State of the Industry 2017 --- and Where Do You Start?

State of the Industry 2017 --- and Where Do You Start?

Below are highlights from an article stressing the state of the merchant payments industry and below that we will highlight areas of particular opportunity to you as a diligent Digital World Agent building your 'in perpetuity' residual and team:

State Of The Credit Card Processing Industry For 2017

Posted: 2/24/2017 9:46:00 AM

Despite the rapidly evolving payment options that consumers have today, credit cards still remain the leading payment method. In fact, according to the 2016 U.S. Consumer Payment Study, this was the first time that “credit took over the top spot as the overall preferred way to pay, replacing debit as the number-one choice in years past.”
However, that may not last much longer. Between technological advances and the preferences of Millennials, the credit card processing industry is changing on an almost daily basis. With that in-mind, here is the current state of the credit card processing industry for 2017.

Millennials

Millennials are completely disrupting the entire credit card industry. And, that deserves your attention as a merchant or financial institution.
For starters, they’re the largest customer base, are hyper-connected, and educated. They also don’t want debt. According to a Bankrate survey, just 33 percent of Millennials between the ages of 18-29 own a credit card. That’s the lowest among any demographic.

Instead of plastic, Millennials are turning to companies like Google, Apple, Amazon, PayPal, or Square that provide them with digital services, personalization, and availability to real-time data.

To appeal to this demographic, merchants are required to provide nfc and other technologies.

Out With The Old, In With the New

Instead of swiping credit cards or manually entering a customer’s card information, merchants should be looking at the new and exciting ways to process payments, which includes:
Near Field Communication/Bluetooth Low Energy
Popular mobile wallets, such as Apple Pay and Samsung Pay, rely on near field communication (NFC) technology. This technology simply allows customers make a purchase simply by holding their phone to a credit card terminal. This isn’t only convenient, it speeds up the time that customers spend in the checkout line.

Business Insider expects the mobile payments volume to rise to $503 billion by 2020 with 56 percent of the consumer population using mobile payments for in-store purchases.

Continued EMV Adoption

EMV didn’t have the smoothest first year of adoption. Despite the fact that 70 percent of U.S. credit card holders possess EMV chip cards, only between 22 percent and 37 percent of retailers have adopted the technology. “Consumers have the chip-enabled cards and are looking to use them,” said Rob Cameron, chief product and marketing officer at Moneris.

EMV is here to stay and we can anticipate more retailers making the switch over the next couple of years. Besides improving security for customers, EMV terminals are often equipped with NFC technology so that merchants can process cards through contactless methods. Because of this, expect to see the emergence of contactless payments.  

“While the consumer adoption of various contactless pays, such as Apple Pay and others, has yet to set the world on fire, perhaps they will end up giving another reason for merchants to invest into chip terminals,” adds Zilvinas Bareisis, senior analyst at Celent.

Keeping Up With PCI Compliance

In April 2016, PCI DSS 3.2 was released, with version 3.1 being retired on October 31, 2016. These new requirements included:

• Additional multi-factor authentication, which organizations have until February 2018 to comply.
• Incorporation of “Designated Entities Supplemental Validation”
• Extended migration dates for SSL/early TLS

Like EMV, PCI compliance isn’t going away. In fact, it’s required for anyone that accepts credit cards. Failure to comply could result in fines and revocation of your credit card acceptance privileges.

How Big is the Credit Card Processing Industry?

Feb 2017
U.S. General Purpose Brands Purchase Volume in 2016

Purchase volume, which is spending at merchants for goods and services, generated by cards issued in the U.S. totaled $5.143 trillion in 2016.  

Jan 2017
Purchase Volume Worldwide 2015 vs. 2025

Visa, Mastercard, UnionPay, American Express, JCB, and Discover/Diners Club are the global brand general purpose cards. By 2025, purchase volume for goods and services by cards with these brands is expected to reach $54.891 trillion. 

