Q:
Wireless point-of-sale terminals and related software have gotten
considerable publicity lately. How can I determine if they're a
worthwhile investment for my business? What are the differences and
benefits between wired and wireless terminals and software, and how
do I choose?
A: The
growing popularity of wireless point-of-sale terminals is no
surprise, given that the mobile work force in the United States is
expected to reach 47 million by 2003. This group of users is
composed primarily of business owners who need to travel for
business yet want to offer credit and debit card payment options to
their customers.
Wireless mobile solutions enable merchants to process credit and
debit card payments conveniently and securely, anywhere they go.
These terminals offer mobile merchants portability and transaction
flexibility, allowing them to use a number of devices to process
swiped credit card transactions or e-commerce sales through
Internet-based payment gateways. In addition, by using a wireless
device to process payment transactions, these merchants enjoy a
lower, discounted rate compared to keyed entries. Plus, wireless
terminals can capture card information offline and store
transactions for later transmission, an important benefit for
merchants who find themselves in remote locations. But can your
company can benefit from this technology? It depends on your
products and services and the kinds of payment options that best
serve your customers.
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The transaction time for accepting a card with a wireless
terminal can actually be less than with a standard land-line
terminal, depending on the coverage and the type of mobile device.
Some wireless applications allow merchants to move their cashiers
and check-out stations to any location in the store, unlike a fixed
location that's tied to a land line and a power supply.
Wireless remote technology now includes multifunctional devices
that combine cellular phones, PDAs and point-of-sale transaction
terminals with various peripherals and software, allowing merchants
to merge several pieces of point-of-sale equipment into one unit.
This reduces the purchase of redundant hardware, provides a
convenient manner for performing several business tasks and offers
merchants the option to transmit a transaction from any location.
LinkPoint International, Kyocera and MST all manufacture
multifunctional terminals that swipe both magnetic stripe and smart
cards, a versatile feature that allows business owners to further
expand their customers' payment options.
| | Next Step | 
Processing credit card payments online requires the right tools.
Here's
a rundown of everything you need.
Your wireless system won't be secure until you
make it that way. Wireless Security: Models, Threats and
Solutions by Randall K. Nichols and Panos C. Lekkas aims to
help businesses safeguard important information. |
| |
Internet-capable PDAs have become a popular vehicle for credit
card transaction processing. Many mobile merchants, who rely
heavily on these devices for business communications, now perform
credit card transactions on the same pocket-sized unit.
A number of companies offer cost-effective peripherals and
software, including Scanning Devices and LinkPoint International,
which can convert any PDA into a transaction-processing terminal.
These wireless-processing terminals give merchants the option to
swipe customers' cards or accept e-commerce transactions
through Internet gateways.
Merchants who are reluctant to abandon their wired terminals may
prefer adding external devices, such as those offered by U.S.
Wireless Data, AIRPAL and IVI Checkmate, which convert standard
land-line terminals into remote devices. When plugged into standard
terminals and cell phones, these devices perform as wireless
terminals and allow merchants to have the best of both worlds--the
convenience and mobility of a wireless terminal yet the coverage of
a wired one.
As you explore the world of wireless technology, make sure the
terminal you purchase offers the following benefits:
- Ability to process secure ATM/debit card transactions.
- Support for Address Verification Service.
- Purchasing card capability.
- Electronic benefits transfer (EBT) capability.
- Integrated network modem (and the capability to support
additional networks).
- Built-in thermal printer with drop-in paper loading.
- Support for debit, credit, charge and stored-value cards, as
well as loyalty programs.
- Ability to connect to peripherals, such as bar-code wands and
check readers, through an RS-232 interface.
- Easy-to-read backlit LCD display that supports non-English
fonts.
- Long-lasting, rechargeable battery pack.
This is just a preliminary glimpse into the wide world of
wireless terminals and their complementary peripherals and
software. Before you purchase one, speak to other business owners
who use them, read industry articles and request product literature
from the manufacturers. Look beyond the technology and find the
wireless terminal that best suits your business needs.
Cardservice International Senior Vice President of
Sales John Burtzloff is in charge of sales strategy and
execution and thus is responsible for managing all aspects of the
company's marketing, communications, telesales, check
guarantee, new accounts and sales support activities.
The opinions expressed in this column are those
of the author, not of Entrepreneur.com. All answers are intended to
be general in nature, without regard to specific geographical areas
or circumstances, and should only be relied upon after consulting
an appropriate expert, such as an attorney or
accountant.