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The Future is Contactless and the Future is Now

The “New Normal” will not look like the old normal. If you’re a business or consumer concerned about making safe transactions with high security, this interview is for you. Join our own Chimp Jon Garber and Dan Hulen, Fifth Third Bank Merchant Services as they discuss the state-of-the-art in contactless, secure payments.



Hey everybody, welcome back. I am Jon Garber with Flying Chimp Media. Now, I know you’ve got questions about the new normal, contactless transactions, how can I be safe when I’m shopping at how can I do it all with a better level of security than I did before. Well, you’re about to get all of your questions answered.

Joining me is Mr. Dan Hulen the Senior Merchant Services Executive with Fifth Third Bank, the merchant services division, Dan welcome. Thank you. Thank you for having me Jonathan. So, Dan, I appreciate you taking time. You have been running like a madman your very hard get ahold of I think that’s a great economic sign when people like you and merchant services are busy people are doing business and changing how they do business so that to me is very optimistic. So, I keep hearing this phrase The New Normal and I feel like The New Normal should not be like the old normal as I think we’ve learned some things since then and there’s a Another buzzword, I guess going around called contactless. Everything should be contactless yet. Sometimes I don’t mean to rat specific people out Dan. I’m buying something restaurant store take out whatever and I put my card in and then they hand me stuff in a pen. To sign what the hell happened tell me about contactless because that’s where I want to go?

Contactless and in the retail environment is a couple different things. They terminals have you saw Publix’s turn on a feature recently so you can tap the card you have that extra identification there to verify that it’s you as well as more secure for the card holder using that Apple pay I you Samsung pay myself because it go on any card reader and I’m using a virtual number. So, if that establishment is hacked, they’re not stealing. Card information your virtual number. So, I have a new virtual number issued to me. And obviously I’m not touching the terminal pin pad except maybe bypass debit or select pin number on glasses is nicer than the plastic or skip signature all together with there’s been rules for signature isn’t needed for many scenarios and having that extra security with the phone helps verify that person.

Excellent. So let’s break down a couple of things there because that was a lie. That was the big picture of you. Let’s drill in a little bit more for the lay people like me and my audience, but why can’t all the technology all day? We survive the transition to contact lists on to EMV, right? So okay. You got have a card with a chip now. I’m okay sticking the chip card in the Rica. But the question is do I do I still need to sign after I’ve done that because I thought I was I was free with cooties there when I just stuck it in. I pulled out the card should be done. They’re $25 cut off or something there. Do I really have to sign if it’s more than $25? Yeah. Most terminals can be set up to have no signature under 25 50 depending on the card Network and it’s really dependent of the Establishment itself. That is either. State parole in April before most of the grocery and everything I did away with signatures all together because it was no longer required. So, the really up to the business owner under 2550 definitely not necessary. So that power is in the merchants hand to make the change based on their existing Hardware. It’s still EMV. It’s still secure. They need to call their provider and get that pad reprogrammed. Correct. All right, that’s my message to all you out there. Get your pad reprogram or find someone who will if you know what I mean. So EMV now there’s a new symbol on the card next to the EMV chip. That’s the contactless. What does that right? That’s a really good card and what that is. You tap it just like the phone or Apple watch and you tap and the most of the banks have been moving to contactless cards as that was the next phase to speed up the chip process, but many banks Bank of America third were or we are and then going all contactless and same thing about an inch and a half away you tap the card. That’s the verification, you know mostly if it’s Visa. They wouldn’t have a pain anyway, but you might have to do a pen. MasterCard American Express Discover credit and debit transaction. Hmm. Okay. So, we’re still back to my trusty pencil pushing numbers, correct? Okay. I’m a pencil pushing curmudgeon.

