November 17th, 2015 by Elma Jane
Within the payment processing industry, Merchant accounts are categorized according to how they process their transactions.
There are two primary merchant account categories:
Swiped (Card Present) and Keyed (Card-Not-Present).
Swiped or Card-Present Transactions: Are those in which both the card and the cardholder are present at the time the payment is processed, they physically swipe their customers credit card through a terminal or point-of-sale system.
The sub-categories within this group include:
Retail Merchants – Normally conduct their business in an actual storefront or office space. They primarily use counter-top terminals or Point-of-Sale systems. Restaurant Merchants – Requires a special set-up that allows for tips to be added to the final sale amount by settling the transaction with an adjusted price that will include the tip amount.
Wireless / Mobile Merchants – They use wireless terminals or mobile phones to run these transactions in Real-Time. Have the ability to accept credit cards transactions wherever they are located out on the road.
Hotel / Lodging Merchant – Will authorize a customer’s credit card for a certain sale amount.
Card-Present Transactions also include grocery stores, department stores, movie theaters, etc. Card acceptance settings where cardholders use unattended point-of-sale (POS) terminals, such as gas stations, are also defined as card-present transactions.
Keyed-In or Card-Not-Present Transactions: Whenever the transaction is completed and the cardholder (or his or her credit card) is not physically present to hand to the seller.
The sub-categories within this group include:
Mail Order / Telephone Order (MOTO) – The customers card information is gathered via over the phone, fax, email or internet and then manually key-entered into a terminal or payment gateway software. Once the transaction is approved and completed, the product is then shipped to the customer for delivery.
eCommerce / Internet – Conduct ALL of their business over the internet through a web site. So all credit card transactions are processed online via a payment gateway in real-time. The payment gateway is integrated into the web sites shopping cart. The cardholders card is charged instantly.
Travel Merchants is one example of Keyed or Card-Not-Present Transactions.
Start processing credit card payments today whether Swiped or Keyed.
Give us a call now at 888-996-2273 so more details!
Posted in Best Practices for Merchants, e-commerce & m-commerce, Mail Order Telephone Order, Mobile Payments, Mobile Point of Sale, Point of Sale, Smartphone, Travel Agency Agents Tagged with: Card Not Present transactions, card present, card-not-present, card-present transactions, cardholder, credit card, credit card payments, credit card transaction, ecommerce, keyed, Lodging Merchant, mail order, merchant accounts, merchants, mobile merchants, moto, payment gateway, payment processing, point of sale, POS terminals, Restaurant Merchants, Retail Merchants, shopping cart, swiped, telephone order, terminal, transactions, travel merchants
October 30th, 2015 by Elma Jane
This is a question we encounter on a daily basis. Travel environments are unique in that your transactions are usually keyed, there is almost always a delayed delivery period, large ticket transactions are not uncommon since one cardholder may be paying for multiple tickets, they tend to be seasonal, with peak season months generating an unusual spike in their “average” monthly volume, and chargeback’s pose a potential threat by travelers who are unable to complete their trip. Combine even a few of these factors together and you have cause for a reserve, or even account termination.
Being a part of a MO/TO (Mail Order/Telephone Order) or Keyed environment carries an increased risk of potential fraud or unauthorized use of a credit card. Since the credit card and cardholder are not present at the time of the transaction, the merchant has a limited ability to ensure the card is not being misused or that the proper AVS (address Verification Service) information is provided. NTC stresses the use of Credit Card authorization forms in order to obtain the correct credit card number, expiration date, billing address, and signature of the cardholder.
Travel merchants tend to have periods of increased volume based on peak travel seasons, whereas most other industries tend to have the same average monthly volume every month. This can generate spikes in volume on the merchant account that can trigger security concerns with the processor. Helping the merchant to analyze their volume trends and reporting the trends to the underwriters helps eliminate the security concerns when these spikes occur.
