June 2013

Information from Streamline to help your business

www.streamline.com

SPOTLIGHT

2 streamline.com

WelcomeA word from Ian Rutland, Head of Propositions and Marketing, Streamline

This month’s edition of Smarter Business is packed with technology news – whether it’s the results of our recent research on how customers like to pay for goods and services or how broadband can compliment your Streamline terminal technology. And given the recent speculation on contactless payments in the media we take a look at how security works with contactless technology and how this payment method is growing here in the UK.

We’ve also got plenty of hints and tips on getting the most from taking card payments, with advice on choosing the right shopping cart, and why it is so important to effectively perform a reconciliation each day – which is one of the most commonly asked questions in our UK-based contact centre.

You can provide feedback or topics you would like to see covered in future issues of Smarter Business by emailing us at

smarterbusiness.feedback@worldpay.com

Ian Rutland Head of Proposition and Marketing, Streamline

Streamline is part of the WorldPay group

Visitstreamline.com

CONTENTS

3 Biometric payments trump social, smartphone and contactless for security-conscious shoppers

4 Contactless security concerns do not slow overall adoption

5 Does your business need broadband?

6 Streamline launches new mobile payment service for sole traders and small businesses

7 Ask the expert: Reconciliation and why it is so important

9 Choosing your shopping cart made easy

10 A change in our regulator

Japan Credit Bureau to issue new 19 digit cards

Streamline to help judge the Retail Week enterprise awardsRefer a friend to Streamline and we’ll

reward youIf you know someone who could benefit from our range of payment solutions, we’d love to hear about them.

Every time a business you refer successfully signs up with Streamline, we’ll send you a £100 flexecodes e-voucher within 3 months of your friend joining us, to show our appreciation.

Find out more about our referral offer including the terms and conditions which apply.

3 streamline.com

Biometric payments trump social, smartphone and contactless for security-conscious shoppers

Security-conscious shoppers want to pay for goods and services through fingerprint, palm and iris scanners according to new Streamline research.*

One in 2 people surveyed (49%) stated they would like to have biometric payments, such as fingerprint, palm or iris scanners, far outweighing the popularity of emerging mobile technology options. 30% would like to use PIN based smartphone payments, 25% online wallets, and 23% are keen to use SMS payments. Paying through social media was the least popular choice, with only 12% expressing they would like to use it.

The research, culminating in a report into the payment marketplace examined shoppers’ attitudes and use of emerging payment technologies, including smartphones.

One in 5 people (20%) have already made a payment of some type through their smartphone, but even more are using them for research and reporting in-store. 45% are using it for ‘show-rooming’, where they choose to browse in-store, and then shop online later.

45% use smartphones to check prices, 31% to comment on their shopping experience via social media and 28% to download vouchers and coupons.

Commenting on the findings, Michael Cassidy, Head of Insight at Streamline, the face to face division of WorldPay said: “It’s interesting to see customers considering options such as biometric payments, a science that they may have seen in sci-fi films or on TV, as something they would want to use in the future, especially when it seems this type of payment technology could still be light years away.

Businesses should consider how they use social media to engage with those customers commenting on their shopping experience and explore how they can capitalise on the latest trends in show-rooming and coupons to maximise sales.”

How does show-rooming compare in your local area?

% agreeing

Total

Birm

ingham

Bristol

Leeds

Liverpool

London

Manchester

New

castle

Nottingham

Scotland

Wales

Show-rooming often or sometimes

45% 48% 55% 50% 35% 50% 46% 36% 54% 42% 57%

Read the full press release >>

* The research was carried out independently on behalf of Streamline by Davies Hickman Partners between April and June 2013. It included qualitative and quantitative research. Consumers completed 9 x 1.5 hour depth interviews in Cardiff, London and Manchester exploring attitudes to payments and trialling and testing new payment methods. This was followed by a 30 question survey of 2,159 consumers completed online in May 2013 using nationally representative quotas for the UK.

4 streamline.com

Contactless security concerns do not slow overall adoption

Some recent coverage of contactless payments in the media have raised concerns about contactless security and rogue payments. Whilst some reports have provided a more balanced reporting, others have opted for more a sensationalist approach. So, what is the reality?

