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Joe Weppler / July 3, 2020

The death of “Wet-Ink” signatures in a post-pandemic world

With so many office workers across the world now working remotely due to the coronavirus pandemic, the process of obtaining original signatures has posed plenty of challenges. Tasks which are typically formalized with “wet-ink” in person have entered the strange world of online service in an attempt to respect social distancing requirements.

Many state governments have issued temporary regulations or executive orders permitting wills and powers of attorney to be witnessed virtually. eNotarization services have taken off, with the process for notarizing oaths, affidavits, statutory declarations and other documents using technologies like web conferencing instead of meeting with a notary in person.

The landscape of electronic signature services in particular has shifted in light of the pandemic. What does that mean for your business? And what will it mean for signature requirements in a post-COVID 19 business world?

The main guiding principles of the laws governing electronic signatures in Canada and the United States are that when parties to a contract have agreed to use an electronic signature, that signature may not be denied legal effect solely because it is in electronic form. In other words, as long as both parties agree to use eSignatures in the first place, they are just as legally binding as a signature in ink.

In most cases, the consent between parties to use eSignatures doesn’t even need to be expressly provisioned. Implied consent comes into play when there are reasonable grounds to believe that the consent is genuine and is relevant to the information or document. For example — if an agreement is entered between two parties via email or some other online intermedium, it’s safe to assume that both parties are implying that they consent to the use of electronic signatures to execute their documents.

Electronic signatures are defined by the Uniform Electronic Transactions Act as “an electronic sound, symbol, or process, attached to or logically associated with a contract or record and executed or adopted by a person with the intent to sign the record.” That means anything from typing your name in an email or sending a physically signed document via fax to using an eSignatures service can fall under the same category.

While there are exceptions, many legal documents have been being signed via eSignature since long before the pandemic. While the business world is fairly conditioned to believe in the symbolic weight of pen on paper, a wet-ink signature is, in fact, fairly weak evidence of an agreement. Signatures are fairly easily forged, and their shape and weight doesn’t change from a trivial agreement to an important one.

While the notarization process helps offset some of the weaknesses of ink signatures, electronic signatures have proven to be much more secure. It’s true that COVID-19 has accelerated the use of eSignatures, but they were already rapidly gaining popularity for their ease of use and security. The practice will continue to grow in popularity even as offices reopen their doors and people begin to meet in person once again. While the pandemic may not spell out the end of “Wet Ink” signatures entirely, we will definitely see a continued emphasis put on the safer e-alternative.

Joe Weppler / June 26, 2020

Changes to Visa fees delayed – but not for long

Visa is making changes to the rates that merchants pay to accept its card. According to a report from Bloomberg, the changes will be the biggest in a decade. Visa had planned to roll out these changes in April and October but delayed them until April 2021 in light of the coronavirus pandemic.

“The exception is the planned interchange reductions in the supermarket segment will go forward. We believe this is the right decision to ensure the long-term stability of the digital payments ecosystem,” according to the missive.

The exception Visa refers to is a reduction in transaction fees at large grocery stores and supermarkets. In other words, supermarkets will be paying less to their processor when a customer decides to pay with a Visa card — and that reduction in fees has the potential to impact the prices a customer pays for their goods. Generally speaking, processing fees are passed down the line — the higher the fee a store pays, the higher their prices are to offset the cost.

According to the document Visa sent to the banks outlining the changes, the company’s interchange rates will go up or down depending on both the type of merchant and the way a customer pays for their purchases. Examples include eCommerce sites, which are slated to see higher interchange fees, while transactions related to real estate and education are planned to decrease.

The same document stated that “Visa is adjusting its default U.S. interchange rate structure to optimize acceptance and usage and reflect the current value of Visa products.”

While these changes amount to just a few cents on each transaction, the numbers add up quickly. Processing fees have a major impact on the bottom line for most merchants — retailers, in particular, have struggled with the huge amounts they pay to their processors each year — and that number has only gone up, both due to increased fees in general and more consumers turning to cards over cash to pay for their products.

According to a Nilson report, general-purpose credit, debit and prepaid cards issued in the United States combined to generate $7.584 trillion in purchase volume in 2019 — up over 8.2% over 2018. Merchants that accepted those cards paid over $116.43 billion in processing fees. Cards with Visa, Mastercard, American Express and Discover accounted for $4.234 trillion of that volume.

While the changes proposed by Visa refer to their “published rates,” it’s important to note that banks and payment networks can negotiate deals with retailers for reduced pricing. Only time will tell if these changes will go into effect by the new planned date of April 2021, or if further changes will be made on account of the continuously evolving effects of the pandemic on the economy.

Joe Weppler / June 19, 2020

Will NAFTA’s Replacement Impact Your Small Package Shipping?

The United States, Mexico, Canada Agreement (USMCA) will soon go into effect, replacing the North American Free Trade Agreement (NAFTA) that has governed the trilateral trade bloc in North America since 1994. All three countries have now submitted the formal notification of their ratification, and the new agreement will come into force on July 1, 2020.

This is a hard transition date, meaning that shipments that arrive in the US, Mexico, or Canada on July 1 will follow USMCA regulations. So what does this mean for your small package shipping environment?

If you’re shipping packages between these three countries, USMCA regulations may require new data elements in order to clear customs and receive the appropriate duty treatment. There are several key changes that differentiate the USMCA from NAFTA. For specifics on the details, check out the links at the end of this overview.

Certificate of Origin

The USMCA does not require a specific certificate of origin document like NAFTA does. A claim for preferential tariff treatment under the USMCA requires nine minimum data elements on an invoice or separate documents that describes the originating goods with sufficient detail to enable their identification. The claim must also be accompanied by a specific statement, signed and dated by the certifier.

Minimum Value Thresholds

While the U.S. threshold remains at $800USD, there are new de minimis value thresholds for shipments into Canada and Mexico. The de minimis is the price threshold below which fewer or no taxes are charged on a shipment. These thresholds are different for both duties and taxes, so make sure you know the new rates and how they apply to your normal shipments.

Auto & Dairy

There are new economic growth and market access requirements for the automotive and dairy industries.

Under USMCA, 75% of auto content and components must be manufactured in one of the USMCA countries to attain a zero-tariff rate.

The agreement also increases market access to Canada for certain U.S. dairy products and introduces new tariff rate quotas to allow more dairy imported to Canada duty rate.

Exemptions for Low-Value Shipments

Thankfully, the USMCA provides that there is no certification of origin requirements for shipments value below $1,000 USD or its equivalent in currency as established by the importing USMCA country. A written statement certifying the goods will still be required.

For details on how the agreement might affect your shipping, you can read compliance guidelines at the U.S. Customs and Border Protection website at www.cbp.gov. The USMCA in full can be found on the Office of the United States Trade Representative’s website at www.ustr.gov.

Joe Weppler / June 12, 2020

The Effects of a Pandemic on Waste Disposal

If there’s one constant about the human race, it’s that we’re constantly generating waste. Nearly everything we touch on a daily basis comes with some sort of packaging — from our food to our clothes to our toiletries and everything in between. Nobody wants to deal with garbage themselves, so we pack it up, send it off to the waste operators, and hope we never see it again.

The coronavirus pandemic has had a tremendous impact on almost every aspect of our lives — and that pipeline that treks the trash away is no different. So how is the waste sector coping with the pandemic?

Adapting to the New Normal

Municipal waste operators had to work fast to adapt their waste management solutions to the realities of the pandemic. Residential waste volumes drastically increased with the influx of people self-quarantining in their homes. With the massive influx of household trash came the redirection of resources in order to address the situation.

Communities nationwide took different steps, some suspending yard waste collection, others pausing curbside recycling pickup. Waste collection companies shifted their workers away from the commercial routes where businesses sat empty and towards the suburbs. They also made plans for the worst case scenario — their drivers getting sick.

