FIGHTING CHARGEBACK

Fighting chargebacks is important to business. Whether you process transactions at a point of sale location or operate an e-Commerce business making sure you have implemented a process to dispute your chargebacks is critical.

Basic concepts that can be used to begin learning how to dispute chargebacks for Visa and MasterCard transactions:

Keep accurate records of data that is easily accessible. Keeping track of your sales and products  have a much easier time in collecting the information necessary to combat a chargeback.

Act quickly. Don’t wait until you only have a few days left to respond to a chargeback or retrieval request. Responding in a timely fashion shows your processor that this is of concern to you and that you’re taking matters seriously.

Create chargeback packets or templates. These allow you to quickly input specific relevant transaction information to support your view of the transaction being valid. Packets should include documents that support your case against the chargeback.

Compile and submit your packet to your processor in the form that is most convenient for both you and them. Make sure the packet has the original chargeback documents attached as well as your packet with supporting documents.

Monitor your chargebacks to see which ones you’re successful on and which you’re not. This will help you understand what processes are work for each specific chargeback type.

 

Posted in Best Practices for Merchants Tagged with: chargebacks, data, processor, transactions

VISA CHARGEBACK RULES

Chargebacks is a major problem for merchants, rules and regulations surrounding chargebacks can be confusing; becoming educated about these policies, which also includes the release of a new and upcoming regulations will help merchants to empower themselves.

Visa will make major changes to its chargeback rules document in January of 2016.

Traditionally, Visa has had two different excessive-chargeback programs for merchants:

1. For Domestic U.S. transactions – known as the U.S. Merchant Chargeback Monitoring Program.

2. For international transactions – called the Global Merchant Chargeback Monitoring Program.

Each program had a different threshold and monitored transactions in different geographic regions (each with unique risk profiles), it has been possible for a merchant to qualify for one program but not the other.

http://cardnotpresent.com/articles/displaylogin.aspx?id=12785

 

 

Posted in Best Practices for Merchants, Visa MasterCard American Express Tagged with: chargebacks, merchants, visa

Looking for a Credit Card Processing Merchant Account for your Travel Agency?

National Transaction Corporation is the preferred Credit Card Processing Agent for many National Travel Agencies & Associations. We are the preferred merchant account service provider for ASTA, OSSN, ARTA, HBTA,Vacation.com, Travel Leaders, Trams and many more. We are also affiliated with JaxFax, Travel weekly, TRO / Travel Research Online and other travel agency associations in the travel agent industry.

Benefits of our Merchant Account Services for Travel Agencies.

Competitive credit card processing rates & fees for travel agents
Faster deposits (as quick as 24 hrs from transaction)
No holds on funding
Trams Credit Card Merchant Account Integration
Sabre Red Merchant Account Integration
Booking Software Processing Integration
Lower Processing Rates & Fees
Swiped Rates for face to face credit card processing
ecommerce for shopping cart credit card processing

National Transaction Corporation has a proven track record with many of the Largest Travel Agency Associations in the U.S. and Canada. In fact for several of those, we are the preferred credit card processing merchant account services provider for their members. We can take your business to the next level with integration into Trams, Sabre, Sabre Red or off the shelf accounting programs like QuickBooks and Peachtree Accounting.

We are more than happy to provide you with a free merchant account rate review and go over your current credit card processing details and show you how we can save you money and get deposits even faster. We also offer industry leading technical support around the clock, you call, we answer. Simple as that. We can assist errant transactions, chargebacks, terminal messages and much more. Find out why National Transaction Corporation is the preferred merchant account services provider for travel agents & agencies.
Call us now and put us to the test. 888-472-7112

American Society of Travel Agents, Vacation.com, ASTA, Trams, Virtuoso, Travel Leaders, Association of Retail Travel Agents, Specialty Travel Agent Association, Cruise Holidays Credit Card Processing.

Posted in Best Practices for Merchants, Travel Agency Agents Tagged with: chargebacks, credit card, credit card processing, ecommerce, merchant account, Merchant Account Services, National Travel Agencies, shopping cart, travel agencies, travel agency, travel agent

What is 3-D Secure?

We’ve covered  a lot about EMV, but what about improving security for online and Card-Not-Present transactions? That’s where 3-D Secure comes in.

3-D Secure allows a card holder to authenticate himself while making an online payment.

