ew technologies and services have put you, as ISOs and merchant level salespeople (MLSs), at the head of the table when it comes to new payment preferences in restaurants.

In 2006, several ISOs helped beta test pay-at-the-table programs that bring wireless functionality to restaurant patrons. The results were encouraging.

Traditional restaurants were early adopters of credit card payment. But, for the most part, other industries -- such as quick service restaurants, grocery stores and even convenience stores -- have leaped ahead with adoption of new card acceptance systems more adaptable to changing consumer needs.

Today's hospitality businesses typically use a fixed-location, stand-alone POS terminal. This is well-suited to cashier-centric points of service. But it often results in interminable delays in restaurants when customers are finished dining and cannot leave until servers complete payment transactions.

This old-style setup also encumbers servers; they have to make multiple trips between tables and the POS to complete payment transactions.

A successful trial

Business Payment Systems beta tested a pay-at-the-table solution at Southeast Grille House in Brewster, N. Y. The restaurant initially tried the widely used general packet radio service (GPRS), but quickly switched to Wi-Fi because the GPRS had coverage issues due to the restaurant's location. To ensure effective coverage, VeriFone determined the most appropriate broadcast channel and location for the restaurant's wireless access point. ISOs and MLSs should always do a site survey to determine the best way to deploy a wireless service.

Customers and servers adapted very well to the new technology, according to Maryann B. Tompkins of BPS. Pay-at-the-table technology frees up restaurant servers' time and allows them to do what they do best -- wait on customers.

Tompkins and her staff, including Account Representative Walter R. Sassano, were eager to join the beta program because it presented a new market opportunity. Restaurant operators, she said, are very interested in the concept. And ISO sales staff quickly learned how to sell the system. "When it's easy for the consumer to use, it's easy for us to learn and sell the product," she said.

Benefits for all

The National Restaurant Association projected sales at full-service restaurants will reach $181.6 billion in 2007, an increase of 5.1% over 2006. It also said Americans are now spending 47.9% of their food budget in restaurants.

Pay-at-the-table technology opens up a virtually untapped market for ISOs and MLSs. And this solution offers something for everyone:

• Consumers are increasingly concerned about card skimming. PIN debit payment capability significantly reduces the risk of fraud and identity theft. It also speeds up payment transactions.

• Servers can handle more tables because they make fewer table-to-POS roundtrips to complete payment transactions. Patrons tend to leave larger tips because they are pleased with the higher-quality service they receive.

• For restaurateurs, pay-at-the-table solutions enhance customer service, increase productivity and cut down on acceptance costs. PIN debit payment reduces transaction fees.

During beta testing, PIN debit savings were better than anticipated. Early data indicate 40% of transaction volume, on average, was converted to online PIN debit.

We assumed it would take some time for consumers to adapt to using PIN debit in a new environment. But this was not the case.

Additional selling points

Pay-at-the-table systems also provide clients new management and time-saving capabilities through a managed services portal. Using Web services, it is now possible for ISOs and MLSs to offer multiple enterprise-wide benefits.

These include transaction consolidation, terminal and transaction management, reporting, automated settlement services, and Payment Card Industry Data Security Standard compliance.

A hosted payment solution enables agents to set up restaurants with multiple devices connecting to one central server. This eliminates having to separately batch transactions from each individual device.

Merchants can access a wealth of information, such as transactions per server, per device and per table. They also enjoy automated settlement services.

Once an ISO or MLS sets up a merchant account on the gateway, it's just a matter of ordering product and scheduling delivery. When the devices are turned on -- at the ISO or merchant location -- the terminal calls the gateway for software download and account confirmation.

Merchants and ISOs can log on to the Web portal from any Internet-connected PC to make adjustments in their accounts.

Pay-at-the-table wireless solutions have drawn the attention of major metropolitan newspapers and television news programs, including the Boston and Los Angeles markets. This is primarily due to the interest in preventing card skimming and fraud.

That's a leading indicator that these solutions are hitting a sweet spot in the market, one that is just waiting for you to exploit.

Steve McRae is Senior Director of Global Managed Services with VeriFone. He can be reached at steve_mcrae@verifone.com.