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Considerations when choosing a gateway integration

There are a lot of payment gateways out there, and choosing the right payment solution can be overwhelming. Especially when you consider that there is no single right answer for every business. Different developers do not need the same features, so for comparison, here's a developer's checklist of considerations  for any payment gateway integration.

 

cost per payment transaction matters

 

Developer Checklist for payment gateway integration

1) Cost per payment transaction

For most merchants, the cost is always an issue. A difference of 0.2% in an average cost per transaction may not sound like much, but for a small business with five million dollars in annual receipts, this represents $10K of lost profits.

 

Gateways often publish what is referred to as “discount rates” – for example, $2.9% plus a fixed cost per transaction with a tiered discount schedule as their volume grows. Larger payment providers may offer “interchange plus” schemes where merchants pay actual interchange fees and assessments plus an additional fixed fee for processing services.

 

These types of processing agreements may be subject to additional fees as well. While interchange plus fees can be more complex, larger merchants often prefer them because they provide visibility to the component costs of each transaction.

Understanding all the details of the fee structure including potential extra costs related to refunds, chargebacks, and miscellaneous fees is important regardless of the payment solution you select.

 


2) Percentage of transactions that complete successfully

A consideration often overlooked is the percentage of Authorizations and Captures that complete successfully on a gateway. This is arguably even more important than minor differences in the cost per transaction because failed authorizations can translate directly to lost business and a reduction of top-line revenue.

 

This is an area where the gateways offered by larger payment processors often have a significant edge over third-party gateways. Tier-one eCommerce gateways have success rates for completed transactions in the range of 95%, whereas better-known brand name gateways often fare poorly with success rates in the 80% range.¹

 

This critical conversion consideration is important for most merchants, so developers and ISVs should consider this carefully as well when choosing a gateway.

1. The Payment Gateways Report – August 2016 – Evan Bakker, BI Intelligence

 

 

3) Type of bank account required

Another consideration for any payment gateway integration is the type of bank account required for use with the payment gateway. Most gateways will require that the merchant have a merchant bank account and their own Merchant ID (MID). Other gateways essentially act as aggregators, collecting payments themselves and then distributing them to a merchant’s bank account periodically or as requested using ACH transfers.

 

This second model allows smaller merchants to use a regular bank account and get up and running quickly avoiding the need to have a MID and the fees involved with a merchant account.  PayPal and Stripe are examples of payment gateways that allow for this.

While this is an option, merchants doing a reasonable volume of sales, needing fast settlement will generally be better served by having a proper merchant account.

 

 

4) Support for card present/point of sale applications

Many popular payment gateways are built specifically for eCommerce transactions. This is logical, since most businesses adding a storefront already have established point-of-sale solutions, and eCommerce providers may not need one.

 

As the lines blur between traditional retail and commerce, however, it is useful to have a single payment infrastructure for both  and in-store payments. Not only does aggregating volume help reduce rates, this can be useful when offering capabilities like order  and pick up in-store, order-ahead, in-store refunds for purchases, and other capabilities that consumers increasingly demand.

 

Some gateways offer features required for point of sale payments such as batch processing, lane management, support for various terminal devices (card readers, EMV, pin pads etc.), and vertical application extensions for auto rental, lodging, healthcare and other industries.

For merchants that hope to use a single payment solution for both in-store and   channels, support for card present features can be important criteria when selecting a gateway.

 

 

 

5) Ease of integration and maintenance

For some developers or ISVs, ease of integration can be an important consideration. Some application gateways are developer friendly offering hosted payment pages or easy-to-use SDKs implemented in multiple programming languages. Some gateways even offer SDKs targeting specific mobile platforms like iOS or Android; supporting use-cases like in-app or mobile web wallet purchases.

 

Other payment gateways don’t offer SDKs but provide an interface specification instead (usually accessed via a REST or SOAP / XML POST API) where client applications send and receive payment transactions that they encode themselves in XML or JSON formats.

 

There are pros and cons to each solution. Some developers will prefer an SDK, but others view SDKs as problematic since they introduce a dependency on their code that can complicate the release management process. These developers would prefer to code directly to a specification where they have full control, even if it means more coding effort.

 

There is no right or wrong answer, but understanding the nature of the developer interface is also an important consideration in choosing a gateway.

 

6) Throughput & performance

Another factor in selecting a gateway is performance. Gateways often pass payment data through multiple providers, and each additional “hop” introduces latency and increases opportunities for errors or outages. Payment approval times can range from sub-second response times to several seconds or even tens-of-seconds depending on the gateway; these delays directly affect the user experience.

 

Generally, the closer the gateway is to a payment processor, the better the performance and reliability.

 


pci compliance-security-encryption-myth
7) Security, encryption and PCI scope

How the gateway handles sensitive cardholder data is another key consideration for both merchants and developers. Most gateways offer hosted payment solutions, iFrame-based solutions, or JavaScript libraries that vault credentials at the point of capture providing a low-value, non-PCI sensitive token to be used in place of the actual card number.

 

Gateways may also provide a separate token in response to a payment transaction that can be safely stored in the merchant’s database to facilitate “card on file” functionality so that consumers don’t need to rekey their card for subsequent purchases.

 

In selecting a gateway, it is important to understand features related to encryption and tokenization and avoid solutions that put the payment application in PCI scope. The same is true for gateways supporting card present solutions as well.

Ideally, the gateway should facilitate secure processing, using point-to-point encryption for any point of entry, including EMV, swiped, tapped or keyed transactions eliminating the applications need to store, handle or transmit card data.

 

The breadth of payment methods accepted – An important strategy for maximizing conversions is offering multiple payment methods. Ideally, a gateway should support payments for all major credit and debit cards.

 

Developers should also consider capabilities related to other popular payment methods like PayPal, MasterPass or Visa Checkout. Mobile wallet based payments are expected to increase in popularity in the coming years (Apple Pay, Android Pay, and others) as consumers increasingly prefer “one touch” checkout for faster speed of service both in-store and .

 

8) Breadth of payment processors supported

For ISVs, it can be advantageous to support multiple payment processors. This is often an argument for coding to a third-party gateway, for this reason alone. Some gateways have an established relationship with a single payment processor (e.g. Stripe) whereas other gateways support multiple processors (e.g. Vantiv’s Express Gateway).

There is no right or wrong answer here either, but before selecting a gateway, it is important to understand how this might constrain your merchant’s choices in terms of payment processors and banking services.

 

 

9) Multi-currency support

For  merchants selling internationally, multi-currency support is important as well. Multi-currency support should not be confused with accepting international cards. For example, a US domiciled merchant may sell goods or services to a Canadian resident where the amounts are presented and paid in US dollars, so multi-currency support is not strictly necessary.

 

Organizations selling internationally will see value in gateway solutions that allow customers to pay in their home currency however as this will increase conversions and sales.

Consumers prefer to pay in their home currency for a variety of reasons including concerns about noncompetitive currency exchange rates that may be levied by banks or credit card companies.

