New tools, services help retailers
By Furniture Today Staff -- Furniture Today, August 11, 2003
Omaha, Neb. — Some cutting-edge hardware and software can help retailers speed payments from consumers, eliminate errors and reduce risk, according to providers of credit services.
New tools also can give retailers more options in accepting payment — like debit cards, and credit payments made at the time of delivery.
"In the furniture industry in general, we're seeing a lot of new technologies," said Cindy Oelke, vice president of marketing strategy for First National Merchant Solutions, whose services allow retailers to offer consumers a variety of payment options enabled by those technologies.
Among the latest such products from First National:
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A process called CompletePay that uses an electronic device to read a check and convert it into an electronic transaction, with no paper to process manually or take to the bank. First National says this can cut the cost of handling a transaction to as little as 20 cents per check, compared with $1 to $2.50 the traditional way. It also improves cash flow, since the money deposited this way is available to the retailer in a couple days, much quicker than with a paper check.
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Wireless terminals, which can be carried by delivery drivers or others working outside the store and can be used to accept payments. Swiping a card through the terminal eliminates keyed-entry errors, and can give the retailer a lower transaction-processing fee. Even in areas that don't have wireless coverage, where information must be downloaded from the terminal when it's returned to the store, the process gives a more secure record of payment.
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In-store systems that accept debit cards and ATM cards. These can be less expensive to process than credit cards, and give consumers another option. "People want to be able to pay any way they choose when they go to a store, and a lot of the furniture industry hasn't taken debit cards in the past," said Oelke.
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Internet payment acceptance. Most furniture stores still don't need this capability, since few are selling much over the Web, but those that do can find systems that offer protection against fraud as well as an efficient way to handle payments.
A related product that uses the new processing technology is the gift card, which is attracting more interest in furniture. These give the holder a certain amount, say $20 or $50, toward a purchase and can be swiped at a store's payment terminals. They can be sent as promotions to target audiences, such as people who are moving to new homes, or can be a proactive way to ease the distress of a consumer whose purchase doesn't get shipped on time.
