April 2007 - Vol.5, Issue 4
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April 2007 - Vol.5, Issue 4
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Undeniably Popular
   Mimi Ahlin Sales and Marketing Coordinator, Mobile Services What added value does Text to Buy bring to a merchant? "For merchants, Text to Buy provides impulse shopping, user convenience and real-time shopping/shipping. By leveraging the popularity of text messaging (specifically in the teen market), Text to Buy opens a new sales channel for merchants. This new way of shopping creates an ease of use that appeals to the fast-paced, energetic society we now live in." 
News
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IN THIS ISSUE
Introducing Cardinal MAX Learn how you can leverage our mobile platform to grow your business. More >>> Part II of Series: The Adverse Effects of Fraud Screening
Learn how re-aligning your order acceptance process can help you accept more orders and increase your bottom line. More >>> Text to Buy Merchants
Read how some merchants, such as the NBA Store, Sony BMG and the Bravo Network have used Text to Buy to open a new sales channel. More >>> Cardinal MAX As you know, Cardinal offers the Universal Merchant Payment Platform which enables eCommerce merchants with all online payment methods. What you may not know is that we also offer Mobile Commerce solutions. Our Mobile Platform allows Customers to receive and pay bills, access balances, reload stored value or prepaid cards, transfer money and much more. This month's newsletter focuses on our partnership with PayPal to leverage the Cardinal MAX platform for Text to Buy. 
I bet that if I asked you right now to empty your pockets, one of the things we'd find is your mobile phone. Just about everyone has a mobile these days; in fact there are 219.4 million wireless users in the U.S. alone(1), and 98% of those mobile phones are enabled with text messaging functionality(2).
PayPal Text to Buy allows retailers to tap into this now customary communication tool to begin accepting payment for orders. With this revolutionary payment method, anytime a consumer sees the Text to Buy logo next to something they want to buy - on a poster, in a magazine, on a billboard, at an event or on TV - they can purchase the item right then and there via text message. Here's how it works: A consumer activates their phone for PayPal mobile, linking their phone to the PayPal account they use to make online payments (This step can be completed prior to making the purchase, or during the purchase directly from their mobile phone). Step 1: A consumer sees the Text to Buy logo in an ad for a desired item. Step 2: The consumer text messages the product code to the number shown. Step 3: PayPal calls the consumer to authenticate them and confirm the order. Step 4: The item is shipped to the address listed within the consumer's PayPal account and funds are transferred from her PayPal account to you, the merchant. Consumers will no longer have to wait until they get home, find their wallet, get online or go to the store to buy a product. Text to Buy offers true immediate purchase power. As a merchant participating in Text to Buy you can expect to:
The Text to Buy experience is quick, easy and fun for your Customers, ultimately resulting in repeat purchases and more sales for you. Your Customers will buy more, more often due to:
Cardinal provides the platform for all Text to Buy payments. We can help you get started today with this new sales channel. Call CardinalCommerce Merchant Services to learn more: 877-352-8444 or email Salesupport@CardinalCommerce.com. (1) Cellular Telecommunications and Internet Association Part II of Series:
Order Acceptance Processes In last month's issue we talked about the umbrella of initial screening, which encompasses payment brands, international business and any other site-branded order acceptance policies. Once your business has decided which initial screening practices you'll enable, more than likely you'll then consider means to deal with the threat of fraud. This month we'd like to take a look at these tools and some other tools/systems you may want to consider for your business. 
Over two-thirds of merchants in 2006 reported that they deployed three or more fraud detection tools, with 4.8 tools being average(1). Larger merchants (over $25M) reported to use 7 tools on average. Undoubtedly, these fraud screening tools will help prevent real fraud, but how many good orders will be inadvertently turned away in the process? How much are you spending on fraud screening? Are there more efficient and effective ways for your business to mitigate risk and accept the right orders?
Although tools such as Address Verification, Cardholder Verification and Negative Database Scans are helpful practices in detecting fraud, it is important as a business decision maker, to consider the flaws within these systems. They are imperfect, expensive, and labor intensive. They can provide false negatives (declined orders from legitimate customers) and they can take revenue away from your bottom line. Let's face it, fraud screeners make money on each transaction that your business submits to them. How much does your business spend per order on fraud screening? 15, 20, even 30 cents per order? As fraud screening tools become more sophisticated and advanced in technology, screening packages increase in cost. Merchants are spending more per transaction to fraud screen their orders, but still have no guarantee that they will receive payment and the orders will not be charged back. The reality is, there are more effective ways to lessen fraud risks than simply sending each and every order through screening. Take a moment to consider your order acceptance process; you may be overlooking an incredible value that is available to your business. As you know, there is no guarantee that an order is legitimate even if it does pass fraud screening; those orders can still be charged back. Authentication programs offered by Visa and MasterCard, however, have the unique ability to protect merchants from the liability of fraudulent chargebacks. Wouldn't it make sense then, to deploy these authentication initiatives (Verified by Visa and MasterCard SecureCode) on your site, and then send the remaining transactions through fraud screening? If you re-align your order acceptance process to authenticate first, and then fraud screen, you'll be saving your business valuable time and money, while still maintaining confidence in your order acceptance. In overall fraud prevention, fraud screening is a valuable tool, but as with any business system, it must be monitored and updated as new tools/systems become available. CyberSource's Annual Online Fraud Report notes that Verified by Visa and MasterCard SecureCode are the most sought-after fraud detection tools in 2007, proving that authentication is here and it is here to stay. Why not take advantage of the benefits Visa and MasterCard are offering to merchants that utilize authentication? You'll have the confidence to accept more orders with guaranteed payment and be able to lessen screening costs. To learn more about how Cardinal can help reduce costs and help your business fight chargebacks, contact our Merchant Services Department at 877-352-8444 or email Salesupport@CardinalCommerce.com. Merchant Spotlight: Text to Buy Merchants
New Sales Channel and Incremental Sales Marketing Potential Added Visibility and Availability These are just a few of the added benefits participating Text to Buy merchants are taking advantage of. Call CardinalCommerce Merchant Services to learn more about the merchant-level benefits Text to Buy offers: 877-352-8444 or email SaleSupport@CardinalCommerce.com. |
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Copyright®2007 CardinalCommerce Corporation.
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www.CardinalCommerce.com
1-877-352-8444
* Patent No. US 7,051,002 B2
Many high profiled, mainstream retailers are already taking advantage of the benefits Text to Buy offers. Merchants like Sony BMG, MTV, the NBA, and Bravo Network are currently offering promotions to PayPal users that would like to make purchases via their mobile phones. Click