For merchants and ISVs, selecting the right payment gateway is an important decision. Different gateways have different strengths and weaknesses, and the right solution will depend on your unique needs and the merchants and customers that you serve.

 

For more information:  

Is Your Payment Gateway Right for Your Business? 

Top Five Integrations with a Payment Gateway 

Choosing the Right Payment API for Developers 

gjsissons

Interchange for Dummies

Posted by gjsissons Sep 12, 2018

A Primer on Card Processing Fees

 

For developers who have worked mostly with gateways, coding to a payment processor can be a different experience. The interfaces can feel a little more complicated, but it turns out that understanding arcane topics like interchange fees, assessments and discount rates vs. interchange plus is worth the effort - especially as payment volume scales. If you’re wondering why this is, read on - you’ve come to the right post!

 

Interchange

 

interchange

 

In payments, interchange refers to the fees that are paid by the merchant’s bank (or the acquirer in industry lingo) to the cardholder’s issuing bank. These fees are set by the card brands and compensate the issuer for going to the trouble of qualifying consumers, issuing cards, handling transactions and taking on the risk involved in offering a line of credit.

 

The money moves from the acquiring bank (the bank handling the front-end of the transaction) to the issuing bank (the bank issuing the card), but fees are ultimately passed on to the merchant.

 

The card brands usually update interchange rates twice per year, and at the time of this writing, the links to latest fee structures for VISA and MasterCard are provided below:

 

 

A casual look at these schedules will confirm what you probably suspect – the policies are complex, and every transaction is potentially different subject.  Rates charged by the card brands depend on a variety of factors:

 

  • Card present vs card not present
  • Type of card, and nature of associated reward programs
  • Merchant performance thresholds – minimum volume, chargeback ratios and the like
  • Industry, type of business, purchase location
  • Various fee programs (Commercial Level III, Commercial CNP, GSA Large Ticket)

 

Swiping your basic VISA card at a large, well-known supermarket (at the time of this writing) costs 1.15% plus 5 cents per transaction.  Swiping your VISA Infinite card at a restaurant results in interchange fees of 2.4% + 10 cents per transaction (more than double). Interchange rates can dramatically affect a merchant’s costs.

 

Assessments

 

In addition to the interchange fees described above, card networks charge an assessment fee for each transaction.  The point of an assessment fee is to provide a source of funding for the card networks to maintain their infrastructure.  A quick Google of “VISA Assessment Fee” shows an assessment rate is 0.13% for credit and debit cards. Assessment fees can change with time, vary by jurisdiction and be different for different card brands. Assessments are paid by the payment processor/acquiring bank, and like interchange fees, these costs are passed onto the merchant.

 

Payment Processing Fees

 

As you’ve probably realized, interchange fees and assessments don’t benefit the payment processor.  They only benefit card companies and card issuing banks.  Typically, payment processors contract with the merchant for additional  processing fees. Usually these fees are per-transaction and may vary by transaction type.  The processor may also include additional fees for value-added services you elect to use, such as account updating or enhanced security offerings that can benefit merchants in other ways, such as reducing chargebacks, or minimizing declined authorizations.

 

Discount Rates vs Interchange Plus

 

Most of us are conditioned to appreciate a good discount, but in payments the story is more complicated. Processors determine discount rates by examining a number of factors, including MCC, average ticket price, and risk factors among others. From this info, processors negotiate with you a discount rate that accounts for the mix of interchange, assessments, and other fees, along with their profit margin. For example, imagine an internet gateway charging a discount rate of 2.9% + $0.30 per transaction  On a hypothetical $100 card purchase, this would cost the merchant $3.20 as shown below:

 

gateway_pricing_model.PNG

Now imagine the same transaction subject to an interchange plus fee structure.  In interchange plus, the processor passes through interchange, assessments, and other network fees without change. The processor then adds a per transaction fee, as well as any fees for value added services you elect to use. In this second scenario, the actual costs of interchange fees will vary with every transaction, but a typical transaction might look like the following:

 

processor_pricing_model.PNG

This is not to say that one pricing model is better than the other, or that an interchange plus fee structure will always be less expensive, but the approaches are different.  Payment providers who offer a discount rate, are providing merchants with simplicity and predictability, but arguably at the price of transparency.  Interchange fees and assessments still apply behind the scenes, and the payment provider is taking a risk because they could potentially lose money on some transactions. When offering a discount rate, the payment provider earns their margin on the difference between the discount rate offered to the merchant and the actual underlying fees they pay to facilitate the payment including interchange, assessments and processing fees.

 

While discount rates are simple, they are not transparent to the merchant. The merchant understands their total cost, but they don’t have visibility to how much of the cost is due to interchange, assessments or earnings retained by their gateway providers or processors.

 

To gain transparency, larger merchants often prefer interchange plus pricing schemes.  While they can be more complex to understand, they do allow merchants to analyze their payment transactions and understand the cost components of each transaction in detail.  With visibility to all sources of cost, merchants can take steps to avoid excessive fees including understanding what types of transactions are the most or least costly and taking steps (including coding applications differently) to reduce costs where possible.

 

Processing fees matter

 

To state the obvious, processing fees matter. For a small business transacting $5M annually, a 50-basis point reduction in average fees can yield $25K to the bottom line – enough to hire a part time employee or lease a couple of vehicles.  For a national retailer, analyzing and understanding fees is even more consequential.

 

Because the amounts are so substantial, larger merchants will often negotiate for lower discount rates, or prefer interchange plus pricing where they have visibility to their fees.  With visibility to fees, merchants can take steps to address sources of cost including coding transactions differently.

 

How does this impact the developer?

 

the way you code payment transactions can affect your business's bottom line.

 

Basically, how you code payment transactions matters because decisions you make can affect Interchange rates for a particular transaction.  Following card brand rules is essential to not only minimizing fees, but reducing instances of fraud and chargebacks as well. As examples:

 

  • For card not present transactions always perform an AVS (Address Verification System) check. Simply performing an AVS check can result in better interchange and also acts to deter fraud.
  • Providing detailed metadata in payment transactions (like industry types, terminal types, electronic indicator codes and commercial card IDs) can also help merchants obtain more favorable interchange rates. If this information is not provided, card brands will err on the side of caution, defaulting to higher rates.
  • For B2B applications, collecting and passing data fields required for Level II or Level III transactions can help reduce interchange rates further.

 

For developers, to minimize merchant costs, it is important that their payment SDK or API provide the ability to accept and pass on as much of this supplementary metadata as possible. Worldpay’s triPOS and Express APIs for card present transactions are good examples, as both allow for extensive metadata collection including things like freight, duty, taxes, ship-from and destination zip codes, and a variety of other items that affect interchange fees.

 

To learn more about Worldpay APIs for point of sale developers including the triPOS and Express platforms described above, visit our Point of Sale Integrations resource page.

