Preventing a Security Breach: Best Practices

For the fifth year in a row, the costs of breaches in data systems and fraud has risen. And even more scary, forty-three percent of customers who are the victims of fraud stop doing business with the merchant location where the problem occurred. Ask yourself, can you afford to lose 43% of your business? And can your merchant reputation survive the scandal of a data breach? Beyond a data breach, let’s say you don’t have a criminal taking credit card numbers, but just a bored hacker, taking down websites, or corrupting them. This too, is problem you need to be concerned about.

So what’s the solution? How can you protect yourself from hackers and fraudsters? Well, the only sure fix is to get off the internet – but who can do that in this day and ago? So let’s discuss some real solutions for you and your business.

We’ve already touched on some methods to secure your data storage systems. These can be compulsory when they deal with account information, like tokenization and PCI DSS. Not complying with these simple and effective ways to secure your system can result in you being charged fines and losing face with your customers. We’ve also talked about tap to pay, which helps keep customers secure by not actually storing their information. These are basic things we can help you to implement, so you can begin the trek to a secure site. Finally, consider trying some kind of one tie use account numbers, to ensure that customer’s permanent information is not accessible.

But there’s more, a lot more you can do to keep information secure. One thing you have to be careful of is interception of customer information over your website. Is the line from your website to the payment processor secure?  Consider a method like the Alpha Card Gateway system, which can be integrated into your website for a more secure check out process.  Additionally, Alpha Card Services works with some of the merchant processing industry’s most up-to-date technology providers, like ISpyFraud protection and MasterCard SecureCode support, which will help you keep fraud at bay. These advanced fraud protection tools will ensure your customers can feel secure and keep coming back.

Alright, so you’ve (hopefully) started taking steps to keep your card transactions secure, and when you partner with Alpha Card Services, you can feel even more confident about the process. But have you thought about your website? You can’t just rely on card processing security – what if your website itself gets hacked. You could be the victim of a cyber criminal who can take down your website, or simply have the misfortune of data corruption errors, or a multitude of other problems.

You can prepare for this with the right web hosting service.  A good web host will provide a method and storage area for a website backup.  Of course, you already know you aren’t storing crucial customer information on your site, but there is still information you need to keep. You should get a web host service who will provide you with options to store multiple versions of your website. Consider whether you feel safer with these backups stored on a host’s server, a separate location with remote access, or as a disk image. You should also consider having at least one back-up file of your own, just in case. Website backup files are great for restoring content which has been lost, corrupted, or tampered with by unauthorized users.

Staying one step ahead of cyber criminals is the only way to save your customers from fraud and save yourself a lot of trouble. You must implement certain programs to ensure customer swipe card protection, and you should implement methods to protect other aspects of their identity. With Alpha Card Services you’ll get our already secure and virtually worry free processing, and you can supplement it with some of the advanced fraud protection tools we offer.  Finally, you should ensure that your actual website is not just secure from those trying to steal identities, but also from loss of the website itself. You should find a web host with backup programs available, and use them; backup your site every time you update it. Using these best practices will help you to ensure customers are secure, and will help you avoid having customers who are victims of the nearly $10 billion dollar per year internet fraud scams. Contact us to talk more about these problems and how we can help you fix them, today!

The Rewards of Rewarding Your Customers

We’ve touched on the concepts of rewards in relation to electronic marketing and also with gift cards, but let’s spend some time really talking about how a rewards program can assist you in growing your business- and how we can help you to implement a simple rewards program. It can be a reward card, a loyalty card, a frequent diner card or a VIP card, but anyway you term it, the bottom line is that you make your customers feel special and, with the right tactics, can grow your business.

Most Frequently Used Types of Programs:

There are a few different types of programs that might jump to mind when you think of “reward programs.” There are frequency based programs, dollar based programs, and of course (because who doesn’t love racking up those airline miles?) the points programs. The types of program your business uses depends on the type of business you run and the type of customer you want to attract. When you contact us we’ll discuss a system which will help you to reach your growth goals. Perhaps you have a restaurant and want to create a frequent diner program? Maybe it’s a retail store and you have a goal of each customer transaction totaling $50.00 or more? Or you have a service location and you want your customers to be able to build points to reach a service otherwise not available? We can help with that.

