Merchant FAQ

What is the new service that The State Bank is offering to merchants?

The State Bank is offering a new, proprietary payment service to its merchant and consumer customers. This new service enables merchants to accept contactless payments from consumers using a contactless, RFID sticker, called a BlingTag, placed on the cell phone. The BlingTags work with any type of cell phone. The payment service connects the consumer and the merchant to The State Bank, which provides end-to-end payment processing and settlement.

What are the benefits to me of this service?

The new service offers many benefits to merchants. These include lower acceptance fees, faster transactions at the point of sale and one-to-one marketing with consumers. The service also provides access to rewards programs that allow you to design a loyalty program customized to meet your needs. Your customers will also want to use this service, as it offers them convenience, instance balance confirmation, improved security and real-time reward redemption.

How do I use this service?

A new wireless POS terminal, equipped with a contactless reader, will be provided to you by The State Bank. This POS allows you to accept payments initiated by a consumer using a BlingTag. The POS runs on a traditional power source and communicates with the proprietary payment service for settlement using the local mobile phone network.

I already have a POS – why do a need a new one?

The new POS is the mechanism by which you can take advantage of this exciting, new payment service. The POS is equipped with a contactless reader that allows you to accept contactless payments from consumers. Using the new POS, you can use The State Bank’s proprietary payment service.

How does the service work?

When a transaction is initiated by a consumer with a BlingTag at your POS, the consumer’s account is debited immediately [and you receive funds at the end of the day]. These transactions are completed by The State Bank using a proprietary network provided by a third party. This proprietary network des not use the networks of any other parties – other credit and debit card networks are not utilized in any way as part of the service.

Does this service involve the traditional credit and debit card networks?

No. The networks of other parties are not involved in this new payment service. The State Bank’s payment service is a closed loop, proprietary network, developed by a third party located in California.

I have an exclusivity agreement with my merchant acquirer. Can I still use this new service?

Yes. But it is important that you carefully review your agreement, including consulting with your legal counsel if necessary, to make your own determination. Although we aren’t providing you with legal advice (and aren’t able to), we believe that the exclusivity provisions that relate to credit card or debit card programs should not apply to this new service, because the service is a proprietary network,. This payment service is simply another way for consumers to access their existing deposit accounts with The State Bank, similar to online banking or mobile banking services. In addition, merchants often maintain several POS terminals for pre-paid or other payments products. Your contract may permit you to obtain alternative payment services.

I’ve reviewed my contract, but my merchant acquirer says I cannot use the service. What now?

After reviewing your contract, if you do not believe that you would be prohibited from using the service, you should discuss this with The State Bank. If you wish to use the service but are prohibited from doing so, you can consider whether it would be appropriate to terminate the contract in accordance with its terms or to let it expire rather than renew.

How do I sign-up for this service?

To take advantage of this innovative new payment service, you will need to establish an account with The State Bank. This process is easy to complete. [BANK to include details on how it’s signing up merchants]