What Else?

As computer prices drop and as more and more companies are using PCs as their Point of Sale (POS) system, more and more credit and debit transactions are moving away from the stand alone terminal.

For many years, applications, such as PC-Charge, have been used for credit transactions. Companies such as Shift-4 have helped the transition with certified modules that could be integrated into other POS applications.

PC based transactions happen in two very different ways: PC applications and Web based "Virtual Terminals". Each has advantages and challenges.

*PC applications* are what most people think of when they run transactions from their PC based POS. Most development groups know how to get one written and certification is fairly straightforward.

Challenges start with installation. Some applications are written in languages that require a significant run time library such as a specific version of Java or .NET. Another challenge is PC security. One provider insists that merchants have an active anti-virus subscription and provides a spyware scan to run prior to installing the transaction software. The third challenge is the request to merge transaction processing with existing POS software. Some POS software won't let a third party application get access to the card reader or printer.

A lot of developers don't realize how many different operating systems are being used for POS. A number of merchants still use DOS based PCs for their POS, and every Microsoft operating system is used along with the occasional Linux and Mac based system. That makes for a real challenge in writing software.

*A "Virtual Terminal"* is not something that looks like a POS terminal on the screen, it is a Web application running from within a Web browser. The application is driven from a host computer and the clerk simply fills in fields with the customer's information. Transactions happen over secure communications with the host and the host sends the transaction to a web portal for authorization.

The challenge with this approach is managing peripherals that might be needed, such as a PIN Pad and POS printer. At present, it is often better to restrict the use of this approach to merchants that are running Windows based PCs, because specialized code modules can be downloaded enabling it to talk to the ports. Windows' "ActiveX" capability allows Web pages to get around any protections built into the browsers.

The other challenge of this approach is the host software. This software can be written on any web host such as Windows Server with IIS or Linux and Apache. Either way you may want to go, Prairie Trail Software can provide you with the software. Give us a call to get your software system going.

Cheap and Simple

In a recent issue of Strategy and Business, there was an article on a bunch of small companies in India that are trying to change the way projects are handled. The concept is to build products and services that the poorest people in India can afford.

Such a constraint puts pressure on managers to be creative. For example, they came up with a way to make artificial limbs, out of inexpensive materials and at a cost so low, the artificial limb could be tossed away when worn out.

The same thing happens in the financial services business. When the constraint that small entrepreneurs have to be able to afford transaction processing is adopted, system developers are forced to change the assumptions with which that they had been working.

Verifone did that when they introduced the Zon Jr. terminal. Priced under $100 (in volume), it was so simple to program that a number of technically savvy sales people actually wrote their own terminal code. Yes, the market has moved on, but the concept still stands: A cheap and simple to program terminal radically expanded the marketplace.

Prairie Trail Software has done something similar with our EZHost terminal hosting software. The cost of the system is low enough that small businesses can get into the transaction business. It’s designed for closed loop systems such as gift/loyalty cards, prepaid phone cards, and the like.

We find that objections to selling simpler, cheaper, solutions are raised by those who want to do the design and development themselves. Many times, they are correct in that they can do the work. The issues are those of quality of design, experience, and knowledge of what could cause problems.

The article pointed to how experience in specialized areas could dramatically cut risks and costs. When someone is specializing in an area, they can perform in that area at orders of magnitude better than those with general training.

For example, we recently reviewed a financial web site and database. It was clear that the authors knew web development but not the requirements of financial processing. The web site design had holes that could be easily used to break into the financial database.

In another example, an employment broker contacted us to see if we would be interested in a six to nine month project on the Omni 3750. It was clear that with the right design, the project could be done in a couple of weeks. Yet, the manager wanted untrained people who would need three to five months training on the 3750 before they would know how to design that kind of project. A specialist costing twice as much per day, could cut the total cost by a large amount.

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Dave Randolph,
President, Prairie Trail Software

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