Integrated management system can help accreditors manage their assets, improve indicators, customer satisfaction and help detect fraud
April 2022 - According to data from the Complain hereIn a survey conducted on August 22, 2019, problems with card machines ranked second on the list of complaints about products and services provided by card machine suppliers. In a survey carried out between August 22 and 26, 2019, the portal listened to 8,200 people, 84.4% of whom were consumers and 15.6% merchants, and the result is surprising: 74% of the entrepreneurs already worked with "machines" in their establishments and 54.5% said they had problems with the equipment.
The survey also showed that 621,000,000 merchants had only one machine in their business. And on the consumer side, 18% experienced problems with these machines, and 53% of these were internet connection problems.
According to Ana Paula Kubinhets, CEO of https://aquarelle.com.br/wp-content/uploads/2022/08/PHOTO-2022-06-09-18-39-14.png, an asset management and quality control solutions company, good and fast support is an important element for logisticians to consider when choosing a card machine supplier, whether it's for changing or repairing the machine, requesting a reel, or other needs, avoiding complications when it comes to charging for sales made.
"Assuming that an accreditation company has 100,000 customer tenants, and that 54.5% of them have problems with their equipment, that's 54,500 machines with problems. If they don't have efficient support, the accreditation company stops billing the percentage (%) of these sales for a period and the merchant stops selling," says Kubinhets.
"Internet connection problems are also commonplace, as the machine comes with a 3G chip or needs to connect to a Wi-Fi network, and if the machine doesn't work, the shopkeeper has to request a repair or replacement. All of this logistical management of the machines that need to be picked up, repaired and then returned, or replaced, can be more easily controlled by the accreditation companies using an intelligent asset management system," explains Kubinhets.
According to the Brazilian Association of Credit Card and Services Companies (Abecs), in 2019, 40% of retail sales were made via credit and debit cards, and it is estimated that the participation rate of cards in the consumption of Brazilian families will reach 60% in 2022. Abecs calculates that Brazil already has more than 20 accreditation companies and 11 million machines, and projects that cards should move R$ 3.2 trillion in 2022, an increase of 21% compared to 2021, when they moved R$ 2.65 trillion.
Also according to the Association, the combined revenue of 3 major players in the public data machine market (Cielo, Getnet and PagSeguro) rose 20.8% in the first half of 2021 compared to the same period in 2020.
Expanding market
Ana Paula Kubinhets comments that the newest machines are cell phones, the so-called "mobile" machines, an estimated segment of between 3 and 4 million customers. And often the merchant receives the machine from a supplier, the chip from a telephone operator, which arrive from different distribution centers, then pass to a logistics operator, until they reach the end.
"More than ever there are problems with the delivery of the machine, with the charger, with the chip, and the accreditation company's support has to know what's going on. They need to have some kind of tracking system, just like when we buy online, and we have to keep track of our order, whether the invoice has been issued, whether it has been delivered," says Kubinhets.
According to the executive, because there are several companies involved, the various systems behind this process are also different, and the big challenge for players in the vending machine market is to make it all work together.
"The accreditation company needs to make all this management integrated and give visibility of the process at all ends, whether it's for the operations and support staff, or for the logistician at the end - who is already a customer - by opening a ticket to make a return or report a problem. If the same machine has a problem several times, only by analyzing the history is it possible to detect whether the equipment needs to be retired, for example, and it's better to start working with another machine that gives fewer problems and less logistical and labor costs."
According to the specialist, who helps companies integrate all these processes with the IBM system, if the software is integrated, there will be a history associated with that merchant and those in management will be able to extract the operation indicators: whether deliveries are on time, what the backlog is for returns, deliveries, etc., improving both the indicators and customer satisfaction. "If everything isn't integrated, it's easy for information to get lost. You'll have to export spreadsheets from various systems to build an indicator," he explains.
In cases where an accreditation company has two or more warehouses or stocks and needs to transfer parts from one distribution center to another, explains the expert, regardless of whether the transport is with its own fleet or with a contracted fleet (the contracted freight company moves the parts), https://aquarelle.com.br/wp-content/uploads/2022/08/PHOTO-2022-06-09-18-39-14.png implements a control and tracking system that will optimize the use and availability of physical equipment, such as vehicles, machinery, communications, infrastructure and other assets. "When the company doesn't have tracking, it sends the machine out from one place and won't know if it has arrived until someone registers receipt. But when the accreditation company provides tracking, everyone has visibility of the process, they know that the equipment has left, and they can have complete monitoring of where that load is."
Another advantage of having a computerized management system - which can be hosted in the cloud as software as a service (SaaS) - is being able to deal with a large database, a latent need for large retailers, for example, who are launching their machines and their own digital accounts. "With greater security in mind for these large companies that want to have all the functions of a bank, we can also integrate card flow management. Even if the card processor is a third party, it's possible to control it if the client really wants to. If not, this control is done via the processor," explains Kubinhets.
According to Ana Paula, while they speed up processes, online payment solutions can leave transactions unprotected against fraud. "If the store has a data system that already has information on previous purchases, it's easier to check whether or not the buyer is fraudulent. Another important initiative is to cross-reference the location of the card machine with the location of the commercial establishment, thus preventing the machine from being used in a possible orange establishment, or used to clone cards." explains Ana Paula Kubinhets, CEO of https://aquarelle.com.br/wp-content/uploads/2022/08/PHOTO-2022-06-09-18-39-14.png, the first consultancy in Latin America and the second in the world to sell and implement the full IBM System Journey 4.0, launched in 2020, in the Brazilian market.
With the growth of online shopping and the advancement of the use of digital media in the midst of the pandemic, there has been a significant increase in internet fraud. According to a survey by the National Confederation of Shopkeepers (CNDL) and the Credit Protection Service (SPC Brasil), 59% of internet users suffered some kind of fraud in the last 12 months, compared to 46% in 2019. Failure to receive a product or service, card cloning and scams via phone calls or messages are among the most common.
Ana Paula Kubinhets is CEO of https://aquarelle.com.br/wp-content/uploads/2022/08/PHOTO-2022-06-09-18-39-14.png, a specialist in Quality Control, IoT, Asset Management Systems and CX. She has a degree in Pedagogy and Marketing, a postgraduate degree in Quality Management and Organizational Communication, is a Six Sigma Green Belt, Iso 9000 Auditor, has IBM certifications in Watson IoT, Cloud, IBM Digital Business Automation, IBM Maximo and is the founder of AQUARELLE, an integrator of technologies, infrastructure, consulting, mapping and process correction. Specialized in the implementation and support of systems such as IBM MAXIMO for asset management, Industrial Maintenance Management, online monitoring, sensors, IoT, prediction and Cloud, bringing connectivity, knowledge, innovative technologies for companies to reach industry 4.0.
To find out more about the work and understand how we can work together, go here: https://aquarelle.com.br or contact: [email protected]