Even now, as communities across North America have begun re-opening their doors, concerns persist about exposure to the front-line workers. Labor unions are pushing for answers around paid leave, and social distancing rules and requirements are forcing changes around collection routes.

Personal Protective Equipment (PPE) has become even more important than ever before. All too often, industry accidents happen because employees simply don’t like wearing extra protective gear or find it uncomfortable. A renewed emphasis and enforcement on wearing proper PPE has taken hold, and waste operators are getting it wherever they can despite the shortage.

For example, take Barney Shapiro, the owner of Tenleytown Trash operating in Washington, DC, and Maryland. Shapiro has turned to the Washington National Opera’s costume department, who are sewing masks for frontline workers. He jumped at the chance for extra masks because, like the rest of the waste management industry, Shapiro knows that the health and safety of his employees directly correlates to how well the massive influx of trash gets handled.

As the re-opening phase begins, even more new challenges appear with it. Waste operators are now dealing with the impacts of the measures taken during the initial phase of the pandemic — once again forced to adapt to stabilize operations. Waste operators across the globe are coming together to make plans for the transition to a post-pandemic world, sharing best practices while also tackling the unique challenges of their own environments.

Despite the difficulties and thankless nature of their jobs, waste operators have kept us from drowning in our own trash throughout the course of one of the greatest challenges of the 21st century. So next time you see a waste disposal worker — make sure to say thanks.

Joe Weppler / June 5, 2020

Experiencing “Zoom Fatigue?” You’re not alone.

You won’t find the term in any psychology textbooks, but experts are saying that “Zoom Fatigue” is rapidly becoming a common occurrence for people working from home during the pandemic.

The term started as slang for the exhaustion people are experiencing conducting their day-to-day activities through video-calling interfaces like Google Hangouts, Skype, Microsoft Teams and the eponymous Zoom. Google searches for the term have steadily increased since early March, and psychologists say that several factors are leading to Zoom fatigue.

So why are we finding these video calls so draining? How are the current circumstances contributing to the problem? And what can we do to combat it while still maintaining the rules and habits that keep us safe?

Filling in the Gaps

In an interview with The Inquirer, Eric Zillmer, the Carl R. Pacifico professor of neuropsychology at Drexel University explained that partial blame falls on the lack of nonverbal cues in video calls.

“An amazing amount of neuronal mass is dedicated to reading people’s faces, sensing emotions, social cues, the ambience, intuition,” said Zillmer.

But on video calls, much of that information is lost — whether to fuzzy, stuttering video or simply the two-dimensional nature of a face on a screen. Without these visual social cues, our brains are working overtime in an attempt to hyper-focus on words alone.

“You have to fill in the gaps,” Zillmer said. “And that takes cognitive energy. You get tired more quickly.”

The issue is compounded when there are multiple people on a single call. Your brain struggles to understand each, which can lead to not understanding any.

Always On

It’s not just work. During the pandemic, when quarantine is the norm, video calls aren’t just about doing business. They’re how we connect — with friends and family, professors and classmates, and even church. We’re following along with our yoga instructors, participating in educational webinars, and checking in on our loved ones.

There’s a common denominator with all these calls we experience throughout the day — a little picture of ourselves in the corner. In normal day-to-day interactions, we don’t see ourselves. In video calls, our faces are omnipresent. This leads us to be hyper-aware of ourselves — from our physical appearance to our environment. Our brains magnify every perceived flaw, and we can’t escape the feeling that everyone in the call is looking directly at us.

If that isn’t mentally exhausting enough on its own, being on camera also puts us in “performance” mode. We sit up straight, we put on a big smile, we over-articulate verbally and we over-emphasize physically. Think about the last in-person conversation you had. Did you stand three feet away from them and stare at their face the entire time? No — you looked around, your peripherals taking in other people or objects. On camera, we worry that looking away makes it look like we’re not paying attention. Without those breaks in the “constant gaze,” our brains get tired.

