Building a Network White Paper Point-of-Sale Networks Simplified …

Building a Network White Paper




Point-of-Sale Networks Simplified

                                 Networked broadband

                                 connections open up new

                                 opportunities. Networking

                                 is now relatively easy for

                                 the non-technical user of

                                 payment solutions.

                                 Standardized products

                                 and easy-to-follow

                                 configuration wizards

                                 make the process simple

                                 and pain-free.
Networks Key to Extending Speedy Card Acceptance
         Merchants and other organizations need to handle more transactions during
     peak times to increase sales and provide better customer service as consumers
     use credit and debit cards at an ever-increasing pace. Traditional dial telephone
     authorization is a frustrating and costly bottleneck, but lightning fast, always-on
     connections using Internet Protocol (IP) can deliver an entirely new level of
     speed and security. Local area networks (LANs) allow those connections to be
     shared among many devices, which eliminate the need for multiple phone lines.


         While many people may be intimidated by the prospect of computer
     networking, today there is a wide range of standardized products and easy-to-
     follow configuration wizards that have dramatically simplified the process.
     Networks have become consumer-ready, with market research firms projecting
     that home networks will grow from about 10 million in 2003 to more than 30
     million in 2008.


De-mystifying Networks
         A network is simply a system of two or more devices -- computers,
     terminals, printers, phones -- linked by a telecommunications system that
     enables them to exchange information. Today, network access and equipment
     has become inexpensive and more widely available than ever before, allowing
     anybody to build a broadband network at their home or business.


         Traditionally, integrated "always on" networks have been the domain of
     large or medium companies with IT departments, help desks, and support
     personal. In the past, small business point of sale (POS) usually relied on
     modem-to-modem networks where a countertop terminal would dial in to a card
     processor, while a separate PC handled back office functions. Now small
     businesses can easily install their own integrated networks, using low-cost
     broadband connections and components that can often be purchased "off the
     shelf" at local computer stores.


         Most broadband networks require three components: a router (also known
     as a gateway) that shares a single broadband connection among multiple
     devices, a modem connected to a broadband network and one or more IP devices
     (such as POS terminals and PCs). For today's small business merchants, the
     most common broadband networks are DSL and cable. The broadband router




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     allows you to connect more that one IP device to your broadband service, so that
     they can all access the Internet through one public IP address.


IP Addresses
         Most DSL and cable modems will provide the merchant with a single
     Ethernet port and a single IP address. The router allows you to build a local
     network (LAN) and share the Internet connection with all devices. Even low-
     cost routers support up to 255 devices.


         The IP address is a set of four numbers separated by periods; each number
     can be zero to 255 ­ an example might be 255.66.216.9 ­ and those four sets of
     numbers represent a unique address for a particular computer on the Internet.
     When a broadband modem is attached to the Internet, it has one public IP
     address; the router uses that public IP address, but it also assigns private IP
     addresses to the devices that will be sharing the broadband connection. Most
     private networks will use a numbering scheme such as 192.168.0.0 to
     192.168.0.255 to represent up to 255 devices that can access the Internet.


         The router functions essentially as a traffic cop for the devices attached to
     it. Using an Internet technology known as DHCP (for Dynamic Host Control
     Protocol), the router distributes and supervises the private Internet addresses on
     your local network. When the IP device is powered up, it will pull the necessary
     information from the router. This eliminates the need to manually program each
     device on the network with a private IP address.


         Companies of all sizes use routers and prices can vary from as low as $30 to
     as much as $30,000. The most popular consumer grade broadband routers today
     cost less than $100 and provide many of the same features as higher end
     corporate routers. The router will come with a quick installation guide, and an
     installation CD that will have a step by step installation wizard and the router
     documentation. The installation wizard will walk you through configuring your
     router for the network you are on. Should you have problems or questions, the
     router wizard and manuals will also provide a support line number and
     information on how to access an extensive online help system.




DSL or Cable
         DSL and cable modems are the most popular and widely available means to
     bring IP connectivity to a location. In any given area, cable is typically faster,


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     with speeds ranging from 512K to 5 megabits per second, depending on the
     local service provider. DSL, with transmission of 256K to 3 megabits per
     second, may be more readily available as it can be delivered over existing
     telephone connections. A single DSL or cable modem connection can be routed
     to multiple devices over Ethernet cabling or wireless (Wi-Fi, also known as
     802.11b and 802.11g) using a simple, low-cost gateway device.


         DSL is a method of transmitting both voice and data signals across a single
     phone line, using frequency separation technology to prevent the signals from
     interfering with each other. Available from local phone carriers and other
     service providers, DSL can be self-installed if phone wiring is already present,
     or can be installed professionally.