Large transactions which exceed the average sale amount for the merchant account can also trigger security concerns. Merchants who do not inform their merchant processor of large transactions prior to charging the credit cards can trigger security concerns and cause funding delays and reserve holds. Educating and clearly communicating with the merchant how to handle large tickets, volume spikes, and group bookings, prevents reserves, funding delays and/or other merchant account issues.
Another concern from the underwriters is the delayed delivery time frame. Delayed Delivery refers to the amount of time between accepting a credit card payment (whether a deposit or full purchase) and the time the cardholder travels. The client’s credit card is billed and the travel agent is paid however, the trip the travel agent was paid for doesn’t generally take place for 2 to 3 months. This leaves a lot of time for things to change, and should the client not travel for some reason, the first thing they do if the travel agent does not issue a refund, is claim a chargeback. NTC offers quite a few tips that can help protect the travel agent from chargeback situations.
Most merchants do not realize that merchant processors carry a financial risk on merchant accounts, and normally fund merchants prior to receiving payment from the client’s bank. Essentially, a merchant account is an unsecured loan. The merchant runs a transaction and at the end of the day they settle their batch. Generally the merchant will receive the funds for that batch in their bank account within 2 business days even though the travel arrangements the client paid for do not take place right away.
Here at National Transaction Corp, we specialize in understanding what makes your transactions, as a travel agent, unique in how they affect your merchant account. Educating the merchant and ensuring they have a good understanding of what makes travel merchant account high risk, is one of our specialties. We have established a special relationship with our underwriting department which facilitates our ability to approve your high risk travel merchant account.
Contact your travel merchant account specialist at NTC today.
Mark Fravel
National Transaction Corp
Founder and President
888-996-2273
Posted in Best Practices for Merchants, Travel Agency Agents Tagged with: address verification service, avs, card holder, card payment, chargeback, credit card, Mail Order/Telephone Order, merchant, merchant account, merchant processor, moto, transactions, travel agent, Travel environments, travel merchants
October 29th, 2015 by Elma Jane
What is Identity Theft?
Identity theft and identity fraud are terms used to refer to all types of crimes in which someone wrongfully obtains and uses another person’s personal data.
Basic categories of identity theft:
Account Takeover Fraud – is one of the two basic forms of financial identity theft, it occurs when a fraudster obtains and uses a victim’s personal information to take control of existing bank or credit card accounts and carries out unauthorized transactions right at a point of sale or access individual accounts online. Victims are often the first to detect account takeover when they discover charges on monthly statements they did not authorize or funds depleted from existing accounts.
Business or commercial identity theft – entails using a business’ name to obtain credit or even billing a business’ clients for products and services. Business identity theft can go on for years undetected.
Criminal identity theft – occurs when an imposter gives another person’s name and personal information such as drivers’ license, date of birth, or Social Security Number to a law enforcement officer during an investigation or upon arrest.
Identity cloning – some people use identity theft and identity cloning interchangeably, but definitely are not the same thing. True identity clones pretends to be you, they want to assume your identity. They want to become YOU.
Medical identity theft – occurs when someone steals your personal information (like name, Social Security Number or MediCare Number) to obtain medical care in your name. Medical identity theft can damage your credit rating.
New Account Fraud – means using another’s personal identifying information to obtain products and services. New credit card accounts is the most prevalent form of new account fraud. Because the thief is likely to use a different mailing address, the victim never sees the bill for the new account. When this type of fraud involves a credit card, once the new plastic is issued, the criminal turns it into cash very quickly. Victims may also be denied credit as a result of applying for loans.
Posted in Best Practices for Merchants Tagged with: bank, credit, credit card, data, fraud, medical, Medicare, point of sale, transactions
August 17th, 2015 by Elma Jane
It can be hard to see the benefits of accepting credit cards for some startups and small business merchants – especially if the business has been cash only since opening day. However, there is a big downside to being cash only and you could really be limiting the customers you bring in.