Source: Nilson Report 

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Kids, we're sorry if you find card processing a bit 'smart' --
if you're afraid to speak to a merchant --
if you are not techhy --

THE THING YOU NEED TO FOCUS ON IS 

A. THE SIZE OF THE INDUSTRY MEANS YOU ONLY NEED A TINY TEENSY PART,
B. THE SIZE OF THE INDUSTRY MEANS THERE IS ROOM FOR YOU TO BUILD A TEAM OF ZILLIONS OF AGENTS EACH GETTING JUST A FEW MERCHANTS AND
C. THE TECHS AT DW AND ITS PROCESSING PARTNERS TAKE CARE OF ALL THE 'SMART' STUFF, LEAVING YOU TO SHOP, EAT, PURCHASE, ... MEET A FEW LOCAL MERCHANTS....

AND SHARE WITH THEM THE DW BENEFITS TO THEM, by getting them to watch a quick, excellent DW video!

 You see that the industry is beyond ANYTHING ELSE there is -- and growing.  No down quarters ever, since the beginning.  So the question is

Where Do You Start?

Start some chatter by giving your card or flyer out to every establishment you enter today!  Or email one of your personalized videos out to potential agents and merchants tonight!

Repeat!  Repeat!   Repeat!    Repeat!    Repeat!

REMEMBER   you can give your local merchant a 
FREE EMV-NFC TERMINAL already set up and ready to use...AT BEST SERVICE AND RATES! 


 

Keep Talking EMV Chip Readers

Reason #1 Why we keep talking FREE EMV terminals merchants:

 

There's a Problem With the New Chip Credit Cards

by Tracy Thompson, AARP, February 6, 2017|Comments: 41

Fraud cases involving chip-enabled cards occurred at 64 percent of merchants.

Those new security chips in your credit cards aren’t helping much in cutting down on credit card fraud, partly because thieves found other ways to steal and partly because not enough merchants are using the chips, says a new report issued this week.

The report, compiled by consulting firm Javelin Strategy & Research and identity-theft-protection firm LifeLock Inc., said nearly half of credit card fraud cases involving chip-enabled cards occurred at 64 percent of merchants who haven’t installed chip-enabled terminals.  

Overall, the number of identity theft victims rose 18 percent since 2015 — a number that represents 15.4 million people and losses totaling $16 billion.

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Even though the deadline was Oct. 2015 for merchants to get new EMV chip reading terminals or they would have to bear the cost of any credit card fraud, here we are eighteen months later and thousands of merchants are not chip-compliant and their losses to credit card fraud is in the $16 BILLION range!!

You can GIVE your local merchants new EMV terminals that are operational and protect them from fraud -- at excellent rates and A+ service.

Keep sharing the DW Business Consulting advantages with every merchant you come across -- and share the awesome DW biz with everyone you know who wants to create professional career residual income from the most secure financial sector in existence:  payments processing!

How Big is Big Enough for You?

In 2015, Direct Sales Reached 183.7 Billion in Revenue
What was your take?

When was the last time you recommended a movie or health related tip or product to a friend, family member or colleague. Millions of people do this every day – and get paid for it.
The Network Marketing and Direct Sales profession hit a new record high in 2015 with $183.7 Billion in global sales.¹

Roughly $73.4 Billion (40%), was paid directly to distributors via commissions. That’s $6.1 Billion per month and $201 Million each and every day – 365 days a year.²

1 Source: WFDSA.org2 Source: Xennsoft LLC and DSA

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Graphic Source:

NFL: $13 BILLION Source: CNN

MUSIC: $15 BILLION Source: IFPI.org

VIDEO GAMES: $67 BILLION Source: Fortune

MOVIES (box office): $10.8 BILLION Source: Statista

MOVIE INDUSTRY: $38.3 BILLION Source: The Guardian

ORGANIC PRODUCTS: $91 BILLION Source: Statista

NETWORK MARKETING: $183.7 BILLION Source: WFDSA: Global Direct Selling – 2015 Retail Sales Report.

The Network Marketing and Direct Sales industry profession hit a new record in 2015 with $183.728 Billion in global sales. The U.S. was ranked as the top direct selling market in the world with 20% of worldwide sales, China came in second with 19%, S. Korea third with 9%, followed by Germany at 8% and Japan at 8%. Other counties making their mark was Brazil, Mexico, France and United Kingdom to name a few.

Direct sellers include individuals who are career minded entrepreneurs (full or part-time), building their own business within their respective company.

Sales figures are expressed in USD and are estimated retail level and exclude sales tax and VAT with international sales being converted to USD using the exchange rate as of February 2015.
Figures are based on DSA Members only and do not include the entire industry.

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HOW BIG IS CARD PROCESSING INDUSTRY?  WEELLLL, WIKIPEDIA SAID THIS A LOOONG TIME AGO:

Payment Processing Industry Overview

The payment processing industry provides merchants with credit, debit, gift and loyalty card and other payment processing services, along with related information services. The industry continues to grow as a result of wider merchant acceptance, increased consumer use of bank cards and advances in payment processing and telecommunications technology. According to The Nilson Report, total expenditures for all card type transactions by U.S. consumers were $3.3 trillion in 2007, and are expected to grow to $4.8 trillion by 2012. --

 AND IT HAS JUST BEEN GOING UP UP UP EVER SINCE !!

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 Surely that's big enough for even YOU  to haul yourself out and help a merchant this week!  

Like, oh, say, your favorite restaurant!  
 

EMV Continues to Concern Restaurants (or....DW Agent:  TALK TO A LOCAL EATERY TODAY AND GET HIM EMV RELIEF with Digital World free equipment and best service and rates!!)

By  Lee Holman, Lead Retail Analyst, IHL Group | February 16, 2017

Hospitality Technology’s Restaurant Executive Summit, offers restaurant leaders ample opportunities for invaluable peer-to-peer networking and idea-sharing. During an informal roundtable discussion at the 2016 summit on Nov. 8, industry colleagues discussed the current state of EMV adoption in the restaurant industry. Foregoing prior history, the mandated liability shift for EMV for non-fuel U.S. retailers and hospitality providers occurred in October 2015, more than a year before this discussion.

While the deadline had long since passed, these restaurant operators revealed that that prior to EMV becoming buzz-worthy, they were already doing their homework on how best to deal with the mandated liability shift. Operators at the table represented chains ranging from less than a dozen restaurants to nationwide outfits of more than 1,000 locations. These restaurateurs had performed cost analyses and expected value calculations on likely scenarios that were representative of what they might face.

In some cases, the rational decision was to deploy the hardware, software and services necessary to fully meet the deadline and thereby avoid any fees or penalties. Two companies at the table did just that. In other cases, the decision was made to do something other than a full technology deployment. That ranged from doing nothing at all (and happily paying whatever fees/fines/chargebacks were levied) to deploying sufficient technology to mitigate (but not eliminate) the full potential risk. One restaurateur stated the entire level of chargebacks the previous year was considerably less than the tens (if not hundreds) of thousands of dollars necessary to fully meet the liability shift’s requirements.

When discussing the chargeback issue, the restaurant industry professionals mentioned that they were being affected in different ways. For instance, in the case of chains that had yet to be certified as being EMV compliant, some had noticed a spike in chargeback activity, including for lost and stolen cards. This was concerning because retailers and restaurateurs are not supposed to be liable for this type of activity under guidelines. To that point, one restaurateur indicated that even after providing time-stamped video footage of a charged-back transaction that clearly showed the perpetrator, the bank refused to reverse the chargeback.