How Does it Work?

After you decide on the type of system you want, we will help you design a card, and that card will be given to each customer at your business location. It is an opt-in system and so each card is virtually guaranteed to be used. The customer then presents the card each time he or she visits and points, dollars, or percentages are added to the card based on your predetermined system.  If a certain item is purchased, or if a dollar amount is reached, those can create points for the buyer and trigger rewards, or discounts, or whatever you decide.

With a few simple keystrokes or clicks, crucial cardholder demographics are captured and you have the information you need to help that customer get the most out of their next visit, and you can let the customer know the sales and offers they would be most interested in. Then as each purchase is stored in your database you can create a system which better serves your customer. And as each swipe goes through on their card you can count on system performance from Alpha Card Services.

What Does it Do for Me?

Rewards programs, much like our gift card programs, have been shown to capture customer information and purchase history, increase individual customer spending, encourage repeat business, promote sales and special events on a more targeted basis and give you a better return on investment that your traditional passive marketing. The consumer benefits too, through the rewards you offer. Spending a certain amount can get them a discount. When they reach a certain point level perhaps they’ll get a reward otherwise not available- maybe a product or service. The reward system offers a powerful tool to the merchant, a compelling reason for the customer to spend more and feel more appreciated.

The Bottom Line

In the end, when you are looking for a system which can increase your business both by dollar transaction and by customer repeat visit, look no further than the reward card and gift card combined systems. The reward system can be used at multiple locations, you can team up with other merchants in related fields, and it is an opt-in system which, statistically, creates business for you. Eighty-five percent of credit card users participate in a reward programs- these same people are an untapped source of growth and sales for your business. These are the financially savvy people who you could be attracting as repeat customers. These people know they will spend money, and they want to do it in a way which creates a reward for them.

Forget the outdated punch card and wondering whether customers will return. Contact us and we can help you to create a system which will encourage brand spending, repeat business, and better targeted marketing practices.

Moving Main Street Online: the Transition from Brick and Mortar to Ecommerce

Main street businesses have been taking an interesting turn lately, and moving their shops online. Sure, they’ll keep the store open, but many places now have online stores that are bigger and more specialized than their small shops. And many of them are succeeding with this business model too, but not all of them. Online sales account for 7.9% of all retail sales in the U.S., and online revenue streams reportedly grew 11.9% according to the 2011 Internet Retailer. Here are a few tips in case you’re a small to medium sized business owner considering the possibility of online retailing.

1. Control the Product Selection: In this economy you have to make sure that if you spend money on it, you can make money on it. This goes for all areas of business, but is especially true if you are trying to expand online. Consider your business plan before you jump on the bandwagon. Determine what your brick and mortar store sells well, and why. You need to specialize the products both for quality and in order to lessen the number of direct competitors you have. Local specialty businesses can use their knowledge and their products to create pleasing and informative content for their online store.
2. Price it Carefully: There are two problems to consider here: minimum advertised price (MAP), and shipping costs.
   1. MAP is something that most who aren’t online retailers haven’t heard of, but it is important. It represents the lowest possible price to advertise your goods at. You can sell for less, but if you choose online advertising, you better make sure you know the MAP. MAP is good for smaller retailers, even if it seems collusive, because it ensures that the big stores can only compete with you on non-price issues, like quality and service.
   2. Also consider the problem of shipping. It costs you money, but it better not cost too much or you’ll price yourself out. On the other hand, if you calculate too low, you’ll have to pay the difference out of your own pocket. The key is to watch what your shipping supplies cost and determine the most efficient way to get orders out; from packing, to carrying, to the carrier you use, efficiency is key.
3. Make the online experience as good as the in store experience: You’ve had your brick and mortar store for years, and people keep coming back. You make the experience of coming in the store more pleasant than the big box stores, and that’s what sets you apart. Online businesses are no different. One of the key drivers of repeat business in eCommerce is customer service. From having a customer service representative available for phone or chat conversations, to a user friendly and eye pleasing website, and most importantly, getting the order right.
4. Choose a Web host: So you want to start an online business, well you’re going to need a website, and a web host. There are a lot out there, so you’ll need to choose carefully. A lot of people jump on the first host they find, but I don’t recommend that. Shop around. Talk to them about bandwidth, the back-up server capability, the number of crashes similar websites with that host have had. Also, does the host offer a deal on services to help you build the website, or create email accounts to your site (those are VERY important, when was the last time you emailed a business with an “@yahoo.com” tag?). You wouldn’t lease the very first storefront you found, would you? You need to shop around for your web host and your domain name.
5. Get a secure card processor: It is so important to have good customer service, but its even more important to make sure your customers feel safe, and that they don’t have to leave your system to buy a product. Rather than paying PayPal or rerouting them through some other processor, Alpha Card Services uses a secure Gateway to process a transaction. Without a safe feeling at checkout, you’ll never make a sale. But a secure checkout process is another thing that you can deal with just like you deal with it in your brick and mortar shop: Alpha Card Services.