         Cable also uses frequency separation technology to transmit TV and data
     services over the same cable line without signal interference. Cable companies
     typically install cable modem service for little or no cost, and many now also
     allow consumers with existing cabling to purchase and self-install their own
     modems. Cable may be the preferred method for those merchants who already
     have cable TV and wish to add Internet service.


         Finding service availability is usually very easy. Once you know what
     service providers are in your area, you can find out if your location can be
     serviced by checking their web sites or calling their service numbers. DSL has a
     distance limitation that requires the customer to be within about 12,000 feet of
     the phone company's switching equipment, commonly referred to as the "central
     office." For cable, your location has to be on the route of the cable company's
     lines. To determine whether service is available, most DSL provider web sites
     will ask you to enter your phone number and cable company web sites will
     typically ask you to enter your address.




Broadband Installation and Configuration


         Once you have chosen a service there will a number of installation options
     to you, from self-installations, to professional installations on both the modem
     and the PC.


         For self-installations on DSL, a modem and an installation kit is sent to the
     user. The installation kit will generally come with a frequency splitter, a quick



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        reference card, an installation CD with installation wizard and manual, reference
        manual, and a tech support number. The quick reference card gives detailed
        instructions on physically connecting your equipment while the installation
        wizard will take you step by step from plugging in the power to the DSL modem
        to configuring system settings. The CD will also have a detailed user manual
        that can answer any questions you might have that is not covered in the quick
        reference information. Of course, tech support is also available for those who
        wish to talk to a live person.


            For cable service, a technician will generally visit the location and insure
        location is configured correctly. They install the cable modem and an Ethernet
        port network card. This port is generally set for auto configuration and a router
        or device connects to the Ethernet port without any configuration required.
        Some cable companies may require that the physical address code (known as
        media access control or MAC address) of the primary PC or terminal be
        "cloned" into the modem to allow for access ­ but usually the installation wizard
        will automate this step. Check with your service provider on requirements. If
        you should have additional questions or require help, you can always contact the
        support number provided with your service.




Wi-Fi
            Unless you already have Ethernet cabling installed throughout your facility,
        you may be inclined to adopt wireless technology to manage your local
        networked devices. Installing new Ethernet cabling is costly, disruptive and
        time-consuming, particularly given the availability and low cost of Wi-Fi.


            Wi-Fi is a relatively new technology that has further extended the usability
        of IP. It uses Ethernet technology to transmit broadband signals without having
        to use cables. Wi-Fi uses standardized radio transmissions, which can be
        secured by encryption and other means, to establish a wireless LAN. A
        merchant who has a DSL or cable modem connection can extend that one IP
        connection to multiple devices at little installation cost.


            Wi-Fi eliminates the need to run Ethernet cable from the router to the IP
        device, so LAN installations are quicker and less expensive and provide
        merchants with greater flexibility. Connecting the Wi-Fi router to the
        broadband connection is the same as the wired counterpart, but the configuration
        of an SSID (SSID is essentially a name you give your network), administrator



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     password and encryption key add an additional step. Many routers come pre-
     configured with an SSID set to the manufacturer's name and a simple password
     such as "ADMIN" ­ because these SSID names and passwords are relatively
     easy to obtain, it is important to change them to names and passwords of your
     own choosing in order to prevent unauthorized access by other devices outside
     your network.


          Changing the SSID, password and encryption key should be clearly set out
     in the manual and self-install CD that comes with the router and the router
     manufacturer's help line can assist you if you have problems. After you have
     established an SSID and encryption key on the router, you also have to set them
     on the IP device in your network ­ the router manufacturer may automate this
     process by creating a program that can be run on multiple devices. Once the
     SSID and encryption key is configured on the device, it will be able to connect
     wirelessly to the router and DHCP will take over and configure the private IP
     address.




Up and Running
         Now that your network is operational, you have the ability to communicate
     quickly anywhere in the world. Though networks are built with a single
     application in mind, new programs and opportunities are easily and
     inexpensively added, increasing the value of the network to the merchant. It
     does not take long for the merchant to find new additional services and
     expanded uses for the network; for example, some merchants want the ability to
     provide wireless "hot spot" access so that customers with Wi-Fi equipped
     laptops and other devices can access the Internet through the merchant's
     gateway.


Resources
     D-Link: Configurator for Small to Medium Businesses
     http://www.dlink.com/configurator_v2.0/step_1.asp?configuratorSection=smb
     Linksys: Small Business Network Builder
     http://www.linksys.com/configurator/bconfig.asp
     Microsoft: How to Set Up Your Home or Small Office Network
     http://www.microsoft.com/windowsxp/using/networking/setup/default.mspx
     Gateway: Wireless Networking Tutorial
     http://support.gateway.com/s/tutorials/index/Tutorials.asp?cat=8&CatTitle=Storage%20a
     nd%20Networking&subcat=15&SubTitle=Networking&Topic=207



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