Blog Posts

25 Apr, 2015

Credit Card Merchant Processing

By: admin
Category: General

Credit Card Merchant Processing   Credit Card Merchant Processing is a very difficult and complicated industry to understand when you are a merchant. Most companies are not very honest, and those that do not have honest sales reps to relay messages of transparency. Most incentives by Credit Card Merchant Processing companies are done off commission.  The commission is determined by a percentage of the residual difference in the cost of the processing the merchant does to the rates set up by the Credit Card Merchant Processing company. How are rates set and what makes them? This is 100% up to the merchant services rep who sets your merchant account up for credit card processing.  This must be done by someone who doesn’t just enter the market in an overnight frenzy, and is a truly established business and has truly established representatives.   Credit Card Merchant Processing: a guide to processing correctly Many credit card processing companies today do not inform there representatives on how to sell to benefit the customer/merchant; they sell to benefit themselves and the company (merchant processing company). This leads to a  huge conflict of interest for the sales rep and typically lies, and promises that cannot be kept are told to merchants to attract them to switch and sign up for processing credit cards. This is extremely dangerous, as merchant processing companies lock those into agreements with early termination fees and leases that cost thousands. If you do not know what you are doing in merchant processing, you will sure end up with a bad deal, and something you cannot get out of.   Credit Card Merchant Processing services By having these issues, we’re aware and understand that merchant processing is a delicate topic. We are here because we have a dream that one day, all merchants will be able to understand what they are paying for there credit card processing, and thus will give them a better deal, and change the industry forever. How can we do this? We can’t do it alone, we need word-of-mouth help, and others to engage into the systematic process of selling credit cards. Since most customers have been mistreated in our industry, we have to defend our representation of our beliefs as best as we can to give the customer the best merchant processing for Credit Card Merchant Processing available and also educate the customer.  In the end, we do not want the best for us, but a mutually beneficial relationship that a customer can find true value in when processing their credit cards for their business.

24 Apr, 2015

Merchants unaware of Chip Card Requirements by Visa and Mastercard, a big issue for liability if not addressed.

By: admin
Category: General

Merchants unaware of Chip Card Requirements by Visa and Mastercard, a big issue for liability if not addressed. Merchant loses chargeback rights   With turnaround being rapid in the merchant processing world of sales, we know that customer service is lacking. This doesn’t only affect merchants waiting on long hold times for customer service through their processor, but it means that they are uneducated about major changes going on in the credit card processing industry. The biggest change impacting merchants is happening this year. It requires a complete terminal replacement because credit card processing is going to be done differently. Currently in Europe, all merchants use a chip/EMV credit card processing solution; thus not using the swiper on a credit card for transactions. What does this mean? Well, it means that merchants have more secure transactions; due to chip cards assigning a random code to each transaction. This random code in the chip card technology (EMV chip cards) allows for merchants to be able to have less of a risk of a data breach of credit card numbers and personal data. This is a requirement by Visa and Mastercard, and yet most merchants do not have a clue. Merchant loses chargeback rights if this isn’t handled The purpose of this blog post is to educate merchants on this change and give them the options they need, and knowledge to reduce liability by the October 2015 deadline. Why is this important? Well, if you do not have a credit card processing machine that is working through the chip system by October 2015, you will be liable for your chargebacks. An example is if a merchant sells a wedding ring to a customer and the customer has the merchant swipe the credit card transaction rather then EMV chip card run the transaction, the transaction is 100% liable to the merchant, regardless of proof due to not having a chip-card reader. If the ring was $20,000 and a customer swipes there credit card (Visa and Mastercard), this transaction could 100% be disputed, and in addition, will give the customer 100% chargeback rights and allow the customer to even keep the ring. This is a terrible and horrible risk that is not necessary, and can be avoided by getting a new credit card machine, such as a $150.00 ICT220 by Ingenico. We must make sure all merchants know this so that they can avoid being scammed by customers who know this, and Merchant loses chargeback rights I’d like to see every merchant have this machine before October 2015, so we can make sure transactions are not liable on the merchant’s side because they were not aware. This will be a costly mistake for merchants who aren’t educated, and we must change this immediately. If we do not promote this and educate all merchants, whether they are processing with our credit card processing company or not, we will see a huge issue with chargebacks and fraud. We want to avoid Merchant loses chargeback rights.

23 Apr, 2015

The benefits of interchange pricing versus tired pricing in merchant credit card processing and acceptance.

By: admin
Category: General

The benefits of interchange pricing versus tired pricing in merchant credit card processing and acceptance. Merchants tend to fall victim to not knowing what rates merchant processing companies are charging and tend to be uneducated in the process of learning about good deals versus bad deals when it comes to credit card processing.  The purpose of this article is going outline and discuss the benefits of interchange pricing models versus tired pricing models when speaking in terms of merchant credit card processing and acceptance.  The two pricing categories both have advantages and disadvantages depending on how many basis points you are paying, and how you are taking your credit cards in your online business or retail brick and mortar location. Merchant credit card processing and acceptance.   Merchant credit card processing and acceptance. Interchange pricing is defined as “Merchant accounts that operate on an interchange plus pricing structure may sound more intimidating, but they’re much more transparent and less expensive than tiered accounts. On an interchange plus pricing structure, the merchant pays the exact interchange fee in addition to a flat markup to their merchant service provider. This eliminates inconsistent buckets and overpaying for inflated rates.”  As a result in interchange pricing, you pay less than you typically would in a tiered model because you are not exposed to inconsistent fees and understand that you only pay above the cost of the credit card transaction ran by Visa and Mastercard (TM). The interchange fees are always set by Visa and Mastercard (TM), thus paying “above interchange pricing” is cut and dry, versus having to understand bucket rates, and why and how they fall where they do.  For example, if you are a merchant that owns a bakery and are processing credit cards to sell a cookie, you would run the sale on your point of sale credit card terminal. After running a sale on the credit card terminal, anticipating you swiped the card, you’ll pay  a fee above the charge of the card. What is the charge of the card? You can refer to the interchange tables (updated twice a year in April and October). Since we’re in April now, interchange fees will be rising, and its important to know them.  Where do you find them? Simply look here: Visa and Mastercard  to get all the interchange fees for credit card processing. Merchant credit card processing and acceptance. Tiered rates are those in which are buckets together, and less beneficial for the merchant processing credit cards.  The reason that tiered rates are unfavorable versus though of interchange is because they are grouped together and are dependent not only on card type, but how you run a sale, and other conditions such as batching  out transactions the bank timely, etc.  These circumstances are the fundamental problem with tiered rates, not to mention you get a higher interchange charge assessed.  So, you may be wondering what does it mean per card type? Well on tired rates, you are dealing with 3-6 rates, typically 3, which go from 1.69% on a retail account up to 5% in some cases.  What is the factor causing the higher rates to be charged? Its if the card is swiped or keyed in as well as if the card is a debit card, credit card, rewards card, etc.  These circumstances cause the card type typically to bump to the higher rate, and thus, you the merchant pays more to process the card.  If you are on  a straight interchange method, you will not be penalized for the downgrades. Merchant credit card processing and acceptance In conclusion, you can see there are two ways to be set up as a merchant who accepts credit card processing. These ways are important to understand, so you can understand how you are priced, and what your rates are.  If you have any concerns and questions regarding how to set up credit card processing and what the best way is, Centurion Payment Services will be happy to help. Merchant credit card processing and acceptance.