Think carefully before you go to an online business plan. But when you do, with a little hard work and some help from us, we can build an experience as good as the one in your store!

New Challenges in Taxes

The Internal Revenue Service has a new form to complicate your tax life: the 1099-K. At the end of January, merchants all over the U.S. received this new form, which is intended to report merchant card transactions. This also includes reporting PayPal, Google CheckOut and other online methods of processing above a $20,000 and 200 transactions thresholds. The threshold requirement applies only to online sellers who use PayPal or other online processors; any merchant cards processed by the merchant or a processing company like Alpha Card Services must be reported no matter how few transactions are processed. The 1099-K reporting must match certain numbers on your general income forms, so that the IRS can track who is properly reporting all income.

Although the intentions of the IRS are honorable (or as honorable as tax collection can be), the form adds burdens on merchants.

• Most businesses aren’t keeping track of payments by type. Whether small, medium, or large, the method of paying for the sales has never been a particular concern to merchants. In fact, the only concern is the timing of the receipt of payments. This area is one that merchants will need to be careful of in 2012, the first year you’ll have to track the numbers. However, this may also be one of the easier burdens to bear for those who use Alpha Card Services. Our clients will automatically receive not only the 1099-K, but also an accounting of what sales we processed for you, guaranteeing a quick and easier completion of the form. Because we process sales for you, we can track the numbers through our advanced computer systems and that simplifies your tax lives.

• Your 1099-K form isn’t going to match true sales. Not only does the form only consider the merchant card sales, it also doesn’t consider the accrual basis the company uses to do their accounting. This is one area that you, the merchant, will need to be careful. Many tax professionals will recommend simply backing your 1099-K number into the appropriate line on other forms, saving you from a matching problem and therefore a possible audit. Therefore, the accuracy of your 1099-K is going to be even more important.
• Another problem for merchants is going to be payment from independent contractors. You  must file a 1099-MISC for payments to non-employees (some merchants forget this, but it’s very important). If you get  this payment via credit card or PayPal, you’ll face a problem of reporting not only on the 1099-MISC, but also the 1099-K. Now you’re double reporting and facing double taxation. You need to be careful of this problem and be sure to talk to your accountant.
• The 1099-K includes a code for the type of business you are in. This merchant category code will be used by the IRS to analyze what different types of businesses are reporting as income and comparing the reporting by merchant category code. The businesses which are report less in their particular code will be scrutinized heavily by the IRS, and may be at risk for audit. Therefore its important to ensure that whatever business you are in, you are being categorized correctly. This will be the job of your processor, so its something you should ensure they are getting correct. Contact Alpha Card Services to make sure that we know exactly what type of business you’re in, so we can help you get the correct code. This will also help us to make suggestions to better serve your processing needs.

