It&#8217;s not just retailers paving the way for contactless payments anymore. From travel and hospitality to casinos and gaming, nearly every industry is focusing on touchless commerce solutions. Let&#8217;s look at how we got here and why contactless payment technology is becoming table stakes for these industries rather than optional features.



<h2 id="h-the-surprising-history-of-contactless-payments">The Surprising History of Contactless Payments</h2>

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How long do you think contactless payments have been around? Since the onset of the pandemic? Five years? A decade? Wrong!



<a href="https://www.investopedia.com/terms/c/contactless-payment.asp" target="_blank" rel="noreferrer noopener">This fast-growing technology</a> first appeared in the U.S. in 1997 when Mobil offered Speedpass — an electronic system that allowed customers to pay for gas with a special key fob — at participating gas stations. At the same time, Coca-Cola in Helsinki rolled out a vending machine that allowed users to pay for their beverage with an <a href="https://techbullion.com/mobile-wallet-origin-history-financial-technology/" target="_blank" rel="noreferrer noopener">SMS message via a mobile account</a> linked to a user&#8217;s device.



Today, contactless payments are used by thousands of national chains, small businesses, banks, and credit card companies worldwide. And while the widespread adoption was inevitable, the momentum it gained was accelerated by the COVID-19 pandemic. 



For instance, the pre-pandemic U.S. mobile and contactless payment adoption rate was about 10% —far below global levels. By contrast, during the first quarter of 2020, Mastercard reported a <a href="https://www.cnbc.com/2020/04/29/mastercard-sees-40percent-jump-in-contactless-payments-due-to-coronavirus.html" target="_blank" rel="noreferrer noopener">40% increase in contactless transactions</a>. Additionally, <a href="https://www.cnbc.com/select/mastercard-survey-contactless-payments/" target="_blank" rel="noreferrer noopener">according to consumer polling by Mastercard</a>, 51% of U.S. consumers are using cash less frequently (or not at all) since the pandemic began, opting instead to use tap-and-go payment methods and mobile wallets such as Apple Pay, Google Pay, and Samsung Pay.



It’s pretty clear that contactless payments is a technology that’s here to stay, so let’s take a closer look at how this next-gen payment trend works.

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<h2>Contactless Payments: Secure, Efficient, and Effortless</h2>

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<a href="https://usa.visa.com/pay-with-visa/contactless-payments/contactless-payments.html" target="_blank" rel="noreferrer noopener">According to Visa</a>, a contactless payment is a transaction made by tapping a contactless card or payment-enabled mobile or wearable device over a contactless-enabled payment terminal. 



This type of touchless technology is a secure way to purchase products or services using Radio Frequency Identification (RFID) or Near-Field Communication (NFC) technology. It is also referred to as “tap-and-go” by some banks and retailers for its swift communication that doesn&#8217;t require the consumer to enter a PIN or insert an EMV chip card. Yet, it relies on the same type of <a href="https://www.shift4.com/secure-technology" target="_blank" rel="noreferrer noopener">secure payment technology</a>: tokenization. 



As the <a href="https://www.prnewswire.com/news-releases/shift4-payments-inventor-of-tokenization-reaches-new-milestone-of-8-billion-tokenized-transactions-300637842.html#" target="_blank" rel="noreferrer noopener">trailblazer of payment tokenization</a>, this is something that we know a thing or two about. Simply put, tokenization is the process of replacing sensitive data — such as a consumer&#8217;s Personal Account Number (PAN) — into a random string of characters called a token. The token has no meaningful value if the merchant’s system is breached by data thieves. The actual cardholder data is secured off-site — often via <a href="https://www.cisco.com/c/en/us/products/security/encryption-explained.html" target="_blank" rel="noreferrer noopener">encryption</a> — in  a token vault database, which stores the relationship between the sensitive value and the randomized token.



Knowing how secure and efficient contactless payments are, it’s easy to understand why consumers have come to expect touch-free payments anywhere they do business.

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<figure class="wp-block-image size-large"><img loading="lazy" width="1024" height="576" class="wp-image-28894" src="https://assets.shift4.com/wp-content/uploads/2022/10/contactless-payments_.woman-using-contactless-payment-to-pay-at-a-cafe_Shift4webp-1024x576.webp" alt="contactless payments_.woman using contactless payment to pay at a cafe_Shift4" srcset="https://assets.shift4.com/wp-content/uploads/2022/10/contactless-payments_.woman-using-contactless-payment-to-pay-at-a-cafe_Shift4webp-1024x576.webp 1024w, https://assets.shift4.com/wp-content/uploads/2022/10/contactless-payments_.woman-using-contactless-payment-to-pay-at-a-cafe_Shift4webp-300x169.webp 300w, https://assets.shift4.com/wp-content/uploads/2022/10/contactless-payments_.woman-using-contactless-payment-to-pay-at-a-cafe_Shift4webp-768x432.webp 768w, https://assets.shift4.com/wp-content/uploads/2022/10/contactless-payments_.woman-using-contactless-payment-to-pay-at-a-cafe_Shift4webp-1536x864.webp 1536w, https://assets.shift4.com/wp-content/uploads/2022/10/contactless-payments_.woman-using-contactless-payment-to-pay-at-a-cafe_Shift4webp-1568x882.webp 1568w, https://assets.shift4.com/wp-content/uploads/2022/10/contactless-payments_.woman-using-contactless-payment-to-pay-at-a-cafe_Shift4webp.webp 1601w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>

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<h2>Contactless Payments Are Everywhere You Are</h2>

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Five or 10 years ago, contactless payment options were only seen at large retailers or hip hospitality locales —  even then, it was a rare sighting. Today, this consumer option is readily available for every industry and merchants of all sizes — including small business mom-and-pop shops. 



Here&#8217;s a look at how various industries use touch-free payment methods to enhance the overall consumer experience.



<h3>Travel &amp; Hospitality</h3>

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<a href="https://www.shift4.com/hospitality" target="_blank" rel="noreferrer noopener">Hotels can leverage contactless payments</a> during check-in and check-out, and guests can often simply let the hotel know they’ve arrived via an app. A mobile room key can be generated and the entire process can be completed without any face-to-face contact.



And don’t forget about getting to the hotel. Many airlines, including Allegiant, are becoming completely cashless and rolling out contactless payment solutions for everything from ticket sales to in-flight purchases.



<h3>Food &amp; Beverage </h3>

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Contactless payments are being leveraged by <a href="https://www.shift4.com/food-beverage" target="_blank" rel="noreferrer noopener">restaurants and bars</a> as a way to help guests and staff stay (and feel) safe. By implementing this technology, customers can pay without handing their card over, resulting in a faster and more secure transaction compared to traditional methods. These touch-free payments can include contactless terminals as well as <a href="https://www.shift4.com/qr-code-solutions" target="_blank" rel="noreferrer noopener">QR code ordering and payments</a>.



<h3>Sports &amp; Entertainment </h3>

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Even large venues are getting in on the contactless strategy to create a better experience for fans. After all, if you’re attending a sporting event or concert for a few hours, you don’t want to spend half your time waiting in line for a beverage and missing all the action. 



Chicago’s United Center, home to the NBA’s Bulls and the NHL’s Blackhawks, understands this pain point and <a href="https://www.shift4.com/news/united-center" target="_blank" rel="noreferrer noopener">recently implemented contactless payment solutions</a> as part of their mission to enhance the in-venue fan experience. Transactions for everything from concessions, premiums, suites, and retail has been streamlined to help provide fans with a consistent, seamless interaction.



<h3>Gaming </h3>

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Like any industry, gaming needs to embrace contactless payments if it wants to continue to grow. <a href="https://www.shift4.com/casinos-and-gaming" target="_blank" rel="noreferrer noopener">Enabling payment choices on the casino floor</a> does more than provide consumer flexibility. It also provides an unmatched and secure online gaming and sports-betting platform via an advanced payment platform, including live virtual casino floor games, daily and weekly poker tournaments, and a sportsbook interface.



<h3>Retail </h3>

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<a href="https://www.shift4.com/retail" target="_blank" rel="noreferrer noopener">Contactless payments are omnipresent in retail</a>. Leveraging this technology allows retailers to focus on <a href="https://www.cnbc.com/2020/04/27/coronavirus-curbside-pickup-at-retail-stores-surges-208percent.html" target="_blank" rel="noreferrer noopener">curbside pickup</a>, which increased over 200% during the COVID-19 pandemic. Contactless payments reduce transaction time, shorten lines, and bring peace of mind to shoppers and employees wanting to avoid direct contact whenever possible.

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<h2>Contactless Payments Are the Future</h2>

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These contactless payment methods aren’t just a passing fad — they have proven to be a technology that benefits businesses and consumers alike. And while we may never become a fully fledged, cashless society, we are certainly inching closer every day.

