The Advantages for Manufacturers who accept Credit and Debit Cards

Posted on June 12, 2020 by admin

Should manufacturers accept credit and debit cards? For some time, it has been unheard of for manufacturers and similar companies in the Business to Business (B2B) segment to make and receive payments from each other through the use of credit and debit cards. Recently, it has become more and more common, due to the benefits involved.

According to Patrick Hare of CPN, “One of the most overlooked avenues in the credit card processing field involves business-to-business (B2B) merchant services. Every day, company owners pay invoices with corporate credit and debit cards.”

The first benefit of using this payment method is accelerated receivables coupled with improved cash flow. In the event that a customer pays his or her invoice using a debit or credit card, you will receive the funds the very next day.

Hare reveals that, “For independent business owners, credit cards may be preferred because they bridge gaps in cash flow and generate points and airline miles.”

Another benefit includes greater processing efficiency, which then leads to lower costs. The use of online reporting tools gives you access to a range of reports, which helps to cut down on the time spent reconciling invoices to payments.

Low rates and fees can sometimes be an issue in Business to Business transactions. Finding the right payment processor that offers low rates and fees is important. They can help you in developing effective programs, which will make processing cards more efficient and therefore cost effective.

Hare states that “The ability to accept credit cards means that you may jump ahead of the other payables on your customer’s list of obligations. This is especially true with smaller (or under-capitalized) companies where the owner may cover expenses with a personal debit or credit card.”

Even with the fees involved, you will most likely save money if you compare it to other payment methods. You will have clients that pay you faster because of your ability to conduct credit card processing. You will also save money by avoiding bounced checks. It also allows for payment upon receipt of goods; thus, cutting down on the list of receivables.

According to CPN, “So long as you build a sufficient markup into the price (or offer discounts for prompt cash payment) then taking credit cards as a B2B enterprise should be an easy decision.”

Start accepting Credit and Debit Cards today!

Four Ways to Avoid the Big Mistake in Credit Card Processing

Posted on May 9, 2020 by admin

A merchant account is a necessity for an online business. The majority of merchant services providers are reputable organizations, yet for every bushel there can be a bad apple or two. There are big mistakes to be made when choosing your credit card processor. You want to avoid those mistakes, so be sure to check for the following so that you don’t make a crippling mistake in credit card processing.

Read the Terms & Conditions!

There’s a danger on computers that tends to slip by our radar. Every piece of software and every website you register on, for whatever service, will have a long, tedious terms and conditions document. Law documents by default are long and filled with technicalities and terms we don’t have time for everyday. That’s why law school takes many years and a lot of money; it’s hard training to navigate these documents.

Yet, for your merchant services provider it is absolutely critical you read that document. If you aren’t comfortable diving into the document, hire someone who is. You need to be looking for red flags that will trigger the alarm bells for a disreputable credit card processor. The terms and conditions are a place where those flags pop up, and as it’s your business you need to give it due attention.

Hidden Fees: Interchange and Rate Fluctuations

If it sounds too good to be true that’s probably because it is. This bit of common sense can go a long way when setting up your merchant account contract. Merchant services providers can disguise the real rate of transactions by omitting certain key information during their dealings with you, the merchant. Two of the most common hidden fees are found in interchange costs and rate fluctuations.

The first concept is that the rate the merchant pays per transaction is variable. It depends on the type of card used. This is called interchange. Specialty reward cards can have different fees for merchants to pay. Interchange and fluctuating rates like this can change on a number of factors. If you’re an online business and your rate depends on the number of swiped card transactions, how low do you think your rate will be? When settling your contract it’s important to lock down the contract, detailing the specifics to ensure you don’t make a catastrophic mistake.

Beware Volume Commitments

If you’re a start-up or a small business, you should be alert for volume commitments. If you have a fantastic rate, they can sneak in a clause that says you must process a certain amount of money every month. If you don’t, your rate can inflate quickly. Volume commitments are particularly dangerous to small businesses. They’re a major red flag; be sure they are not included in your contract.

