Author Archives: hostmerchantservices

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Tokenization Makes Card Use Safe

Safeguarding Stored Cardholder Data with Tokenization

In this era of connectivity, consumers are increasingly concerned about the safety of their personal data. Leaders in the merchant services industry are actively engaged in developing new ways to protect customer information. Here at Host Merchant Services, we commit to security by providing our clients with tokenization, the most secure type of cardholder information storage available today. This system has enormous potential for any company that regularly utilizes credit card processing.

Tokenization involves taking in cardholder data and returning a token, a string of letters, numbers, and characters that represents and stands in place of the original data. Each token serves as a pointer for cardholder information, which is securely stored offsite in a cloud-based database. Since tokens do not contain cardholder data in and of themselves, they are essentially immune from the threat of hackers and identity thieves.

Tokenization And PCI Compliance

Tokenization and PCI Compliance

Through data tokens, merchants can safely store customer information with payment gateway providers like Host Merchant Services. This system is particularly well-suited for companies that charge customers on an ongoing basis. For example, businesses that offer subscriptions or memberships generally charge clients around the first of the month.

Storing large amounts of cardholder data for this purpose can create PCI compliance headaches. Essentially, when a merchant retains and stores a customer’s card information, it changes the level of compliance they have to adhere to for PCI DSS standards. You can review PCI Compliance in more detail here, but Tokenization helps to alleviate some PCI issues for merchants and boost transaction security at the same time.

Instead of storing cardholder data on-site, merchants can store tokens and simply pass these tokens to their payment processors at the appropriate times. Upon receiving these tokens, processors use the tokens to pinpoint cardholder data and generate unique credit card transactions. This system is fast and efficient while minimizing the risk of fraud and identity theft.

Helping  Businesses Small And Large

Helping  Businesses Small and Large

Token systems are ideal for smaller companies seeking to reduce their PCI compliance burdens while maintaining impeccable customer security. That said, companies of all sizes use data tokens to simplify their operations. For example, a tokenization-based payment processing system is useful for closely managing even a large-scale customer rewards program. The ability to store the tokens securely while not compromising customer cardholder data, lets a large company deftly keep track of and maintain their rewards program.

As credit card processing becomes ever more critical for modern commerce, many more companies will adopt this robust system of safeguarding customer data. Here at HMS, we are proud to offer tokenization as an integral part of our Transaction Express payment gateway.

A payment gateway is a system of technologies and processes that allow merchants to electronically submit payment transactions to various payment processing networks (i.e., the Credit Card Interchange and the ACH Network). Payment gateways may also provide merchants with transaction management, reporting, and billing services. Payment Gateways essentially bridge the gap between web-based payment options and credit card processors.  To take payments in a store, you must have a merchant account, to take payments online you must have a payment gateway.

Beyond the in-house Transaction Express gateway, Host Merchant Services also supports a variety of other Payment Gateways for your payment processing needs. We are able to customize a payment processing solution that fits your own individual needs. Here is a brief list of the Payment Gateways we support directly.

Services like the ones Host Merchant Services offers demonstrate how the payments industry is working tirelessly to prioritize information security.

Benefits Of Tokenization In Payments

Benefits Of Tokenization In Payments

Tokenization within the realm of payment gateways involves substituting payment information, like credit card numbers with an identifier or token. This token serves the purpose of enabling transactions without exposing the data. There are advantages to using tokenization in payment gateways;