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contactless payments_group of people checking nto hotel using contactless payment device

See How Contactless Payment Tech is Becoming Mainstream in Every Industry

If you’re not making the most of your gift card program (or have yet to implement one), you’re missing out on some serious revenue potential. Gift cards are steadily increasing in popularity year over year, with the <a href="https://www.statista.com/statistics/1004280/gift-cards-market-value-worldwide/" target="_blank" rel="noopener">U.S. market expected</a> to reach $510 billion in 2025. 
No matter what type of business you operate, you can’t afford to miss out on the equity that comes with building an effective gift card program. 
Here’s a look at how you can optimize this area of your business and make it successful.
<h2>What is a Gift Card Program?</h2>
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A <a href="https://www.shift4.com/gift-card-program" target="_blank" rel="noopener">gift card program</a> allows businesses to sell (issue) gift cards redeemable for goods or services. If a gift card is only redeemable at your business, it’s considered a closed-loop gift card program. 
On the other end of the spectrum, open-loop gift card programs are redeemable anywhere. For example, gift cards with a card network logo like Visa or American Express are considered open-loop gift cards. Therefore, they are redeemable at any business that accepts those types of payment cards.
<h2>What are the Benefits of a Gift Card Program?</h2>
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A gift card program is a cost-effective way to boost revenue, drive customer loyalty, and build brand awareness. They can also be a lifeline for your business during a time of crisis, such as the <a href="https://www.shift4.com/news/shift4-payments-launches-shift4cares-com-to-raise-over-200-million-for-small-businesses-and-highlight-economic-impact-of-covid-19" target="_blank" rel="noopener">COVID-19 pandemic</a>.  
Let’s explore some of the game-changing benefits of these magical little vouchers.
<h3>Build Brand Awareness</h3>
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When you’re looking for a new restaurant to try, a new vacation destination, or need some work done around the house, who are the first people you reach out to for suggestions? 
If your answer is friends or family, you’re in good company. A <a href="https://blog.hubspot.com/blog/tabid/6307/bid/30239/71-More-Likely-to-Purchase-Based-on-Social-Media-Referrals-Infographic.aspx" target="_blank" rel="noopener">Hubspot survey</a> found that 90% of respondents trust suggestions from friends and family. We inherently trust our loved ones, so their recommendations, experiences, and implicit <a href="https://everyonesocial.com/blog/word-of-mouth-marketing-stats/" target="_blank" rel="noopener">word-of-mouth marketing</a> is meaningful. 
A gift card program extends this type of marketing and is a great way to build brand awareness. For example, let’s say a first-time customer, Jane, walks into your restaurant. She has the trifecta of an overall great experience — the food is delicious, the service is on point, and your prices are reasonable. Not only did you start the customer journey off on the right foot, but you’re (most-likely) creating a repeat customer and laying the foundation of building brand awareness.  
Now, let’s say a month goes by, and Jane needs a last-minute birthday gift for her friend John and wants to pick up something local on the way to the party. So she runs through a mental checklist of businesses she likes and cross-checks that with ones she thinks John will also enjoy. She recalls the great experience she had while dining at your restaurant, and decides to buy John a gift card. 
Jane pops into your restaurant and buys a gift card for John — a $50 value. Upon receipt, John tells Jane he’s seen your restaurant driving around town but has never been there to dine. Now, armed with a gift card, he has an incentive to check it out.
<h3>Boost Your Bottom Line</h3>
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Building brand awareness goes hand in hand with boosting your bottom line. The more people that know about your restaurant, the more potential you have to grow your customer base. Getting back to our Jane and John example, let’s see how the domino effect of a $50 gift card plays out. 
After a long work week, John brings his family of four to your restaurant for dinner on Friday night. After they order drinks, an app, and their entrees, the check comes to $120 (not including gratuity, of course). Already, John is spending $70 more than the amount of his gift card. 
In fact, 65% of <a href="https://www.giftcards.com/gift-card-statistics" target="_blank" rel="noopener">gift card recipients</a> spend 38% more than the gift card balance, so John’s spending habits are on par with most gift card recipients. If situations like this continue to play out over the course of the year, you’ll see a steady boost to your cash flow and your bottom line.
<h3>Drive Customer Loyalty</h3>
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If customers have a good experience at your restaurant, there’s a high probability that they’ll return again and again. 
Just like Jane, the restaurant made a good first impression on John and it’s highly likely that he’ll be back for another meal in the future. In this case, not only did a new customer spend more than double the amount of the gift card, but you also gained a new patron. 
