.

Titular Savvy or Tense---What’s in a Name?
Look at the title of the writer’s website. Is it catchy? Memorable? Does it Make Sense? Of course when someone is born Anna Matto Poeeah, (pronounced just like onomatopoeia, the poetic word for when something also sounds like its name such as whispering or clang) you can’t hold it against her. However, when writers don’t take the time to name their websites appropriately, they can’t write a title for you.

The Price is Write
Some writers charge by the hour, by the piece or by the word. Whomever you choose, she/he should be able to give an estimate on how much your project will cost. Vagueness usually means no experience.

Rewrite Right?
Most excellent writers and copywriters will give a free rewrite if you don’t like what they do. Always ask if they will rewrite it for you if you don’t like it.

Test, Quiz
If you are planning a major project such as a white paper, which can be expensive, look for a writer in advance and ask him/her to write a small project for you first, then you can see if you can work with him/her and also test knowledge.

Well, Well, Well.
Writing well is a precise art with a sense of urgency and a taste of the divine. You should be able to tell good writing when you find it. It comes to life, sings and shines. When you read something like ” Avoid cliches like the plague,” found on “26 Golden Rules for Writing Well” you are definitely in the wrong place.

Lynn Walford (lw@freelancewriternow ) is a freelance writer, copywriter and author in Los Angeles. She has written for numerous publications and loves to write for business. She runs the website http://www.freelancewriternow.com. She is currently working on the book “Dance like the Stars – Learn from the Pros.”

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