In a traditional credit card transaction, a payment request is presented to the issuing bank for authorization. The Issuing bank authorizes the transaction based solely on the funds available to the card holder.

With card present, the magnetic strip on the card can be read and a signature collected. This process has now been largely superseded by Chip and PIN which gives the card holder the opportunity to identify himself via a secret PIN code.

An E-commerce transaction is conducted online, without the possibility to access the card physically. Un-authorized usage and fraud are therefore more likely.

3-D Secure allows transactions to be conducted in safety online, greatly reducing the risk of fraud and chargebacks.

How 3-D Secure Works?

When a payment request arrives at the merchant or payment gateway, the Merchant Plug In (MPI) component is activated. The MPI talks to Visa or MasterCard to check if the card is enrolled for 3-D Secure. If the card is not enrolled, this means that either the bank that issued the card is not yet supporting 3-D Secure or it means that the card holder has not yet been registered for the service. If the card is enrolled, the MPI will redirect the card holder to the 3-D Secure authentication web page for the issuing bank; the card holder will then identify himself. The MPI will evaluate the reply from the bank and, if successful, allow the transaction to proceed for authorization. The transaction could still fail for lack of funds or other reasons but is more likely to be approved because of the authentication.

3-D Secure allows 3 domains to work together.

Domain 1: The card holder has the peace of mind that his card is not used without his authorization.

Domain 2: Merchants are protected from fraud and can provide the product and service without delay or extra costs.

Domain 3: Banks see that the transaction has been authenticated and are more likely to approve the transaction, to the convenience of the card holder.

Implementation of 3-D Secure:

Visa is called Verified by Visa.

MasterCard is called Secure Code.

Amex is called SafeKey.

JCB is called J/Secure.

Posted in Best Practices for Merchants, e-commerce & m-commerce, Internet Payment Gateway Tagged with: 3-D Secure, amex, card holder, card present, card-not-present, chargebacks, Chip and PIN, credit card, ecommerce, EMV, fraud, jcb, magnetic strip, MasterCard, merchant, online payment, payment gateway, pin code, visa

Know Your Business

There are numbers of guidelines issued for accepting card payments, and merchants are expected to understand them all. To avoid issues down the road know a few basic rules in order to keep your business going without being penalized.

There’s a lot of ways to process a credit card: In-store, online, and by phone. There’s also different ways to pay and different brands of cards.

In-store and Card-not-present policies.

In-Store Policies:

• Always verify that the person presenting the card is the cardholder
• Ask for a 2nd ID for comparison
• Cards are non-transferable, cardholder MUST be present for purchase
• Compare the signature on the back of the card with that of the person who presents the card
• Inspect the card to confirm that it’s not visibly altered or mutilated
• Validate the card’s expiration date

Online/Phone Payment Policies: Card-not-present transactions

• Card account number
• Card billing address
• CID (3 digits on back of card OR 4 on the front)
• Card expiration date
• Card member’s home or billing telephone number
• Card member name (as it appears on the Card)

Rules for Visa, MasterCard and Amex that merchants need to know:

• Never store cardholder data on any systems to help minimize the risk of fraud and protect your business from potential chargebacks.

Complying with Federal Laws, State Laws and PCI

• A merchant should be familiar with and abide by Federal Laws regarding accepting credit cards. The Fair Credit Reporting Act is the federal law that establishes the foundation of consumer credit rights. This law regulates the collection and use of consumer credit information by merchants.
• Check state laws on the use of consumer credit information and accepting credit cards. Not all states have additional laws that regulate credit card practices, but some (such as California) prohibit merchants from requesting/requiring a customer to provide any personal information (like their address or telephone number) on any form involved with their credit card transaction. So, it is advised that merchants inquire about further information in their particular state.
• The Payment Card Industry Data Security Standard (PCI DSS) is a set of requirements designed to ensure that all companies processing, storing, or transmitting credit card information uphold a secure environment. These rules essentially apply to any merchant that has a Merchant ID (MID). If you are a merchant that accepts credit card payments, you are required to comply with the PCI Data Security Standard, large or small businesses.