  1. Enhanced Security: Tokenization provides security for information by preventing access and reducing the risk of data breaches. Since intercepted tokenized data is useless without the tokenization system it holds no value for attackers.
    PCI DSS Compliance; Compliance with Payment Card Industry Data Security Standard (PCI DSS) is crucial for businesses that handle cardholder data. By minimizing storage and transmission of information tokenization helps reduce the scope of PCI DSS compliance audits.
  2. Risk Reduction: Replacing card details with tokens significantly decreases the risk of transactions. Even if a token is somehow intercepted it cannot be easily exploited for transactions without access, to a system.
  3. Simplified Compliance: Tokenization assists in meeting regulations related to data protection and privacy.
    It ensures that customer data, which is sensitive is handled securely and in compliance, with requirements like GDPR, HIPAA, and others.
  4. Efficient Operations: Tokenization simplifies the process of integrating payment gateways into systems. By eliminating the exposure of card data during transactions developers can focus on integrating with the tokenization system making it a straightforward process.
  5. Building Customer Trust: Businesses that prioritize the security of payment information are likely to gain customer trust. Tokenization showcases a commitment to safeguarding customer data fostering trust and confidence in the brand.
  6. Convenient Recurring Payments: Tokenization proves advantageous for businesses offering subscription services. Once a card is tokenized it can be utilized for recurring payments without customers needing to enter their card details.
  7. Accelerated Transactions: ** Processing Speed;** Since tokenized transactions do not involve transmitting the information they can be processed rapidly resulting in enhanced efficiency, in payment processing.
  8. Support, for Multiple Channels: Tokenization can be used in payment channels, such as mobile and in-store transactions. This flexibility makes it a versatile solution for businesses that have payment requirements.

In essence, tokenization in payment gateways offers a security measure that minimizes the chances of data breaches and ensures adherence, to regulations. Improves the overall effectiveness and reliability of payment procedures.

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NFC loyalty down by contact for Google [2023 Update]

Google Wallet dropped NFC Loyalty Points and Gift Cards

Google recently announced fundamental changes to its Google Wallet service. On August 21, Google Wallet stopped supporting NFC redemption for gift cards and merchant loyalty points. In these competitive times, more and more businesses have come to rely on loyalty programs to spur consumer activity. By simplifying the point-of-sale experience, NFC payments are supposed to optimize loyalty programs for mobile shoppers. The new changes to Google Wallet may make some companies rethink joining Google’s bold experiment in merchant services.

Though Google says it is looking for new ways to process loyalty and gift cards, no details are available as of yet. Nor has Google revealed a specific reason for scaling back its mobile wallet service. Furthermore, this newest change caps a string of high-profile personnel shuffles and policy changes for Google Wallet. In the wake of embarrassing security issues, Google discontinued its virtual prepaid debit cards last year. Since prepaid cards are gaining popularity very quickly, Google’s move inspired curiosity and controversy alike. In May, many observers were startled by the sudden departure of Osama Bedier, the vice president and public face of Google Wallet.

The story of Google Wallet demonstrates the complex pitfalls of pushing technological innovation in merchant services. For years, Google has boosted NFC technology as a game-changer for the mobile wallet industry. Though the company remains officially committed to NFC-enabled point-of-sale transactions, the changing dynamics of Google Wallet could herald future troubles for the payment system. In 2013, the public is increasingly worried about privacy and security issues. As details emerge about corporate involvement in NSA snooping and surveillance, many are wondering if Google is fully committed to safeguarding customer data. For many, these concerns may overshadow and obscure the security advantages of Google’s NFC-powered transactions.

Deeply invested in NFC technology, Google’s course is innovative yet arguably too experimental for many companies. Even forward-thinking carriers and vendors have limits to their adaptability. If Google Wallet’s limited market share is any indication, many smaller merchants are still unsure about the practicality of adopting NFC payments.

AlignCloud and HMS partner up

Host Merchant Services, an industry leading provider of payment processing and e-commerce services for small and medium businesses, announced a promising new partnership with cloud consulting firm AlignCloud. This partnership is the product of extensive research and collaboration and the bold new alliance  represents an exciting opportunity for customers to benefit from the combined expertise of these two companies.

AlignCloud tailors services for cloud providers and end-users alike. From cloud readiness assessment planning to cloud vendor management, AlignCloud provides indispensable services for all cloud customers. For cloud hosting providers, AlignCloud can help providers train sales staff, draft sales plans and fully engage with Web marketing and SEO. With its focus on the cloud and web hosting market, AlignCloud is a natural referral partner for Host Merchant Services.

