Barrons this week reports on Art Samberg and Neal Goldman’s recommendations of Hypercom.
But the prime driver of growth, Neal insists, will be card-processors and merchants upgrading their old POS systems because of compelling economic reasons. Hypercom’s new ICE systems with signature verification, for instance, greatly reduce fraud. These systems have slugs of memory, so that customers with “loyalty” programs, such as supermarkets and drug chains, can not only process payments but can also keep track of members’ purchases and points or discounts. And the machines can electronically record receipts, so merchants needn’t store thousands of paper receipts to protect themselves from chargebacks. (If a charge is disputed and the merchant can’t produce a receipt, he must absorb the entire cost of the purchase.)