EMV Liability Shift Set By Visa and MasterCard as of October 1^st

U.S. banks and credit card companies are now using the EMV (Europay, MasterCard, and Visa) technology. The EMV liability shift for fraud carried out in physical stores with counterfeit cards belongs to the merchant if it has not yet upgraded its POS system to accept EMV-enabled chip cards. While issuers absorb losses under card-network rules, that burden will shift to acquirers in cases where the fraud occurs at merchants unprepared for EMV.

It’s good to know every aspect of your business. The above guidelines are part of a business that every merchants should be familiar with. The main reason for these rules is to protect your business and keep your customer’s payment card data safe and secure.

To start accepting more credit cards give us a call now at 888-996-2273. We have the latest terminals that’s EMV/NFC capable.

 

 

Posted in Best Practices for Merchants, Credit Card Security, EMV EuroPay MasterCard Visa, Payment Card Industry PCI Security Tagged with: amex, card network, card payments, card-not-present, chargebacks, chip cards, credit card, credit card companies, Data Security Standard, EMV, EuroPay, MasterCard, merchants, MID, Payment Card Industry, PCI-DSS, POS system, U.S. banks, visa

Ultimate Guideline in Taking Credit Card Payments on your Phone

If you can’t accept credit cards for your business, you are losing out on potential revenue. Most people don’t carry more than $20 in cash with them at a time, and people who use credit cards tend to spend more than their cash-carrying counterparts.

These days you can turn your smartphone or tablet into a credit card reader, but which service should you choose? What do you need to consider when deciding?

NTC is here to help you understand all the intricacies of taking credit card payments with your smartphone or credit card.

Credit card reader or Wedge are useful in a variety of industries and for businesses of all sizes. Arts and crafts business accepting credit card payments at conventions and other events. A pub that gives its servers credit card readers rather than having to pay for everything at the bar. POS systems with a mobile integration can swipe your card on the spot rather than taking credit cards over the phone when ordering delivery.

If you work in one of these fields it might be time to think about getting a wedge:

Arts and crafts vendors: Do you sell your wares at conventions, art shows, and other big events? You could be a book reseller, an artist, a jewelry maker, a clothing retailer, or even a makeup seller.

Food Service: Food trucks were among the earliest adopters of mobile card readers, but there is no shortage of restaurants that are using them now. There are companies both offer POS systems in addition to their mobile card readers, which is perfect for delivery services.

Service providers: If you don’t have a brick-and-mortar office or base of operation where customers visit you, or if you conduct your business in your customers’ homes (carpet cleaners, plumbers, lawn care, mobile dog groomers, exterminators, etc.), a credit card reader/wedge gives you flexibility as well as credibility, as well as added security.

 

Understanding the Costs of Accepting Credit Card Payments

In the traditional business model, to accept credit card payments you would have to set up a merchant account. A merchant account typically entails a detailed look at your credit history and business.

Credit card companies assess a small fee to merchants for processing payments. With merchant accounts and card readers, the cost is built in and deducted automatically, so you don’t have to worry about paying it yourself. With a merchant account, you typically get lower rates because of the decreased risk.

It’s not just the standard fees that you need to worry about when you want to accept credit card payments. There are costs hidden everywhere, so let’s address some of these issues:

Internet Availability                                                                                                                            Typically, smartphone and tablet card readers need some sort of Internet connectivity, via a cellular signal or Wi-Fi. Most smartphones these days are capable of becoming Wi-Fi hotspots, so you can create your own Wi-Fi. However, this option relies on your phone’s data plan. The more transactions you make, the more data you use.

Compatibility                                                                                                                                    You also need to make sure that your devices are compatible with the card reader. Check the list of compatible devices before you commit to one service over another.

Also note that you’re going to usually have to enable location services on your phone.

Card Compatibility, Manual Entry Fees, Location                                                                           There are card readers that seems to work best with a specific device. You’re typically going to pay more    for manually entering credit card numbers because of the greater risk – the card doesn’t have to physically    be present to complete the transaction.

Likewise, you’re usually going to pay more for accepting international cards, and you’re not always going to be able to accept payments outside the U.S.

Taxes and Tips                                                                                                                               Several mobile credit card readers will let you add sales tax to the base purchase without requiring you to calculate it, which is handy if you’re not fond of math or just want the transaction to go more quickly.

As an alternative, you can build the sales tax into the listed prices, which some of your customers might appreciate.

Finally, depending on your industry, you may want to check that the credit card reader you use allows your customers to add a tip.