These are three fundamentals to ensuring you don’t make the Big Mistake that can create major repercussions for your business. Always read your terms and conditions, be wary of hidden fees, and watch out for volume commitments. If you avoid these landmines you should be able to set up a merchant account with ease. Most merchant processors are reputable businesses; protect yourself from doing business with the occasional bad one.

High Risk Credit Card Processing

Posted on January 21, 2020 by admin

Because it has become so common place to use a credit card, many people do not take the time to stop and think about how credit cards actually work. However, with the new participants in digital payments software and hardware is changing as these digital payments are being accepted by merchants.

Taking a look at the way the chain works it is easy to see where there is room for high risk credit card processing.

Currently, credit card transactions and payments add up to $4 trillion in just the U.S. last year. This means almost everyone in the U.S. is using debit and credit cards as a method of payment for goods and services.

There are two links in this chain that are at a high risk for credit card processing that will be made digitally. The first are those who make the hardware for processing. This hardware includes card readers and registers. These two devices are used to accept card payments by vendors. The risk lies in the fact that the mobile devices are easy to purchase at an affordable price and easy to use. Therefore, merchants will opt to use mobile services instead of the equipment previously used in point of sales.

The second risk lies in the fact that many of online payment companies such as PayPal are easy to download on smartphones and many times offer merchants rewards and loyalty programs for using their services. These digital payment companies are looking to replace the older point of sales companies which were mainly focused on the logistics aspect.

However, the high risk credit card processing may not yet affect the point of sales Merchant Service Providers because many merchants are still opting to use their services and they have upped their marketing channels. In addition, the larger Merchant Service Providers are moving forward by focusing on new payment technology in order to squash the thread from digital payment companies.

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Protect Yourself from Credit Card Fraud

Posted on January 21, 2020 by admin

In light of the recent Target security breach you may find yourself just how safe it is for you to make purchases using your credit card. You may be wondering how you can also protect yourself from credit card fraud.

While it is true that any time you are making the decision to use your credit card there is some amount of risk involved. However, your risk is limited because of federal law. The risk of fraud for credit cards is limited to $50. In many cases if your card number is stolen or your card has been stolen or lost, you may find that your actual liability is zero. However, it is a different case for debit cards.

If you go to your credit card company and report that your card or card number has been stolen then it should be a cut and dry process. However, this will depend upon the individual company. Some of the companies give their customers a difficult time if the unauthorized charge has been made by that customer’s family member or someone else they know. However, in the case of the numbers being stolen at Target, then customers should not expect to receive a hard time from their credit card companies for theft.

You can protect yourself from credit card fraud by obtaining free copies of your credit report. The official site you can use to get this report is annualcreditreport.com. You will want to avoid using other sources as you may be entitled to sign up and enter a card which can have you being charged in the event you forget to cancel a free trial.

Another step that you can take in order to protect yourself includes shredding any credit card offers you receive in the mail, that way no one else is able to use that application in your name. Make sure that you are reviewing your credit card reports carefully for any discrepancy’s and report them right away. If you are concerned about your identity being stolen you have the option of putting a freeze on your credit report. This will freeze any cards being opened in your name by thieves. If you choose to open a new credit card you will have to thaw the credit report.

Plastic Strengthens its Hold on the Payment System as Credit Card Usage Increases

Posted on January 7, 2020 by admin

During 2012 more than 60% of all transactions were non-cash, hence they were either paid by debit or credit card. With more and more people switching from paper to plastic for currency transactions, hackers are becoming busier in stealing information from both online transactions and in-store transactions. This happened earlier this month at Target, and it has card companies on high alert.

There are many types of credit cards for many types of people: Cards for high credit, bad credit, no credit. There are cards that promise low interest rates and cards that you have to pay a fee upfront to use. Retailers such as Target, Walmart, and Old Navy also offer their own store credit cards, though these often come with a higher interest rate than the standard Capitol One MasterCard. With plastic card usage on the rise, there is truly a card for everyone.

Now, with an increase in card usage come increases of worry, not only for the consumer but for the merchants, as well.