Thankfully, there are some steps you can take to combat Zoom Fatigue. The most obvious being cut down on the number of video calls you participate in. There are a few ways to go about this:

Designated Meeting Times

You can establish times designated for “No Meetings” to give you time to refresh your brain and focus in on non-video related tasks. You could even designate a day to be specifically meeting free. If it’s conducive to how your team operates, you could do the opposite and schedule all your meetings in one day so you can keep the rest of your week Zoom-free.

Meet Only When Necessary

There’s a classic office saying that follows many meetings that don’t see much participation — “That could’ve been an email.”

Take advantage of emails and chat platforms. Text-first has the added benefit of forcing you to write down your thoughts — which will often lead you to think more critically about your ideas and even solve your problems before you hit send.

If someone is asking you for a video meeting, learn to say no if you don’t think the meeting will be valuable. Provide alternatives, ask for documents or video — a lot of the time people ask for a meeting as a default when the problem at hand could just as easily be solved with an email. If Zoom Fatigue is getting to you, don’t be afraid to say no. Your time and energy are valuable.

Play by the Rules

Sometimes, calls are unavoidable. When they are, set rules for yourself and your team and conduct your calls within them.

Create an agenda and stick to it. If your meeting is going to be long, schedule breaks. If your meeting software has the option, consider hiding the view of your camera to reduce that “performance” mode tendency. If video isn’t necessary – consider some good, old-fashioned voice communication.

Finally, if you need to have a meeting and it needs to be on video — do your best to keep it short. Go in prepared, say what needs to be said, and get out. Your brain will thank you for it.

Joe Weppler / May 27, 2020

Credit Card Companies Are Cutting Credit Limits Due to COVID-19 Concerns

According to a report from CompareCards.com, nearly 50 million cardholders had their credit limits involuntarily reduced or even had a card closed by their issuer in April. The same survey found that 3 in 10 cardholders are using credit cards “more than ever” since the onset of the coronavirus pandemic. 

Considering the impact that COVID-19 has had on the economy, it’s no big surprise to see banks reduce their lending. In uncertain economic times, banks get nervous at the prospect of their borrowers running into unexpected financial circumstances. The precedent was set in 2008, just before the Great Recession, when economic uncertainty led to banks slashing credit limits and tightening credit standards. 

Unfortunately, these cuts can have a negative impact on your credit score by increasing the overall percentage of your credit in use. For example, if you have a credit limit of $20,000 across two credit cards, and you’re currently using a balance of $4,000, you’re using 20% of your credit — keeping within the suggested utilization rate of no more than 20% to 30%. 

In this same scenario, if your credit card limit is suddenly slashed to $10,000, you’re now using 40% of your available credit without ever having borrowed more or missed a payment. That change is going to negatively impact your credit score at no fault of your own. In fact, your utilization rate is the second-largest factor in determining your credit score — second only to your payment history. 

While there’s no way for a consumer to guarantee that a bank won’t reduce their credit card limit or close their account altogether, here are a few ways that you can mitigate the risk: 

Actively maintain your credit score: Continue to pay your bills on time and keep your utilization rate below 20-30%. By avoiding late payments and high utilization rates, your credit limit will naturally grow over time. 

Keep your cards active: If you have multiple cards, make sure you don’t let any of them become inactive for too long. Inactivity is one of the most common reasons you might see your credit card limit lowered. Your credit card limit is not set in stone when you receive you card — sudden drops in your credit score can lead to your issuer lowering your limit. This can be as simple as making a single purchase on your lesser used cards every few months before hiding them away again. 

Move recurring payments to an inactive card: One great way to keep your less-used cards active is to use them for small, recurring payments like subscriptions to streaming services, food delivery plans and monthly bills. Most recurring services have auto-pay options that can be used as a set-and-forget method of keeping your card active. 

Ask for a limit increase: While this may sound redundant, one method of countering the effects that a credit card limit slash might have on your credit score is by seeking a limit increase on another card. This can help maintain your utilization rate and mitigate a dip in your score. Issuers are less likely to approve an increase in your limit now — but it’s worth asking.