The 1099-K isn’t all bad, and when you have the right processor such as Alpha Card Services, it won’t be too difficult to implement a good system to accommodate the new reporting requirements. You should be prepared to deal with the 1099-K, because it is here to stay, but the burdens will be small if you have the right documents and are prepared.

Economy Dives: Large Banks Take a Lot of Flak; Small Banks Pick Up the Slack

The thought of your grandparents cashing their checks at the local community bank or opening their first bank account (and probably getting a toaster in return) is not just nostalgia anymore. The community bank is making a comeback, and this time, it is bringing the newest in technology to make your banking experience better than ever.

Large banks are actually shrinking, and fewer branches are offices are being maintained. It’s not just the economy, but the difficulty of altering huge businesses to deal with changes in regulations and changes in business and consumer activities. The scale of large banks is making it difficult for them to change to suit present needs and requirements, where small banks are able to switch activities and practices with far less hassle.

Some call it relationship banking, some call it main street banking, but whatever you want to term it, the end result is that small banks are finding that while the economy slumped, they had new opportunities to grow. The playing field leveled when large banks began to worry about collapse, and small banks have been able to take advantage of it.

Relationship banking is back in vogue, but with that comes the requirements of technology. Customers have come to expect not only the great service they pictured with small banks, but the technology they got from big banks. The right mix of technology and relationship can be the key to small bank success, but how can a small bank get a hold of this technology?

First, if you’ve banked, you probably know some of the great banking apps that are out there. And if you’re a manager at a financial institution, you know the importance of these apps.  There are apps to pay bills online, through platforms provided by your bank. Apps which provide depository mechanisms like taking a picture of a check and sending it to the bank. Apps which give the customer automatic updates on balances, and warnings when those balances reach a certain point. Finally, the mobile wallet provides a variety of conveniences, and paired with your bank, it can help keep track of all the customer’s finances.

Second, you’ll need to put those apps into place at your bank or credit union. Small financial institutions can’t expect to make it on relationship alone. Businesses and individuals both see technology as inseparable from their finances. As a main street bank, you’ll need to be prepared to integrate new technology into your system. Alpha Card Services is prepared to help. You’ll get personalized service from our knowledgeable staff, and industry leading merchant solutions.

Alpha Card Services’ Financial Institution team will train your employees and help your bank or credit union to integrate the technology seamlessly. You’ll find that our local office and quality assurance calls will give you peace of mind.  Additionally Alpha Card Services can help you to generate new leads and create free co-branding for your marketing efforts. Attendance at trade shows and free web-based tracking reports will help you to not only make sure you’re on top of the market, but that your customers are using the services you provide and it lets you know how you can make the services even better.

As a manager at a financial institution, you need to make sure that you are ensuring survivability. There is absolutely no better way to ensure your institution can flourish than to stay on top of market trends, alter your perspective to fit the market, and pair with a company that knows how to help you make technology work.

Don’t just take our word for it….read what our partners have to say!

Mobile Merchants and PCI DSS

Mobile Processing involves two features:

1. Mobile software application that is downloaded on the smartphone
2. The card reader that sends the credit card information to the software application on the smartphone

Every smartphone processing provider has a software application that is PCI DSS which is mandatory by the PCI Security Council; however, the biggest problem and one that has not been addressed by the PCI Security Council, is what happens to the credit card data when the credit card is swiped through the card reader and sent to the software application on the smartphone.

If a smartphone processing device is using the “audio jack” to connect the card reader, the card reader is sending audio signal from the card reader to the software application on the smartphone. These audio signals are the same signals that a touch tone phone makes when your press a number on the key pad-each number sends a different signal, thus the credit card numbers being sent to the application is a long stream of signals which are not encrypted making it very easy for this data to be compromised. It has been proven that this process can be “hacked” in less than an hour by an intermediate programmer which is why we do not support this type of device.