HMS CEO Lou Honick has aptly summarized the buzz surrounding this collaboration. “Our expertise in e-commerce, payment cost optimization, and security meshes perfectly with AlignCloud to create compelling offerings,” Honick said of the AlignCloud partnership. AlignCloud clients can now seamlessly access secure, reliable merchant services, PCI compliance solutions, and e-commerce.

In the business world, demand for cloud services has reached an all time high. As mobile devices become more important for business, public worries about information security keep pace. Cloud Hosting is a type of hosting platform that allows customers powerful, scalable and reliable hosting based on clustered load-balanced servers and utility billing. Web hosting services allow individuals and organizations to make their website accessible via the World Wide Web.

For AlignCloud’s customers, HMS has designed services to insure absolute peace of mind. According to AlignCloud CEO Stacy Griggs, the program will provide clients with “lower rates and better service for credit card processing, mobile payments and merchant services.” The experts at HMS combine technical knowledge with uniquely dynamic customer service. Through expertise in data security and fraud reduction, Host Merchant Services promotes more confident commerce, both for businesses and customers alike.

A cloud hosted website can be more reliable than alternatives since other computers in the cloud can compensate when a single piece of hardware goes down. Also, local power disruptions or even natural disasters are less problematic for cloud hosted sites, as cloud hosting is decentralized. Cloud hosting also allows providers to charge users only for resources consumed by the user, rather than a flat fee for the amount the user expects they will use, or a fixed cost upfront hardware investment.

For Host Merchant Services, the partnership with AlignCloud is part of their successful strategy to partner with the web hosting and cloud services industry. Companies like AlignCloud can better serve clients by integrating credit card processing into their offerings. Through Host Merchant Services, AlignCloud customers will experience hassle-free credit card processing with 24x7x365 hour technical support and responsive website.

Clients of AlignCloud can also earn extra revenue by referring their customers to the program.

Host Merchant Services and Brandywine Festival of the Arts

Host Merchant Services is proud to provide credit card processing for the Brandywine Festival of the Arts this weekend through our relationship with Barry’s Events.

The festival was originally called the Brandywine Arts Festival when it was started in 1961. “Big” George Sargisson was the founder of the event that now brings over 20,000 visitors to Brandywine Park’s Josephine Gardens.

The festival was a popular Delaware tradition for 48 years but was unfortunately cancelled in 2009 and then returned in 2010 under the new name Brandywine Festival of the Arts. Barry Schlecker has been in charge of running the festival since 2010. Barry is well known for running local events like the Newark film festival through his organization Barry’s Events. Host Merchant Services is the preferred credit card processor for Barry’s Events and so HMS has powered the credit card processing at the Brandywine Festival of the Arts since 2012.

2013 marks the 53rd annual Arts Festival. There will be over 250 artists exhibiting at the festival along with live music and plenty of good food!

For more information you can view the festival FAQ page here:

http://www.brandywinearts.com/visitor-faq/

The festival takes place this weekend at 1001 N. Park Drive, Wilmington DE 19802. The Festival is open from 10am to 6:30pm on Saturday, and 10am – 4pm on Sunday. Admission is $5 and includes admission to the Brandywine Zoo! Children under the age of 12 are free! You can find out more information at http://www.brandywinearts.com or call 302-690-5555.

Perceived Barriers to Accepting Credit Cards

Credit and debit cards have become nearly universal accessories in modern life. The great majority of Americans now use these cards to expedite and simplify their financial activities. According to the industry analysts at Community Merchants USA, a mere 27% of all POS transactions are cash transactions. In spite of this, only 45%of U.S small businesses currently accept credit cards. Modern companies have many reasons for not accepting credit. For many organizations, this state of affairs is the result of careful reflection. However, it is safe to say that most of these companies are limiting themselves in an ill-advised manner. In most cases, the potential benefits of modernization outweigh any disincentives. Though accepting credit cards can introduce new hassles and complexities, the public responds warmly to greater convenience and choice.

