August 23rd, 2017 by Elma Jane
Over the last couple of years, the payments processing industry has had a major shakeup. Electronic payments are the new payment form to watch.
It’s hard to imagine that online shopping used to require you to mail a check or money order to the seller. Forget about sending your credit card information in an email.
In 2015, Apple launched Apple Pay. While usage was low at first, it quickly grew the following year. Competitors such as Samsung and Android have introduced their own digital wallets.
In a world where hackers and skimmers have customers and merchants on edge, payment security is a high priority. Digital wallets make transactions secure by removing the card from them altogether.
Credit card credentials are saved in a digital wallet on a smartphone. The customer can then make payments by placing their phone near a reader and authenticating it on the screen.
Many large companies have adopted digital wallets as a method to accept payments. You can even use Apple Pay in some drive-thrus.
Accepting digital payments is relatively simple. Most are compatible with other contactless Point of Sale systems, and they don’t even charge extra fees for transactions.
Credit Card Processing in the Modern Age
Technology is moving faster than ever, and it’s taking credit card processing with it.
Make sure to follow our blog for more articles about changes in the world of finance.
For Electronic Payment Set Up Speak to our Payment Consultant 888-996-2273 or Click Here to get started!
Posted in Best Practices for Merchants Tagged with: contactless, credit card, credit card processing, customer, Digital wallets, electronic payments, finance, merchants, payments processing, point of sale, Security, smartphone, transactions
August 18th, 2017 by Elma Jane
Before you can start accepting credit card or electronic payments, there are a number of factors to consider.
You will need to decide on a Point of Sale system. Some Merchant Services Providers require you to use only their equipment.
Some of these systems have expensive equipment costs. Others will provide you with free card readers. Companies offering free equipment may do so in exchange for higher processing fees.
Before you choose a Merchant Services Provider, you should look into how they work those fees.
Understanding Processing Fees
Credit card processing fees have several moving parts, so we aren’t going to dive too deeply into how these fees are determined. We will, however, take a broad overview.
Merchant Services Providers will charge either a flat rate, a percentage, or a combination of the two. This fee is called an interchange rate.
Interchange rates vary between card providers, which is why some sellers don’t accept certain credit cards and why many small companies have minimum requirements for credit card payments.
Some Merchant Services Providers don’t charge a flat transaction fee, however, they usually charge a higher percentage for payments.
Each model has its benefits and disadvantages.
Before choosing a Merchant Services Provider, familiarize yourself with their processing fees. Consider how they will fit with your business model. Are most of your transactions smaller or larger? How much will a free card reader save you?
Weigh every option out before you lock yourself into an agreement.
For Payment Consultation call now and speak to our Payment Consultants 888-996-2273!
Posted in Best Practices for Merchants Tagged with: card readers, credit card, electronic payments, interchange, merchant, point of sale, transaction
August 17th, 2017 by Elma Jane
How Do Credit Cards Work?
Paying with a credit card seems like a simple process. You charge the customer, they swipe their card, and then they walk out the door.
But behind the scenes, it’s a bit more complicated.
A credit card payment involves four parties.
- The Merchant
- The Customer
- The Issuing Bank
- The Merchant Services Provider
You know who the Merchant and Customer are – that’s the easy part.
The Issuing Bank is the institution that lends money to the Customer.
When the Customer swipes their card, the Issuing Bank lends them the sale amount. This loan is given with the understanding that the Customer will pay the amount back within 30 days or repay it with interest.
Before the Merchant sees any of that money, it goes through the Merchant Services Provider. In exchange for their credit card processing services, they take out a fee before paying that money to the Merchant.
These fees vary between Merchant Services Providers, but one thing is certain: The Merchant always receives less money than the Customer paid them.
This might seem like a raw deal. However, accepting credit cards can lead to more sales than if you only accept cash.
On our next article we will discuss how to start accepting credit card payments and understanding the processing fees….so stand by for more information about Electronic Payment Processing.
Posted in Best Practices for Merchants, Credit card Processing, Electronic Payments Tagged with: bank, credit card, customer, electronic payment, loan, merchant, payment
May 31st, 2017 by Elma Jane
If you’re a retail business you’re going to need a credit card terminal to accept credit cards, and if you have multiple locations; you might need more than one terminal.
Obtaining terminals for your business with multiple locations can be expensive. Because of this, some merchants used leasing arrangements which they think that monthly leasing fee might seem like a bargain compared to the cost of buying a terminal.
One provision of the lease is: Non-Cancelable Lease
Leases commonly have a 48-month (four-year) term, and a clause that makes the lease completely non-cancelable.