There was an article in the Wall Street Journal recently which mentioned the higher credit card standards that will be implemented in 2014. While this is a much-needed change, it also gives the hackers a heads-up as to the changes, and when they need to strike before the changes occur. This may have been what triggered the massive data breach at Target during the holiday shopping season. However, plastic card companies and financial institutions have two years to implement all of the changes, and most seem willing to implement them sooner rather than later to help prevent another Target data disaster.

By October 2015, credit card issuers are going to switch from the magnetic stripes on the back of cards (the hackers who stole the information from Target reportedly took the data from such stripes) to chip-and-pin technology that will store the data on embedded chips and also allow for a unique customer pin code for each transaction, making it harder for criminals to steal information. These types of cards are already widely used in other countries.

With the rise of plastic card usage also comes the rise in hacking. However, the card industries along with financial institutions seem to be preparing for the next disaster, as well as helping to deter another Target-sized hacking from happening.

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The benefits of opening a High Risk Merchant Account

Posted on November 13, 2020 by admin

Having a merchant account is such a great advantage to a merchant. Knowing that the market has the ability to take care of the high risk businesses makes it all the more comforting. It just seems fair that all kinds should have the ability to process their debit and credit cards, thereby growing exponentially and feeling the American dream in their hands.

There are so many advantages to having a high risk merchant account. Here are a few:

• Credit card scam protection

• Fraud protection

• Access to worldwide market

•SSL Encrypted Servers

• Virtual Terminals

• Online Reporting Facility

• All Major Credit Card Acceptance

By having the debit and credit card processing, you open your doors to virtually anyone and you can have a website for payments to be made. While your eyes are closed your business is working full time. Whether you have a store front on Back street in Somewheresville, or just a store front on the world wide web, you have the advantage of accepting payments with little to no work for you. The benefits of opening a High Risk Merchant Account far outweigh the negativity.

Your money arrives at the account you have designated and the money is available to you when you are ready to access it.

As a high risk account

You will pay a little more than other accounts, but you have the advantage of owning an account. Your income will grow and so will your business. How could that be wrong?

• You also get Safe and Simple API Structure

• Billing options

•Multi-currency options for worldwide markets

• And various payment options including ELV, ACH, Bank Wire and of course Direct Debit.

You just can’t go wrong by getting one.

Did you know

You will also get a worldwide conversion. Meaning, that no matter the market you are in, the account will convert the money into your money. So, the currency you collect from Egypt, will be converted into the great ‘ole American dollar.

Watchful eye

You should also keep an eye on the percentages you pay. Make sure that they are all in line with what you signed up for. Everyone make mistakes and sometimes things get messed up. So, take the time to keep things within the parameters that you signed your contract with.

In Conclusion

Why wouldn’t you want a merchant account? It can help you grow your business. No matter where your storefront is. If you have a good old fashioned store where you run your business, the merchant account will only assist with the purchases made by customers.

If you have stretched to online selling for your storefront, then your website can be shopped on worldwide. Your products can be sold where ever you so desire them to go.

Your high risk merchant account will cost a small amount more than others, but with the new regulations in place, you have the ability to charge your customers for the shortfall and the convenience of using your card service. Give them a cash discount in the store and they will feel like a million bucks.

So take a stand and a small risk. Go find that merchant account you have been thinking about. Isn’t it about time?

Your Merchant Chargeback Rights

Posted on October 22, 2020 by admin

Getting a merchant account plays a vital role for ecommerce businesses in adding a professional image, convenience and an ability to earn more revenue. For new ecommerce businesses, online credit card processing may look confusing but with knowledge and experience, business owners can find the ways to keep the flow of online cash without any hitch. One of the most important aspects to learn about as an online merchant is chargeback and what to do when you see it come in.

What is a Chargeback?

It is simple. If a customer files a complaint at issuing back about the fraudulent transaction through the customer’s credit card on any ecommerce website, the bank is obliged to investigate the transaction and all parties involved. If the merchant fails to prove the legitimacy of the transaction, the bank not only refunds the entire amount from the merchant’s account but it also deducts the chargeback amount that varies from $0 to $100. This is why chargeback prevention is an important aspect for any ecommerce business in order to keep their bottom line intact and consistent.

