echnological advancements are occurring so rapidly within the payments industry that it seems like a company announces a new solution every day. With the adoption of Internet connectivity and the evolution of POS terminals and processing technologies, major developments in product offerings are now becoming available to merchants.

With so many new technologies and solutions publicized, how do we avoid selling vaporware (i.e., hi-tech products announced and advertised but not yet available) to customers?

One way is to check with your processor to see if it offers a certification matrix. This will breakdown all products and services it offers and show which ones are certified and ready to sell. Nothing is worse than getting customers excited and sold on solutions that are still several months away from going to market.

Following are some of the latest hi-tech product offerings available and ready to sell to merchants:

Contactless Payments

Many of you are familiar with MasterCard International's PayPass and JPMorgan Chase & Co.'s Blink card marketing campaigns. These programs promote contactless payment technology that uses a radio frequency (RF) ID-enabled credit or debit card and a contactless reader terminal.

Merchants can easily add a low cost contactless payment device to a wide variety of existing POS terminals. Contactless solutions allow consumers to rapidly move through check-out lines by waving their contactless payment cards or even by pointing and clicking their mobile phones. Contactless solutions are gaining popularity; they are ideal for fast food restaurants and casual dining establishments, parking garages, movie theaters, and convenience, grocery, and drug stores.

Contactless solution provider ViVOtech, for example, offers an end-to-end payment platform that enables you to offer merchants cost effective solutions and enhanced loyalty programs accessed with RF-enabled credit and debit cards, key fobs, cell phones and identity cards.

Most contactless programs now on the market, however, have been launched in select areas and only some of the major processors have certified them. Check with your ISO or processor to see if a solution exists for your merchant base.

GPRS Wireless

In the past, spotty connectivity has created issues when trying to sell wireless POS terminals to customers. With General Packet Radio Service (GPRS), which transmits data in packets, connectivity is no longer a major hindrance for making wireless transactions.

GPRS is the next generation wireless technology for merchants. It offers faster transaction times and greater coverage areas. GPRS works with a subscriber identity module, or SIM, chip such as what is in a mobile phone. The technology roams network providers operating GPRS towers. Large carriers support these new networks and ensure coverage almost anywhere.

A credit card sale on a GPRS network often takes as little as three seconds to complete. Wireless terminals are becoming smaller and more powerful, which means new sales opportunities for you. Some great GPRS-enabled terminals are now on the market. Lipman's NURIT 8000 and WAY Systems' Mobile Transaction Terminal, which uses a mobile phone and card reader, are two examples. These solutions are certified and work with most of the major processors.

Payment Gateways

Using a payment gateway to process transactions over the Internet is a common solution within our industry, yet many people do not understand how far most payment gateways have come. Today's payment gateways offer solutions such as advanced software and POS integration, batch processing, automated clearing house payments, recurring billing, Internet check payments, Level-III processing, fraud detection and prevention, and cardholder authentication.

Most processors offer several gateway solutions from which to choose; some will even provide integration and implementation support services. This support system helps you approach larger and more complex customers who need integrated solutions with their existing software or POS hardware.

Whether setting up small Web-based merchants or large businesses with many card-not-present processing needs, understand the options that each payment gateway provider has available in order to make the best selections for your customers.

IP Processing

In the last few years a lot of anticipation and discussion has occurred over using the power and speed of the Internet to process transactions at brick-and-mortar establishments. We are now seeing Internet protocol (IP)-based processing becoming a reality.

The high cost of bandwidth that was once a limitation to most retail merchants is now becoming a nonissue. IP solutions provide cost savings to merchants because they reduce the need for additional phone lines and other related communication costs.

Standard Internet connections such as digital subscriber lines and cable modems enable merchants to free up essential telephone lines and continue to take calls and send faxes while processing transactions.

Using an IP connection for credit and debit authorizations means that merchants will experience reduced network communication expenses and faster transaction speed because the communication connection remains constantly on.

Because of the need for speed in the marketplace and the cost saving capabilities, more and more networks, POS terminals and software products are certified for IP processing. Equipment manufacturers are also adding sophisticated security features at the terminal level.

Advanced IP-ready terminals such as VeriFone's Omni 3750 and Lipman's NURIT 8320 feature Visa's and MasterCard's PIN entry devices as well as triple data encryption standard security regulations that help reduce fraud from tactics such as card skimming. They also help to ensure secure software downloads and prevent interapplication data access and tampering at the merchant level.

Integrated Solutions

Use the latest technology for merchants who need to integrate multiple locations or terminals into a single payment and reporting system. Retailers are always looking for ways to integrate their payment processing with a back-end system for data retrieval, reporting and reconciliation.

IP processing is not exclusively about speed. Merchants can now take advantage of the powerful networking capabilities provided by the Internet. Networking all their processing, inventory and accounting systems together in one location will help companies run more efficiently and effectively.

Many acquirers and processors have integration groups that will work with you and your merchants to implement a certified integrated payment solution that meets Payment Card Industry Data Security Standard requirements.

Many other new technologies are on the horizon and in early release. We will see more advances in biometric payments and micropayments, as well as new terminals, payment platforms and integrated solutions. As acquirers, ISOs and merchant level salespeople, we have a responsibility to our customers to sell them technologically advanced solutions that meet their needs and will help them acquire and attract new paying customers. Our duty is to act as merchant consultants. We must also avoid selling them on products not yet officially certified and released.

Peter Scharnell is Vice President of Marketing for Electronic Exchange Systems (EXS), a national provider of merchant processing solutions. Founded in 1991, EXS offers ISO partner programs, innovative pricing, a complete product line, monthly phone/Web training, quarterly seminars and, most of all, credibility. For more information, please visit www.exsprcessing.com, or e-mail Scharnell at peter.scharnell@exsprocessing.com . Electronic Exchange Systems is a registered ISO/MSP for HSBC Bank USA, National Association.