Time to Get Your Money                                                                                                                   The final cost to consider for credit card readers is more of a convenience fee than anything — it’s the time before you can access your money.

If you’re in a high-risk industry or have a high volume of business, you are probably better off obtaining a merchant account and using one of their mobile solutions.

You’re also going to want to worry about refunds and chargebacks. If, for whatever reason, a consumer complains to his or her credit card company and there’s a chargeback.

 

Features to look For in Your Credit Card Reader                                                                      Features-wise, you can at least expect the basics to remain consistent across smartphone credit card readers: you can swipe cards, manually key them in, and issue receipts. It’s the little things that will ultimately set one service provider apart from the rest. Some of the things you may want to look out for include:

Record-Keeping for Cash and Checks                                                                                             Sure, you can manage your cash intake the old fashioned way and let your bank deal with checks. But some credit card readers, (which doesn’t actually require you to swipe cards, but more on that later) will let you create digital receipts for cash and check transactions as well.

POS Integration                                                                                                                              Depending on your needs, you might want to look for a service that has easy POS integration.

E-Commerce Integration                                                                                                                Likewise, look for easy integration with an online store, if you have one. Easy integration is ideal for centralizing your accounts.

 

Accounting Integration & More                                                                                                           Do you use an accounting service? If so, you might prefer the ability to transfer your data directly from your card swiping service to your accounting software. 

Invoicing                                                                                                                                              If you do custom orders, offer services, or provide goods to a business, you’re all too familiar with invoices. With some services, you can generate invoices through them and send them to clients via email. The biggest advantage to this is simply that you get your money quicker because there’s no need to cut a check and send it through snail mail.

Voids and Refunds                                                                                                                                It’s unfortunate, but you do need to make accommodations to process refunds and void transactions. Sometimes your finger slips on a key and you don’t notice until afterward, and sometimes the customer just changes their mind. Make sure that you understand how to use these features in whichever service you choose.

Card Reader Design                                                                                                                      Needless to say there is more than a bit of awkwardness trying to balance a phone with a 5.1-inch screen in your hand while also stabilizing the card reader while swiping the card. Especially when you’re working with limited table space. It’s worth looking at the card reader and the device it’s attached to and making sure that the design works for you.

Permissions for Multiple Users                                                                                                          Do you have several employees? The ability to give permissions to multiple users comes in handy here. With it, you can enable employees (or your friends) to accept payments without giving them full access to your account. This is great if you happen to have multiple booths at events, or if you send multiple employees out on location and each one needs to be able to accept payments.

Accepting credit card payments doesn’t have to be a terrifying prospect, even if you’re running just a small-time business. You can get a mobile credit card reader for free in many cases, and while you won’t pay the lower fees associated with traditional merchant accounts, the costs are still readily manageable. What you need to consider are the hidden costs — not necessarily in the service providers, but the ones that come from using a data connection, or requiring Wi-Fi. How soon you get your money should also be a top priority.

 

 

Posted in Best Practices for Merchants, Credit Card Reader Terminal, Mobile Payments, Mobile Point of Sale, Smartphone, smartSD Cards Tagged with: (POS) systems, card reader, chargebacks, credit card reader, credit cards, e-commerce, high risk, merchant account, Merchant's, mobile card readers, mobile integration, POS, processing payments, Service providers, wedge

More About High Risk Credit Card Processing

High risk credit card processing is electronic payment processing for businesses deemed as HIGH RISK by the MERCHANT SERVICES INDUSTRY

The high risk segment of payment processing has become more important as banks and ISO’s have begun to tighten up their credit restrictions and underwriting policies. Businesses are classified as high risk primarily because of their product or service and the way they go to market. In merchant services, risk is related to CHARGEBACKS or customer disputes.

The more likely a business to have chargebacks, the higher risk the business. For instance, online businesses selling a weight loss product through a free trial offer, is more likely to have chargebacks than a retail store selling the same weight loss product.

Merchants are often unaware their business falls into the high risk category when they first start shopping for a merchant account. Getting a high risk merchant account can be difficult.

These providers have more stringent requirements and the application process is longer compared to traditional merchant account providers.

High risk businesses should expect to pay higher rates and fees for payment processing services. As a general rule of thumb, merchants should count on paying at least more than a traditional merchant account. Most high risk merchant accounts also require a contract of at least 18 months, whereas low risk providers offer accounts without cancellation fees or contracts.

