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Table of Contents

Lead Story

Legislative outlook:
Some clouds but no rain

Patti Murphy
The Takoma Group


Industry Update

New fees, more money for Visa, MasterCard

RBS, Heartland PCI compliance revoked: What's next?

A token of payments to come

Raising the ACH bar

Virtucard for virtual goods


Bill Pirtle

Breaches across America
installment two

Selling Prepaid

Prepaid in brief

Boom time for prepaid game card market

Global payroll done with SaaS

The state of escheatment


Be the toast of hosts

Scott Henry

Sluggish economy spurs faster payments

Nasreen Quibria
Association for Financial Professionals

Mobile payments? Not yet

Biff Matthews
CardWare International


Street SmartsSM:
Who are you?

Jon Perry and Vanessa Lang

Pull back the expense curtain

Jeff Fortney
Clearent LLC

Downshifting to rev up sales

Christian Murray
Global eTelecom Inc.

PCI versus tricky technology

Michael Wright
Panoptic Security Inc.

Five magical questions in making sales

Daniel Wadleigh
Marketing Consultant

Company Profile

UseMyBank Services Inc.

Data Delivery Services Inc.

New Products

Instant mobile processing

MerchantWare Mobile
Company: Merchant Warehouse

A most literate check reader

Company: Parascript LLC


See it, believe it



Resource Guide


A Bigger Thing

The Green Sheet Online Edition

April 13, 2009  •  Issue 09:04:01

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New Products

Instant mobile processing

Product: MerchantWare Mobile

The introduction of MerchantWare Mobile may help usher in one of the payments industry's most anticipated developments: the use of mobile phones in POS payments. The new service from Merchant Warehouse does indeed make use of cell phones in such transactions.

However, in this case, phones are being used not to make payments, but to process them. Instant merchant The system processes both credit and debit cards and can be downloaded free from the iTunes store on any iPhone.

"Merchants can download this for free, set up a merchant account and be processing transactions in a matter of a few minutes," said Henry Helgeson, President and co-Chief Executive Officer of Merchant Warehouse.

A merchant uses MerchantWare Mobile just as he or she would a conventional nonswipe wireless terminal, using the phone's keys to punch in a client's card information and send it over a wireless network.

The consumer data - which is encrypted under the same secure sockets layer security system commonly used in transmitting other sensitive information over the Internet - runs through a transaction server belonging to Merchant Warehouse, where it's also eventually stored.

A transaction approval or disapproval is sent back to the phone along with a mobile receipt, which merchants can print out by connecting a small electronic printer to the phone being used as a terminal.

"I would think this is what we're going to see mobile merchants using more and more, rather than carrying a separate [payment terminal] that has a cost associated with it," Helgeson said.

Helgeson added that while the product is for all mobile merchants, it will especially target those who do "any emergency type of repair," like contractors, tow truck drivers, plumbers and locksmiths.

"It will make sense for them to have something like this where they can key in the transaction and get approval right there on the spot, before they leave the customer's location," he said.

Lower transaction volumes

He added that the service, while free to install, is economical only for merchants with lower-end transaction volumes, given the higher interchange rates attached over keyed transactions compared to card swipes. On the other hand, the wireless fees Merchant Warehouse normally charges mobile merchants are already covered by the iPhone.

"At a certain point, there's going to be a breaking point where a keyed transaction is going to cost you more than a swiped transaction," he said. "If you're going to do a million dollars a month, that merchant would probably get some kind of swipe product."

He said MerchantWare Mobile - which is in limited release and will be made available to the wider public later this month - is the first in a line of similar services Merchant Warehouse plans to offer, including ones on BlackBerry smartphones.

"To carry [a conventional payment terminal] around and have this extra piece of equipment that you have to worry about ... and keeping it in your truck versus just having your cell phone to process these transactions, I think we're going to see a migration away from wireless devices into these handheld PDA devices," Helgeson said.

Merchant Warehouse

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

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North American Bancard | Simpay | USAePay | Impact Paysystems | Board Studios