 

For similar resources for card not present and mobile payment integrations, check out our developer eCommerce resources.

 

Thanks to Tom Boumil and Dan Ourada for their valuable contributions this this article.

If you don't grow, you go.

 

Why don’t more executives and their employees invest in self-education? One reason is a time constraint. Another reason: it’s boring. If you carve out time to read a book but you keep falling asleep before you finish chapter one, you won’t learn anything. (Except how to cure your insomnia.)

 

One tactic I’ve implemented to keep my self-improvement quest lively is to periodically (a.k.a. whenever I feel like it) add a sports-related book to my reading pile. I’m sharing with you today one of those books – Everyone’s A Coach: Five Business Secrets for High-Performance Coaching by Ken Blanchard and Hall of Fame football coach Don Shula. Shula is a bonafide sage and has a dry wit that keeps you turning the pages. Blanchard is wise and entertaining as well; quote #29 below is guaranteed to make you smile.

 

Let’s dive into my favorite passages from Everyone’s A Coach … just in time to kickoff the 2018 NFL season!

 

  1. Secret #1 for high-performance coaching: Conviction-driven. Effective leaders stand for something. Never compromise your beliefs.
  2. Secret #2: Overlearning. Effective leaders help their teams achieve “practice perfection.” Practice until it’s perfect.
  3. Secret #3: Audible-ready. Effective leaders, and the people and teams they coach, are ready to change their game plan when the situation demands it.
  4. Secret #4: Consistency. Respond predictably to performance.
  5. Secret #5: Honesty-based. Effective leaders have high integrity and are clear and straightforward in their interactions with others. Walk your talk.
  6. Everything I do is to prepare people to perform to the best of their ability. And you do that one day at a time. – Shula
  7. Blanchard to his employees: If you don’t grow, you go. We all have to strive to continually get better.
  8. A river without banks is a puddle. Like those riverbanks, a good coach provides the direction and concentration for performers’ energies, helping channel all their efforts toward a single desired outcome. – Shula
  9. Great coaches want to win, but they don’t fall apart when they lose. – Blanchard
  10. As long as you have credibility, you have leadership. Credibility is your people believing that what you say is something they can hang their hat on. – Shula
  11. Usually we’re so busy with our tasks, we forget that above all else, what our people get from us is us – our values, our attitudes, our perceptions. – Blanchard
  12. If you find you like coaching, give it all you’ve got. If not, let someone else do it. – Shula
  13. Overlearning: the players are so prepared for a game that they have the skill and confidence needed to make that big play. Constant practice, constant attention to getting the details right every time. – Shula
  14. Overlearning system: Limit the number of goals; make people master of their assignments; reduce players’ practice errors; strive for continuous improvements.
  15. Most organizations overemphasize the goal-setting process and don’t pay enough attention to what needs to be done to accomplish goals. – Shula
  16. Failure is successfully finding out what you don’t want to repeat. – Blanchard
  17. As a coach, if you let errors go unnoticed, you’ll ensure that more of them will occur. – Blanchard
  18. The important thing is not just being intense but focusing that intensity on the things that matter. – Blanchard
  19. It’s not the mood he’s in but people’s performance that dictates his response. – Blanchard
  20. One thing I never want to be accused of is not noticing. – Shula
  21. A significant gap exists between what managers believe motivates employees most and what employees say motivates them. – Blanchard
  22. When a learner makes a mistake, be sure the person knows that the behavior was incorrect, but take the blame upon yourself (“Maybe I didn’t make it clear enough”) and then patiently go back to the beginning and give redirection. – Blanchard
  23. Effective leaders are clear and straightforward in their interactions with others. If people can’t have job security today, they want honesty. – Blanchard
  24. Softening a blow is not one of my gifts. I approach things in a straightforward way – sit down and look the guy in the eye and say, “This is what I think. You may not agree with it. But this is the way I feel, and this is why I am doing it. I know it’s tough to swallow, but I just want you to try to understand what I’m thinking and what my purpose is.” – Shula
  25. Astute business managers know there is no right way to do a wrong thing. – Blanchard
  26. Effective coaches confront their people, praise them sincerely, redirect or reprimand them without apology, and above all are honest with them. – Shula
  27. No matter what situation you are in, coaching others will require new things of you. Dealing with others in a leadership capacity will test your character, especially if your role is a highly visible one. – Shula
  28. A sense of humor permits you to accept criticism without  getting consumed by it. – Shula
  29. I think people in organizations today take themselves too seriously. They all seem to have tight underwear on. – Blanchard
  30. It’s hard to be honest and forthright with folks whose egos and pride are always up for grabs. – Blanchard
  31. You haven’t learned a thing until you can take action and use it. – Shula & Blanchard

 

For more On the Edge content, please visit the Worldpay Partner Advantage website.

 

Jim Roddy is a Reseller & ISV Business Advisor for Worldpay’s PaymentsEdge Advisory Services. He has been active in the POS channel since 1998, including 11 years as the President of Business Solutions Magazine, six years as a Retail Solutions Providers Association (RSPA) board member, and one term as RSPA Chairman of the Board. Jim is regularly requested to speak at industry conferences and he is author of the book Hire Like You Just Beat Cancer.

NETePay 5.07 is now standard

Worldpay Integrated Payments will begin to deploy Datacap Systems, Inc.,  In-Store NETePay version 5.07.30 as the default standard for all new deployments starting August 29, 2018. This 5.07.30 version is versatile, feature-rich and, most importantly designed to be backwards compatible to previously enabled merchant deployment parameters.

 

With this latest In-Store NETePay, Datacap has evolved their best-in-class technology for future generations of POS developers, resellers and merchants.  Worldpay is pleased to partner with Datacap in bringing their trusted solution into a new era. The 5.07 NETePay is primed with new features and functionality.

 

Features 

  • 5.07.30 includes an automatic update component called the Director 5, which eliminates the need for any further DeploymentIDs.
  • Backward compatible to previous enabled merchant deployment parameters
  • PA-DSS Validated
  • EMV Debit supported on Ingenico and Equinox pads (more pending)
  • Store & Forward*
  • EWIC*
  • QuickChip for supported Ingenico and Equinox pads (more pending)

*requires integration changes

 

Important Support notice

 

Starting August 29, 2018 Worldpay Integrated Payments will default to generating PSCS staging files registered under NETePay 5.07.30. DeploymentIDs generated with the 5.07.30 will NOT be compatible with older NETePay version, so it is important not to mix the older DeploymentIDs with this newer application component.  Application version and DeploymentID version must be in sync!

 

POS Developers: Although this NETePay is backwards compatible, we want you to let us know when you are ready!  Many of you have already contacted us about your systems compatibility with a NETePay upgrade.  The previous 5.06.11 will still be made available if required. Our integration and support teams can assist with making sure you have the right NETePay version that meets your business needs. 