While cash is the simplest form of payment, but it’s not always the best form of payment for small businesses.
Some consequences of accepting cash only.
- Being cash only can mean you will need to do additional paperwork come tax time. You must file Form 8300, Report of Cash Payments over $10,000 Received in a Trade or Business, if your business receives more than $10,000 in cash from one buyer as a result of a single transaction or two or more related transactions. This same rule applies to cash equivalents including traveler’s checks, bank drafts, cashier’s checks and money orders. The form does require that you have your customer’s name, address and social security number.
- Credit cards and debit cards are very popular; in fact, most people only carry a small amount of cash or no cash at all. Because of this, being cash only can cause your business to lose both existing and potential customers. A cash only policy can make them feel inconvenienced and cause them to take their business elsewhere.
- If your customers don’t have the cash to purchase an item they want from your business, then they are more likely to walk away from the purchase.
- Keeping a large sum of cash at your business can put you at an increased security risk. It can also increase the amount of time you will spend at your business managing finances because of the time it can take to count cash and change.
If your Business is ready to accept credit cards give us a call 888-996-2273 or go to our website www.nationaltransaction.com
Posted in Best Practices for Merchants Tagged with: bank drafts, cash, cashier’s checks, credit cards, debit cards, merchants, money orders, payment, transactions, traveler’s checks
July 14th, 2015 by Elma Jane
If you own a business, you should consider opening a merchant account. If you accept credit cards for transactions, you will take your business to a higher level, increase your revenue, and gain new customers. Most people nowadays use credit cards and debit cards to pay for their purchases, so no business should go without processing card payments. Electronic, Credit card processing payments are a must-have for any kind of business including Internet businesses.
If you accept several forms of payments, you will provide your customers with multiple options and you will enhance their experiences. If you do not accept credit cards, the people who prefer to pay for their purchases with credit cards and debit cards will go somewhere else, and you will lose the transaction. So many benefits are attached with merchant accounts and millions of small business owners have found success with them. If you have a merchant account, you will be able to accept Discover, MasterCard, Visa, and American Express from your customers.
With National Transaction, securing Electronic, Credit card payment processing service instore, online and on the go are easy to acquire. It will boost your income, so it is worth the investment. You can apply online for a merchant account, the applications will only take you a few minutes to complete, and you will find out if you have been approved for a merchant account in a day or so.
A credit card processing service will also protect your business and valued customers against fraud. Customers feel safe using credit cards because they know that if their cards get stolen, they can cancel them, dispute the purchases, and get their money back. Your customers will feel safe when they make purchases. Some consumers will not purchase from a company that does not accept credit/debit card.
National Transaction offers advanced payment processing solutions like Currency Conversion, EBT and Debit Cards Processing, E-commerce Gateways, Electronic Check and ACH Transfers, Gift Loyalty Card Programs, Loans and Advances, Mobile Processing and MediPaid, you will definitely benefit from opening a merchant account. National Transaction offers Free CRM and we can even help promote your business through Social Media Sites. We offer a very competitive rate and Customer/Technical Support to our Partners because we answer our phone.
Merchant accounts are a necessity for any kind of business, so don’t wait. Sign up for a merchant account right now and discover what your business can gain from accepting credit cards! With 73 percent of American households owning a credit card, it’s easy to think that everyday credit card usage is a way of life.
Give us a call 888-996-2273 or check our website www.nationaltransaction.com
Posted in Best Practices for Merchants Tagged with: ACH Transfers, Advances, card payments, credit card processing, credit cards, crm, Currency Conversion, debit cards, Debit Cards Processing, e-commerce, EBT, Electronic Check, gateways, Gift Loyalty Card, loans, MediPaid, merchant account, Mobile Processing, payments, transactions
May 26th, 2015 by Elma Jane
MasterCard is aiming to change the way people transfer money between debit cards, with its new program called MasterCard Send. This first-of-its-kind, global personal payments platform allows consumers to send and receive funds within seconds, rather than waiting for the standard 1-3 business day transfer time.