ROLLING RESERVES are also a big part of high risk credit card processing. Most high risk merchants have some sort of rolling reserve placed on the account, especially new accounts without any processing history. A Reserve refers to an account where a percentage of the funds from transactions are held in reserve to cover against any chargebacks or fees that the processor may not be able to collect from the merchant. This is similar to a security deposit, but merchants don’t have to pay it up front. Reserves are a pain point for many small high risk merchants, but they are definitely necessary and without them, processors would not accept any high risk merchants at all.

What Businesses Are High Risk?

As mentioned earlier, businesses are usually classified as high risk due to the product or service they offer, however merchants with severely damaged credit or a recent bankruptcy can also be considered high risk. Below are just of the few common high risk merchant categories:

Adult Websites

Cigars & Pipe Tobacco Online

Collection Agencies

Credit Repair

Debt Consolidation

E-Books & Software

Electronic Cigarettes

Firearms – Online

High Ticket & High Volume

Medical Marijuana Dispensaries

Multi Level Marketing & Business Opportunities

Nutraceuticals like weight loss supplements, cleansers etc.

Penny Auctions

Sports Betting Advice

Ticket Brokers – Online Tickets

TMF Merchants

Travel & Timeshare

Unfortunately this list is growing and some credit card processing companies even classify any start up Internet business, that doesn’t have extensive financials to be high risk. With the recent economic recession in the United States, there has been an increase in these start up Internet ventures. People are either looking to supplement their income or start their own business instead of looking for work.

How To Protect Your Business

Accepting credit cards is the single most important part of most online businesses. Unfortunately, many successful businesses go under after having their merchant account shut down. High risk merchants should always be cognizant of their merchant account and pay attention to chargeback percentages. Below are some tips for high risk merchants looking for payment processing solutions.

Be Upfront: Make sure your processor knows exactly what you sell and how you market the product/service. If they don’t accept your business type, keep shopping for a new merchant account provider. Many merchants will try to fly under the radar by not revealing all their products or fully disclose their marketing methods to the processor. This is a bad move, the processor will eventually find out the details about your business. This is usually from doing an audit on your transactions and contacting your customers.

Negotiate Every 3 Months: Credit card processing companies underwrite applications based on previous processing history. If there is no previous history, the account is riskier and the terms offered are usually more expensive and restrictive. You can always re-negotiate your rates, reserves and other contract terms with your current processor. Once they have 3 months of history to evaluate, they may be able to offer you a better deal. Three months of history is the magic number for most processors. If you applied without the previous history and were declined, there is a chance the same processor will approve your application if you provide 3 months of previous statements.

Prepare For The Worst: All high risk merchants should keep at least 2 active merchant accounts, from different providers. You never know when underwriting guidelines might change, or you may have an influx of chargebacks. Having a backup account or even multiple back up accounts is a good idea. Many high risk providers offer a load balancing gateway, which allows for multiple merchant accounts to be integrated into one payment gateway. This way you can spread transactions across multiple accounts, through one shopping cart/gateway.

 

Posted in Best Practices for Merchants Tagged with: account, account providers, accounts, banks, card, chargebacks, contract, credit, credit card processing, credit restrictions, customer, customers, deposit, electronic payment, fees, financials, gateway, High risk credit card, High Ticket & High Volume, ISOs, low risk, marketing, merchant, merchant account, merchant services, multiple accounts, payment gateway, payment processing, processing services, processing solutions, processor, product, Rates, reserves, retail store, risk, ROLLING RESERVES, Security, security deposit, service, shopping cart, statements, terms, TMF Merchants, transactions, travel, underwriting

MERCHANTS FEAR,UNCERTAINTY and DOUBT (FUD)

A recent survey said, 82 percent of e-commerce merchants who currently do not employ a consumer authentication solution are afraid that such solutions will scare off online shoppers, but with more and more fraud expected to migrate online in the coming years, the payments industry needs to do a better job of informing merchants why authentication in the card-not-present realm is crucial to data security.

While a majority of payment service companies employ some type of 3-D Secure online authentication, and most large merchants do likewise, the rest of the merchant population, especially in North America, apparently do not. 55 percent of merchants surveyed, a majority of which are U.S.-based, do not use online authentication, noting that North America is the only world region where less than half of merchants use the technology. The reason so many U.S. merchants eschew consumer authentication is they see it as a sales killer.