 

Installers:  You will need to update the In-Store NETePay running on the local POS and in any distributed installers or zip-drives. If this newest version of NETePay cannot be supported at the time of the merchant installation, contact Worldpay customer support and request an older version of NETePay be used when generating DeploymentIDs in the PSCS stage file creation.

      

 

For new or existing Worldpay IP developers, our integration team specializes in the Datacap interfaces and additional details about how to integrate the dsiEMVUS solution are located in the quick start guide.

 

For more information

For additional information or technical assistance on Datacap’s payment interfaces, contact us today

Parag Patil in London

 

Recently I had the opportunity to visit London and I was amazed by the convenience of contactless pay everywhere. For those of you who use Apple Pay with the Apple watch, you might have already experienced some of this. Despite the convenience and habit-forming nature of paying with the Apple watch, here in the USA, the adoption is not widespread and we’re still forced to get our cards out of the wallet. This is where London hits the mark in terms of universal adoption everywhere, thereby unleashing the true power of wearables.

 

From the moment I landed in London and took the metro to the city, I used my Apple Watch to pay everywhere till I caught my flight back at Heathrow. Though it seems like a minor convenience, it is a major advantage not having to get a card from the vending machine or trying to figure out the ticket price with the exchange rate. In fact, there was a day when I completely forgot to take my wallet with me because I never had a reason to get my wallet. I recall taking the bus and ferry to Greenwich and my Apple Pay worked there too. The simple act of raising your wrist, shaving a few seconds vs. getting cards out of wallet (or even the phone!) is what makes this delightful and habit forming experience. I must admit this meant I wasn’t aware at times how much I was paying for the ride.

 

They also have contactless pay at restaurants and bars, so no matter where go you can pay from your wearable Apple Watch. This reminded me of Disneyworld in Orlando where they give you a wrist band which acts as universal ticketing for the duration of stay and works seamlessly with rides and restaurants within the park.

 

Surely as we see more merchants adopting contactless with newer terminals in US, there should be a subsequent uptick in the number of people using wearables for payments. The reason for lack of mobile pay adoption was that there wasn’t any substantial difference between taking phone out of pocket vs. taking the card out of wallet. So consumers stuck to their existing habit of using the card. If you observe closely, most people are either talking on phone while waiting in lines at groceries and hence they would rather take the card out vs. use the phone. Wearables change that dynamic with that one step reduced in payments i.e. removing the card/phone out of pocket.  And merchants will benefit from moving to accepting more contactless pay and issuers would benefit from participating in schemes like Apple Pay.

EMV compliance and the switch to chip-enabled cards and readers can have a big impact on reducing a merchant's interactions with fraud. Stolen data, particularly credit card and other sensitive data is still a large problem for companies. As long as enterprises store these materials in their databases, hackers will continue to try to infiltrate business networks to get their hands on customer information. 

 

EMV is leading customers to develop new habits like using mobile wallets with a biometric for a faster checkout experience. Discover 5 more ways EMV is changing the landscape: 

 

1. EMV readiness is growing.

 

Consumers will be able to use chip and pin credit at 100% of merchants by 2020.

 

Consumers should be able to use their chip and pin credit and debit cards at 99% of merchants by 2019 and 100% of merchants in 2020.

Source: https://www.statista.com/statistics/419777/forecast-of-pos-terminal-adoption-to-emv-usa/

 

2. The US is a chip market leader.

 

Now the US is the largest chip market in the world.

 

Before EMV adoption, in 2015, the US was 25 years behind the rest of the world when it came to chip-based cards. In October 2015, the US transitioned to chip-based cards after several high-profile credit card hacks at Target, Home Depot, Michaels, and other big-box retailers. Now, the US is the largest chip market in the world.  

Source: file:///C:/Users/U316770/Downloads/Is%20EMV%20Working%20ISV%20infographic%20(2).pdf

 

3. EMV cards combat counterfeit.

 

Fraud levels have dropped by 76% among merchants that have transitioned to EMV.

 

According to Visa, EMV cards have been effective in reducing counterfeit fraud, which is the most common type of fraud committed in the US. Merchants that have transitioned to EMV cards have seen fraud levels drop by 76% from December 2015 through December 2017.

Source: https://www.darkreading.com/risk/fraud-drops-76--for-merchants-using-emv-says-visa-/d/d-id/1331891

 

After the EMV rollout, fraudsters are getting more sophisticated.

 

Call center fraud rates have doubled since 2015

 

Fraudsters are adapting to the widespread use of EMV by moving to card-not-present (CNP) fraud. Since skimming and creating fake mag-stripe cards are no longer as profitable as they once were, fraud rings have turned to  chargeback fraud (making fraudulent purchases using stolen identities and card numbers), as well as targeting call centers with social engineering to steal account data. Call center fraud rates have doubled since 2015.

Source: http://totalaccess.emarketer.com/article.aspx?r=1015789

 

What’s next? Contactless. 

 

In Australia, 93% of payments are contactless.

 

EMV is already being outpaced by new and improved secure payments technology. In Australia, 93% of payments are contactless. In Canada, 51% of payments are contactless. Along with additional security, contactless payment also increases the speed of the transaction.

Source: https://www.retaildive.com/news/emv-payments-in-2018-the-state-of-the-update/521709/

20 payments insights for 2021

 

Last year, digital wallets surpassed  debit card usage in the U.S., and digital wallets are set to overtake credit cards as the leading payment option within the next five years. Don't get left in the dust left by the digital boom. Check out these 20 insights from Worldpay's 2017 Global Payments Report to prepare your business for the future:

 

1.In 2016, credit cards were the most popular  payment method around the world, with 29% saturation. However, by 2021, that will completely change, as an estimated 46% of consumers will use their eWallets to shop , instead of their credit or debit cards.

 

2. China is the largest eCommerce market in the world, and that's not going to change anytime soon. If you want to capture this market, look into accepting Alipay and WeChat pay on your website to attract Chinese shoppers. 

 

3. If you're looking to expand your business's footprint in North America, look to Latin America. Argentina will have the fastest-growing eCommerce market in Latin America for the next 5 years, outpacing both Mexico and Brazil, thanks to their high internet penetration rate (80.1% of the population has internet access) and a large middle class population.

 

4. Passwords are so 2017. Biometrics will spell the end for passwords - not just for point of sale payments, but for customers who shop and pay on their mobile device or biometic-enabled laptop or desktop.Current methods include fingerprint scans, iris scans, heartbeat scans, voice recognition, facial recognition, palm vein scanning, and even ear prints. 

 

5. Biometrics will go beyond the humble fingerprint scanner. While nearly all mobile wallets have allowed for payment authentication via fingerprint scan or PIN in the past, Apple’s recent debut of the iPhone X, with its 3D face-scanning detection technology, is set to lead a shift away from fingerprint scanning. Where Apple goes, the market usually follows. 

 

6. India is the fastest-growing eCommerce market in the world. Demonetisation and a large population of unbanked consumers have contributed to the rise of eWallets, led by Snapdeal, MobiKwik, and Paytm.