All right. So, let’s talk about Security on that EMV that little chip that was supposed to increase our security now that I move it to something are people going to be standing behind me. Hopefully socially distant reading. That number with like RFID reader. How does that work? How do protect it? Yeah, the range is near field communication. So, it’s a very close range that you have to get to snag the information that the vulnerability we still have is the magnetic stripe on the card. Once we get rid of that that that’ll be a lot better for everybody. They’d only need to get about a foot away. And if you aren’t using RFID protector of any sourcing get a foot away and they use the chip to get the magnetic strip information, but just tapping it’s only an inch of half that proximity about okay. So, when we heard a lot of RFID horror stories, that’s not applying on the contact list new chip in the card the near field communication chip. Correct. Okay. So those are the first two security and contactless things Merchants need to know about they can upgrade pads to contactless. They can increase the remove their limit of people required to sign if they’re using chip cards because they’re protected from chargebacks on that the last few would mention very quickly, which is using Apple pay or Google pay if you have an Android or an iPhone, A lot of people don’t use that. I think that’s a generational issue. I think people thought that it would be broadcasting their number but that’s not the case walk us through how that works a little bit for laypeople. You can set up your phone a couple different ways. Most people use biometric so myself I used my thumbprint. So that’s the only way I can charge something is my thumbprint and it’s a temporary process. And again, it’s using a virtual number it It’s not that my number at all and other Biometrics you could do this with the selfie. There’s a lot of lot of other different just a PIN number anyway, but it’s extra about two extra layers of protection than just taking your card out, but we get to benefit from those say it’s an extra step. But the payoff is huge one is the security and the second one relevant now is we have more contactless options. I don’t want to touch anything, right? So, I win twice for taking that one step and it’s my thumbprint. So, who cares now, you said something very quickly, which is that it’s a virtual number you mean if I go into Apple wallet, I think that’s it on my offense. Apple wallet or Google Play Google pay on the Android and I enter in all my credit card information when I go to pay. It doesn’t broadcast my credit card number what it’s set up like a tokenized one A different one. Yeah, and this is very common in commercial type programs where they use a one-time-use number. This has a number that’s can be used over and over until there is a compromise then all they’re doing is changing the number on this on the Samsung Google Apple side. They update the number there and you keep moving on and sometimes you don’t even realize the numbers been changed until you look at a receipt say well, that’s not my normal number. So, it’s all done in the background. So, if I think there’s a compromise, I can get my virtual number changed easily. Do I have to call the credit card company or something? I do in the app or who do I call to do that that you can delete the card and put the card back in and we’ll create a virtual number but it usually changes itself if they do anything with that virtual number they can’t get into your account to do anything with your account. Okay, so that’s solid that solid information. Let’s talk again about I really appreciate this because I think I’m not the only one I can’t be the only one who’s concerned about both contact lists and security. I want both right? I want it all. Yeah. Yeah, it’s reasonable. It’s a Technologies there, but the merchant has to be proactive in getting these things turned on activated and program takes two to tango. So, let’s talk about Merchants for a second. The role of online order is pay then pick up or delivery like that. That’s something that the hospitality space. Our restaurants have been doing for years, right? I could go somewhere I can order I can put in my credit card again. They deliver they tell me pick it up in 15 minutes and I can go grab it. Okay, but I’m seeing because I know that in our business, we’re taking more and more people online their business models. It’s which is not Hospitality. It’s Professional Services or personal services or even products that they want to sell out of their home and take it off the Amazon and which isn’t doing non-essential stuff anymore. So, what are you seeing in your space in terms of all kinds of businesses transitioning to some type of online or e-commerce model and how are they doing it? There’re numerous different ways. First of all, those same applications for Apple pay Google pay Samsung pay you can take to your website as well. So people can still use that secure option because most people shop with their phone, but a lot of people are changing their business model for the lack of foot traffic or availability the you QR can put a code in the window that take you to a website as well. But most people are going online. Ordering or just a link where they can send an invoice people pay by credit card or they could have people go to their website takes it to a hosted payment page away from their website. So, they don’t have to be updated for PCI compliance on the website. And so they can least get that invoice paid and if it’s a curbside situation, they have all that validation and you know, if they’re going to be having a lot of modifiers and different things for ordering that’s when they would use that set up an e-commerce. Amor site more than just a host of payment page husband Daemon paper Pages just for usually one type item type program, but most people are shifting either from a wholesale to retail model and trying to use your services to promote all over on Amazon Facebook and all that instead of just their immediate Market that they’ve been used to marketing to. Hey, I think I think people taking their product service or time. Why? Direct to the consumer is a fantastic Trend because people are working out of their house. So why do they have to go to some other type of fulfillment to get it