With the ever increasing different ways in which you can make payments you can become confused as to what to use. Since most people carry their cell-phones smartphones everywhere (even more than their wallets!) they should be able to use them as a financial tool as well. And so that is why Levelup has become so popular.
LevelUp is an iPhone and Android app that lets you make purchases using your credit card via QR codes that the app displays. Participating merchants simply scan the QR code on your screen, which initiates a credit card transaction, and you’re on your way.
LevelUp does not require any special hardware. All you need is an Android smartphone or iPhone/iPod touch. Google Wallet uses a near-field communication (NFC) chip to communicate with PayPass readers, installed at credit card swipe machines at checkouts, but the chip is only on a select few Android phones.
After you make a purchase, you can see that it went through in your Transaction History, which shows the transaction amount and date, tip and discount applied if applicable, and total charged to your credit card.
Currently, LevelUp is not intended as a replacement for a traditional merchant account. Instead, the service is more of a marketing supplement that also serves as an electronic payment acceptance method. Merchants that wish to join LevelUp’s program simply download an app for their iPhone or Android device and complete a short setup process.
Don’t have an iPhone or Android? Email firstname.lastname@example.org and we’ll send you a LevelUp Card. Paying with LevelUp is just like swiping your card…but faster and more secure. When you try a new place, you’ll instantly get a few bucks to spend there. You’ll unlock more savings as you go back to your favorite places.
LevelUp is definitely a new way to pay, but it isn’t actually a new payment method. It’s just linked to your credit or debit card. So at the most basic level, you get all the security of your card PLUS all the security of LevelUp.
They do not store your credit/debit card information on LevelUp’s servers. LevelUp has partnered with Braintree, a globally respected payment gateway, to leverage their secure vault solutions for all credit/debit card storage. All data sent to LevelUp’s servers is encrypted and our servers are protected by industry standard measures. By leveraging Braintree for storage, we are able to add another powerful layer of security to LevelUp.
With LevelUp, your phone (the payment instrument) never leaves your hand. This is not the case with other payment instruments, such as a credit or debit card, where at a restaurant the waiter/waitress will normally remove your payment instrument from the table, disappear for 5-10 minutes and then return. With LevelUp, the waiter/waitress will bring the LevelUp terminal to your table and complete the transaction in front of you. This process-level security improvement eliminates the window of opportunity responsible for the plurality of identity thefts in the United States.
LevelUp offers a zero cost setup and a month-to-month service agreement with no cancellation fee (likely subject to the return of equipment upon cancellation). Additionally, the company charges no transaction fees (aka: swipe fees) for funds exchanged through its system. This means that when a merchant accepts a LevelUp payment of $10 from a customer using a LevelUp app, the merchant will get the full $10 without any fees deducted.
The only fees that LevelUp charges are related to its loyalty and rewards program of which the company charges 40 cents for every dollar of credit used by customers via a promotional campaign. Essentially, this is done in two ways: First, if a merchant wishes to attract new customers by giving them $2 off a $10 purchase using LevelUp, LevelUp will collect a fee against the $2 credit – or $0.80. Second, if a merchant wishes to encourage customer loyalty by giving them a $10 when they spend $100 through the LevelUp app, LevelUp will collect a $4 fee against the $10 credit. The company states that merchant only pay fees when LevelUp brings tangible value to the merchant of which can be seen using it’s reports and analytics system.
In conclusion, the Levelup payment system is an alternative to keeping your wallet with you.