Unlike most person-to-person (P2P) processors like PayPal, MasterCard Send is not designed specifically for consumers. Instead, it aims to help businesses send disbursements and cash back to customers in something very close to real-time.
Customers can receive direct deposits into their debit card accounts for shipping rebates. There is no waiting for a check in the mail or a long transfer process.
Consumers can still use MasterCard Send to send and receive money from friends and family members. The recipient does not need a debit card to access the funds. Send will also work with programs like Western Union.
According to MasterCard, cash and checks still contribute $1 trillion in global spending every year. MasterCard Send is attempting to be a safer, faster and cheaper alternative to these transactions. The program is now live in the United States.
MasterCard Send is addressing a real need that exists in today’s digital world to enable consumers, businesses, governments and more to have a safe, simple and secure way to transfer and receive funds quickly.
Posted in Financial Services Tagged with: card accounts, cash back, check, consumers, debit cards, direct deposits, funds, MasterCard, p2p, payments, processors, transactions
All merchants that accepts, transmit or stores cardholder data are required to be PCI (Payment Card Industry) Compliant. Most believe that because they do not charge the credit cards themselves, they are exempt. Why all agencies are required to be complaint even when they don’t charge credit cards themselves, and some steps to ensure your agency is PCI compliant.
What is PCI compliance?
The Payment Card Industry Data Security Standard (PCI DSS) is a set of requirements designed to ensure that all companies that process, store or transmit credit card information maintain a secure environment. PCI applies to all organizations or merchants, regardless of size or number of transactions, that accepts, transmits or stores any cardholder data. Travel agents accepting, storing and transmitting credit card information to suppliers, are required to be compliant too. Suppliers reinforce this through their travel agent guidelines/contracts. Travel Agency must adhere to the applicable credit card company’s procedures for credit card transactions.
Consequences of Not Being PCI Compliant
If an agency is not PCI compliant, the agency can lose the ability to process credit card payments with that supplier. Not being able to pay with client credit cards can be a serious roadblock for agencies, and an inconvenience for clients.
If you have a merchant account and are found to be out of compliance, you can be fined.
How to be PCI Compliant
Don’t store the CCV security code from the client’s credit card. The client does not have the authority to grant you permission to store their CCV code. The credit card company explicitly forbid storage of the CCV code.
Make sure you securely store any client information, including their credit card number and expiration date. If you use a CRM, ensure that you have a strong password. If your CRM database is stored on your computer hard drive, encrypt it (there is a great encryption software that is free of charge). If you have an IT resource, talk to them about installing a firewall on your network, installing anti-virus and anti-malware protection, and any other steps that you can take to secure your client data even further.
If you keep paper copies of client information, keep it in a locked filing cabinet or desk drawer. When you no longer need their credit card information, cross shred it.
Home based businesses are arguably the most vulnerable simply because they are usually not well protected, according to the PCI Compliance Guide. Having strong passwords, encryption, a firewall, anti-virus and anti-malware protection are all inexpensive steps that you can take to protect your business and your clients’ sensitive data.
If you receive a courtesy call reminding you about PCI Compliance, don’t ignore it.
Posted in Best Practices for Merchants, Credit card Processing, Credit Card Security, Payment Card Industry PCI Security Tagged with: cardholder, cardholder data, cards, CCV, CCV code, credit, credit card company, credit card number, credit card payments, credit card transactions, credit cards, crm, CRM database, data, database, encryption software, merchant account, Merchant's, network, Payment Card Industry, PCI, security code, transactions, travel agents
Biometrics Market To Reach $14.9 Billion by 2024
The Biometrics market currently sits at $2 billion, by 2024, it will reach $14.9 billion, with a cumulative total revenue of $67.8 billion. This is being driven by new advancements in Biometrics Hardware and Software that are not only transforming payments, but also serving as frictionless alternatives to security in a myriad of use cases.