As with other payment methods, contactless technology has been designed with features to minimise the risk of fraud. Examples include a transaction limit of £20 and the need for a PIN to be entered following a limited number of transactions. In addition, whilst it is possible to obtain some details from a contactless card with the appropriate technology and knowledge, the only data to be gained is that which is clearly visible on the front of the card i.e. not the 3 digit card verification code on the

back of the card, the PIN, or 3D secure details.

Nick Armitage, Contactless Product Manager at Streamline affirms, “The reality is that despite the media reports, the number of reported incidents of fraud represents only a very small fraction of our overall transaction volume. Also, whilst no payment method is risk free, consumers are protected against genuine fraud, which should provide further reassurance.

`The risk of making ‘accidental’ contactless payments has also been highlighted in the media as a potential issue. Nick adds, “The possibility of this happening is extremely low as the contactless device would have to be within 5cm of the terminal at the point it is activated to accept a payment. We need to be educating customers

regarding this, which will reduce the risk even further.”

Educating customers about contactless payments, such as the ease-of-use and fraud controls remains a high priority within the industry, to drive improved shopping experiences.

So, are merchants and cardholders comfortable with using the technology? Streamline continues to see significant month on month growth in contactless transactions, and more large high street brands will be joining the contactless payments stable over the summer. There are more than 32 million contactless cards in circulation in the UK*, and in April, Streamline saw two monthly records broken for contactless payments – having acquired over 3 million transactions in just one month, at a value of over £20m.

*UK Cards Association

streamline.com 5

Does your business need broadband?

As Streamline’s preferred broadband provider, Eclipse has created a set of broadband services to compliment Streamline’s latest terminal technology.

Eclipse broadband provides flexible, secure and scalable solutions to help your business to grow. You can even save money by using Streamline’s Internet Protocol (IP) enabled card machine by using multiple card terminals simultaneously without the need to

purchase additional phone lines.

As payment transactions are the heart of your business, Eclipse is offering the data you use via your card payment terminal free of charge – leaving you to use

your data allowance for your daily business needs.

“Through Streamline we were recommended Eclipse as our broadband provider for our card terminal.

The Eclipse broadband service has been first class. The install was simple with great communication, backed up with UK-based agents, which has been fantastic.” Jeremy Goodger, Tufnells Interiors Ltd

Find out more about Eclipse broadband >

Using broadband rather than a phone line connection speeds up to transaction times by up to 75%

Custom packages to suit your business needs: from 2GB a month for £9.99, perfect for lighter users or completely unlimited for £39.95 a month.

Around the clock customer service.

streamline.com 6

Streamline launches new mobile payment service for sole traders and small businesses

New findings from a survey* supporting the launch of WorldPay Zinc, the new Pay-As-You-Go (PAYG) mobile payment service that enables card payments on the move, reveal that many of the UK’s four million small businesses could be missing out on an extra 20% of revenue simply because they are not offering customers the option of paying for goods and services by debit and credit card.

In the last year, one in five (20%) UK consumers has had to abandon a purchase due to a small business or sole trader not accepting card payments or because they were not carrying enough cash to make a payment. These businesses are not only missing out on potential sales, but they are also risking their reputation and customer loyalty. In an increasingly competitive economic environment, this poses a real threat to small businesses and sole traders.

The new PAYG mobile payments service is quick and easy to set-up. Businesses and sole traders can simply apply online at www.worldpayzinc.com or download the WorldPay Zinc app on their smartphone or tablet** and apply through the app. All you need then is the sleek black Chip and PIN keypad (which you can order online £59.99 or buy in-store at John Lewis). It takes less than five minutes to set up a new account so you can be up and running, receiving secure payments and reviewing full payment details on the move usually the very next business day.

Geraldine Wilson, Managing Director, WorldPay Zinc, commented: “As consumers, we’ve all been in that awkward situation where you haven’t got enough cash on you to pay for something and card payment isn’t accepted. It’s embarrassing and frustrating. Our aim is to be the payment partner of choice for small businesses and sole traders, supporting the growth of this vital part of the UK economy that employs over 6 million people.”