 

7. Businesses that know how to leverage big data to tailor gather insights on how their customer demands and preferences change over time will be able to build a longer term relationship with their customers. For instance, Costco turns over its entire product suite 12 times a year to better serve its 75 million US subscribers. 

 

8. Hong Kong is one of the leading digital economies with some of the highest rates of internet saturation in the world at almost 90%. 

 

9. Baby boomers will be the cause of an eCommerce boom. By some estimates, global household spending by people aged over 60 in 2021 will be twice as much as seniors spent in 2010 - to the tune of $15 trillion. This is due to a large, tech-savvy aging population who are already comfortable using social networks and shopping . 

 

10. Credit cards are the method of choice for  shoppers in Japan. In the country with the world’s oldest population, low smartphone use among consumers age 65 and older is restricting mCommerce from growing quickly.

 

11. Aussies are increasingly opting for using their eWallets like PayPal and Visa Checkout over credit cards. BPAY is a popular electronic bill payment system in Australia that is quickly dominating other bill payment services. Another thing Aussies are into: international shipping. Nearly 20% of Australian eCommerce was cross-border in 2016.

 

12. While digital wallets will remain the global payment method of choice for eCommerce, bank transfers will also surpass both credit and debit cards in popularity, becoming the second most popular  payment method in the world. This is good news for  merchants, since there is generally a lower cost of payment acceptance for bank transfers than for payment cards. 

 

13. In Malaysia, eCommerce growth is expected to outpace traditional in-store sales over the next 5 years. 75% of Malaysian internet users browse the web via smartphone.

 

14. Last year Singapore overtook Silicon Valley as the Number 1 source for start-ups, so it’s no wonder that 73% of internet users in this high tech city shop .

 

15. The US has the oldest eCommerce market in the world. And US shoppers are pretty traditional, with 75% of  transactions in the US paid via Visa or Mastercard.

 

16. In the Netherlands, iDEAL is the most widely used payment method , with 1 out of every 5 purchases made on a smartphone.

 

17. Subscription services will grow in popularity, due to consumers who are happy to pay for convenience. Right now, 92% of millennials and 70% of retirees in the US have active subscriptions. Look for the subscription model to make an impact beyond content subscriptions, to luxury goods to sports equipment, and even cars.  

 

18. The top 3 digital payment services for Russian shoppers are Yandex.Money, Webmoney, and Qiwi. Nearly 50% of  shoppers in Russia make at least one  purchase a month. 

 

19. Consumers in New Zealand are all about platforms with Alibaba and Amazon both having significant presence. 

 

20. South Korea's advanced IT infrastructure means that nearly all households are connected to the internet and most adults have a smartphone. South Korea is one of the largest eCommerce markets in Asia, and is expected to see double digit eCommerce growth in the next 5 years. 

4 security threats facing merchants

 

If a business accepts credit or debit cards, they're responsible for protecting their customers' sensitive data from theft and misuse. Knowing the payments security threats that merchants face can help prevent a catastrophe, like a data breach or penalty fines from the major credit card brands from occurring.

 

Check out our infographic on the main threats that merchants face today, as well as the solutions that can help mitigate their risk: 

 

Security threats facing merchants

payment gateway is generally understood to be a software accessible interface provided to various types of merchants that facilitate card or other forms of electronic payments.  Developers can use this top 5 integrations with a payment gateway guide to learn more about how to better understand the variations of payment gateways.

 

hosted payments gateway pros and cons
Hosted payment gateways

When developers code to a hosted payment gateway, the gateway provider hosts a checkout page on their own servers, and web applications direct visitors to this "hosted" page when the process payment comes up in an  shopping cart. Payment integrations using a hosted payment gateway are easy to integrate and are generally responsive and mobile optimized.

 

Pros:  PCI scope is more easily reduced by relying on the gateway provider to secure the payment page and handle sensitive information.

 

Many ISVs use an HTML iframe option, where the cardholders may not even know that they're visiting an entirely separate secure page where the card data is entered.  The process is a secure and seamless user experience.

 

Cons:  While many solutions try to make this process seamless, consumers sometimes recognize they are being directed to a different site for the part of the page that manages the completion of the checkout process.  If that is a clunky user experience, even though it is secure, it can increase cart abandonment due to concerns over security.

 

Review our Hosted Payments Page Overview documentation for information on processing via the Hosted Payments solution on the Express payment platform.


API accessible gateways

That's why many merchants that want more control over the checkout experience choose to host their own checkout pages. There are plenty of options to use a third-party shopping cart, rely on application ISVs, or use consultants or in-house developers to build their own applications. Here, the merchant’s website or app interacts with the gateway provider for payment transactions (Authorizations, Captures, Refunds etc.) using an SDK, XML or JSON API interface.

 

These type gateways offer more flexibility, but usually increase PCI DSS scope because merchants usually handle, store or transmit cardholder data.  JavaScript libraries that Tokenize sensitive data prior to transmission can come into play, helping keep applications out of PCI-scope. 

 direct payment gateways pros and cons

Direct gateways offered by payment processors

Major payment processors often provide their own gateways to simplify connections to their core payment platforms. Payment processors may provide additional features supporting card present, point-of-sale functionality as well as card-not-present functionality. Payment processors may also offer the same interfaces described above including hosted payment functionality, SDKs, and REST APIs.

 

Pros:  The advantage of dealing directly with a processor is that they may offer better pricing (because there are fewer intermediaries involved in the transaction), they can be faster and more reliable because there are fewer “hops”.  These gateways typically have better success rates in authorizing payments because the processor has full access to all the capabilities of their core payment systems. Plus direct gateways can structure transactions to maximize chances of success while also lowering interchange fees.

 

Cons:  Unless the payment processor gateway has experienced payment industry staff members to assist ISVs through the integration process, even relatively simple gateways offered by major processors can be more difficult to code to because they usually expose a richer feature set requiring a greater knowledge of payments.

 

Platform-centered gateways

And then there are solutions where merchants can load their product into a white-label solution.  Platform-centered gateways provide an infrastructure allowing merchants to offer goods and services directly from a full-service payment platform.  Solutions in this category allow merchants to maintain their own store on the platform itself and present a branded  storefront.

 

Pros:  Platforms of this type can solve a variety of issues for merchants including avoiding costly development or integration efforts and handling issues like internationalization, multi-currency support and a broader set of payment methods popular in different locales. These platform-centered gateways may connect to other gateways, and this may or may not be selectable by the merchant.

 

Gateway aggregator

Gateway aggregator solutions present simplified programming interfaces to developers and ISVs and also provide “back-end integrations” supporting a variety of other payment gateways. Here, the gateway aggregator acts as a  “switch” allowing developers to code applications to a single API and support a wide variety of other gateways when it is time to go to market.

 

Pros:  ISVs can offer a merchant their choice of gateway while reducing their own coding, integration, testing and maintenance cycles.