Many merchants who do not accept credit cards cite worries about high transaction fees. This caution is an understandable by-product of the cost-cutting savvy that typifies small business ownership. But even though the reticence is well-intentioned, the bigger picture of credit card processing is that the consumers look to use the most convenient payment means possible — so plastic trumps cash for a bulk of any business’ customer base. There are profits to be reaped by accepting credit cards and a company like Host Merchant Services has a processing solution designed to allow even the cautious business owner the ability to accept credit cards easily and cost effectively.

Lack of information may well be the biggest barrier to credit card acceptance. Well-settled in established habits, many merchants do not realize that developments in merchant services have driven down costs for many businesses. Passed by the U.S Congress in 2011, the Durbin Amendment capped and lowered debit transaction fees for a large cross-section of companies. The amendment also affirmed the rights of business owners to set minimum transaction limits for credit card users. Since 2012, MasterCard and Visa have allowed merchants to add surcharges to credit card transactions.

From a public relations standpoint, these tactics have definite downsides. However if they permit merchants to accept more payment methods, these measures can have outstanding effects on profitability.

Transaction fees aren’t the only barriers to wider credit card acceptance. Basing their perceptions on old information, some small business owners believe they would have to pay excessive monthly fees or make long-term commitments. Others remember a time when credit card processing equipment was dauntingly complex and expensive to rent. Fortunately, Host Merchant Services provides low-cost, hassle-free payment processing, along with free supplies and some of the most user-friendly and cutting edge processing terminals. As an industry leader, we use customer service, innovation, and technology to remove nearly all barriers to accepting credit transactions. Host Merchant Services is fully committed to supporting our merchants and making it worthwhile and profitable to accept credit cards.

Big Data, Payments And Customer Loyalty – Part Two

Across the ideological spectrum, business experts agree that the rise of Big Data is rapidly changing modern marketing and sales. In this transformational time, customer intelligence systems are proliferating at a remarkable rate. Although adopting these systems often involves overcoming logistical hurdles, the rewards of sophisticated data gathering are indisputable.

Proper customer intelligence is vital for marketing and growing customer bases. Exposed to increasingly diverse information sources, modern consumers are making quick, decisive changes in their purchasing decisions. To continually gain new customers, modern companies need up-to-date pictures of customer needs and desires. Fortunately, innovations in hardware and software have enabled newly accurate analytics.

According to business research firm McKinsey, companies that effectively engage with Big Data can demonstrate profitability rates at least six percent higher than those of their peers. Companies who rely on B2B transactions have particular need for strong data gathering and analysis. As B2B customers are affected by industry dynamics, they routinely search for ways to cut expenses. As a result, firms that provide B2B services are among those most likely to lose customers to competing companies. Dedicated analytics is important for retaining customers and actively courting those aren’t served well by competitors.

Across multiple industries, companies find that proper analytics inform how they use merchant services. By learning how their customers shop and what they expect, merchants can fine-tune their payments systems for maximal marketability. Naturally, modern consumers are drawn to merchant interfaces that are fast, reliable and safe.

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Whatever their specific goals or products, most modern businesses recognize the importance of credit card processing. However, the more insightful businesspeople fine-tune their payments procedures to meet the expectations of potential customers. In this time of fairly regular economic shocks and surprises, firms that fail to keep future customers in mind could experience unique difficulties.

 

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While the term Big Data is useful, it is also fairly restrictive. Even smaller companies can use data-driven procedures to shore up their fortunes. At Host Merchant Services, we work tirelessly to provide our clients with solutions for effective data-gathering and customer intelligence. In this exciting time of commercial possibilities, companies that gather and use data intelligently experience unique potential.

Are Credit Card Rewards Points Programs Harmful?

Over the course of the past ten years, credit card providers have ramped up their efforts to woo consumers with point-based loyalty programs.