Find out more about the new PAYG card acceptance service >>

* WorldPay commissioned research of consumer attitudes to payments in 2013. 5176 online interviews were conducted with UK consumers (18+ year olds) during April 2013. Respondents were sampled from a range of regions across the UK. Research was conducted by Loudhouse, an independent research agency based in London.

**Pay as you go only 2.75% per card payment

streamline.com 8 7 streamline.com

Ask the expert:

Reconciliation and why it is so importantWith more than 1000 queries received in our contact centre every day, reconciliation is clearly a hot topic for many small businesses. Simon Hunter, Head of Customer Service at Streamline answers your most commonly asked questions on how to do an effective reconciliation…

Read our reconciliation FAQs >

What do businesses need to know about reconciliation? The reconciliation is the report that actually ‘banks’ the transactions taken on the terminal into your business account.

Most businesses have never had any problems with their transactions processing before, because generally each time you do a transaction, this will push through the previous transaction to process. But this is not guaranteed, and occasionally a transaction may get ‘stuck’ in the terminal. By completing reconciliation for each trading day you can be sure that all of your day’s transactions have been processed properly and have not been stored on the terminal.

When should you complete a reconciliation?Reconciliation must be completed for every trading day within a set time, known as a banking window. Time slots are suggested by the WorldPay Sales Manager, depending on a businesses hours of operations and appropriate processing times. If you complete your reconciliation outside of the banking window, you may find this:

• will not ‘bank’ the terminal correctly,

• may not force the transactions through to process, and

• may give incorrect figures on the report.

What is the most common misconception about reconciliation? Many businesses seem to think that reconciliation does not need to be done at the end of each trading day – and that you can do so at anytime of the day. This is not true – the reconciliation report must be done for each trading day, and during the ‘banking window’ timeframe. This enables the terminal to connect to our systems, check the transactions and push them through for processing, so there are no delays in payment processing.

Why is the right reconciliation process so important? It is important to get the reconciliation process right so your business does not have any payment delays. You need to complete a reconciliation report for each trading day, and then match the total receipts taken that day with the amount credited to your business bank account.

If there has been an issue with one of the day’s transactions, then your reconciliation report will highlight this so you can resolve it as soon as possible. Reconciling at the same time each day can also make this process easier.

What’s the most common mistake businesses make when reconciling? The mistake most businesses can make is running a ‘Z’ or ‘X’ report, rather than doing an actual reconciliation.

A ‘Z’ or ‘X’ report is useful when staff are changing shifts or handing over during the day, because they allow you to review which transactions have gone through on each shift. However, the ‘X’ and ‘Z’ reports do not ‘bank’ the terminal and tell you which payments are going to be credited to your business account – the only report which will do this is the reconciliation report.

What could go wrong if businesses don’t reconcile properly? If you haven’t reconciled properly, then this could result in transactions failing to process from the terminal within normal timescales – which can lead to delays in debiting the customer’s account and also in funds being credited to your business account. At worst, this may result in running out of time to process a transaction or even being charged by the bank that issued the card for presenting a late transaction.

Simon Hunter,

Head of Customer Service at Streamline

9 streamline.com

Choosing a shopping cart made easy

Small businesses often tell us that one of their biggest headaches when setting up a new website is the shopping cart process. With so many options out there – from free DIY solutions to expensive bespoke shopping carts – it can be a daunting task, even for the most experienced company. At Streamline we work with over 100 shopping cart providers, our online support and directory of carts will help you through the process and make sure you get the solution to suit your business needs.

Security is obviously paramount, and you should only use a cart that is is PCI compliant. Other things to consider are whether the shopping cart needs to be integrated with your account systems; if it accepts all major credit cards and/or foreign currencies; and whether you need options for offering discounts or confirming when an item will be shipped. It’s wise to choose a solution which can be easily edited or updated in case your business needs change over time.

In the end, every business is different so put yourself in your customer’s shoes and think carefully about your individual business needs, especially whether these are likely to change, when choosing your shopping cart.