Reach out to your card issuer: Speaking of asking — if your credit card limit is reduced or your account is closed — reach out to your card issuer. If you can show them that you’re still employed, maintain a steady income and that you’ve been a valuable customer, you may be able to have the decision to lower your limit appealed. Often, these decisions are made by a computer program and can be reversed with human intervention.

If you’re struggling to pay your credit card bills, many credit card issuers are currently allowing their customers to opt into relief programs online. These financial hardship programs usually offer cardholders both short-term and long-term payment plans in exchange for immediate relief from their credit card bills.

Joe Weppler / May 22, 2020

How Are Telecom Operators Coping With Increased Traffic?

Rogers Communications Inc. recently told a House of Commons committee that home internet usage is up more than 50 percent compared to before the coronavirus pandemic. Voice call usage on the Rogers wireless network is up 40 percent, and 1-800 toll-free calls are up more than 300 percent. Rogers customers alone are making more than 50 million wireless voice calls per day.

According to Akamai, a tech company that monitors web defenses, global internet traffic has increased by as much as 30 percent since mid-March. That’s almost an entire year’s worth of internet traffic growth in just a few short weeks. It’s important to note that this growth was experienced even with the loss of live sports streaming, which normally accounts for significant global traffic.

When it comes to mobile data consumption, the trends are unsurprisingly similar — especially in areas with heavy lockdowns such as Spain and Italy. Italy — the first European country to go on lockdown — saw peak usage increase by nearly 90 percent.

So how are telecom operators and content owners across the world stepping up to address the impacts of such significant traffic surges?

Telcos everywhere have worked closely with their respective governments to provide increased internet services to the public to help manage the crisis. Engineers are working around the clock adding additional fibre-optic connections and servers to those invaluable central offices that house and reroute customer data.

Video game companies like Sony and Microsoft are bottle-necking peak-hour downloads to help combat the congestion. Massive video streaming platforms like Youtube, Amazon and Netflix have adjusted their encoding rates, sacrificing video quality to help reduce the strain on telecom operators. This is especially pertinent, as major video streaming platforms are reporting massive increases in usage as people spend more time on the couch. The television industry as a whole saw a 20 percent increase in viewership in mid-March, and Amazon’s live streaming platform Twitch saw its total amount of hours watched jump from 33 million on March 8th to 43 million on March 22nd.

In the U.S., the Federal Communications Commission has granted temporary access to normally reserved mobile spectrum bands to provide additional broadband capacity. Similar steps are being taken across the planet, from Ireland to Brazil.

AT&T has waived data overage fees in the United States. Vodacom in South Africa has invested $24 million to add network capacity to support remote workers. In Canada, Bell accelerated the rollout of its new wireless home internet service in rural areas. In Wuhan, the original epicenter of the coronavirus virus, China’s three major telecom carriers have set up 5G stations for health care workers in city hospitals.

Businesses everywhere are experiencing unprecedented circumstances, and they have all had to adapt — whether to growth or loss — due to the pandemic. In these strange times, it’s comforting to see the international effort put towards keeping humanity connected.

Joe Weppler / May 15, 2020

The Benefits of Electronic Logging Devices

In the United States, the Federal Motor Carrier Safety Administration mandated in late 2017 that most commercial vehicles over 10,000 pounds be installed with electronic logging devices. This is to enforce hours-of-service rules for truckers in order to help prevent crashes and injuries. North of the border, a similar mandate (with a few key differences) from Transport Canada comes into effect in June 2021.

If you’re involved in trucking you likely know what an electronic logging device (ELD) is, but for those unfamiliar, an ELD is a certified device that automatically logs a driver’s hours of service electronically. The ELD is able to automatically detect when a driver begins and ends a trip including time spent taking breaks. Beyond governmental compliance, there are several great benefits to installing ELDs in your fleet. Let’s take a look at some below.

1: More Road Time for Drivers

According to estimates by the FMCSA, drivers spend over 20 hours a year simply filling out their paper logs. ELDs not only reduce paperwork time for drivers and filing time for their carriers, but also reduce time spent on checking up on driver hours.