The main reason appears to be fear, uncertainty and doubt (FUD) about how consumer authentication will impact sales conversion and user experience, 43 percent of merchant respondents are FUD-preoccupied, with 20 percent concerned about the effect of the technology on sales conversion, 13 percent worried about changing the user experience and 10 percent simply want nothing to do with consumer authentication. Beyond the FUD concerns, there is also a very real perception with merchants and service providers that integration is long and difficult, adding that 21 percent of merchants who do not employ authentication, citing the time and/or cost of integration as the barrier.

End to FUD

The solution to merchant adoption of some form of 3-D Secure technology is apparently education. Many FUD concerns are related to a hangover effect caused by bad experiences with previous iterations of consumer authentication. But the report provides evidence that the FUD factor can be overcome because of the happiness factor that authentication-using merchants express. 81 percent of merchant respondents showing satisfaction with the solutions they have employed.

The report said nearly half of merchants surveyed said authentication had no effect on sales conversion, either positive or negative; however, almost 20 percent believe it has had a positive effect on sales. The positive result seems to be related to merchants who use authentication selectively, on specific transactions rather than on all of them. Additionally, the technology results in many merchants experiencing lower numbers of chargebacks. Amongst merchants, 59 percent overall say the authentication program brought a decrease in chargebacks and this is true for more than half of merchants from each geographic region.

FYI on FUD

The adoption is very low because not many people understand it. Online verification does retard the checkout process as a second screen pops up that consumers must navigate in order to proceed with the purchase. However, these barriers can be overcome with education and simply getting people comfortable with the technology. If we had this solution from day one on all e-commerce sites today nobody would be complaining because people would be used to doing it. It is a question of achieving ubiquity rather than taking a piecemeal approach to implementation. It is a matter of if you do it at one place or every place. If you have to do it at only one location that makes that site really secure. If all sites ask the same question, you get used to it.

Consumer authentication is also something that requires buy-in from issuers, acquirers and merchants. It is a participation solution where the issuer and the acquirer have to be participating in it. If you are an e-commerce site and you are certified with Verified by Visa the card brands proprietary version of 3-D Secure, if the card issuer has not embraced that, then the security will not happen.

Increasing number and frequency of breaches is slowly eroding consumers’ trust in the safety of e-commerce It’s not good for the whole ecosystem. At some point people will come back ­­­­­­­­and say, this is too risky to do online transactions with cards. Before that point is reached, businesses should improve their online defenses, and consumer authentication is central to that defense. With the U.S. payments infrastructure in the process of transitioning to the Europay/MasterCard/Visa (EMV) chip card standard at the physical POS, fraud in the United States will sharpen its focus on the less secure online channel. EMV will do a lot of good in terms of card present security, but it does not do anything for card-not-present environments. So how are we going to contain the online fraud? We have to go to a 3-D Secure type solution

 

Posted in Best Practices for Merchants Tagged with: 3-D Secure online authentication, card, card present security, card-not-present, chargebacks, chip, chip card, consumer, data security, e-commerce, e-commerce merchants, EMV, Europay/MasterCard/Visa, fraud, Merchant's, online authentication, online channel, online fraud, online shoppers, online transactions, payment service, payments industry, POS, sales conversion, technology, Verified, visa

HOW TO GAIN MULTI-CHANNEL SHOPPERS

Before making a purchase, there are several devices that consumers may use to help them make a decision: Use a specific store’s mobile app on their smartphones. Visit the store’s website on a tablet or computer, or just pick up the phone and call customer service to ask a question. Whatever the case, omnichannel is an important buzzword for merchants.

Here are ways to ensure a seamless and secure retail experience to turn browsers into loyal buyers.

Ensure Channels Work Together

Even in historically single-channel retail sectors such as grocery, more than half of customers now use two or more channels before completing a purchase, shown in a recent study. Retailers must therefore offer both traditional and digital channels. However, before investing in the latest mobile-optimized website feature or app, retailers should learn how existing online and physical channels can together enhance the customer experience. What customers value most is not the number of channels offered, but how these channels support each other.

A merchant’s website might encourage visitors to take advantage of a special event in-store, while sales assistants on the floor can use Wi-Fi enabled tablets to access additional product information.