Read more about shopping carts >

When it comes to card processing you’ll need to think about how your business handles customers’ card data. PCI DSS compliance is important to help avoid the risk of cardholder data being stolen, and the potential reputational and financial damage this could bring. Even if you re-direct your payment page to Streamline it’s your responsibility to make sure your website is PCI DSS compliant too. In fact, a re-directed payment page solution could be a good fit for many smaller businesses, as the security, database maintenance and software upgrades are all taken care of by the supplier, leaving you with autonomy over things like the design of your payment pages.

So you’ve got a website and you want to start taking cards. What’s the next step? Well, first up you need to work out if you want to host your own payment page or have it taken care of by Streamline. There’s no shortage of options in the market to choose from, but simple is always best – if it looks overly complicated and non-intuitive then it could result in a high abandonment rate at the purchasing stage.

10 streamline.com

Streamline to help judge the Retail Week Enterprise Awards

If you are part of a retail business with under £150m turnover a year, this is your chance to shine.

The Retail Week Enterprise Awards are designed to celebrate the success of smaller retailers up and down the country. Innovation is the lifeblood of growth of retailers in tough economic times and this year our very own Geoffrey Barraclough, Head of Corporate Propositions joins the judging panel.

With 10 categories covering a full range of retail disciplines, the judges are looking for retailers and their staff to help us showcase why retail remains a lynchpin of economic growth in the UK, why it attracts some of the most driven and successful individuals in British business and how it is evolving to the changing needs of its consumers.

If you are part of a retail business with under £150m turnover a year then why not apply?

A change in our regulator

Our regulator changed from the Financial Services Authority (FSA) to the Financial Conduct Authority (FCA) from 1 April 2013. We are in the process of reflecting this change across all of our collateral, websites, systems, emails etc. and hope to complete this over the next few months. In the meantime you should interpret any references to the ‘Financial Services Authority’ or ‘FSA’ from us as the ‘Financial Conduct Authority’ or ‘FCA’.

Find out more about the Financial Conduct Authority >

Japan Credit Bureau to issue new 19 digit cards

Japan Credit Bureau (JCB) are soon to issue new cards with 19 digit card numbers (also known as the PAN), rather than the current 16 digits.

With the change expected during March-June, if you accept JCB cards then Streamline will automatically ensure your point of sale terminals are refreshed to accept these new JCB cards.

However if you use a third party provider for accepting card payments, then you will need to check with your payments provider that your business can accept JCB cards with 19 digits.

Find out more about the Retail Week Enterprise Awards >

The information in this document is published for information purposes only. Views expressed in marketing and promotional materials are not intended to be and should not be viewed as advice or as a recommendation. You should consider the relevance of the information contained in this material to you and your financial and operational needs and resources and any other relevant circumstances. You hould also make sure you understand the products and services we offer and any agreement you may enter into with us. You should take independent advice on issues that are of concern to you. We have taken steps to ensure the information is correct at the time of printing. However, we make no representation, warranty, or assurance of any kind, express or implied, as to the accuracy or completeness of the information contained in this document. We shall not be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way from the information contained in this communication. This communication is for the use of intended recipients only and the contents may not be reproduced, redistributed, or copied in whole or in part for any purpose without WorldPay’s prior express consent. Business Gateway 350 is a service provided by WorldPay Limited. WorldPay (UK) Limited, trading as ‘Streamline’, is authorised by the Financial Conduct Authority under the Payment Service Regulations 2009 (No 530923) for the provision of payment services in the United Kingdom and is regulated by the Central Bank of Ireland for conduct of business rules.

For more information please contact:

Streamline Customers:

(UK) 0845 7 61 62 63 (ROI) 1800 24 26 36

WorldPay Customers:

(UK) 0870 366 1290 or (0)1223 258 493(ROI) +44 1223 258 493

Streamline Sales:

(UK) 0203 627 5903(NI) 028 9044 6950(ROI) 048 9044 6950(UK) Text phone +44(0)1423 532152

WorldPay Sales:

(UK) (0)1268 500 615(ROI) 048 9044 6950

WorldPay Total Sales:

(UK) 0845 3666 015

Streamline.comWorldpay.com