Plus, ELDs can significantly cut down on the time a driver spends in an inspection, because their hours are clearly readable for an officer and drivers won’t have to spend time digging through their paper logs to find violations or correct errors.

2: Added Value-Functions

ELDs don’t just log driver hours — they can come with plenty of value-adds that can save you time and headaches.

  • Driver-Vehicle Inspection Reports completed through an in-cab tablet before each trip to reduce time and increase accuracy
  • Driver behavior tracking to encourage good driving habits and increase the safety of both truck drivers and regular passenger vehicle drivers on the road
  • Fleet management capabilities such as automatic fuel tax reporting
  • Fuel efficiency monitoring to identify trends and save organizations money on one of the biggest expenses a fleet incurs

Not all add-ons will be useful for every fleet, so make sure you do your research and pick the ELD system that works best for your business.

3: Better Route Management and Live Location Tracking

ELDs allow fleet managers to track their trucks via GPS, giving them real-time locations of their drivers. That means fewer distracting calls to drivers asking for updates, increasing productivity of both the manager and driver. Plus, GPS tracking can help both managers and drivers refine and optimize their routes to make them as fuel efficient as possible.

4: Liability Reduction

Accidents happen on the road, which means even the safest driver could find themselves in a wreck. For companies with many drivers logging many hours on the road, lawsuits are an inevitability.

ELDs can help strengthen a truck driver’s case in instances where they aren’t at fault. The data recorded by the ELD can be used as evidence in court, and could be the difference between winning a lawsuit or paying out a hefty penalty through no fault of their own.

5: Road Safety and Insurance Costs

According to the FMCSA, ELDs save over 25 lives and prevent hundreds of injuries every single year. Plus, with vehicle and hour monitoring, ELD helps prevent even more accidents caused by driver fatigue or mechanical failure.

An added benefit to carriers is that with increased safety comes decreased insurance premiums. Fleets with ELDs installed should see their insurance costs drop as ELDs have been proven to increase fleet safety. Plus, with GPS tracking, the risk of stolen vehicles drops dramatically.

Schooley Mitchell are experts in electronic logging devices and fleet tracking, and we can examine your entire system to recommend the configuration that’s right for your business. If you’re outfitting your fleet with ELDs, contact us today to make sure you’re getting the right service for your business at the best price available — completely risk-free.

Joe Weppler / May 8, 2020

Are Electronic Signatures the Next Step for Your Business?

Offices across the world have been trending digital for years now — and with the current coronavirus pandemic, people are even less inclined than ever to deal in physical documents. In the fast-paced business landscape, the convenience of computer screens and mobile devices have increasingly pushed paper to the wayside.

So what are electronic signatures, and are they right for your business?

According to one definition, an electronic signature refers to “data in electronic form, which is logically associated with other data in electronic form and which is used by the signatory to sign. This type of signature provides the same legal standing as a handwritten signature as long as it adheres to the requirements of the specific regulation under which it was created.”

In a paper for MIT written by David Fillingham in 1997, he outlined that the application of signatures, either handwritten or digital, was to achieve three main security services:

Authentication: A signature proves the signers identity.

The most obvious example being the signature on the back of a credit card indicating who the owner is, or on a check to indicate where the money is coming from.

Data integrity: A signature is assurance that the data of the document has not been modified since the signature was applied.

While a traditional signature itself does not provide data integrity, things like indelible ink and tamper-proof paper provide some measure of security. Digital signatures take this aspect a step further, since any modification of a digitally signed document will always result in verification failure.

Non-repudiation: A signature prevents the signatory from denying involvement in an agreement.

Providing evidence to a third-party that a signatory participated in a transaction or other type of agreement protects the parties within the agreement against false denials of participation. For example, a customer’s signature on a receipt from a credit card transaction protects the store and card-issuing bank from false chargebacks.

