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Table of Contents

Lead Story

2008: Keeping it sticky


Industry Update

Mega-mergers' impact on payments

Mega-mergers' impact on payments

E-commerce fraud hits $4 billion

Outsmarting data thieves

ACH evolving and prospering DIVAs honored

2009 Calendar of events



Casey Leloux

The prepaid, m-payments intersection

The archetype in the mirror


What history teaches about change

Patti Murphy
The Takoma Group

The case for collecting fees

Ken Musante
Humboldt Merchant Services


Street SmartsSM:
Dreams fulfilled: Six easy steps

Jason Felts
Advanced Merchant Services

The promise of September 2009

Lane Gordon

Capturing verticals

Nancy Drexler
SignaPay Ltd.

The skinny on thin client

Dale S. Laszig
DSL Direct LLC

The law of fine print

Adam Atlas
Attorney at Law

Ease the pain

Daniel Wadleigh
Marketing Consultant

Company Profile

Affirmative Technologies Inc.

New Products

Payments in your pocket

MicroSecure Card Reader
ProPay Inc.

Multifactor ID for RDC

Excella MDX
MagTek Inc.


Take action, banish fear





Resource Guide


A Bigger Thing

The Green Sheet Online Edition

December 22, 2008  •  Issue 08:12:02

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New Products

Payments in your pocket

Product: MicroSecure Card Reader

A new catchphrase used to describe many independent contractors is mobile merchants. But they're the same guys and gals seen everywhere in the United States: landscapers, taxi drivers, pool cleaners, plumbers, carpet cleaners and door-to-door salespeople of every variety and stripe.

The card companies would characterize this vast army of on-the-go merchants as level 4 merchants, defined as individuals and businesses handling less than 1 million electronic transactions annually.

Approximately 6.5 million U.S. merchants are considered level 4.

But Gary Goodrich, Chief Executive Officer at ProPay Inc., said the card brands have overlooked about 25 million others who are part-time mobile merchants - termed micro merchants.

Simple, not ordinary

ProPay is targeting that market with the launch of the MicroSecure Card Reader, a card swiper about the size and weight of a pack of chewing gum.

According to ProPay, its simple design mirrors its simple use. It has one button (for on or off), no keypad and no screen.

When cards are swiped, the indicator light shows green if the swiper achieved a good read off of the mag stripe; a red light indicates the card needs to be swiped again.

The reader can either store transactions for later processing (up to 70 transactions can be stored on the reader at one time), or transactions can be processed in real-time.

The MicroSecure connects to laptops via Universal Serial Bus (USB) ports. Merchants log into their ProPay accounts online, at which time transactions are processed over ProPay's secure platform.

Once transactions are processed, cardholder information is deleted from the device.

It cannot print out paper receipts, but e-mail receipts can be sent. ProPay supplies order forms for writing down basic customer information. The swiper is battery-powered and can last for eight hours of continuous usage. It has an automatic shut off function when the device is idle, which gives it a practical use of several weeks, Goodrich said.

The device is automatically recharged when it's plugged into a USB port.

According to Goodrich, data security on the reader is robust for such a tiny and inexpensive device. Using encryption technology called derived unique key per transaction, transactions are triple DES encrypted when cards are swiped.

Each time a card is swiped, a new encryption key is generated. The encrypted data is only decrypted at ProPay's data repository secured with ProtectPay, ProPay's Payment Card Industry Data Security Standard compliant architecture.

Goodrich stressed that at no point in the life of transactions using MicroSecure and ProtectPay is the data "in the clear." But that doesn't mean merchants don't have access to transaction data.

Functioning as a virtual terminal, ProtectPay has reporting features that allow merchants to retrieve and reconcile chargebacks.

Protection is key

Goodrich believes MicroSecure is ideal for independent businesses that employ sales forces to sell everything from pest control services to Bibles door-to-door.

Using inexperienced college students as sales reps, for example, may worry bosses when card fraud is so prevalent.

The simplicity and security of MicroSecure helps "protect that franchise owner from his own independent sales force," Goodrich said.

Headquartered in Orem, Utah, ProPay has been providing payment processing for small and home-based merchants since 1997. MicroSecure has been available since October 2008.

ProPay Inc.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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Spotlight Innovators:

North American Bancard | USAePay | Impact Paysystems | Electronic Merchant Systems | Board Studios