Audio Jack Card Reader

Our smartphone processing device utilizes the data jack on the Apple Products (iPhone, I touch, iPod touch) and Bluetooth for the Android to connect the card reader to the smartphone. This process utilizes “end-to-end encryption” which means that once the card is swiped, through the card reader, the card data is encrypted when it sends the card information to the smartphone application thus making it very difficult for the credit card data to be compromised. Most payment industry experts have hinted that the PCI Security Council will only allow end-to-end encryption for smartphone processing, making it the “standard”; thus making the “Audio Jack Card Reader” obsolete.

Data Jack Card Reader

 

The italicized section below was written by Suzie Maxwell, Director of Marketing at JDS Compliance.

What’s a Mobile Merchant to Do?

The mobile merchant market is one of the fastest growing market segments in the merchant processing space today.  Inevitably, tremendous growth is not without growing pains.   One area that has yet to catch up is the development of PCI compliance standards for these merchants.

How does a merchant validate compliance with a standard that does not exist?   Which SAQ “fits”, when none really does?  Talk to any PA-DSS approved provider and they will reassure you that they are PCI compliant.  Unfortunately, that does not speak to the merchant’s PCI compliance requirements.

There may be light at the end of the tunnel for these merchants and their merchant service providers.  The Payment Card Industry’s Security Standards Council has announced that they will focus on developing best practices for the mobile market in 2012.

BankInfoSecurity.com reports that Mike Mitchell, the council’s newly elected chair, says mobility is among his top priorities for action in 2012.  “We have special interest groups that will be looking at how to take a risk-based approach to the next level,” Mitchell said.

Because of its anticipated growth and adoption, mobile presents increasing concerns, and the council will need to address security risks for mobile payments, said PCI SCC General Manager Bob Russo.  “The adoption of mobile is running rampant, and when it comes to using personal mobile devices, people have not thought about all of the security,” Russo said. “We have a task force looking at this, and in 2011 we issued some guidance. This year we will be issuing some best practices.”

Mitchell noted mobile has the potential for mobile to transform the payments industry. “But with that potential are increased risks and increased vulnerabilities,” he said. “We want security to remain at the center of the payments evolution.”

Hopefully the development of best practices will provide guidance for mobile merchants, and those of us trying to help these merchants comply with the requirements of the PCI DSS.  Until a standard is established specifically for this market we are all left to grapple with this on a merchant by merchant basis.

Cloud Based POS: Growing and Revolutionizing the Way You Do Business

Cloud computing is not only a buzzword; it is a method of computing that you can use to grow your business. Cloud computing is a form of Internet based computing where shared resources, software, and information is provided to computers and devices on demand. Think of it like an electricity grid, where you get the electricity when you demand it, you don’t have to store it and waste space trying to keep it available and secure. Clouds are getting more secure and more user friendly every day.  And the uses, like other exciting new technologies, are seemingly infinite.

Today we’ll discuss how cloud computing can help you with your point of sale (POS) system. We have discussed POS a little, here and there. But this time we are going to focus on how a cloud based POS system can help your business.  Alpha Card Services offers a cutting edge cloud based system to help you deal with your business POS needs.

Cloud based software is beneficial for many reasons, not the least of which is saving money.  First, there is nothing to install. The software usually runs in a web browser and Internet servers take care of the rest. The cloud will automatically back up your information, making saving files unnecessary (sort of like with Google Documents, but with more than just a typing program). Then the server system secures the information on the cloud and keeps it safe until you need it again. No more back-up server and maintenance costs for your business!

With Alpha POS Systems you can count on the fact that you will always be on the cusp of the latest technology, and that information is in a secure location, even with changes in technology. Not only is it secure against outsiders, but it is held for your benefit, and you can set up the information you need.

So beyond providing basic computer storage; how can cloud computing help? Have you thought about your POS system lately? Think about using cloud based POS for menus, discounts, loyalty programs, and card processing, all without anything more than internet access. The POS system can also run without an active Internet connection, so if you lose access for a time, there is no need to shut down the store or restaurant.