Another way to leverage a gift card program to drive customer loyalty is to use it in conjunction with your <a href="https://www.skytab.com/features/loyalty-and-marketing/" target="_blank" rel="noopener">customer loyalty program</a>. For instance, every time a customer spends $500 at your restaurant, they get a $15 gift card to use on their next visit. 
<img loading="lazy" class="aligncenter wp-image-28883 size-large" src="https://assets.shift4.com/wp-content/uploads/2015/01/gift-card-program_happy-customer-showing-her-gift-card-1024x576.png" alt="gift card program Shift4Gift happy customer showing her gift card" width="750" height="422" srcset="https://assets.shift4.com/wp-content/uploads/2015/01/gift-card-program_happy-customer-showing-her-gift-card-1024x576.png 1024w, https://assets.shift4.com/wp-content/uploads/2015/01/gift-card-program_happy-customer-showing-her-gift-card-300x169.png 300w, https://assets.shift4.com/wp-content/uploads/2015/01/gift-card-program_happy-customer-showing-her-gift-card-768x432.png 768w, https://assets.shift4.com/wp-content/uploads/2015/01/gift-card-program_happy-customer-showing-her-gift-card-1536x864.png 1536w, https://assets.shift4.com/wp-content/uploads/2015/01/gift-card-program_happy-customer-showing-her-gift-card-1568x882.png 1568w, https://assets.shift4.com/wp-content/uploads/2015/01/gift-card-program_happy-customer-showing-her-gift-card.png 1601w" sizes="(max-width: 750px) 100vw, 750px" />
<h2>How to Manage a Gift Card Program?</h2>
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To have a successful gift card program, you’ll need to find the most effective way to manage it. There are a lot of moving pieces when it comes to gift card sales, and here are a few things you’ll need to know.
<h3>Issuing</h3>
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From a business perspective, when customers purchase gift cards, it’s known as issuing. Your business is issuing a gift card with a predetermined balance that you’re collecting payment for at the time of purchase.
<h3>Redemption</h3>
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On the other hand, when customers actually spend the gift card, it&#8217;s known as redemption. They&#8217;re redeeming goods or services in the amount of (and often exceeding) the card&#8217;s value. 
<h3>Balances</h3>
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Here&#8217;s where it gets tricky. Suppose the gift card is not redeemed for the total value during a transaction. In that case, it&#8217;s your responsibility as the business owner to keep track of the balance left on the card. Imagine doing that for every single card you issue.
<h3>Replenishment </h3>
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Some physical gift cards are reloadable, so you can repeatedly add funds to an existing card. 
A <a href="https://www.skytab.com/" target="_blank" rel="noopener">Point-of-Sale (POS) system</a> is the absolute best way to manage a gift card program in these digital times. All of the details above are tracked automatically with a POS system.
Most POS solutions have a proprietary gift card program or integrate directly with a third-party provider. While you may pay a small transaction fee (as in pennies) to process gift cards, the automation of these card management processes is vital to being successful and worth every penny.
<h2>Physical and Digital Gift Cards</h2>
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Since you’ll be managing the gift card program via your point-of-sale system, it’s important to ensure that your provider offers both physical and digital gift card options. Even though we&#8217;re primarily a digital-first society, we still have analog tendencies. So make sure you&#8217;re serving both types of customers, so you don&#8217;t miss out on any sales.   
<h2>Marketing Campaigns</h2>
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Speaking of sales, how will you ever sell any gift cards if nobody knows you offer them? Recurring marketing campaigns around your gift card program is a great way to get the word out.
<h3>Digital Marketing</h3>
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Whether you send an email blast to your existing customers or use social media to spread the word, you’ll want to invest the time (and maybe a few dollars) in promoting the program. This is especially important around the many holidays throughout the year when gift-giving is a customary tradition. 
<h3>Traditional Marketing</h3>
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You can also explore more traditional methods like internal and external signage. When customers walk through the door, it doesn&#8217;t hurt to let them know gift cards are available for purchase. A small sticker on the door, a display, or digital signage are great ways to bring awareness to your gift card program. 
<h3>Special Promotions</h3>
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Expanding on leveraging gift cards with your customer loyalty program, you can take it a step further. You can run special promotional periods or gift card incentives on specific items. For instance, for every $50 gift card purchase between May 1st and July 1st, the purchaser gets a $10 bonus gift card. 
<h2>Final Thoughts</h2>
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As one of the more popular gift ideas and a cost-effective way to open up a new revenue channel, optimizing your gift card program is a no-brainer. If you’re not marketing your gift card program to the fullest, now is the time to start.