 

Cons:  A potential downside of this model is that integrations tend to be more general in feature-set, leaving more advanced features of some gateways unavailable.  Plus, every transaction goes through an additional step, where this additional business cuts into overall profits taken out of each transaction.


Click here to download our Payment Gateway Whitepaper and discover if your payment gateway is right for your growing business needs.

 

Take the developer survey to enter to win 1 of 3 $100 Amazon gift cards

We want to hear from you how payments developers work. Take any (or all) of our three developer work surveys to enter to win a $100 Amazon gift card.

 

We'll be giving away 3 $100 Amazon gift cards-1 for each short survey- so if you take them all, that's three chances to win! 

Sorry to be the one to break this to you, but someone has to say it: You’re not that great of a speaker. Sorry, but it’s just not your natural gift to wow a prospect, your employees, or an audience of colleagues.

 

public speakers are made, not born.

 

I’ll also share this good news with you: Public speakers are made, not born. Public speaking is a skill you can improve with study and practice, and I’ve got two resources that will help you in your quest to inform, entertain, and delight.

 

The books Do You Talk Funny? and Speak As Well As You Think offer practical guidance for speakers at any skill level. Do You Talk Funny? author David Nihill shares techniques from standup comics who – you might not have realized – are public speakers who keep your attention through storytelling and smooth delivery. I received Speak As Well As You Think as part of a course I took with John Vautier, a speaking coach at Vautier Communications, whose book details excellent fundamentals for public presentations.

 

The authors have different backgrounds and angles for their books, and their blend of perspectives will put you on the path to speaking excellence … or, at the very least, on the path to not boring your audience to death. Here are some of my favorite passages from both books.

 

Do You Talk Funny?

  1. Almost every book ever written on public speaking says humor is a key part of successful talks. Yet none of them explain well how to employ it, which is about as useful as handing a MacBook Pro to a goat.
  2. Simply reading these principles won’t make you instantly funnier, more successful, or more attractive. Add a little practice, however, and it just might.
  3. Stories are told, not read. The storyteller connects with the audience when there is no page between them. Know your story “by heart” but not by rote memorization. Know your story well enough so you can have fun.
  4. Make an outline, memorize your bullet points, and play with the details. Imagine you are at a dinner party, not a deposition.
  5. A good leader needs to know how to create a connection, and the fastest way of doing that is by making someone laugh. Employees are humans, and humans respond to humor.
  6. You want to use words like weird, amazing, scary, hard, stupid, crazy, or nuts. “It’s crazy how soft modern-day workers have become.” The use of an attitude word (crazy) in the setup helps people focus and pay attention quickly.
  7. The first thirty seconds of your presentation can determine the rest of your talk. Rehearse this thirty seconds the most. Include your second-best joke at the start and leave your best until the end to go out with the strongest impression possible.
  8. Self-deprecating humor is a great tool to have in your back pocket, but be sure not to undermine your own credibility with too many wisecracks or humorous comments at your own expense.
  9. People like stories, but they tend to love funny stories.
  10. You don’t need all of the audience on your side to be a good speaker; 30 percent is plenty. Laughter is contagious.
  11. End your talk on an applause line that underscores a clear call to action.

 

 

Speak As Well As You Think

  1. A presentation — one human being speaking to a group — is the engine that drives almost all decisions in which money changes hands, actions are authorized, or power is deployed.
  2. The only way to judge a talk is by its effect on the listener.
  3. What does it mean to “speak as well as you think?” It means that when you get up to present you’re described with words like: credible, confident, interesting, genuine, natural, compelling, organized, professional, passionate, clear, concise, and charismatic.
  4. Make eye contact with your audience — one person at a time. Don’t dart your eyes restlessly from one audience member to another.
  5. Don’t stand in one spot throughout your speech or presentation. Limit your movements; you don’t want to move constantly. End up with two feet solidly on the floor — not in an incomplete half-stepping position. The person who is visually balanced appears strong, confident, and in command.
  6. People who speak at a higher volume project confidence. On a scale of 1 to 10, with 1 being a whisper and 10 a shout, your speaker’s voice — the voice you use when giving a speech or presentation — should be your voice at a 7-to-8 level.
  7. An uninflected voice is heard as a drone, a soft buzz. More than anything else, it induces sleep.
  8. 95% of all speakers need to project more energy.
  9. It doesn’t matter if you’re comfortable; you only need to look and sound comfortable.
  10. When you begin to construct a speech, ask yourself: “When I’m done speaking, what do I want listeners to do, to know, and/or to believe?” The answer to this question is your thesis.
  11. Introduce your speech with a bold, interesting statement. Share a startling fact or statistic, a killer quote, or an analogy.
  12. Don’t let your speech die an ugly little quiet death at the end. Your last sentence needs to sound like your last sentence. Convey that intentionality.
  13. Charismatic leaders project genuine likability because they have a mindset of genuinely liking their constituents.

 

I hope these tips are useful to you – they’ve certainly helped me communicate more effectively. Here’s a speech I gave on the main stage at the RSPA RetailNOW Conference in Dallas in which I try my best to integrate the lessons I’ve learned. I certainly (and unfortunately) didn’t execute on every one of Nihill’s and Vautier’s techniques … but I didn’t put anyone to sleep either.

 

 

For more On the Edge content, please visit the Worldpay Partner Advantage website.

 

Jim Roddy is a Reseller & ISV Business Advisor for Worldpay’s PaymentsEdge Advisory Services. He has been active in the POS channel since 1998, including 11 years as the President of Business Solutions Magazine, six years as a Retail Solutions Providers Association (RSPA) board member, and one term as RSPA Chairman of the Board. Jim is regularly requested to speak at industry conferences and he is author of the book Hire Like You Just Beat Cancer.

daniperea

Join us at RSPA RetailNOW

Posted by daniperea Jul 26, 2018

retail now, rspa

 

Join Worldpay at RSPA RetailNOW 2018

August 5-8

Nashville, TN

Worldpay Booth #725

 

A team inspired to do better

Meet the team attending RetailNOW 2018 and hear how they are striving to empower your business independence.

 

 

Every year Worldpay looks forward to reconnecting with our partners, vendors and soon to be partners  ! With everything going on at the show, we wanted to make sure you don't miss out on the opportunities planned for you. 

 

Product booth demos

Explore what Worldpay is building to help our partners be independent 

  • triPOS® Connect and Verifone® VX 690 bring streamlined POS payment experiences to the table
  • triPOS Mobile for iOS and Android is built for the customer in mind
  • iQ® Launchpad puts partners in control for new merchant on-boarding and more
  • Bizshield/Insights delivers useful data for busy merchants, which is why we’ve made our data analytics tool intuitive and easy to use.