Your typical retail POS can handle a myriad of customer transactions including payment, gift cards, returns, exchanges, coupons, and layaway. The POS system should also help you track inventory, sales, profits (or losses on a slow day) and create more efficient business management. The same capabilities exist in cloud based POS, and again, its saving you money by taking away the need for your business to physically store and back-up the information.

POS in a hospitality business, such as a restaurant or an inn can not only process all necessary payment transactions, but also track sales or menu items, labor and payroll compared to the money coming into the business, and generate records you need for accounting and bookkeeping. POS has revolutionized the restaurant industry in particular; the efficiency of POS systems has decreased service times and noticeably increased efficiency in the kitchen and in the management department. Now consider how the money saving and efficiency building capabilities of cloud based computing can further revolutionize your restaurant, and how it can help your business continue to grow.

Not only does the cloud help the customer get prompt service, but a distance manager can also benefit from the cloud based POS; imagine checking your inventory needs while riding the train to Timbuktu. When you can check up on your business in real time, you will know you can relax and manage your business without micromanaging your business.

The server you choose is important. You need a host who has the bandwidth and the technology available to get your information to you when you need it. To go back to our electricity analogy, you wouldn’t want to experience any rolling blackouts while you are trying to get crucial information for a customer.

If all of this is sounding too good to be true, thank technology. And if all of this is sounding like the way to grow your business and better serve your customers, then give us a call and find out just how easily you can implement a cloud based POS in your business.

Payment Through Social Media: Implementation and Implications

The pace of innovations in payment systems is staggering, and companies are striving to keep up. We’ve discussed the payment system in relation to text messaging, tap to pay systems, tokenization, and still more advancements are being made. Making news right now is the combination of social platforms and payment systems. At first glance, the two don’t seem too compatible, but some of the biggest social media platforms on the planet are working on allow exchanging of funds within their sites.

First, let’s talk about social media. As a business owner reading this blog, you probably know the biggest social media sites: Facebook, massive and used by almost everyone, Twitter, micro-blogging at its finest, and LinkedIn, the online professional networking site. Your business can create a page, then use it build relationships with potential customers, market your company, and network with others.

You already use the above sites, as well as others like Google+ and industry specific networking sites to build relationships. These relationships are intended to help you and your business to grow and appeal to others. Of course, the industry you are in will alter exactly how you use social networking. For restaurants you might tweet your daily specials or post your menu on Facebook.  For shops you might send text message blasts to all of your ‘followers’ advertising a sale, or post pictures of hot new merchandise on your page. As a salesperson or a service provider you might use your LinkedIn connections to advertise your specialties and provide information on your services. These sites already provide important benefits to your business.

Now, you can use those same social media connections as a method to give and receive funds. You can integrate your use of mobile wallets, Google shopping cart and payment systems, and PayPal to your social media sites. The two behemoths in the social networking world have pioneered the process. Both Facebook and Twitter are introducing a method to transfer funds between users, and other social networking sites are sure to follow.

Chirpify, the payment system platform for Twitter, seamlessly integrates the user’s PayPal accounts. The process is amazingly simple; tweeting a simple “Donate $5 @user” will transfer the amount to the named organization or person. This method is intended to be person-to-person or business-to-person, and acts as a transfer of cash.

Facebook has a slightly different platform.  It has Facebook users buy “credits” through a credit card or PayPal and these credits are used as money for other sites, games, or businesses. Facebook is feeling the pressure of Twitter’s new platform and is attempting to make its credits more attractive to users by cutting its prices for first time users. For example, Facebook offers $4.00 worth of credits for just $1.00. The businesses keep their full share of the revenue and (hopefully) new users are brought in. Facebook’s platform caters to game developers who promote their games through Facebook.  Currently though, Facebook is trying to build a platform that would allow transfers more like Twitter’s Chirpify, allowing person-to-person transfers.

The possibilities for these social media platforms are endless, stymied only by the willingness of users to share financial information on social networking sites. Social media sites are working on this problem by guaranteeing privacy and protecting information. Using these sites to promote your business is the first step to growing through using social media payment platforms. Alpha Card Services is closely following the developments of these platforms and our customer service representatives are available to help you implement these systems and integrate them into your current processing methods.

