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Education

Navigating payment Merchants rely on their service providers to inform them
and help them respond quickly to unforeseen—and es-
outages: The crucial sentially invisible—disruptions. This lack of communica-
tion can strain relationships and result in higher merchant
churn.
role of communication Recent incidents, like Square's day-long outage, highlight

the impact of such disruptions on businesses (see https://
tinyurl.com/2p9masn9). Merchants had no idea why their
customers' transactions were not going through and lost
thousands of dollars in sales due to delayed responses,
which emphasizes the need for preparation and commu-
nication.

By Gregg Aamoth However, real-time notifications are not enough. Mer-
POPcodes chants and their associates also need proactive messaging
and training so that they are better prepared when an out-
n today's cashless economy, where in-person pay- age occurs. While talking about what needs to take place
ments increasingly rely on digital transactions, mer- when your service fails is not something anyone wants to
chants find themselves dependent on payment pro- focus too much attention on, it's a reality.
I cessing infrastructure like never before. However,
this dependency also exposes them to vulnerability when Being prepared hinges on efficient communication be-
a crucial element of the payment ecosystem fails. tween payment processors and merchants. Merchants
should receive real-time updates on outages with details,
The resulting payment outage, even if it only lasts a few allowing them to inform customers and make informed
minutes, can be a perplexing and frustrating experience decisions. This approach eliminates panic and scrambling
for both merchants and consumers, leading to revenue during outages, making a challenging situation more
loss and strained relationships. manageable.
Leveraging the power of the
The challenge lies in the complexity of diagnosing and
resolving these outages promptly. Unlike a power outage smart payment terminal
or a disrupted internet connection, pinpointing the cause Smart payment terminals are playing a pivotal role in this
of an in-person payment not going through due to a communication evolution. These terminals, with their
system-wide or partial outage isn't as straightforward. cloud-based connectivity, touchscreen capabilities, versa-
tility and wireless connectivity, are replacing legacy POS
When a payment authorization attempt fails, there are terminals. They provide merchants with essential sup-
literally hundreds of different error codes intended to port, offering updates, insights and guidance.
provide a reason for the failure and what steps to take
next. However, as most sales associates don't memorize Smart terminals enable direct communication between
the error codes and often the codes themselves aren't payment providers and businesses. They allow for real-
clear, they typically resort to re-running the transactions time notifications and offline functionality, ensuring op-
or suggesting customers use alternative cards before erations continue during outages. Moreover, they empow-
realizing the larger issue at hand. er merchants to educate their associates and, in turn, their
customers, leading to increased satisfaction and loyalty.
The speed at which merchants recognize an outage is
the root cause of failed transactions and how well their The key to navigating payment outages successfully lies
sales associates are prepared to handle an outage can in timely and effective communication, and smart ter-
significantly impact the outcome. Quickly notifying minals are at the forefront of this transformation. As the
and efficiently guiding associates through the process payments industry continues to evolve, understanding
of accepting offline payments is essential in collecting and embracing the power of communication is essential
revenue during the outage and avoiding losing customers for merchants, consumers and all stakeholders in the pay-
forever. ments value chain.

The cost of poor communication Gregg Aamoth has over 30 years of experience enabling secure commu-
nication, promotion and omnichannel shopping experiences for glob-
First of all, real-time communication sent directly to the ally recognized retailers and financial services brands. He is the founder
in-person point of payment is paramount in the event of
a payment-affecting outage. Payment processor outages and CEO of POPcodes, a provider of smart-terminal based direct-to-
not only disrupt operations but also lead to confusion and merchant communications and value-added solutions platform that is
stress among business owners. used by leading payment processors and 10’s of thousands of merchants
across North America. Contact him at linkedin.com/in/greggaamoth.

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