 

Worldpay speaking events

How Leading POS Resellers Implement Recurring Revenue Products & Services

  • Moderated by Jim Roddy, Worldpay
  • Monday, Aug. 6, 5:00-6:30 PM and Wednesday, Aug. 8, 8:00-9:30 AM

Our industry’s top-performing resellers regularly add new recurring revenue streams to their offering. This session will go in-depth with executives from those organizations detailing how they select, evaluate, bundle, market, sell, and service their recurring revenue products and services. We’ll discuss headaches and success stories plus practical tactics and techniques for transitioning your business to the highly profitable recurring revenue model.

 

You’ve Hired the Best, Now Develop Your Team for Success! (Building Productive Teams for the Long Term)

  • Presented by Shannon Reichart and Paul Kirk of Worldpay
  • Monday, Aug. 6, - 11:40am - 11:00am and 11:50am - 12:30pm
  • and Wednesday, Aug. 8, 8:00am - 8:40am and 8:50am - 9:30am

Let’s face it. Today’s tech-savvy workforce has options, and because of this, finding the right people for our business can be a challenge. This ranges from salespeople, administrative people, and everyone in between to keep your organization running at optimal velocity. And more importantly, keeping the right people is even more challenging!


This 40-minute session will assist with how to invest in developing your most valuable resource, your people, and demonstrate why this is so critical now more than ever before and how you can maximize your ROI in your talent development.

 

troubleshooting the eCommerce sandbox

 

Got 99 problems and access to our eCommerce sandbox is one (or all) of them?

 

First, bookmark Vantiv eCommerce Sandbox  for easy reference, then read on for the answers to 3 common Sandbox troubleshooting questions.

 

1) The url doesn’t work.

 

Make sure you’re using the correct url: https://www.testvantivcnp.com/sandbox/communicator/online.

 

We also recently expanded the sandbox to allow testing of our chargeback API. The URL to do this is: https://www.testvantivcnp.com/sandbox/services/chargebacks

 

2) Oops, you’re not in the Sandbox environment, you’re in the prelive environment.

 

How do you tell if you’re in the sandbox or the prelive environment?

This is easy-peasy. If the url has “prelive” in it, you’re in the prelive environment. If the url has sandbox in it, you’re in the sandbox environment.

 

Once you have applications working in the Sandbox, you can request access to our Pre-Live environment for additional testing. The prelive environment has scheduled maintenance on Tuesdays and Thursdays which is why you might see unresponsiveness. Please contact support at ecc@vantiv.com for prelive issues.

 

From: Is the sandbox site down? 

 

3) This still isn’t working - what can I do?


Have no fear, contact our helpful support team at sdksupport@vantiv.com.

 

The sandbox can tell you if it’s up or not. The live status can be checked at https://vantiv.github.io/sandbox/

What's the right payment API for developers?

When coding a payment solution, choosing the right payment API to help with your payment processing should never be taken lightly.  As developers, whether it's a payment integration for eCommerce, point-of-sale, mobile, Enterprise, or any combination, let's define what is a payment API.

 

choosing the right payment api for developers

Most payment applications (APIs) are transactional and involve sending and retrieving messages to and from remote systems across dedicated links or IP networks.  Payment API processes can include authorizing a payment, setting up a subscription, or initiating a bank transfer from a mobile app--to name a few of the common requests.

That's a hefty definition that comes with a stark reality for development teams.  On average, a comprehensive payment integration can take more than 6-months!  Here's why. 

 

Businesses demand a simple payment solution that can manage a variety of powerful capabilities and value-added features including analytics, account updating and reporting functionalities.  That's where a robust API is critical, allowing for the touch points between complex applications and financial business processes that grow each year as new trends and features become available to better serve the growing payment needs of your clients.  The process of managing, testing and certifying payment integrations take time.

 

So now that we've defined an API, let's dive into what type of API will you need for your merchant processing development project.

 

What are the types of APIs for payment developers?

When it comes to payments there are numerous APIs, but most fall into one of the categories described in Payment APIs Demystified - Five Common Types.

 

Once you master the mechanics of coding to an API in one of the standards listed below, the other APIs in the same family become more readily available to integrate into your payments development.  Because most payment transactions are message-oriented, protocols play a huge role in payment processing. 

 

In short, an understanding of the five types of APIs common in payment applications will move developers down the path to choosing the best payment API for coding payment processing and take you to the beginning of your payments journey.

 

five types of APIs common in payment applications

 

  1. ISO 8583 Standard - Although better described as a protocol or message format, the ISO 8583 messages may travel from a merchant terminal or ATM, through to a merchant acquirer, through to card networks, and ultimately to card-issuing banks.  Quick Fact:  Most developers probably won’t code ISO 8583 messages directly unless they are working at a large retailer, bank, payment processor or payment gateway.
  2. SOAP XML Web Services - The Simple Object Access Protocol (SOAP) is a W3C XML based standard that allows organizations to publish interfaces such that they are discoverable and platform agnostic.  Quick Fact:  A nice property of a SOAP API is that it is self-documenting.
  3. HTTP/S POST APIs - Developers use their own HTTP requests to send messages directly to a network endpoint.  Often referred to as HTTP APIs, it is standard practice to send traffic over an SSL/TLS encrypted HTTPS connection.  Quick Fact:  While POST APIs can support any type of payload, JSON is often preferred because it is lightweight, flexible, and easily parsed.
  4. REST APIsA Representational State Transfer is an architectural style for expressing an HTTP-based API.  Developers who understand how to code to HTTP POST APIs (above) will automatically understand RESTful APIs because the mechanics of interacting with them are the sameQuick Fact:  A RESTful API borrows from object-oriented design principles and typically provides multiple URL endpoints that correspond to objects being manipulated.
  5. SDKsSoftware Development Kits are not considered true APIs, but are client-side libraries that abstract and simplify coding to all of the above interfaces and are usually programming language aligned.  (We're including here due to the touchpoints with the other four API types)  Quick Fact:  SDKs simplify coding, but also introduce a new source of complexity in the form of a client-side software component that their application depends on.

 

How to start with your Payment API Integration

Now that you've selected an API for your business needs, it's time to get coding.  So here are the typical processes developers need to follow to test and certify an integration. (We'll use the Express Certification Overview  as an example to explain these steps)

 

  1. Setup a free test account.
    • Visit Getting Started with Express.  For Worldpay, sign up for a free, production simulated test account.  After signup, look for an email containing hyperlinks, including the Express Interface API to help you begin integrating your hardware and/or software solution.
  2. Test Your Integration.
    • The Worldpay Integrated Payment production simulation certification environment allows developers to code, test and evaluate your integration to the Express Interface.  And remember, if you get stuck, ask our integration experts or review the documentation here on Vantiv O.N.E.
  3. Submit your RFC.
    • The RFC and Scenarios document gives our certification team your hardware and software details.  This documentation is required along with details on your company policy on securing sensitive cardholder information.
  4. Certification Testing and Review.
    • After our integration team has all the necessary documentation--your integration team will also need to complete and submit all appropriate scripts, which our certification team will review your test transactions and respond with any needed changes to your integration.
  5. Express Certification Letter.
    • Once certified, your team will receive an official Letter of Certification and you'll be directed to a Partner Manager to begin boarding live merchants.