Ten Reasons to Use Text and Email Marketing

In many ways email and text message marketing are very similar, and these marketing campaigns can help you build a list of your best customers who want to hear from you. With either technique you can cast a wide net to capture more people who are interested in your product or services – without wasting money. But don’t take my word for it, here’s the top ten reasons why (and how) you can use email and text message marketing to grow your business.

10. It’s Cheap and Widely Used:

The traditional advertisements, like radio and newspapers, are declining in circulation, and some of the younger members of society have never used a phone book. Those ad campaigns cost you money – more of it than you would probably like to admit. But, you protest, ads cost money! No, not true. Part of the draw of email is that it is free. And it is used by young and old alike. I challenge you to show me a person who doesn’t have an email address.

Most cell phone packages include text messages now. 91% of your customers have a cell phone- and 95% of those cellphones have texting capabilities. So send out those emails and texts. Your customers will get them, and it costs you nothing more than putting the message together.

9. It Is an Opt-in System, and Therefore Welcomed by Customers

One of the benefits of this system of marketing is that your customer has to want the information, before you send it to him or her. Your customer will provide you with his or her email or cell phone, for the purpose of hearing about deals or specials at your business. They opt into the system. When the customer wants to hear the information, they are going to be receptive, and chances are they will want what you are offering.

8. It’s Instant

When you hit send on that email or that text message, the customer gets the information you are sending faster than any other medium (except person-to-person interaction).  When a person can get information quickly, they can also react quickly. You can send out a special from your restaurant for a dinner hour just a few hours ahead of time, and still be confident that your customers will receive the information. That may be one of the biggest benefits, a person can hear about the discount or the special, just when it is on their mind. And it saves you from having to think too far ahead either.

7. You Can Target the Right Customers:

With Alpha Card Services Text Messaging and Email Marketing Program, you can set triggers for certain messages based on how the customer buys. And data collected will show you what that consumer buys, and can help you to refine your marketing practices, and therefore increase your sales.

6. Increase Sales

After some case studies of text message marketing especially, analysts found that text messaging campaigns increased sales at Papa Johns by 33.5%, at the Hilton somewhere between 10 and 25%, and a super bowl advertisement by Pepsi Co. created a 9 million person response via text. And now, small business are participating and benefiting too. A chiropractor can send out test message reminders of appointments, restaurants everywhere are sending out dinner special coupons, and small stores are blasting customers with notices of sales. Just getting the customer in will increase your sales, and text message and email marketing has done that, no matter the size of your business.

5. Get Feedback

Some emails and almost all texts allow the customer to respond with feedback, which can be very valuable to you, the business owner. With 2 way communication, the customer can feel comfortable letting you know how they feel about a special, about a business practice, or just about how they are liking your product. This feedback can be extremely valuable to you and can let you know what your customer likes.

4. High Redemption Rate

Unlike with coupons which have to be clipped or torn to be used, customers have approximately a 20% redemption rate on text message specials alone. All they have to do is whip out their phone and show a text, and they get a benefit – and so do you. You know you brought in that 20%, perhaps solely through offering them that special. The high redemption rate for electronic marketing gives you a high return on investment, further emphasizing the benefits to this type of marketing.

3. Using Texts to Tie In Rewards Programs

Many retailers and restaurants are using rewards programs, which you can use to expand your email and text marketing. Send automatic emails to your customers in the rewards program which offer them extra benefits, or which let them know how they’re doing on getting to a discount or reward. Additionally, your text or email system can grow your rewards program by getting new participants involved.

2. Call to Action

You have seen them, the calls to action: “text 99999 to get a special offer today!” This passive sign posted on your building or in another area is a call to action for consumers. It lets them choose when and how they’ll receive the offer and almost guarantees their use of the offer. The call to action method is growing quickly as a favorite for retailers and restaurateurs, and can be utilized to help bring in more customers.

