Merchants and consumers are beginning to come to an understanding. Customers want incentives to shop at a particular retailer or buy their lunch from a specific sandwich shop, and those processing transactions want to reduce interchange fees. Ultimately, it's all about saving money, a need that can be answered by implementing new technology.

Checkout innovation isn't just about finding ways to streamline the process and provide customers with a better experience. It's also finding ways to save merchants money and add value to their transactions. Solutions such as Level Up – a smartphone application that connects to users' bank accounts and allows them to scan their phones to pay for products and services at participating businesses – are becoming popular in the retail and restaurant industry because they save the merchant money on each transaction.

While credit card companies charge relatively large fees for processing transactions made with their cards, Level Up reduces that fee by a significant amount. Additionally, customers who use Level Up are often given an incentive to come back to a merchant and use their application for future purchases. For example, many companies offer a $5 credit after $50 is spent at a particular store or restaurant. 

Jennifer Majeske, the owner of popular Tennessee-based lunch destination Deli-Boys, adopted Level Up last September and has seen extremely positive results since doing so. She told the Times Free Press she enjoyed the fact both her and her customers were benefiting from the technology.

"We like the fact that we're not having to pay the processing fees that come with traditional credit card swiping, and we're able to offer a reward system to our customers to keep them coming back," Majeske said.

Finding a common ground between merchant and customer needs is important, as it will keep people coming through the front door while alleviating the financial burden of high processing fees. Level UP is one example, but there are a number of payment processor software solutions that can accomplish this.