 

For help in choosing the right payment API

There's a lot to consider.  Everything from PCI Compliance, tokenization, fraud protection, global support for multiple currencies, sandbox functionalities and what SDKs are available in multiple coding languages (including Java, .NET, PHP, Node.js, and C++). 

 

Plus you'll want the best team of payments experts ready to assist in your integration--since the sooner you complete a payment integration, the sooner you can start processing payments!

 

Are you ready?   Choosing the right payment API for payment processing is as simple as reaching out to our Worldpay team of API experts that are continually updating our  documentation.

 

Create a Vantiv O.N.E. Account

Create an account in our Developer Hub and get the latest news and payment integration tools, plus links to kick-start your payment integration.  Let's get started!

 

Learn More:  Create a Test Account Quick Links

Getting Started with Express Payment Development 

Install Requirements for triPOS Direct 

triPOS Cloud Quick Start Tutorial 

triPOS Mobile iOS SDK Tutorial 

Getting Started with MercuryPay 

Lately, most of my consultations with software developer executives have focused on marketing – at their request, not mine. We discuss best practices in website content, SEO, content marketing, blogging, list building, inbound marketing, outbound marketing, and email marketing. To help spread the word on that last topic, I made email marketing the subject of my latest blog post on the Vantiv, now Worldpay Partner Advantage website: 8 great email marketing building blocks for the POS channel.

 

Today, we'll pull back from tactics and take a broader view of marketing thanks to the classic book The 22 Immutable Laws of Marketing by Al Ries and Jack Trout. The 22 laws were published in 1993 – before most of the tactics I listed above were conceived – but they’ve held up for 25 years now. That figures because the word immutable means “unchanging over time.” An illustration of that is seen in Law #13 which says narrowly focused specialists are stronger than generalists. Ries and Trout wrote back in ’93: For example, White Castle has never changed its position. A White Castle today sells the same “frozen sliders” at unbelievably low prices. Fast forward to 2018, and White Castle is still going strong slinging sliders.

 

Here is the complete list of the laws plus some of my favorite passages from the book:

 

  1. The Law of Leadership: It’s better to be first than it is to be better. People tend to stick with what they’ve got. If you meet someone a little better than your wife or husband, it’s really not worth making the switch, what with attorneys’ fees and dividing up the house and kids.
  2. The Law of the Category: If you can’t be first in a category, set up a new category you can be first in. If you didn’t get into the prospect’s mind first, don’t give up hope. Find a new category you can be first in. It’s not as difficult as you might think. 
  3. The Law of Mind: It’s better to be first in the mind than to be first in the marketplace. If you want to make a big impression on another person, you cannot worm your way into their mind and then slowly build up a favorable opinion over a period of time. The mind doesn’t work that way. You have to blast your way into the mind. The reason you blast instead of worm is that people don’t like to change their minds.
  4. The Law of Perception: Marketing is not a battle of products, it’s a battle of perceptions. All that exists in the world of marketing are perceptions in the minds of the customer or prospect. The perception is the reality. Everything else is an illusion.
  5. The Law of Focus: The most powerful concept in marketing is owning a word in the prospect’s mind. The essence of marketing is narrowing the focus. You become stronger when you reduce the scope of your operations. You can’t stand for something if you chase after everything.
  6. The Law of Exclusivity: Two companies cannot own the same word in the prospect’s mind.
  7. The Law of the Ladder: The strategy to use depends on which rung you occupy on the ladder. While being first into the prospect’s mind ought to be your primary marketing objective, the battle isn’t lost if you fail in this endeavor. There are strategies to use for No. 2 and No. 3 brands.
  8. The Law of Duality: In the long run, every market becomes a two-horse race. The customer believes that marketing is a battle of products. It’s this kind of thinking that keeps the two brands on top: “They must be the best, they’re the leaders.”
  9. The Law of Opposite: If you’re shooting for second place, your strategy is determined by the leader. A good No. 2 can’t afford to be timid. When you give up focusing on No. 1, you make yourself vulnerable not only to the leader but to the rest of the pack.
  10. The Law of Division: Over time, a category will divide and become two or more categories.
  11. The Law of Perspective: Marketing effects take place over an extended period of time.
  12. The Law of Line Extension: There’s an irresistible pressure to extend the equity of the brand. One day a company is tightly focused on a single product that is highly profitable. The next day the same company is thinly spread over many products and is losing money. When you try to be all things to all people, you inevitably wind up in trouble.
  13. The Law of Sacrifice: You have to give up something in order to get something. The world of business is populated by big, highly diversified generalists and small, narrowly focused specialists. Typically, the generalist is weak.
  14. The Law of Attributes: For every attribute, there is an opposite, effective attribute. If you are to succeed, you must have an idea or attribute of your own to focus your efforts around.
  15. The Law of Candor: When you admit a negative, the prospect will give you a positive. This law only proves the old maxim: Honesty is the best policy.
  16. The Law of Singularity: In each situation, only one move will produce substantial results. Most often there is only one place where a competitor is vulnerable. And that place should be the focus of the entire invading force. It’s hard to find that single move if you’re hanging around headquarters and not involved in the process.
  17. The Law of Unpredictability: Unless you write your competitors’ plans, you can’t predict the future. As changes come sweeping through your category, you have to be willing to change and change quickly if you are to survive in the long term.
  18. The Law of Success: Success often leads to arrogance, and arrogance to failure. Ego is the enemy of successful marketing. Objectivity is what’s needed.
  19. The Law of Failure: Failure is to be expected and accepted. Too many companies try to fix things rather than drop things. If a company is going to operate in an ideal way, it will take teamwork and a self-sacrificing leader.
  20. The Law of Hype: The situation is often the opposite of the way it appears in the press. Real revolutions don’t arrive at high noon with marching bands and coverage on the 6 o’clock news. Real revolutions arrive unannounced in the middle of the night and kind of sneak up on you.
  21. The Law of Acceleration: Successful programs are not built on fads, they’re built on trends. Forget fads. The best, most profitable thing to ride in marketing is a long-term trend. Fad = Ninja Turtle. Trend = Barbie Doll.
  22. The Law of Resources: Without adequate funding, an idea won’t get off the ground. You’ll get further with a mediocre idea and a million dollars than a great idea alone. Spend enough; you can’t save your way to success.

 

For more On the Edge content, please visit the Vantiv Partner Advantage website.

 

Jim Roddy is a Reseller & ISV Business Advisor for Vantiv’s PaymentsEdge Advisory Services. He has been active in the POS channel since 1998, including 11 years as the President of Business Solutions Magazine, six years as a Retail Solutions Providers Association (RSPA) board member, and one term as RSPA Chairman of the Board. Jim is regularly requested to speak at industry conferences and he is the author of the book Hire Like You Just Beat Cancer.