This is page 2 of:
The Square Mobile Conundrum: Data Goes In, But It Doesn’t Come Out
So even when this feature is launched, it will solely be a way for Square to collect and retain data. This is crucial information. In short, those questions are coming from Square and do not represent the retailer. But your customers will assume and believe the opposite, that you are asking the questions and that you are receiving the answers. As Buzek discovered, perceptions are often not reality.
In this instance, the intent of all of the parties seems to be noble. But that won’t last long in retail. Should you insist on having your own interface atop the one from the third parties so you can control the data flow? At the very least, you need to train associates to make sure customers understand that the retailer is not asking any of those mobile questions.
The idea of data ownership during retail mobile activities—where third parties play larger roles than is typical—is hardly new. McDonald’s struggled with this issue some four years ago, during one of the earliest mobile coupon trials.
The issue of data ownership is going be crucial. Control of this data is the most valuable asset the third-party players will have. Indeed, they’ll have access to data about what the consumer is doing with a large number of competing retailers. The CRM data troves will be huge, they will be used however the third parties choose to use them, and not only will you likely have access to none of that delicious CRM but you’ll also be blamed for privacy intrusions the consumers discover. How’s that for a worst of both worlds scenario?
The whole point of many of the mobile payment trials this year, however, will be seamless integration. It will be designed to be as much of the normal retail environment as a POS card swipe is today. The difference is that today’s card swipes really are controlled by the retailer, with the POS vendor in the background. The initial mobile models flip that around. That’s not necessarily a horrible thing. But it’s something to be aware of and to consider during every element of deployment.
Cards issued by European banks when used online cross border don't usually support AVS checks. So, when a European card is used with a billing address that's in the US, an ecom merchant wouldn't necessarily know that the shipping zip code doesn't match the billing code.
-Marc