According to some restaurateurs, this increased chargeback activity wasn’t limited to those who were not yet EMV compliant. Lost and stolen cards are being targeted at restaurants where Chip & Signature is employed, since the card is (typically) still a valid card even though the user isn’t a valid user. Less-than-honest consumers are getting in on the act, as well. If the consumer claims a charge on a valid card by a valid user is invalid, the path of least resistance for the financial institution is a chargeback to the restaurant. Transactions involving large gift card purchases and large dining parties were cited by some of those at the table as being the cause of many chargebacks.

In a move that sounds like it came right out of Joseph Heller’s Catch 22, some retailers and restaurateurs have responded to the fraudulent chargeback activity of the financial institutions in a unique but entirely foreseeable manner. Simply, in clear violation of PCIDSS standards, some retailers and restaurateurs are storing the very Track 2 card data that PCI and EMV was supposed to protect. They are doing this in order to maintain an audit trail in an effort to contest the increasingly fraudulent chargeback activity.

How have the banks responded? This particular discussion occurred within six months of a handful of lawsuits filed on behalf of merchants of all shapes and sizes. Some of the lawsuits are progressing. Restaurants are hoping the outcomes of the lawsuits might provide some relief down the road. At this particular table, the restaurateurs were almost unanimous in feeling that banks and financial institutions did not show much concern about the plights faced by restaurants. This seems to be particularly evident from the bank's willingness to issue chargebacks and their lack of responsiveness to requests for EMV certification.   Some operators commented that the banks and card issuers didn’t really show much interest until after lawsuits started getting filed.


Lee Holman also co-authored the IHL Group study titled EMV: Retail’s $35Billion “Money Pit,” published in May 2015.   

Over $10 TRILLION --what?? You want more?

HAPPY NEW YEAR, DIGITAL WORLD AGENT!

2017 is poised to break all records in the cash-less world of commerce -- as well as in the unique and lucrative world of getting money back for merchants who are habitually overcharged for almost every facet of their basic business expenses!

Here are some forecasts:


The point of sale and retail industries have been shaken up in recent years with the rise of new payment technologies. From mobile wallets to on-demand apps, and consumer demand for a more personalized and interactive shopping experience, merchants big and small are facing a new wave of expectations from customers.

To stay ahead of the rapid changes in payment technology, merchants need to understand who is driving these changes. At one-fourth the U.S. population, millennials outnumber Baby Boomers and are three times the size of Generation X. Having grown up in the days of instant gratification (e.g. Netflix), the millennial generation wants everything to be ready when they are. This crosses over into their interactions with a retailer or restaurant, which they expect to be as easy as a swipe, click, or voice command.

As each year brings new technological advances, the POS and retail industries will continue to experience the impact of innovations in payment technology.



Mobile Wallets

Mobile wallets could be the single biggest transformation in payments processing if they take off in the way that many analysts expect.
Retailers are particularly excited about mobile payments because they can offer valuable insights about customer transactions that companies can use to enhance the shoppers' experience. The speed of mobile payments can also help increase foot traffic in stores, which in turn would generate more sales.
In 2014, Apple was the only major mobile wallet on the market. But in 2015, Google and Samsung launched their own mobile wallets, and Walmart, Chase, and other major players joined the market. BI Intelligence, Business Insider's premium research service, expects in-store mobile payment volume to grow from $75 billion in 2015 to $503 billion in 2020.

Swiping will disappear

More merchants will adopt systems to accept chip cards in 2017.

Outside of how much you will pay and how many rewards points you’ll earn, another fundamental aspect of the American credit card experience will continue to change in the new year: how you use cards. As more merchants adopt EMV-enabled payment terminals, you won’t have to ask what to do with your card at checkout much longer. However, there is one place where you can still expect to swipe for the foreseeable future: the gas station. Visa just gave gas stations permission to delay the chip rollout until 2020. If you’re concerned about fraud, that’s not exactly helpful; the pump is one of the easiest targets for skimming card numbers.

Source http://thepointsguy.com/2016/12/5-credit-card-predictions-for-2017/#ixzz4UiscA6Vj

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Nilson Report Dec 2016
Purchase Transactions on U.S. Consumer Payment Systems
Purchases of goods and services accounted for $9.550 trillion in 2015. This accounted for 77.75% of all personal consumption expenditures in the United States. 

Waiting on figures from '16 -- but anything over  $10 TRILLION is a fair number, don't you think??

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Happy Christmas Campers

FROM THE INBOX:

Just off phone with Co-Founder John Daniels and boy is he excited!!!

We have 21  Stryde cases in the hopper and 4 of them already have contracts and all documents signed.

Minimum $$$ recapturing for each of these 4 biz owners is $400,000.

Some of you are gonna be happy campers.

Also he told me another  of our $1,000,000 + Merchant accounts isnow  active with their multiple  terminals.

We will be able to post a copy of the  40% commission check when issued.  Gonna be a shocker for sure!

Mike

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ALSO FROM INBOX:

Received an urgent email from a dry cleaner merchant who refused to get a chip terminal last year when we asked him to -- he just got hit with a $75 fraud charge due to NO CHIP so now he is begging for that free emv terminal!

Hmmmm... should we hurry one to him or not?


Just kidding; WE WILL, OF COURSE!   And now might be a good time for you to check back in with those stubborn Anti-EMV merchants from your past!

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Happy Free Chip Readin' Terminal Snowman!

EMV Still a great doop-opener to merchants

News headlines show more and more fraud costs are being absorbed by those merchants who do not have -- or are not using -- chip terminals.  John Daniels has a great study of stats on this currently....watch his Micros/Oracle training as soon as is posted.  In the meantime:

 Lifelock has an emv chip quiz for you!  (I got  12 out of 12.)

Click here to see.

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Don't miss Jim and the Stryde hour today -- noon Pacific time!

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DW Co-Founder John Daniels with Agents Michelle and Dave Margolati

Remember. once an Agent, always an Agent.  This season can be the incredible beginning of YOUR residual fortune.  Get up to DW speed today!

More about Texas:


Friday:  Agents Sanford Valentine and Vince Palmisano, along with Rob Freytag from Electronic Payments, are installing a company RECORD 20 Clover  POS systems at the 5,500 seat Mesquite Rodeo Arena in Mesquite, Texas. As you can see Sanford is pumped up and excited!

This all came about because while paying for his meal at a barbecue restaurant, he noticed they hadn't upgraded their credit card terminal. He began talking to the cashier, who just happened to be the owner's son, about what Digital World can offer them. And to Sanford's amazement, this owner not only owns several of these BBQ spots, but also just closed the deal to provide all ticket sales and concessions for the local arena. A 5500 seat arena that hosts major championship rodeos, an Arena League football team and concerts! 

My goodness you never know what can come from a simple conversation. Because he noticed the old equipment and simply started a conversation, Digital World is about to change his life. Oh and once the arena is completed, he'll begin working on upgrading the BBQ restaurants as this owner has about 6 of them. 

 Congratulations Sanford and to ALL 7 LEVELS (he's on my 2nd level and my wife's 3rd level) of your upline! Today is a GREAT day! Teamwork makes Dreamwork -- Mike Herron

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Saturday update:  Well, the system is in and running; today will be the training and the real test. We are all keeping our fingers crossed that there will be no glitch in the system.  I didn't realize all it can do and yes I am learning a lot and it will be put to use in Houston next week.
I am learning plenty and heading to the training session and will be sending pics from there soon... Vince Palmisano

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Will post pics as I get them!  In the meantime.... Happy

Reason #8 'why all merchants need a new chip-NFC-ready terminal" (whether they think they do or not):

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- See more at: http://www.emarketer.com/Article/Mobile-Payments-Will-Triple-US-2016/1013147#sthash.Ah5Oh9uq.dpuf

