Browser-based POS providers don't have to keep their clients' payments systems siloed and separated from other IT assets any longer. Plug-and-play payments hubs are enabling browser-based POS users to sync payment data with hosted applications, roll out EMV devices and send transaction information directly to payment processors. These innovative solutions deliver four advantages to integrating payments.
1. It reduces certification costs
Here's how TranCloud™, Datacap's new payments hub, works:
Without this payment hub, POS developers have to obtain individual certifications for every PIN Pad, payment processor and card brand your client's require. However, because Datacap engages in these certifications on an ongoing basis, neither you nor the merchant has to worry about them. Plus, because Datacap updates the certifications as needed, you won't have to obtain new ones every time the merchant buys a new PIN pad, switches a processor or requries new functionality. Also, because the solution is semi-integrated, the Point of Sale application is deemed out-of-scope as it never touches card data, leading to additional savings by eliminating PA-DSS (Payment Application Data Security Standard) validations for the POS.
The cost savings extend beyond certifications, though.
2. Saving time
Put yourself in the merchant's shoes. With a non-integrated payments solution, they have to wait for batch reports from their transaction providers and then manually enter the data into their accounting software or general ledgers. Integrated payments not only provide a better customer experience, but also save the merchant from having to perform the end of day procedures to reconcile payments between the Point of Sale and non-integrated terminal. Because this reconciliation is a manual process for non-integrated systems, it quickly becomes a time-consuming task that's vulnerable to mistakes and potential fraud. Payments integration automates reporting and removes the merchant from the process - saving time and eliminating human error.
3. EMV and mobile compatibility
Ask your clients: How often do customers ask to use their smartphones or EMV cards to pay for goods? According to a survey from the Federal Reserve, 28 percent of U.S. consumers who own smartphones use those devices to buy things. This means that, for every 25 customers who walk in the door, seven likely have a preference for mobile payments.
Additionally, the need to integrate with EMV PIN pads is a little more urgent than establishing mobile compatibility. First Data estimated 1.2 billion magnetic stripe cards will transition to EMV equivalents in order to meet consumer demand.
Where does a payments hub fit into EMV and mobile integration? It reduces the overhead of readying merchant operations for such technologies. Instead of going through the trouble of obtaining certificates and reconfiguring the POS backend, an integrated payments hub connects a POS system with the EMV through a cloud-delivered HTTP Post. All merchants have to do is buy compatible PIN pads (wired or wireless options) that accept EMV and mobile payments.
4. Implement an Omni-Channel customer experience
Establishing seamless payment infrastructures across retail operations provides a unified storefront (both brick and mortar and online) for consumers. Merchants who embrace omni-channel solutions provide a better purchasing experience for consumers who can opt to purchase goods online from any device or in-store based on their preference. However, Omni-channel is still in its relative infancy, so it's important to understand what matters most in an omni-channel-capable payments solution. This integration must enable merchants to:
- Send payment data to the same processors, irrespective of where transactions occur.
- Accept EMV and mobile payments at brick-and-mortar locations.
- Leverage point-to-point encryption (P2PE) and tokenization to reduce security risks.
POS and payments integration is part of a wider effort to unify payments across the organization. Every department is connected, so the more access they have to information about the business, the better they can structure operations according to customer preferences. A payments hub from Datacap can get them there.