1. The highest ROI and Growth in Marketing Techniques

With Alpha Card Services you can easily and cheaply begin an email marketing or text blasting campaign that will bring in repeat customers, call in new customers, and allow you to grow your business with minimal cost to you. And that’s the end goal right? The most important thing your marketing campaign can do is grow your business, and that it can offer a high return on investment is only an added benefit for you.

Contact Alpha Card Services to get started growing your business and taking advantage of these great benefits today!

Tokenization: Beyond the Arcade Games

Tokens are a relatively recent development that can help merchants to process cards safely and at a reasonable cost. Tokenization is a buzz word that’s been flying around since the Payment Card Industry Security Standards Council (PCI SSC) acknowledged it and introduced guidelines to help merchants take advantage of tokenization without violating any PCI standards.

What is Tokenization?

In the simplest words, tokenization is the process of replacing sensitive data with some unique identification symbol. Tokenization in the merchant payment system seeks to minimize the amount of data a business needs to keep on hand- and therefore the amount of data that is at risk in the merchant’s system. Tokenization makes it difficult for hackers to gain access to data because whatever is stored in the database is not sensitive information after authorization of that transaction.

Tokens have been used in everything from storing medical data, social security information, and drivers’ licenses, all the way to card payment processing. Of course, the card processing use is the most significant to us, and probably to you too.

Tokenization converts credit card numbers into randomly generated values, called tokens. The token can only be used for that specific transaction and that particular merchant. For example, in a credit card transaction the token usually contains the last four digits of the card and the rest of the token contains other alphanumeric characters which represent cardholder information and other transaction specific data.

What Does Tokenization Have To Do With PCI Compliance?

PCI SSC standards do not allow merchants to store any credit card numbers on their point of sale terminals or in a merchant database after a transaction. Therefore, to run a card while in compliance with PCI SSC, a merchant must never retain the actual credit card number after authorization. Large merchants have the option of installing an end-to-end encryption system, but this system is expensive to install and maintain. For a medium to small merchants, a better option is to allow someone else to encrypt the information- or to tokenize it.

The other benefit of tokenization is that it doesn’t actually rely on encryption to keep it secure. Tokenization converts what is sensitive and valuable data, into letters and numbers which are insignificant to anyone after that transaction’s authorization is complete. Encryption attempts to hide the data, but it is much easier to simply make sure the data is not in the system in the first place. As was mentioned, this foils hackers, and makes access to sensitive information stored by the merchant impossible.

New Developments in Compliance

We talked about PCI compliance in general, but PCI guidelines have been supplemented by tokenization guidelines. PCI council worked on the new guidelines for about eight months, and the release of them represents a step forward for merchants. The council has finally agreed that tokenization is acceptable and can limit PCI compliance, and that alone is significant.

The supplemental guidelines outline what needs to be considered when implementing tokenization and recommends scope for the tokens. The supplement looks to the token process itself and makes suggestions for best practices when selecting tokenization as your PCI solution. Finally, the supplement defines domains and areas where specific controls need to be applied and validated, where the use of tokens effectively minimizes card data.

How Can Tokenization Lower My Costs?

As a merchant, keeping costs low is the bottom line, if you’ll excuse the pun. You have to comply with PCI SSC guidelines, but you also want to keep costs down. Encryption might help you comply, but it is so expensive. Not running cards can cause a loss of business. Tokenization solves both these problems, and more. Your payment processor should offer you the option to tokenize your card transactions and should provide you with peace of mind knowing you are complaint.

When the service provider is the medium through which you tokenize information, the provider issues you a point of sale device, and this device has the capability of converting credit card numbers into tokens. Your payment processor should be able to provide this service, which will help you comply with PCI SSC and lower your costs. You already trust Alpha Card Services with your processing, and know that you can count on us to help you remain one hundred percent compliant with PCI SSC. Our tokenization won’t change anything about that. You can go on with running your business, knowing that we are keeping up with compliance issues and helping you keep your customer’s data safe. Contact us for more information.