Mobile Payments Will Triple in the US in 2016

Oct 26, 2015

Nearly one in five smartphone users will use mobile payments by next year

The number of people in the US using their phones to pay for goods and services at the point of sale will continue to climb steadily, with 2016 being a year of significant growth for the technology. According to the latest proximity mobile payments forecast from eMarketer, the total value of mobile payment transactions in the US will grow 210% in 2016.

eMarketer defines proximity mobile payments as point-of-sale transactions that use mobile phones as a payment method, via tapping, waving and similar functionality.
In 2015, mobile payments will total $8.71 billion in the US, with users spending an average of nearly $376 annually using their mobile phone as a payment method. By 2016, total mobile payment transactions will reach $27.05 billion, with users spending an average of $721.47 annually. Total mobile payment sales will rise faster than average spending per user in 2016 because of the growth in the number of overall users of the technology.

“Several factors will drive substantial mobile payments growth in the US. Mobile wallets like Apple Pay, Android Pay and Samsung Pay will become a standard feature on new smartphones,” said eMarketer analyst Bryan Yeager. “Also, more merchants will adopt point-of-sale systems that can accept mobile payments, and incentives like promotions and loyalty programs will be integrated to attract new users.”
eMarketer expects there will be 23.2 million people in the US using proximity mobile payments in 2015. By 2016, that will grow 61.8% to 37.5 million.


Source: http://www.emarketer.com/Articles/Print.aspx?R=1013147

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Here are a few DW options for your merchant -- which one should they be on?  It all depends on their needs .... that's why we upload their processing statement to DW:  so DW can tailor a plan for them:

Desktop Terminal Business types that are suitable for this type of program would be a clothing store, auto repair shop, a doctor's office, a diner, etc. They are most often used in retail shops and restaurants, when the merchant has the customers card in hand, to process the credit card transaction. 70% or more of cards processed by merchant are by physically swiping the credit card. more

Desktop Terminal With Mobile Attachement Used in retail shops and restaurants when the merchant has the customers card in hand, to process the transaction. Examples of businesses who would benefit from both a desktop terminal and a mobile attachment would be limo services, towing, pizza delivery, etc. 70% or more of cards are processed by merchant physically swiping the credit card.

Tablet System PayAnywhere This system is great for small mom and pop stores as well and non-complex retail and restaurants. 70% or more cards are processed by merchant physically swiping the credit card. more Online Application (processing over $5,000 monthly)

Tablet System Clover Mini Used in retail and restaurants when a merchant processes face to face customer sales. Examples of merchants that would be a great fit for the Clover Mini would be, clothing stores, small Mom and Pop stores, small non-complex restaurants, and anyone who wants a Tablet system with a built in printer, that can also keep track of inventory. 70% or more cards are processed by merchant physically swiping the credit card. more

Computer Gateway With Megstrip Computer Gateway, also known as a Virtual Terminal, would be used when a merchant wants to process via the computer. Examples of merchants who would process this way would be a doctor's office, hair salon, lawyer's office, etc. 70% or more cards are processed by merchant physically swiping the credit card. more

Clover Station Merchants who want the convenience of inventory management, reporting, and employee clock in/out, will find Clover has specific apps for every merchant type. Restaurants, retail stores, and resale shops, processing over $20,000 monthly, are a great fit for Clover. 70% or more cards are processed by merchant physically swiping the credit card. more ***************** RIGHT ON!!

Mobile Payments Will Triple in the US in 2016

Nearly one in five smartphone users will use mobile payments by next year

- See more at: http://www.emarketer.com/Article/Mobile-Payments-Will-Triple-US-2016/1013147#sthash.Ah5Oh9uq.dpuf

Mobile Payments Will Triple in the US in 2016

Nearly one in five smartphone users will use mobile payments by next year

- See more at: http://www.emarketer.com/Article/Mobile-Payments-Will-Triple-US-2016/1013147#sthash.Ah5Oh9uq.dpuf