For consumer facing security, Biometrics can be deployed at a low price-point for high-volume authentication. Think an iris scan or finger swipe for quickly unlocking a mobile device like an iPhone 6 or Samsung Galaxy S6.
The forecast goes over use cases that spans from Point-of-Sale transactions, to voter identification, making the case for Biometrics embedding itself into a vast number of aspects in everyday life.
Posted in Best Practices for Merchants, Mobile Payments, Mobile Point of Sale, Point of Sale, Smartphone Tagged with: biometrics, consumer, device, mobile, mobile device, payments, point of sale, Security, swipe, transactions
May 4th, 2015 by Elma Jane
The rate of payments fraud is steadily decreasing, the current frequency stands at 0.06 percent or six basis points.
The perception of risks associated with card payments are much larger than the actual threat or reported losses. But the lack of trust that comes from such perception could impact the growth of the payments industry.
Recent advancements in payments security, such as tokenization and multiple tier authentication protocols, have contributed to the manageable number of fraudulent transactions. The EMV migration is expected to push the figure even lower, as chip-enabled technology spreads to over 50 percent of the US by the end of 2015.
For criminals, breaking into robust financial systems is becoming more costly and time consuming, which has discouraged many from attempting such unlawful acts.
Fraud is something that we can’t say will be eliminated completely. But efforts by all stakeholders in the industry can contain it to the minimum.
Counterfeit cards and payments data falling into the wrong hands are the two most common types of fraud that consumers are facing today. The surge in e-commerce has been linked to greater risks of fraud in the online channel, and while counterfeiting cards may be more difficult with EMV in place, online fraud has historically increased in its place.
Posted in Best Practices for Merchants, Credit Card Security, EMV EuroPay MasterCard Visa Tagged with: card payments, cards, consumers, data, e-commerce, EMV, EMV migration, fraud, payments, payments industry, Payments Security, tokenization, transactions
January 26th, 2015 by Elma Jane
Accept Electronic Payments in Their Currency,
Convert it to Yours
DCC or Dynamic Currency Conversion is a system where the Visa or MasterCard holder in a foreign country can shop on an American based web site that displays prices in their own local currency. The web site can offer multiple choices as to which country the shopper is based in and the shopper can be immediately familiar with the pricing of goods and services.
Exchange rates are in constant flux. Dynamic Currency Conversion utilizes a Bank Reference Table (BRT) otherwise known as a Card Recognition Table (CRT). This table is updated on a daily basis so that transactions have the most up to date conversion rate for transactions. Your web site holds pricing information in $USD, and based on the selection of the shopper, prices are converted to their native currency. Even if the shopper does not choose the correct currency, at the time the card information is presented, the system automatically recognizes that the card is foreign and applies the appropriate currency and exchange rate.
At the close of the transaction an invoice or receipt can present the total to the customer in their currency, along with the merchants local currency along with the exchange rate that was applied. In today’s global business environment, this level of convenience to the customer insures they are comfortable with the transaction from shopping cart to the door. Your business reaches foreign nations expanding your market while presenting new opportunities, increasing your businesses bottom line.
On the merchant end, all transactions are settled in $USD. Reporting mechanisms can display the consumers pricing and the exchange rate they paid for analysis and cost reduction.
Currency Conversion
- Accept currencies from other nations.
- Convert funds to US Dollars.
- Set prices in local currency to avoid confusion or calculation.
- Works with e-commerce as well as Mail Order / Phone Order.
- Ease the sales process for your customers.
- Increase customer familiarity.
- Immediately convert currency to avoid value gaps.
Posted in Best Practices for Merchants, Electronic Payments Tagged with: Bank Reference Table, Card Recognition Table, consumer, conversion rate, currency, customer, Dynamic Currency Conversion, e-commerce, electronic payments, exchange rate, invoice, MasterCard, Merchant's, receipt, shopping cart, transactions, visa
