alue-added services have long been important to savvy ISOs and merchant level salespeople (MLSs) who know that the more benefits you provide, the more traction you have with customers.

The advent of free terminal programs, dizzying advances in technology and the need for increased network security have raised the bar for everyone. Value-added services and high transaction speeds aren't just desirable; they're crucial to business success. Increasingly, this takes technical know-how.

Not to worry. Netopia Inc., an innovator in remote management software and broadband equipment and services, can add bleeding-edge, turnkey products and services to the ISO/MLS arsenal that boost business at the POS, while streamlining the often frustrating process of new product integration.

Bullish on broadband

Founded 21 years ago as a local area networking company, Netopia embraced broadband technology in the late 1980s. Since then, it has become a leading broadband equipment and services provider.

"We have various flavors of hardware, from very simple types of DSL modems with low levels of functionality to complete broadband gateway solutions with lots of security that provide for a whole networking architecture," said Jeff Porter, Netopia's Vice President of Marketing. "We've also developed software that enables our go-to-market partners - companies like Hypercom, VeriFone, AT&T, BellSouth, EarthLink and Qwest - to deliver broadband value-added services to their customers."

Netopia's solutions suit small businesses and large enterprises. The hardware, an Internet protocol-enabled card terminal plugged into Netopia's router, links the business to a broadband DSL connection. Software platforms deliver such features as remote manageability and hot-spot functionality. Netopia also offers a Merchant Success Bundle that tailors services for specific industries such as retailers and doctors' offices.

Making a difference at the POS

"A lot of small businesses that have DSL are still using analog dialup for their point-of-sale solutions," Porter said. "I just came from a restaurant here in town that has an open access Wi-Fi hot spot that I used to check my e-mail, but when I ordered my sandwich and handed her [the cashier] my debit card, it went out over an analog telephone. There's no reason in the world not to do that over broadband."

Transaction speed on a broadband network can be three to four seconds versus a dialup line's 30 to 40 seconds. Broadband also allows for easier incorporation of loyalty programs, check authorization and other marketing opportunities. "The difficulty has been in figuring out how to bring everything together," Porter said.

"How do you make it easy for the small business provider so they don't have to try to cobble things together, wondering: Where does the DSL gateway piece go? Where does the point-of-sale piece go? Where does the hot-spot piece go?

How do I transfer this to my merchant account?" Driven by its motto, Broadband without boundaries, Netopia enhances account retention for ISOs and MLSs by helping them eliminate merchants' technical, cost and deployment barriers to state-of-the-art POS functionality.

Hot spots are hot

Netopia has integrated Wi-Fi hot spots into VeriFone's 3700 series POS terminals. Thus, when patrons want to use a shop's hot spot, the cashier presses a button on the terminal, which connects to Netopia's server and gives the patron an access code.

"That gives a sense of manageability to the shop owner, and that's a huge advantage," said Darren Voges, Netopia's Director, Merchant Network Solutions.

"Nobody else offers anything like this. It's integrated, and we're taking it one step further than a typical hot spot that is just a piece of hardware sending a wireless signal throughout a restaurant."

Security is built into the system, so unauthorized people trying to access the network from, for example, a nearby parking lot cannot do so. And Netopia's hot spot can be customized. "Joe's Sub Shop can have a branded splash page," Porter said. "It's like their own mini, micro Web site. They can advertise, promote specials or let people know if they'll be closed for holidays." Another plus is the hot spot's family-friendly Web-surfing filtering, which prevents patrons from using a shop's network to browse questionable or offensive content.

Hot spots boost business

Dale Higganbotham, Vice President of Sales for SageNet, a systems integrator, has been partnering with Netopia on wireless hot-spot opportunities for the past two years. Based in Tulsa, Okla., SageNet has recently zeroed in on the needs of quick service restaurants (QSRs) and other multilocation retail businesses.

"Netopia's hot spot is a price-competitive product, and it's unique," Higganbotham said. "It's got all the software to do all the monitoring, the session usage, and filtering. Those are biggies. You can go to BestBuy and buy a wireless access point and plug it in, but you don't get the filtering and reporting aspects. You also don't get any kind of agreement in terms of usage.

"When users get onto the Netopia system ... they're asked to agree to the terms of use, which are basically twofold: There's no liability on the part of the restaurant for things that may happen to that person's laptop or PDA. So if they get hacked, the restaurant's not liable. Likewise, the restaurant's not liable for that person's activities if they are doing fraudulent things over the restaurant's Internet connection."

Netopia has pilot hot spots in QSRs near colleges. "Students want connectivity, they want to study and they need to eat," Porter said. "So they might as well go someplace like an Arby's restaurant that has free Internet connectivity. It's a great draw. And to the restaurant owner, it's a good deal because those people will typically use the service during off-peak hours in the middle of the afternoon or later in the evening ... and while they're there, they'll have a Coke or two, buy a sandwich or buy dessert." Restaurant owners have told Porter they're actually boosting profits on food sales by giving away hot-spot service.

Netopia's hot spots are also being deployed in certain Applebee's, Denny's, Subway, and IHOP sites, where they attract out-of-town business clients and local customers alike.

But any business where consumers might face a wait could potentially use this service. Aamco Transmissions Inc. is using the solution in one test location. Some Ford Motor Co. dealerships and Safeway Stores Inc. locations have also expressed interest in Netopia's hot spots. Other markets ripe for this service include medical offices, pharmacies, car washes, parking garages and even government agencies such as state motor vehicle departments.

The bottom line

All of the functions just described can be done using one phone line. "If [merchants] were to eliminate their regular analog telephone and use a Voice-over-IP service, like Vonage, then they would have faster transactions, their phone, a hot spot, a loyalty program, and they would have check authorization, all coming out of the back of our box," Voges said. "And they would only be paying one $40 phone bill for DSL - versus a line for their terminal, a backup line for their terminal, a phone line, slow transaction speed, no proper check authorization and no loyalty programs."

With Netopia's equipment in place, ISOs and MLSs make money the same way they always have, by getting a piece of the pie from every transaction. But with Netopia's help, ISOs and MLSs can become technology leaders. "Using our solutions, sales professionals will be providing more services to merchants, and the merchants won't want to give up their hot spot, give up their broadband or give up their Voice over IP," Porter said. "So it makes for a very sticky, long-term loyal customer."

ISOs and MLSs can also opt to resell components of the Merchant Success Bundle. "That way, the ISO has the opportunity to mark up every single one of those items ... the Netopia router, the VeriFone terminal and the hot-spot service," Voges said. ISOs generally make from $7 to $15 a month per merchant on the hot-spot service. "This significantly improves an ISO's margin for every client utilizing our hot spot," Voges said. "By adding this simple service, they could potentially double their profits."

Netopia maintains and manages the access to the hot spot, manages the splash page and assures the accuracy of family-friendly surfing. Merchants' monthly costs for this would typically range from $30 to $60. Netopia is eager to share its vision and expertise with ISOs and MLSs. "[N]ot only will our partners have the technology, they'll have the broadband expertise to take their customers to the next level," Porter said.

"They'll be able to really understand what merchants are looking for and figure out how to deliver something to them that will truly set them apart."