grift card program Shift4Gift business owner using gift cards

Learn How to Get the Most Out of Your Gift Card Program

Does your business have multiple streams of revenue? If you operate a hotel, reservations are one revenue center and the on-premise restaurant is another. Or perhaps you run a retail store but also sell merchandise online. Your brick-and-mortar store and your eCommerce store are individual revenue centers.



If this is how your business operates, you have multiple revenue centers, and it’s time to start thinking about unifying them. From a daily operational standpoint to a more seamless accounting process, unifying revenue centers will allow you to work smarter, not harder.


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<h2 id="h-what-is-a-revenue-center">What is a Revenue Center?</h2>

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Each distinguished area of your business where sales occur is considered a revenue center. For instance, a hotel or resort is the perfect example of a business with multiple revenue streams.



<h3 id="h-reservations">Reservations</h3>

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When guests book a room on your property, the income generated from their reservation is a revenue stream. This segment can be further broken down into more function-specific units such as direct reservations, online reservations, and third-party reservations on platforms like Expedia or Tripadvisor. 



<h3 id="h-dining">Dining</h3>

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Most hotels and resorts have multiple dining options that produce revenue. Just like with reservations, these profit centers can be further segmented into smaller units including room service and individual locations like the pool bar or the five-star restaurant. 



<h3 id="h-retail">Retail</h3>

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Hospitality properties have one or multiple retail outlets (e.g., gift shop) that’s considered its own revenue stream. 



<h3 id="h-event-center">Event Center</h3>

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If your property rents out designated areas for private events, you can consider these separate revenue centers as well.



<h3 id="h-golf-course">Golf Course</h3>

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Did someone say tee time? Golfers will not only pay to hit the links, but if you have a pro shop and a nineteenth hole (clubhouse bar), you can also consider these additional revenue streams. 



<h3 id="h-spa">Spa</h3>

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Last but not least, if you have an in-house spa you’ll want to include any services and retail products as an additional source of revenue.



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<figure class="wp-block-image aligncenter">
<figure id="attachment_28877" aria-describedby="caption-attachment-28877" style="width: 750px" class="wp-caption aligncenter"><img loading="lazy" class="wp-image-28877 size-large" src="https://assets.shift4.com/wp-content/uploads/2011/04/revenue-center-01_diagram-of-various-revenue-centers-within-a-business-1024x576.png" alt="revenue center diagram showing various revenue centers in a business" width="750" height="422" srcset="https://assets.shift4.com/wp-content/uploads/2011/04/revenue-center-01_diagram-of-various-revenue-centers-within-a-business-1024x576.png 1024w, https://assets.shift4.com/wp-content/uploads/2011/04/revenue-center-01_diagram-of-various-revenue-centers-within-a-business-300x169.png 300w, https://assets.shift4.com/wp-content/uploads/2011/04/revenue-center-01_diagram-of-various-revenue-centers-within-a-business-768x432.png 768w, https://assets.shift4.com/wp-content/uploads/2011/04/revenue-center-01_diagram-of-various-revenue-centers-within-a-business-1536x864.png 1536w, https://assets.shift4.com/wp-content/uploads/2011/04/revenue-center-01_diagram-of-various-revenue-centers-within-a-business-2048x1152.png 2048w, https://assets.shift4.com/wp-content/uploads/2011/04/revenue-center-01_diagram-of-various-revenue-centers-within-a-business-1568x882.png 1568w" sizes="(max-width: 750px) 100vw, 750px" /><figcaption id="caption-attachment-28877" class="wp-caption-text">Various revenue centers of a business</figcaption></figure>
</figure>


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<h2 id="h-revenue-center-vs-cost-center-what-s-the-difference">Revenue Center vs. Cost Center — What&#8217;s the Difference?</h2>

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If we’re talking about revenue centers, it’s only fair to mention cost centers, too. 



While a revenue center is directly responsible for generating revenue, a <a href="https://www.investopedia.com/terms/c/cost-center.asp#" target="_blank" rel="noopener">cost center</a> is an area of business that is essential for operations, but doesn’t directly generate revenue for the company. Cost centers can be (but are not limited to) the HR department, the IT department, and the Maintenance department.



<h2 id="h-why-is-unifying-revenue-centers-important">Why is Unifying Revenue Centers Important?</h2>

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Now that you’ve taken the time to define your revenue centers and understand the importance of doing so, let’s talk about unifying them. 



Separate revenue streams don’t mean separate payment processes — it actually means the opposite. Carving out and tracking individual revenue centers is hard enough. You don’t want to overcomplicate the matter by working with multiple vendors to solve the singular problem of accepting payments.  



Think about it. When it comes to accepting payments, you are potentially dealing with a minimum of six different vendors:



<ul>
<li style="font-weight: 400;" aria-level="1">Hardware vendors for Point-of-Sale (POS) systems or credit card terminals</li>
<li style="font-weight: 400;" aria-level="1">A PCI-validated Key Injection Facility (KIF) that coordinates with the hardware vendor and injects the encryption keys into the terminals</li>
<li style="font-weight: 400;" aria-level="1">Software vendors for the POS or Property Management System (PMS) application &#8211; PLUS you could potentially have different software vendors for each revenue center (PMS software, reservation software, retail POS, golf course software, spa software)</li>
<li style="font-weight: 400;" aria-level="1">A payment processor so you can accept credit card payments and generate the actual revenue</li>
<li style="font-weight: 400;" aria-level="1">A payment gateway for the <a href="https://www.shift4.com/secure-technology">secure technology</a> to transmit payment card details to your payment processor </li>
<li style="font-weight: 400;" aria-level="1">Additional business management apps such as accounting software programs</li>
</ul>



Depending on your unique business requirements, the number of vendors you rely on to conduct your day-to-day business can grow exponentially. As a result, not only can each vendor be a potential breaking point in the payment processing chain, but you’re probably paying redundant fees, too. 



If your POS hardware malfunctions, the software is inoperable. If your payment processor experiences an outage, you can no longer accept card payments from your POS system. These issues and others can hinder your operations and cause a loss of revenue. Not to mention, you’ll have multiple vendors to deal with to correct the problem.



Check out the diagram below that highlights potential breaking points and additional costs associated with this type of set up. 


<div class="wp-block-image wp-image-28889 size-medium">
<figure class="aligncenter"><img loading="lazy" width="898" height="499" class="wp-image-28889" src="https://assets.shift4.com/wp-content/uploads/2011/04/Implementation_Before.png" alt="Revenue centers potential breaking points diagram" srcset="https://assets.shift4.com/wp-content/uploads/2011/04/Implementation_Before.png 898w, https://assets.shift4.com/wp-content/uploads/2011/04/Implementation_Before-300x167.png 300w, https://assets.shift4.com/wp-content/uploads/2011/04/Implementation_Before-768x427.png 768w" sizes="(max-width: 898px) 100vw, 898px" /></figure></div>
&nbsp;

Why not simplify and streamline processes so you can remove the unnecessary parts? With a vendor like <a href="https://www.shift4.com/" target="_blank" rel="noopener">Shift4</a>, you can do just that. 



We maintain integrations with more than 450 commerce-enabling software solutions to deliver a <a href="https://www.shift4.com/unified-commerce" target="_blank" rel="noopener">unified commerce experience</a> and simplify complex payment ecosystems. And if something goes wrong, you won’t have to track down half a dozen different vendors to fix the issue — if they can even agree on what the issue is.



Instead, one call to us is all you’ll need to make. Payments are finally simple.



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<div class="wp-block-image wp-image-28891 size-full">
<figure class="aligncenter is-resized"><img loading="lazy" class="wp-image-28891" src="https://assets.shift4.com/wp-content/uploads/2011/04/Implementation_After.png" alt="revenue centers no breaking points with Shift4" width="494" height="170" srcset="https://assets.shift4.com/wp-content/uploads/2011/04/Implementation_After.png 494w, https://assets.shift4.com/wp-content/uploads/2011/04/Implementation_After-300x103.png 300w" sizes="(max-width: 494px) 100vw, 494px" /></figure></div>


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<h2 id="h-the-wrap-up">The Wrap Up</h2>
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Unifying your revenue centers is well worth the effort. It streamlines operations and reduces costs for business owners, and provides a seamless payment experience for your customers.

What is a Revenue Center? Should You Unify Yours?

It&#8217;s no surprise that debit and credit cards are the preferred payment methods — in-store and online — for millions of consumers. And the increased use of these payment methods has spurred an uptick in data breaches, cyber theft, and payment security awareness.



A <a href="https://www.jpmorgan.com/content/dam/jpm/commercial-banking/documents/fraud-protection/2021-afp-payments-fraud-and-control-survey-report-highlights.pdf" target="_blank" rel="noreferrer noopener">report sponsored by JP Morgan</a> noted that the increased use of digital transactions has increased cybercrime. In fact, almost 75% of organizations were targets of payment fraud attacks in 2020.



As a result of the increase in payments fraud, a study by Meticulous Research reports that the <a href="https://www.meticulousresearch.com/pressrelease/458/payment-security-market-2028" target="_blank" rel="noreferrer noopener">payment security market</a> is expected to reach $54.1 billion by 2028.&nbsp;



Companies in industries such as eCommerce, travel and hospitality, food and beverage, and sports and entertainment, have always been targets of cybercriminals because their payment systems contain a wealth of customers&#8217; personal and financial data.&nbsp;



What security solutions is your business implementing to protect your customers’ data and your brand? Read on to find out what steps you should take.