Is Chargeback Prevention Possible?

With the increased use of credit cards, Chargeback Prevention is becoming a key for online merchants for better financial results. Frequent chargebacks not only result in drops in your profits, but you also have to bear with the services and products that are already delivered against the transaction. All in all, it is a double loss for the online merchants. Above all, if a merchant account is receiving too many chargebacks, Credit Cards Company will not hesitate to label the merchant as fraudulent.

Even if merchants win a case against chargeback, the time and efforts consumed by the process is often damaging for the business. So if a chargeback is filed against a merchant, no matter if a merchant wins or loses against the case, a merchant is always at loss. To avoid a chargeback, as a merchant you must know about your rights and technicalities involved in details.

The cardholder has two years to file a case, this means, every sold item or service at your website against credit card transaction is reversible. After two years, you are out of the danger zone.
It is in interest of banks to pursue card holder’s complaints as they can not only fine merchants chargeback fees, but they can also hold the remittance of merchants for three months, or they can choose to label you “risky” to simply increase their commission. Yes, most Banks are mean.
A customer is entitled for a chargeback if the product is not delivered, the item is not the same that was purchased, or the product is damaged. Merchants are not entitled to pay back anything if the customer simply doesn’t like the product.
The merchants are allowed a certain ratio of chargebacks by the banks that in most cases are 1% of the total transactions. In cases of more than 1% chargebacks, the bank can close the merchant account by labeling it fraudulent.

It may look like a horror story for merchants but chargeback prevention is a possibility if you are an honest merchant, have an effective customer support that takes customer complaint seriously and provides best secure credit card transaction facilities to customers to avoid any misuse.

Starting an e-commerce site with bad credit

Posted on October 8, 2020 by admin

When you get the idea that you want to better yourself, having a business is a wonderful way to break free and begin again. Having a store online with multiple products is a great way to begin. But what if you have bad credit haunting you? How will you ever get a merchant account with bad credit, also known as a bad credit merchant account? You may get turned down and you may never get your dream off the runway.

Don’t despair

When the economy tanked and everyone suffered in one form or another, businesses in the merchant account arena, heard your cries of disgust and frustration. They pulled their assets together and decided enough was enough. Banks aren’t loaning anything and people started turning to other resources to help them get back on their feet.

Online

There are virtually thousands of merchant account servicers out there. They have set up accounts just for those with bad credit. You may be in a high risk pool for a while because of your credit, but if you are like everyone else, you just need a chance to prove to yourself and the merchant account servicer, that you are a good risk. You may have fallen on your face because of circumstances beyond your control, but if you work hard, then everything for this e-commerce store will fall into place.

Time for you to go shopping

Find all the merchant account servicers that you can and compare their packages to one another. Find the one’s that will work with your e-commerce store idea and with bad credit. Find out what their requirements are and figure out which one will work best for you. Then start by asking them questions and pursue any kinks in your business plan. Be prepared for a higher interest rate and per transaction fee. Adjust your income for what will be held back for your trial period for chargebacks. Those are the possible refunds that may happen in your business.

Don’t fret

Your chargeback money will be in an escrow account for the first three to six months, as you go through your trial period of new operations. As you prove yourself to your merchant account servicer, they will return the money to you in full. Just work really hard at taking care of refunds yourself, and it won’t endanger your merchant account at all.

It might be hard

It might be difficult at first as you establish yourself as an online merchant. But if you keep at it, take things seriously, follow up with issues and work with your merchant account servicer, they will take care of you. You just have to go the extra mile to straighten out that credit of yours, and if you have the gumption to start a new business, then you have the strength to see this thing through to the positive results.

Do all your research and your due diligence to find what will work for you and your new business. Good luck!

What is a Chargeback?