Custom gift cards and loyalty cards are a great way to encourage repeat business and so many merchants have embraced the concept that the credit card providers have pushed. These redeemable Transaction Cards let customers make flexible decisions when purchasing goods or services from a merchant.

Early in the history of credit cards, most financial institutions were too dignified to offer game-like rewards systems involving point accumulation. As time went by, it became increasingly clear that nearly all types of credit card users were energized and excited by point systems. In the early part of the last decade, easy credit led to a dizzying proliferation of rewards programs. Although credit limits and eligibility requirements have tightened in recent years, credit card issuers maintain loyalty programs as integral parts of their marketing initiatives.

On an individual, case-by-case basis, rewards programs create very attractive incentives for customers. The public record abounds with stories of individuals who use reward points to gain earn free flights, hotel stays and other financial advantages. Collectively, some loyalty programs inspire widespread exploitation and abuse.

Since point-based reward programs are textbook examples of gamification, it is little surprise that many program members are gaming these systems irresponsibly. These individuals have perfected cunning “ghost transactions” that earn points without adding real value to the economy.

One popular technique is to purchase numerous gift cards with credit, only to use the gift balances to pay off credit card balances in a circular fashion. Though most of these schemes are technically legal, they consume manpower and resources in an exploitative manner. Point churning is a zero-sum game that leads to more expensive payments processing for retailers. Ultimately, many of these increased costs are passed on to the general public.

Point system abusers only account for a small percentage of loyalty program members. Even for ordinary users, rewards programs aren’t always as beneficial as they first appear. Individuals who use loyalty programs need to read and understand the fine print of program rules and regulations. In many cases, gains from cashing in points are fully offset by the costs of using additional credit. At their best, loyalty programs are engaging systems that spur responsible spending. However, economists argue that aggressive rewards programs can distort incentives and upset natural credit use patterns.

Here at Host Merchant Services, we are sensitive to how responsible credit card use contributes to the health of the broader economy. We provide our customers with tools to better understand and fulfill the needs of the public. Flexible, responsive payment processing encourages consumers to use credit with caution and care.

Credit Cards

Emerging Markets and Credit Cards [2023 Update]

The global economy is deeply affected by the rise of credit card use in emerging markets. As citizens of developing nations gain access to mainstream credit cards, they are empowered to participate more in their national economies and in the global marketplace. Since the world economy is increasingly connected, the growth of credit can produce benefits that are widely felt.

MasterCard’s recent story offers an interesting example of international development. Last May, MasterCard reported a net income gain of 12% over the previous year. While this number disappointed some analysts, it is clear that MasterCard is a healthy company with enormous potential. Critically, MasterCard’s May report showed that the company’s fate is indisputably linked with growth in emerging markets. According to the report, MasterCard’s transaction volume grew by 20% in the developing world. Meanwhile, US transactions only expanded by 4%.

In Asia, Africa and the Middle East, people are demonstrating a growing hunger for credit. Through development in these regions, major credit card companies will find relief from the regulatory and economic pressures that are driving down credit use in the United States. With more secure revenues, these companies should have fewer incentives to push new fees and restrictions on U.S customers.

After China, India is the world’s second most populous nation. While the Chinese government obstructs credit card companies fairly often, India is embracing credit cards with open arms. The Times of India reports that the nation’s average monthly spend-per-card number has risen 42% over the past two years. This growth is accelerated by an appreciable drop in Indian credit card defaults over the past few years. Credit consumers in developing nations are usually quick to learn the value of good credit ratings.

As credit card usage grows in India, issuing banks are doing a fine job of navigating a regulatory bureaucracy that is famously sluggish and problematic. With widely disparate regulatory systems, developing nations offer excellent case studies in the effects of financial regulations. In many cases, international merchant services are more competitive and responsive to marketplace demands. While proper oversight and consumer protection is important, international case studies emphasize the dangers of saddling financial companies and merchant services providers with stifling regulations.