Wireless Credit Card Terminals Running on CDMA and GPRS Wireless Networks

New Jersey, Feb. 16. - Wireless credit card machines have been around for years, and no one has really come out on top of the industry except for Lipman which makes the Nurit 3010 and Nurit 8000 series.  Both series use either Motient or RAM (Cingular) technology to transmit and receive data, which was great at the time.  Some of the major downfalls of this technology has been the coverage that you get with these different cellular networks, weak signals, obstruction interference, and lately, the reliability of the Nurit 8000.  Now there's a new network in town, using new equipment, and with less constraints, I'm talking about Verifone's VX610 and Omni 3600, and Hypercom's New Optimum M2100 using CDMA and GPRS wireless technology.

There hasn't been a lot of hype on these new terminals nor the networks they are going to be transmitting data on, but I think it's about time that it was addressed a little more in depth, instead of a brief mention here and there.  Let's start by breaking down the situation as it stands today as related to the past.

Lipman the manufacturer of the Nurit 3010 and Nurit 8000 has been #1 in the wireless market for years.  Their technology is based on cellular modems that use Motient and Cingular as their primary carriers, that is before CDPD went obsolete.  CDPD was Lipmans main wireless carrier for years, until 2004 hit, making every CDPD unit virtually obsolete.  Merchant Services Providers that carried large quantities of CDPD units tried to purge their inventory to their customers quickly, so as not be weighed down by their inventory investment.  These merchant services providers sold their CDPD units at a loss to deplete their reserves, without telling their customers that the technology would no longer be support, virtually leaving these customers stuck with a $600.00 investment that would better be left as road kill.

The Nurit 3010 RAM and Motient units proved to be what the industry needed, although limited with their coverage areas, they proved to be very dependable. Unfortunately, the main manufacturer of the modems for these terminals discontinued their manufacturing of the modems which basically stopped the supply of these terminals in October 2004.  This pushed Lipman into marketing their Nurit 8000 aggressively,  but what does this mean to you.  The 8000 uses the same wireless networks at the 3010, offers more options, and is more compact, but the terminal fails in several different aspects.  The biggest complaint by merchants is that it is not built as well or as durable as the 3010.  The less than high-quality of the product feels like a GM Pacer with an $8000.00 stereo system.  It offers signature capture, smart card, and a built-in PIN Pad, but generally lacks in construction for take-em-out, beat-em-up design.

Now we have the new lineage of wireless credit card machines, but how will this improve your business?  After speaking with Dale Lanzig of Verifone in a brief conversation, the new Verifone VX610 is proving to exceed far past the expectations of the designers.  These terminals use the new CDMA wireless technology, not to be confused with CDPD.  CDMA runs on the Verizon wireless network, and if you currently have Verizon Wireless for your cell phone, you know how good your coverage is.  That's not all, the new VX610 also has signature capture, smart card, and internal built-in PIN pad making it a truly versatile wireless credit card machine.  After discussing with Ms. Lanzig about my own dislikes about the Nurit 8000 as far as quality was concerned, she alleviated my apprehensions by telling me it was constructed with the same hard plastic that the 3010 was, but more compact for easy transportation.  This terminal is currently going through beta testing and is expected to hit the markets in late March or April, but will definitely do the job.  Currently, Vital is the only back-end processor that is certifying this terminal, so you should check with your merchant services provider to make sure they support Vital.  Best of all, all the transactions that go through CDMA take priority over voice calls, meaning that your transaction goes through with the same priority as a 911 call.

Verifone also designed the Omni 3600 which also uses CDMA and GPRS for their wireless carriers, however, this terminal seems to have already been eaten up by its predecessor, the VX610.  The 3600, only out for a couple of months, makes someone think why Verifone would almost abandon this terminal without marketing.  My only answer to that is, the terminal was found to have several flaws, but that's only my speculation. 

Finally, we come to the Hypercom Optimum M2100.  This terminal has been in the beta testing stage since October 2004, and nothing yet has emerged to its release date.  Supposedly, it has all the features of the VX610 with reliable construction, and we will see what the upcoming weeks have in store for us.  Thus far, I have yet to get a solid comment from Hypercom as to their new terminal, but this could be for two reasons: 1.  It's a total failure and they are taking it back to the drawing board, or 2. It's so revolutionary that it will change the face of wireless payment processing forever. 

As far as Hypercom being a dependable company and the products they manufacture, I have to admit they are one of the best.  Their caution with putting new products out on the market only reflects their usual 5-Year manufacturer warranty, which is unheard of anywhere else in the industry.  The Hypercom T7 Plus, the ICE 5500 Plus, and the ICE 5700 Plus are all great products, so we look forward to seeing the NEW Optimum M2100. 

Before the close of CDPD technology, the rise of Motient and Cingular, and now the new upcoming CDMA and GPRS systems, wireless processing was dream.  Now we have revolutionary products coming into the market, where you can virtually accept credit cards anywhere, at any time, using Verizon Wireless as your cellular service.  When is this going to be accessible to the consumer?  That remains to be seen, we would like for it to be accessible yesterday, but since that day has passed, hopefully in the next couple of weeks.

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