Posted on October 1, 2020 by admin

According to the official definition of chargeback, it says: “a demand by a credit-card provider for a retailer to make good the loss on a fraudulent or disputed transaction.” In other words, when you have purchased something from a store or store front or even paid for something, if you have changed your mind, you ask for a refund. The credit card gets its money returned. The card must send the money back from the company you bought it from, through the merchant account and back into your credit card. If the company you bought it from does not return your money, or has gone out of business, the merchant account is responsible for the return of your money to your card.

That is why it is so imperative for merchant accounts to have a hold back system for new companies. With a high volume merchant account, especially if they are new, chargebacks can happen at any time. If a high risk merchant account has been opened, without a hold back system of any kind, it opens the merchant account servicer up for large amounts of returns and they get held responsible for that money. The hold back, or Escrow account, insures their safety and helps keep new accounts in line from pursuing fraudulent activities.

Mostly in the United States

This practice occurs mostly state side. Another chargeback account activity happens when a distributor charges more than the supplier was priced. The supplier will counter the charge and ask for a chargeback to recoup the difference in the money.

As for the other chargeback activities, it appears that the United States is one of the few that has a chargeback system in place.

Account abuse

Although some account chargeback insurance for consumers in Europe has risen to the surface, very little has been done for the worldwide market. Consumers are at risk for fraud and lack of return on purchases gone sour, or something broken that should be returned, will be left unused with no way to get the money back. The system surely will get better, but in the meantime, some issues are dangling out in a sea of trouble.

Mastercard

Mastercard pleasantly delivers their rules and regulations on card policies, as well as their regulations on United States and European chargebacks, in a manual they have placed online. In this booklet, they explain all chargebacks for all nations. Mostly the countries mentioned above.

Lastly

The chargeback system obviously has some room for improvement. It is fraught with some worldwide inconsistencies, but the more we talk about it, the more advances will occur from general public interest. In the meantime, we in the United States have a system in place to return items or services to our dissatisfaction. Make sure to follow the rules set forth and presented to you when you request a chargeback. Your money will be returned to you as long as you provide evidence to the purchase and the issue.

High Volume Merchant Accounts

Posted on September 19, 2020 by admin

Any merchant account is a risk. Most are not done with a handshake, and instead, the information is done over the internet. Instead of an office with a secretary, the papers are signed with a virtual signature. The speed at which you can get a merchant account is less than forty eight hours.

But, if you are a legitimate business looking for a high risk merchant account, this is the way to do it. Prosper your information to merchant servicers. Look and look, before you sign on the dotted line. Make sure the servicer is right for you.

Volume

If you have a business that increases and increases, you are likely to get fees that smaller businesses don’t get. The sheer amount of your volume will help the servicer determine whether you are a legitimate business or a fraudulent group of thieves.

It absolutely does not help you….. the real business person. They are only trying to weed out the bad apples. Most thieves won’t like their money being sequestered into high rates or reserve accounts.

Make sure that you keep in contact with your merchant servicer and work out the kinks as you go through your volume increase. Make sure your bottom line is indeed what you read on your account. It’s very hard to change things, when it’s in a contract.

High Risk

Undoubtedly, when you bring in the volume and your business continues to grow, you may fall into a high risk pool. Don’t fret over this. Most of our everyday activities fall into the high risk pool. Things like the airlines, movie tickets, or even real estate. Their sheer volume and charge backs, have them placed in the same arena as the adult websites.

So, watch your charge backs, and keep on top of your account and the volume. This will help you stay on top of the charges that you will incur and insure that you are informed about what you are paying for.

Thousands to choose from

To go shopping for an account is a task that will take some time. Don’t under due this part of your business. You are on the lookout for something reasonable and acceptable; something that will adjust as you grow. Something that will take more than just a cash reserve account if you don’t to do that.

You quite literally have thousands to choose from and it is daunting at best. Finding someone legitimate that will take care of you and your business, is daunting and difficult to find.

Start with what you know. Find that familiar name that you can work with, or even better, go to your local banking institution and see who they recommend. There really is no sense in starting your business off on the wrong foot. After all, you are starting this business to support you, and maybe your family. Don’t take the wrong step to something that can absolutely be the best idea you have ever had. Best of luck in your decision.

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