<h2 id="h-pci-compliance">PCI Compliance</h2>















To fully understand payment security, you first need to understand the origin. The <a href="https://www.pcisecuritystandards.org/about_us/" target="_blank" rel="noreferrer noopener">Payment Card Industry Security Standards Council (PCI SSC)</a> — or PCI for short — was established in 2006 by American Express, Discover, JCB International, Mastercard, and Visa. The council is a global forum that unites payment industry stakeholders to develop and drive the adoption of data security standards worldwide.&nbsp;



Any business that processes or stores cardholder data must comply with PCI DSS (Data Security Standard) requirements. Depending on how your organization handles payments — card-present for in-person transactions and card-not-present for recurring or online payments — you can validate your compliance with a <a href="https://www.pcisecuritystandards.org/pci_security/completing_self_assessment" target="_blank" rel="noreferrer noopener">self-assessment questionnaire (SAQ)</a> or <a href="https://listings.pcisecuritystandards.org/assessors_and_solutions/qualified_security_assessors" target="_blank" rel="noreferrer noopener">qualified security assessor</a>.&nbsp;



If this sounds complicated or intimidating to you, you’re not wrong. It’s a lot to digest at once, and it’s tricky navigating unfamiliar waters. Thankfully, payment processors and experts, like us at <a href="https://www.shift4.com/" target="_blank" rel="noreferrer noopener">Shift4</a>, can take on the responsibility of keeping your payment systems PCI compliant. We’ve even created a <a href="https://www.shift4.com/security-corner" target="_blank" rel="noreferrer noopener">Security Corner</a> to help businesses navigate the overwhelming world of PCI compliance.



<h2>What Is Payment Security? </h2>











Now that you understand how payment security is governed let’s talk about what it means for your business.&nbsp;



In a nutshell, payment security is the measures companies take to protect their customers’ personal data and prevent fraudulent transactions. They are dynamic, multifaceted strategies happening in real-time to protect sensitive data. Here’s a look at these different layers.



<h3>Card-Present Security</h3>











<h4>EMV</h4>











Your first line of defense is an EMV payment terminal for card-present transactions. EMV is short for Europay, Mastercard, and Visa — named after the founders who created this payment technology standard. Often referred to as a chip card or smart card, EMV cards have a small microprocessor or chip that stores data and makes it nearly impossible for potential thieves to replicate with counterfeit cards.



<h4>Point-to-Point Encryption</h4>











Another safeguard for credit card transactions is Point-to-Point Encryption or P2PE for short. P2PE <a href="https://www.cloudflare.com/learning/ssl/what-is-encryption/" target="_blank" rel="noreferrer noopener">encrypts</a> the cardholder’s data at the point of capture and throughout the entire transaction journey until it reaches the secure decryption endpoint. With P2PE, card data never enters the merchant’s system. Shift4 takes it a step further with PCI-validated P2PE, which requires a higher level of security and dramatically reduces your organization’s <a href="https://www.controlcase.com/how-to-define-pci-dss-scope/" target="_blank" rel="noreferrer noopener">PCI DSS scope</a>.



<h4>Tokenization</h4>











As the <a href="https://www.shift4.com/news/shift4-payments-inventor-of-tokenization-reaches-new-milestone-of-8-billion-tokenized-transactions" target="_blank" rel="noreferrer noopener">inventor of payment tokenization</a>, we know that tokenization is one of the most important steps you can take to protect your customers when it comes to sensitive payment data.&nbsp;



Tokenization replaces the cardholder&#8217;s Personal Account Number (PAN) with a random, alphanumeric value known as a &#8220;token.&#8221; The token value has absolutely no connection to the PAN it represents. Therefore, it cannot be reverse-engineered. Only a payment gateway or token vault can identify the 1:1 relationship between the PAN and the token.



As part of Shift4’s end-to-end payment solution, these three technologies work together to seamlessly deliver the strongest security possible throughout the entire transaction — and long after.














<div class="wp-block-image">
<figure class="aligncenter size-large"><img loading="lazy" width="1024" height="576" src="https://assets.shift4.com/wp-content/uploads/2022/10/payment-security-diagram-of-security-processes_Shift4-1024x576.png" alt="" class="wp-image-28897" srcset="https://assets.shift4.com/wp-content/uploads/2022/10/payment-security-diagram-of-security-processes_Shift4-1024x576.png 1024w, https://assets.shift4.com/wp-content/uploads/2022/10/payment-security-diagram-of-security-processes_Shift4-300x169.png 300w, https://assets.shift4.com/wp-content/uploads/2022/10/payment-security-diagram-of-security-processes_Shift4-768x432.png 768w, https://assets.shift4.com/wp-content/uploads/2022/10/payment-security-diagram-of-security-processes_Shift4-1536x864.png 1536w, https://assets.shift4.com/wp-content/uploads/2022/10/payment-security-diagram-of-security-processes_Shift4-2048x1152.png 2048w, https://assets.shift4.com/wp-content/uploads/2022/10/payment-security-diagram-of-security-processes_Shift4-1568x882.png 1568w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure></div>