Help Customers Find What They Want

With Internet access ubiquitous, cost-conscious customers are just a click away from being able to compare prices and find special offers. Many take out their smartphone or tablet in stores to compare prices, a trend called Showrooming.

Online retailers can take advantage of this trend by encouraging shoppers to compare prices in-store using a mobile app. In-store retailers, on the other hand, could provide greater value through targeted offers, price match guarantees, expert advice, convenient delivery choices and personalized customer care.

Optimize The Checkout Experience

Businesses must be sure to have a quick, streamlined checkout process once they have converted an online browser into a customer or else they risk facing shopping cart abandonment. This can be done in a few steps:

1. Assess how the checkout experience can be customized for its customers. Keep the mandatory information required from new or first-time online or mobile shoppers to a minimum and shorten the process for returning customers by securely storing their payment details and other personal information.

2. Develop a dedicated mobile app or other innovative functions that can increase long-term satisfaction and loyalty.

3. Test different payment methods to find those that are most convenient for customers. These payment options may include paying with reward points, using a digital wallet or providing a digital offer or coupon at checkout. There is a balance to be found between having additional payment methods to meet customer expectations and choosing methods appropriate to a merchant’s business model.

4. Establish a one-click online checkout process. Chase for example, is currently developing a Chase Wallet and Quick Checkout solution. The Chase Wallet will allow customers to store and access their Chase cards and ultimately, any branded card for a quick checkout. It will also update Chase-branded cards when a customer replaces an existing card and use tokenization to securely process payments with select merchants.

Merchants also face the challenge of ensuring that the online and in-store checkout experience is secure, while at the same time eliminating as many false positives as possible. False positives are a hindrance to any business as they may reduce sales, increase chargebacks and frustrate customers. A quick-checkout solution may help reduce false positives because customer information is automatically populated rather than manually keyed into the checkout page.

Acquirers should also work with online retailers to provide a conditional approval code for a transaction. This code allows the fulfillment process to move forward while authentication is taking place. The additional time for a thorough authentication also helps reduce the number of false positives.

Use Data to Build Loyalty

Customers will likely return to a retailer if product marketing reflects their past purchases or interests. Therefore, taking advantage of data including a customer’s purchasing history, loyalty, behavior or social media interests may help retailers to better understand their customers as well as personalize their shopping experience.

According to a study released in March 2013, Chase Paymentech found that 32 percent of merchants use their payment data to help craft their multi-channel sales strategy and 42 percent use it to improve the online customer experience. In addition, further analysis of payment methods, chargeback rates, fraud rates and authorization rates may improve the customer shopping experience and  drive overall profitability.

 

Posted in Best Practices for Merchants Tagged with: approval code, authentication, branded card, chargebacks, Chase, Chase Wallet, checkout process, computer, customer service, data, digital channels, digital offer, Digital Wallet, In-store retailers, internet access, Merchant's, merchant’s website, mobile app, mobile-optimized website, omnichannel, online retailers, payment, payment data, phone, physical channels, Quick Checkout solution, reward points, shopping cart, Showrooming, single-channel retail, Smartphones, social media, tablet, tokenization, transaction, website, Wi-Fi

Mobile Credit Card Processing Myths

Mobile credit card processing is way cheaper than traditional point-of-sale (POS) systems. Accepting credit cards using mobile devices is stressful, not to mention a hassle to set up  and customers would never dare compromise security by saving or swiping their credit cards on a mobile device. Some of the many myths surrounding mobile payments, which allow merchants to process credit card payments using smartphones and tablets. Merchants process payments using a physical credit card reader attached to a mobile device or by scanning previously stored credit card information from a mobile app, as is the case with mobile wallets. Benefits include convenience, a streamlined POS system and access to a breadth of business opportunities based on collected consumer data. Nevertheless, mobile payments as a whole remains a hotly debated topic among retailers, customers and industry experts alike.

Although mobile payment adoption has been slow, consumers are steadily shifting their preferences as an increasing number of merchants implement mobile payment technologies (made easier and more accessible by major mobile payment players such as Square and PayPal). To stay competitive, it’s more important than ever for small businesses to stay current and understand where mobile payment technology is heading.

If you’re considering adopting mobile payments or are simply curious about the technology, here are mobile payment myths that you may have heard, but are completely untrue. 

