he variety of applications available at the checkout counter is expanding rapidly. Each new application not only strengthens the relationship between the merchant and payment service provider but also opens the door to promising new markets and increased revenues.

It wasn't so long ago that all a merchant needed next to each cash register was an efficient credit card terminal. But the payment environment has evolved. Consumer wallets are packed with credit cards, check cards, ATM cards, gift/loyalty cards and prepaid phone cards. Suddenly, a payment-only terminal is not enough for many merchants. What is needed is a multi-application, multi-function device that securely supports the latest solutions and continues adapting to further changes in the future.

The good news is that the new generation of secure multi-app terminals can help merchants cost-efficiently accept any card. Combine payments with further enhancements - including electronic check acceptance, bill payment, health care eligibility, on-the-spot age verification, electronic licensing, and electronic time and attendance - and you've got a sure tool for improved merchant retention.

Not only do these services enable merchants to effectively respond to consumer demands, but they also enhance the bond between ISOs and merchant customers. Many of the new applications offer increased revenue opportunities for both merchants and service providers through service fees and/or per-transaction charges.

In addition, the newest wave of applications is helping acquirers and ISOs get an edge on competitors by obtaining new business from untapped markets. For example, electronic gift card programs are an ideal entre‚ into quick-service restaurants (QSRs). Age verification holds special appeal for the petro/c-store industry. And medical applications, such as eligibility verification, coupled with payment capabilities, are the perfect prescription for health care services (refer to the accompanying chart for more information).

Prepaid Cards Top the List

One of the fastest-growing types of value-added applications is prepaid. Consumers like using electronic gift cards and prepaid phone cards because they are easy to use, economical and predictable. Consumers simply pay for what they want, when they want it.

For merchants, prepaid gift/phone cards are easy to handle and virtually risk-free. Because customers pay in advance and may carry value on their cards for weeks or longer, accumulated funds can be invested to earn interest. Further, payment service providers have the opportunity to earn fee income from card "reloads."

Entering A New Age

Another popular application on point-of-sale (POS) terminals is automated age/ID verification. Retail stores that sell alcohol, tobacco, firearms, or age-restricted venues-bars, nightclubs and casinos - use applications to scan and record a consumer's driver's license. This makes it much harder for an underage person to alter a license and helps merchants reduce their risks by not selling to or admitting minors.

Streamlining Business Services

Multi-application, multi-function solutions are also ideal for delivering critical business services to merchants.

For example, time-and-attendance solutions that enable merchants to electronically collect, process, track, update and report labor information help merchants realize substantial operational savings and free up precious hours for handling other aspects of the business.

By expanding the variety of applications provided to merchants, ISOs can deepen their relationships with customers and enter lucrative new markets while simultaneously boosting their service revenues. It's an opportunity that no provider can afford to overlook.

Target Markets

Here's a starter course on opportunities for value-add based on market segments. Use this to get the brain cells firing on all cylinders ... you're only limited by ideas if you have the right POS terminal!

Gas stations/convenvience stores:

• Fleet
• Age verification
• Prepaid phone cards

• Gift
• Loyalty
• Age verification
• Time and attendance

• Age verification
• Prepaid phone cards

• Electronic check conversion/imaging
• Gift/loyalty
• Time and attendance
• Return fraud tracking

• Electronic check conversion/imaging
• Gift/loyalty
• Time and attendance