&nbsp;



<h3>Card-Not-Present Security</h3>











<h4>Card Verification Value (CVV)</h4>











If you&#8217;ve ever made a purchase online or added value to a mobile device app like Dunkin&#8217; or Starbucks, you&#8217;re already familiar with your payment card&#8217;s CVV. The Card Verification Value — or CVV for short — is the three- or four-digit code on the front or back of your credit or debit card.&nbsp;



A CVV code is typically requested for card-not-present transactions as an additional security measure to ensure that the card is in the hands of the rightful owner.&nbsp;



<h4>Address Verification Service (AVS)</h4>











Another safeguard for eCommerce transactions is address verification. For example, when you place an order online, you are asked to enter a shipping address and your billing address.&nbsp;



The billing address request confirms that the information you&#8217;re supplying matches the information on file with the card issuer. If it&#8217;s a complete mismatch or partial mismatch, the transaction can be declined.&nbsp;



<h4>Secure Socket Layer (SSL)</h4>











Lastly, we have <a href="https://blog.shift4shop.com/do-i-need-an-ssl-certificate-for-my-website-blog-or-ecommerce-store" target="_blank" rel="noreferrer noopener">SSL certificates</a>, a security protocol for online transactions that encrypts information sent over the internet. Have you ever noticed a small lock icon in the address bar of your web browser? Or have you seen a web address that starts with HTTPS? If so, you can rest assured that the website is using SSL and the information you share is protected.



<h2>Why Payment Security Is Important for Your Business</h2>











Implementing the appropriate payment security can make or break any business. A company could spend years establishing itself as a trustworthy brand, then lose it all in an instant because of a payment system breach.



Once your company&#8217;s security has been breached, not only do you lose your data, but you also lose the trust of your customers — trust that likely took years to gain. The last thing your customers want is to spend hours dealing with fraudulent charges — or worse: identity theft —because they used their cards in your store or on your website.



Customers who entrust businesses with their money and personal information also trust that those companies will provide them with secure and seamless buying experiences. Furthermore, you may also run the risk of damaging your relationships with your business partners and service providers.



In addition to tarnishing your reputation, payment fraud can cost your business financially. Depending on the size of a company and the circumstances surrounding the breach, fines can be as high as $500,000 per incident — or sometimes more. The banks may also increase transaction fees or terminate relationships altogether.&nbsp;



Do you remember the <a href="https://www.reuters.com/article/us-target-cyber-settlement/target-in-18-5-million-multi-state-settlement-over-data-breach-idUSKBN18J2GH" target="_blank" rel="noreferrer noopener">Target data breach</a> in 2013? After a 47-state settlement, Target agreed to pay $18.5 million in settlement claims. In fact, when all was said and done, Target said they had lost a total of more than $200 million due to the breach. While this may not cripple a large retailer into bankruptcy, it&#8217;s undoubtedly a massive blow to their bottom line. &nbsp;&#8220;Threats to payment card data continue to increase and impact the payment security landscape in numerous — and increasingly insidious — ways,&#8221; according to Verizon&#8217;s <a href="https://www.verizon.com/business/resources/reports/2020/2020-payment-security-report.pdf?_ga=2.252000073.1916550669.1642034038-364110983.1640037657" target="_blank" rel="noreferrer noopener">2020 Payment Security Report</a>. &#8220;The negative disruption from payment security data breaches can have a temporary or lasting impact on an organization’s sales and company stock price and reputation.&#8221;



<h2>How to Protect Your Business</h2>











When it comes to protecting your business and cardholder data, it’s best to take a layered approach to payment security by implementing the multiple strategies mentioned above. This type of approach is precisely what we do at Shift4 with our <a href="https://www.shift4.com/secure-technology" target="_blank" rel="noreferrer noopener">industry-leading secure technologies</a>.&nbsp;



Our layered approach to credit card security and best-in-class payment solutions protect customer data from end to end, providing both merchants and customers with unmatched security — and peace of mind.&nbsp;



<h2>Final Thoughts</h2>











As the landscape evolves and hackers become more sophisticated, merchants must remain vigilant in the fight against fraud and data breaches. Protecting sensitive customer data should remain a priority — and choosing the best in-store and online payment security solutions can certainly support this objective.

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