They also have a purchase option at the end of the lease. You must exercise your option to end the lease.
In a non-cancelable provision, they’ll keep deducting monthly leasing fees from your account regardless of anything, or an immediate payment of all remaining months of your contract if you break your lease.
In addition to monthly leasing fee, you’ll also pay sales tax and a monthly equipment insurance fee; while you can purchase it for as low as $150-$200.
Beware of free terminal offers, other providers will offer a free terminal, but they also charge higher monthly fees if you elect the free terminal. So the terminal isn’t really FREE.
For Electronic Payment Set Up Call now 888-996-2273 or go to NationalTransaction.Com
Posted in Best Practices for Merchants, Electronic Payments Tagged with: credit card, electronic payment, merchants, payment, terminal
May 10th, 2017 by Elma Jane
Mobile Wallet Technology have flooded the market in the last few years with offerings such as Apple Pay, Android pay, Samsung Pay and more. And so far, they seem to be succeeding.
To understand how contactless payments work, here is an example.
A smart phone like Android or iPhone allows you to take advantage of mobile wallets like Android Pay, Apple Pay or Samsung Pay. You input your credit card information onto your phone, which stores it for later use.
If you’re shopping at a store that has mobile payment readers at the register, rather than reach for your wallet and get your credit card; you take out your phone to make a payment.
The point-of-sale (POS) terminal will automatically reads the payment information stored by holding your mobile phone a few inches away from the POS, and then processes the transaction. When the mobile device is in range, a wireless communication protocol links the terminal and the phone, which exchange information and conduct a secure transaction in a fraction of a second.
Near-field communication or NFC technology, works by bringing together two electronic devices. In terms of payments technology, a mobile device such as a smartphone and a reader. The reader would be the initiator and the smartphone would be the target, which contains the stored credit card information.
The market potential for NFC payment technology is huge, as more merchants adopt the EMV. EMV compliant terminals accept NFC payments through mobile wallets.
For Electronic Payment set up call now 888-996-2273!
Posted in Best Practices for Merchants, Credit Card Reader Terminal, Mobile Payments, Near Field Communication, Smartphone Tagged with: contactless payments, credit card, electronic payment, merchants, mobile wallets, Near Field Communication, nfc, point of sale, POS, smart phone, terminal
May 8th, 2017 by Elma Jane
Tips for preventing funding delays!
If you’re running an unusual transaction and know of it beforehand, let your merchant provider know; sending an invoice in advance can cut processing time.
Make sure to give your most up to date information. Keeping provider in the loop on the fluctuations in your processing volumes will help tremendously, especially as your business grows.
Funding delays are an inconvenience, but being prepared can keep the delay to a minimum. If you keep these tips in mind, you’ll be processing without ever having to worry about delays again.
Flagged, Security and Review Process
Why some merchant accounts hold funds and others do not?
There are a number of reasons:
Underwriting merchant account is ongoing. Imagine a small business convenience store was set up and accidentally enters $1,000.000 should we transfer that or hold it?
One reason is something has gone with that particular business account.
Another reason could be that particular institution’s practices are more efficient than others.
Financial institutions use different payment processing systems, and they are not uniform in their practices. For this reason, some transactions are significantly faster than others.
Though there are other reasons funds get held, the main reason for this occurrence is when a payment is out of the ordinary patterns.
Unusual transactions are any transaction that vary from your typical processing patterns.
If It’s for security, an account will be flag as a way to reduce fraud as well as ensuring no one is using your account.
How do I know if I’m flagged?
Security checks are carried out by processing banks or processor. You’ll be contacted by a loss prevention officer. They’ll provide all details of the hold, including the review process as well as the next steps.
What’s the review process?
The review is simply to verify your transaction before delivering your funds. A typical review is confirming the transaction with yourself as well as your customer’s credit card company. You’ll speak briefly with a loss prevention officer to discuss the transaction. If further review is required, the loss prevention officer may ask you for a copy of the transaction’s invoice.
How can I speed up the process?
For an easy review, make sure to provide detailed documents. When an invoice is asked for, make sure it clearly shows the following:
- Product Description of Items Sold
- Your Customer’s Name
- Address
- Phone Number
For Electronic Payment set up call now 888-996-2273 or go to NationalTransaction.Com
Posted in Best Practices for Merchants Tagged with: credit card, electronic payment, funds, merchant provider, processor, Security, transaction
May 5th, 2017 by Elma Jane
Tokenization is a powerful security feature that allows a merchant to support all of their existing business processes that require card data without the risk of holding card data and without any security implications, because tokens are useless to criminals, they can be saved by the merchant as they do not represent any threat.