shipped down and adds tons of layers. It takes tons of profit out of their pocket and gives it to let’s face it multi-billionaires. So, and then you’re really at their mercy. So, I think that’s a very exciting trend. I know that most of my clients in the Site development space and SEO space are actually Professional Services and you would say, oh my gosh. have to have an office. I have to know they’re doing consultations. Like we’re doing over Zoom or Microsoft teams for security, you know, depending on what their compliance issues are there doing it in online and you’re saying that rather than be on the phone and writing down God forbid the writing down numbers and putting them on paper, but rather Than writing stuff down keying it in putting it on. You know, there’s some apps on your phone that you could do certain types of credit card payment thrilled about that. But instead of moving the customers number around where they’re secured in error problems, right? Just human error, you’re saying okay Professional Services. I’m doing an exercise class. I’m doing consulting. I’m giving you a legal consultation or psychological consultation or whatever professional personal service you And send your customer like and e-invoice with a link for them to there’s your bill and there’s pay it now while you’re on the phone with them or even have a link to continue with the digital is now and is that is that a hassle for the person who set that up or you do the heavy lifting? I mean, who does that mean one thing? I know there’s a lot of different links Solutions. We work with thousands that really depends on their website. If they have a, you know, a real basic website we can just give them the Code to put on a link up. Otherwise, we could have them go to you and set up the digital good where you don’t have to have that didn’t get that payment before you keep talking. If you want. We do those Integrations all the time. We also are finding and I’m sure you’re seeing it like will do a calendar integration. So, someone who does professional personal sort of what I call selling time there selling time. I don’t care if it’s a Class 1 to 1, whatever they’re saying. Wow, I want to take A calendar and open up Windows where I’m taking these bookings and I’m going to let the customer look through availability and book themselves and after they booked themselves. Guess what they should do next and prepay for it so that my customer gets an email that says it’s on your calendar. It’s integrated to Outlook or G Suite whatever they’re using. It’s booked and here’s the receipt that it’s paid now. Let me ask you something once people commit your time. And it’s prepaid they have skin in the game. What’s the likelihood? They’ll show up at their appointment. Oh, yeah very much. So you don’t have that at the end it anything and also a lot of them are setting up than to subscription where you might set up if you discuss that it might be about six sessions that you’re going to do or automatically charges a card either weekly or bi-weekly or however on those instead of having to go through the Init process every time you talk, so that’s convenient. But now if I’m if I’m the service provider you come to my exercise class. Aha. Anyway, you come to my house. Nobody thinks I teach an exercise class anymore, but I did used to If you come to me and you say okay, we’re going to charge you every week or every month or whatever. He’s two weeks for this. Class. I’m not storing the credit card. It’s not on my website. It’s on yours, right? It’s like a token on yours. So, I don’t ever touch the card correct super important because if you’re going to make this transition and this is a transition for a lot of businesses, Dan. First of all, I don’t want the work of handling and securing a card, but I don’t want the blame. I don’t want some. to say I got a fraudulent charge and it must have been from you. I want to go. Nope on PCI Compliant. I never saw your number. I never stored your number. I never touch is that how this works? Yeah that year we’re adding this extra security of the IP address of the person using the credit card and you know, the factors there in in quite frankly the people that are key and enter cards and they’re not getting the full data that creating extra exposure issues as well. Basic information so just helps require those extra fields to make it more of a secure transaction. Wow, preventing chargebacks. Excellent because there was a brief period of time I don’t know you know that I actually was in the hospitality POS space and I think we had a statistic like there’s twenty percent error rate when humans are touching credit cards and manually keying in orders and What people did there’s like a 20 percent error rate? So, we just don’t need to live with that right? I mean we can do better than that. Yep. All right.

So, thank you very much. You have answered a lot of my questions and I know if I had them, I share them with a lot of other people together web and payment. I think we should be working together web and payment. We’ve got a full e-commerce cycle and of course your expertise our web expertise. It’s all available to anybody, you know, one of the things that we’ve talked about in the past you and I is that a hundred percent of our websites are Ada accessible and I think in 2020 anyone who’s not thinking about and having an initiative around inclusion now, we have the world as your consumer and they’re based at home. They don’t have to walk in. We don’t I’m not talking about ADA in your shopping store or your office that I can’t help you with. But a hundred percent of our websites are Ada accessible, we put them together with secure merchant services. Every single person can be your customer. Now, that’s what inclusion security provides so and of course contactless is now, so we talked about the future the future is now and you and I are delivering it you out there need to be living it and this this is the new normal, right? Yep. All right, Dan. Thank you so much for your time. This has been terrific information. Are you okay? If I put an email address for you if people want to follow up with any other questions about security or contactless or upgrading a perfect? Okay, so we’ll put that in and again, I thank you for your time.



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