Advancements putting an end to unnecessary fees
The merchant services industry has undergone significant changes in recent years, with the rise of new technologies and innovations that have made traditional gateways obsolete. In the past, software companies used gateways as a way to charge extra fees for connecting to third-party processors. However, major manufacturers such as Pax technology have now created pre-certified payment applications for every major front-end platform, eliminating the need for these extra costs.
Major card brands such as Visa, MasterCard, and Amex have released kernels free of charge to encourage payments innovation and allow point-of-sale companies and e-commerce companies to connect directly to the card brands. This has further reduced the need for gateways and toll roads.
One of the most significant changes in the merchant services industry is the emergence of tap-to-phone technology. This eliminates the need for payment terminals, allowing customers to make payments by tapping their phone to the merchant’s device. Tokenized cards on the card brand level, which encrypts and stores sensitive card information, will also do away with unnecessary fees.
The merchant services industry has evolved significantly in recent years. The rise of tap-to-phone technology, pre-certified payment applications, and tokenized cards on the card brand level has made it easier for merchants to connect directly to the card brands, reducing costs and increasing efficiency. As the industry continues to evolve, it is likely that we will see more advancements that will reduce costs.