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Billing Best Practices
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tomers for whom there are consistent and identical billings, a very effective best
practice is to convert those customers to automatic bank deductions.
Cost: Installation time:
4–17 USE FINGERPRINT VERIFICATION FOR CREDIT CARD
AND CHECK PAYMENTS

Those businesses that accept a large amount of credit card or check payments
notice several problems with these methods of payment. First, it takes longer to
process a payment transaction, which can cause substantial queues of customers
who are waiting to pay. Also, credit card companies take a fee that is generally in
the range of 2 to 3 percent for each transaction processed. Further, a bounced
check can be charged back to the company, with all attendant costs. One can
avoid all of these problems through the use of a new fingerprint image reader that
is positioned next to an existing point-of-sale terminal.
This product, which is sold by Indivos, is a combination fingerprint scanner
and keypad. Customers must first be set up on the system, which requires them to
present two forms of identification, fill out a short form, have a fingerprint
scanned, and enter a seven-digit search code (which allows Indivos to later con-
duct more rapid searches through its database for the fingerprint image). They
can also enter a variety of payment methods at this time, such as their Master-
Card, Visa, American Express, or checking accounts. Then, when they decide to
make a purchase, they place a finger on the scanner and select a payment method
on the terminal. Once the system verifies their scan, the payment is processed
through the usual financial networks in the same manner as a regular credit card
or check payment.
Customers like the system because there is no risk of having their financial
information stolen, they no longer have to carry credit cards or checks with them,
and they can pay for items faster than with more traditional payment systems.
Also, once they are set up in the system, they can use this payment method in any
business that carries the same scanning terminals. The benefits for businesses
include a reduction in fraud costs, faster customer checkouts, and reduced service
fees. The reduction in service fees is a substantial issue to consider; since cus-
tomers can select immediate payment withdrawals directly from their checking
accounts through this method, companies can give them incentives to do so,
thereby substituting a few cents charge for an ACH transaction for a 2 to 3 per-
cent credit card fee. Over a large number of transactions, this savings can be sub-
stantial. Also, if one credit card company’s fee is substantially lower than that of
other companies, a business can offer a discount or other incentive to shoppers
who use the Indivos system to select from a range of payment choices.

Cost: Installation time: