Have you ever thought about how inefficient credit cards are? Probably not. As merchants we like to accept them in order to compete and as consumers we only see the advantages. After all, it's nice to be able to buy what we want, when we want it, without having to stop at the bank. But let's take a look at what's really happening when we use our credit cards.
Once you swipe your credit card, it goes into the store's system, through a sales organization and eventually to a payment processing network. From there, the transaction must go to the issuing bank for verification, then back to the merchant for processing. That's a long process, but unfortunately, it's not quite finished.
Once you, the consumer, have verified the transaction, it must go back to the issuing bank, who can then send the money through the processing network to the merchant's bank. There are actually 10 steps involved in getting the money from your credit card to the merchant's bank, and each step presents its own security risks. Add to that the fees associated with each step, and you can see that credit cards aren't really all they're cracked up to be. But there is an alternative.
At Netclearance, we have developed a system that allows consumers to make purchases using their smartphones and transferring the money directly into the merchant's bank account. It's called mBeaconPay.
You may be thinking that this system isn't any different form other smartphone pay systems, but it is. Apple, Google and other existing pay systems are set up to work just like a credit card using the 10 step method to make a payment. mBeaconPay accomplishes the task in just three utilizing Bluetooth LE - a fast, secure and low power variant of the traditional Bluetooth technology, thereby cutting out the "middleman" and all the fees that go along with it. Contact us today to find out how you can incorporate this exciting, new technology into your business.