The objective of an electronic signature is to quickly and efficiently authenticate a digital document without the use of pen and paper. Electronic signatures are much quicker than the traditional electronic method of sign-and-scan, and according to a 2013 research study on signing productivity in high-volume environments such as sales, finance and human relations, replacing traditional methods with electronic signatures saves an average of $20 per document.

Plus, by using electronic signatures to authenticate your documents, you help to eliminate the opportunity for fraud. This leads to a considerably more secure process for documents than even pen-and-paper based signing. Electronic signature platforms also benefit from increased oversight, allowing you to centralize and monitor the signing process.

To recap — electronic signatures will help your business cut down on paper, postage and printing, save your business significant time and money, reduce overall turnaround times, protect your business from non-repudiation and provide increased security through better oversight and improved data-integrity.

If you’re interested in finding an appropriate electronic signature service for your business, Schooley Mitchell can make sure you find the right service at the best possible price. Reach out today for your risk-free consultation.

Joe Weppler / May 1, 2020

Contactless Payments Can Keep You Safe – and They’re Here to Stay

Do you wonder how many infections could be stopped if we kept our cards — and our germs — to ourselves? According to a study conducted by finance site LendEDU, debit and credit cards are dirtier than cash and coins. In fact, the sanitation monitoring device used to calculate their “germ score” by measuring the number of bacteria on a particular surface found that our payment cards beat out public train station bathrooms! For obvious reasons, contactless payments are an excellent alternative!

Are you new to contactless payments? Trust us — you’re not alone. Mastercard reported a 40% increase in contactless payments in the first quarter of 2020 as the global coronavirus pandemic worsened. The trend is being driven by consumers looking for quick ways to get in and out of stores without touching anything. Mastercard also thinks the contactless payment trend will continue well after the pandemic.

Most of us carry our smartphones with us everywhere we go, and we’re sanitizing them frequently as advised by medical professionals across the world. Thankfully, if you carry your smartphone, that also means you likely carry Apple or Samsung Wallet with you too. By using contactless payments, we avoid exposing our physical payment cards to droplets at one cashier counter, and the next, and the next. Plus, we avoid having to touch the physical terminal at all to punch in our PIN.

Unsure if this form of payment would be offered where you shop? Keep your eyes peeled for the Contactless Payment symbol — similar in appearance to a WIFI symbol turned on its side. Look for this symbol the next time you visit your favorite restaurant or retailer or ask an employee if you’re unsure. You might be surprised just how many places now offer contactless payment. Hold your phone out the window at the drive-through or curbside pick-up now, and after the pandemic has been quelled, keep using it to avoid contact with machines where other cards have been dipped or swiped.

In case you’re worried about transaction security — contactless transactions leverage near field communication (NFC) technology to establish a wireless connection with the cashier’s terminal. Linking credit cards to smartphones makes it much harder to steal a user’s payment information for several reasons.

  • The smartphone must be unlocked first
  • The correct payment app must be open
  • The phone must be very close to the terminal

Payments made through card-connected mobile devices or other wearable technologies benefit from the most fraud protection. Your physical card number is not saved in your smartphone wallet. Instead, a device account number is created for your card on your particular device. This number is separate and unique to your phone and different from your physical card number. Because legacy, contactless, and EMV (chip) credit cards can all be linked to NFC-enabled devices, this technology is not only secure but also the best in-person payment method to reduce the spread of a virus.

One thing to note is that merchant services processors categorize their payments by “card-present” and “card-not-present” when analyzing the risk of the payment. While the terms seem self-explanatory, a transaction is considered “card-present” only if electronic data is captured at the time of the sale. That means that hovering your phone above a contactless-enabled terminal constitutes a card-present transaction — meaning the store saves on processing costs compared to an order taken over the phone, on a website, or using electronic invoicing!

 

This week’s blog was written by Schooley Mitchell Strategic-Partner Jill Lowry. You can visit her at www.schooleymitchell.com/jlowry for a free consultation if you’re interested in setting up contactless payment for your business or reducing your various business expenses.