The liability and costs associated with PCI compliance is substantially reduced and the risk of storing sensitive data is eliminated.
Tokenization applies to credit card and gift card.
Merchants set up for the tokenization service receive responses that include a token.
The token generated is not linked to a specific transaction but to a specific card number and the token generated for that transaction will be identical for every use of that card number and merchant.
Furthermore, you can generate a token and save the token with associated information in the Card Manager.
For Electronic Payments with Tokenization call now 888-996-2273
or click here NationalTransaction.Com
Posted in Best Practices for Merchants, Credit Card Security, Electronic Payments, Payment Card Industry PCI Security Tagged with: card, credit card, data, electronic payments, merchant, PCI, Security, token, tokenization, transaction
May 1st, 2017 by Elma Jane
3D Secure Authentication
One of the biggest frustration for e-Commerce businesses has been the risk of chargebacks. If a shopper were to tell their issuers that they did not authorize an Internet purchase with their credit card, the merchant can lose the chargeback and the product.
By using 3D Secure capabilities, merchants get detailed evidence of authorized purchases “authentication data”.
The authentication data, together with an authorization approval gives you a transaction that is guaranteed against the most common types of chargebacks: Cardholder not authorized and cardholder not recognized chargebacks.
3D Secure is a security tool that enables cardholders to authenticate their identity to their card issuer through the use of Visa’s Verified by Visa and MasterCard’s SecureCode services.
3D Secure adds another layer of security to cardholders by preventing fraudulent purchases in an e-Commerce environment and reducing the number of unauthorized transactions.
NTC’s Virtual Merchant users processing transactions in an integrated e-Commerce environment are able to take advantage of this functionality.
3D Secure processing is supported with MasterCard and Visa transactions only. Other card types will process as normal and will not trigger 3D secure processing.
For e-Commerce Electronic Payments set up with 3D Secure
call now 888-996-2273! or click here NationalTransaction.Com
Posted in Best Practices for Merchants, Credit Card Security, e-commerce & m-commerce, Electronic Payments, Visa MasterCard American Express Tagged with: chargebacks, credit card, data, e-commerce, electronic payments, MasterCard, merchant, Security, transaction, visa
April 24th, 2017 by Elma Jane
Recurring Payments through VirtualMerchant
Providing recurring payments is an easy way to increase retention, grow loyalty, and improve customer satisfaction.
Recurring Payments are automatic payments where a customer authorize a merchant to collect the total charges from a customer’s credit card or bank account every month. It is a useful feature with multiple applications: Donations, Memberships, subscriptions and utility payments.
Handle your recurring and installment payments with our single solution.
To set up a recurring payment, the merchant simply enters the specified charge, chooses the frequency of payment (weekly, monthly, annually) and the customer’s card is billed.
Automated recurring billing is an efficient, convenient and hassle-free service that can help merchants build and manage their business growth.
To set up recurring payment through VirtualMerchant call now 888-996-2273
Posted in Best Practices for Merchants Tagged with: bank, credit card, merchant, payments, recurring
April 7th, 2017 by Elma Jane
Merchant Cash Advance Or Loans
Merchant Cash Advance – is a funding product providing working capital to businesses. When it comes to securing a merchant cash advance, businesses are far more likely to be approved and secure the amount of funding you actually need because cash advance is not a loan.
Loans generally are lower rates than MCA? Monthly payments not daily and many of these loans may also be lines of credit. Lines of credit sometimes have collateral, real estate or other guarantees. These options can be uncovered through consultation service at NTC.
MCA companies provide funds to businesses in exchange for a percentage of the businesses daily credit card income directly from the processor that clears and settles the credit card payment. A company’s remittances are drawn from customers’ debit-and credit-card purchases on a daily basis until the obligation has been met. Most providers form partnerships with payment processors and then take a fixed percentage of a merchant’s future credit card sales.
The Term Merchant Cash Advance – may be used to describe purchases of future credit card sales receivables, revenue and receivables factoring short-term business loans, and it has a different set of rules and rates.
Cash advance has some advantage over a conventional loan structure. Payments to the merchant cash advance company fluctuate directly with the merchant’s sales volumes, giving the merchant greater flexibility with which to manage their cash flow, particularly during a slow season. Advances are processed quicker than a typical type loan, giving borrowers quicker access to capital.
Merchant Cash Advances are often used by businesses that do not qualify for regular bank loans.
Ask our loan consultant if you were told you do not qualify for a loan.
NationalTransaction.Com 888-996-2273
Posted in Best Practices for Merchants Tagged with: credit card, loan, merchant cash advance, payments