All rates are conveniently the same. Thanks to the marketing of big players like Square and PayPal – which are not actually credit card processors, but aggregators rates can vary widely and significantly. For instance, consider that the average debit rate is 1.35 percent. Square’s is 2.75 percent and PayPal Here’s is 2.7 percent, so customers will have to pay an additional 1.41 percent and 1.35 percent, respectively, using these two services. Some cards also get charged well over 4 percent, such as foreign rewards cards. These companies profit & mobile customers lose. Always read the fine print.

Credit card information is stored on my mobile device after a transaction. Good mobile developers do not store any critical information on the device. That information should only be transferred through an encrypted, secure handshake between the application and the processor. No information should be stored or left hanging around following the transaction.

I already have a POS system – the hassle isn’t worth it. Mobile payments offer more flexibility to reach the customer than ever before. No longer are sales people tied to a cash register and counters to finish the sale. That flexibility can mean the difference between revenue and a lost sale. Mobile payments also have the latest technology to track sales, log revenue, fight chargebacks, and analyze performance quickly and easily.

If we build it, they will come. Many wallet providers believe that if you simply build a new mobile payment method into the phones, consumers will adopt it as their new wallet.   This includes proponents of NFC technology, QR codes, Bluetooth and other technologies, but given very few merchants have the POS systems to accept these new types of technologies, consumers have not adopted. Currently, only 6.6 percent of merchants can accept NFC, and even less for QR codes or BLE technology, hence the extremely slow adoption rate.  Simply put, the new solutions are NOT convenient, and do not replace consumers’ existing wallets, not even close.

It raises the risk of fraud. Fraud’s always a concern. However, since data isn’t stored on the device for Square and others, the data is stored on their servers, the risk is lessened. For example, there’s no need for you to fear one of your employees walking out with your tablet and downloading all of your customers’ info from the tablet. There’s also no heightened fraud risk for data loss if a tablet or mobile device is ever sold.

Mobile processing apps are error-free. Data corruption glitches do happen on wireless mobile devices. A merchant using mobile credit card processing apps needs to be more diligent to review their mobile processing transactions. Mobile technology is fantastic when it works.

Mobile wallets are about to happen. They aren’t about to happen, especially in developed markets like the U.S. It took 60 years to put in the banking infrastructure we have today and it will take years for mobile wallets to achieve critical mass here.

Setup is difficult and complicated. Setting up usually just involves downloading the vendor’s app and following the necessary steps to get the hardware and software up and running. The beauty of modern payment solutions is that like most mobile apps, they are built to be user-friendly and intuitive so merchants would have little trouble setting them up. Most mobile payment providers offer customer support as well, so you can always give them a call in the unlikely event that you have trouble setting up the system.

The biggest business opportunity in the mobile payments space is in developed markets. While most investments and activity in the Mobile Point of Sale space take place today in developed markets (North America and Western Europe), the largest opportunity is actually in emerging markets where most merchants are informal and by definition can’t get a merchant account to accept card payments. Credit and debit card penetration is higher in developed markets, but informal merchants account for the majority of payments volume in emerging markets and all those transactions are conducted in cash today.

Wireless devices are unreliable. Reliability is very often brought up as I think many businesses are wary of fully wireless setups. I think this is partly justified, but very easily mitigated, for example with a separate Wi-Fi network solely for point of sale and payments. With the right device, network equipment, software and card processor, reliability shouldn’t be an issue.

Posted in Best Practices for Merchants, Mobile Payments, Mobile Point of Sale, Smartphone Tagged with: (POS) systems, aggregators rates, apps, BLE technology, bluetooth, card, card processor, card reader, cash, cash register, chargebacks, consumer data, credit, credit card payments, credit card processing, credit card processors, credit card reader, credit-card, customer support, data, data loss, debit card, debit rate, device, fraud, fraud risk, hardware, industry experts, merchant account, Merchant's, mobile, mobile app, mobile credit card processing, Mobile Devices, Mobile Payments, mobile point of sale, Mobile processing apps, mobile processing transactions, mobile technology, mobile wallets, network, network equipment, nfc, nfc technology, payment solutions, payment technology, PayPal, phones, point of sale, qr codes, retailers, rewards cards, Security, Smartphones, software, Square, tablet, tablets, vendor's app, wallet providers, Wi-Fi network, wireless mobile, wireless mobile devices