The Info Behind Our Terminal Label

Look at two terminal labels below.  One is from a competitor and the other is from our firm.  What is the story behind these two.  Our terminal label state we stand behind what we sell.   As you can see we give our number and the national toll free number.  You get the best of both world.  No need to call a toll free number all the time with our service.  We know our merchants and they know us.  If you like that type of business relationship, then give us a call or email!

info@tampabaymerchantservices.com or call 727-916-7294

Is Imprinting A Card A Thing of the Past?

In the program guide that every merchant signs and agrees to states, “IF THE TERMINAL FAILS TO READ THE MAGNETIC STRIPE OR IF YOU ARE

REQUIRED TO OBTAIN A VOICE AUTHORIZATION, THEN YOU MUST IMPRINT THE CARD.” 

When an account is approved a “merchant metal plate: is mailed out.  Not only should you have an imprint of the card, but the merchant info from the “plate” should also be included.  Now is a good time to pull this back out and be sure you have an imprinter and imprinter slips. If you need help with this let me know.  Let me know if you want a full copy of the guide.

I would like to add about the new cards will be issued soon to consumers called EMV cards with an embedded chip, also referred to as smart cards.  These cards are reported nearly impossible to counterfeit because the chip stores unique info that is constantly changing as the card is used.  Cards in use today use a magnetic strip that can be easily replicated and counterfeited.  Merchants will need to have the proper equipment to accept these new cards no later than October 2015.

I urge you to take the time to review the following:

IF THE TERMINAL FAILS TO READ THE MAGNETIC STRIPE OR IF YOU ARE

REQUIRED TO OBTAIN A VOICE AUTHORIZATION, THEN YOU MUST IMPRINT THE CARD. IN ADDITION, THE SALES DRAFT MUST HAVE THE CARD HOLDER’S SIGNATURE. FAILURE TO FOLLOW THESE PROCEDURES WILL PREVENT YOU FROM DEFENDING A TRANSACTION IN THE EVENT THAT IT IS CHARGED BACK UNDER A CLAIM THAT THE RIGHTFUL CARDHOLDER DID NOT AUTHORIZE THE PURCHASE. ENTERING IN INFORMATION INTO A TERMINAL MANUALLY WILL NOT PREVENT THIS TYPE OF CHARGEBACK.

Why we are at, I wanted to share the portion addressing businesses that do not accept a card in person.

Mail/Telephone/Internet (Ecommerce) Orders and Other Card Not Present Sales.

You may only engage in mail/telephone/Internet orders provided they do not exceed the percentage of your total payment Card volume reflected on your application. Failure to adhere to this requirement may result in cancellation of your Agreement. Merchants conducting Internet transactions using MasterCard or Visa Cards must have special codes (an “Electronic Commerce Indicator”) added to their authorization and settlement records. Discover Network does not use an Electronic Commerce Indicator. Failure to register as a merchant conducting Internet transaction can result in fines imposed by the Associations. Mail/Telephone/Internet and other Card Not Present transactions have a sub statically higher risk of Chargeback. Since you will not have an imprinted or magnetically swiped transaction and you will not have the Cardholder’s signature on the Sales Draft as you would in a face-to-face transaction, you will assume all risk associated with accepting a mail/telephone/Internet or other Card Not Present transaction. The following procedures, while they will not eliminate Chargebacks, are useful in reducing them and should be followed by you:

• Obtain the expiration date of Card.

• On the Sales Draft, clearly print the Cardholder’s account number; effective and expiration dates; date of transaction; description of the goods and services; amount of the transaction (including shipping, handling, insurance, etc.); Cardholder’s name, billing address and shipping address; authorization code; and merchant’s name and address (city and state required).

• For mail orders, write “MO”; for telephone orders, write “TO” on the Cardholder’s signature line.

• If feasible, obtain and keep a copy of the Cardholder’s signature on file on a form authorizing you to submit telephone and mail order transactions.

• You should utilize the Address Verification Service for all Card Not Present Transactions (see note below). Address Verification is specifically required for all

Discover Network Card Not Present Transactions, and if you do not receive a positive match through AVS, you may not process the Discover Network Card

Not Present Transaction. If you do not have AVS, contact us immediately.

• You should obtain the 3-digit Card Validation Code number and include it with each authorization request. Discover Network Association Rules specifically require that you submit the Card Validation Code with the authorization request for all Discover Network Card Not Present Transactions.

• For telephone orders, it is recommended that written verification of the sale be requested from the Cardholder (sent by mail or fax).

• You may not submit a transaction for processing until after the merchandise has been shipped or the service has been provided to the customer. (The Associations will permit the immediate billing of merchandise manufactured to the customer’s specifications [i.e., special / custom orders] provided the Cardholder has been advised of the billing details.)

• You should provide a copy of the Sales Draft to the Cardholder at the time of delivery. You must also obtain proof of delivery of the goods or services to the address designated by the Cardholder (i.e., by getting a signature of the Cardholder or person designated by the Cardholder through the delivery carrier). If the Card holder visits one of your locations to receive the goods or services purchased, obtain an imprint of the card and the Cardholder’s signature.

• Notify the Cardholder of delivery time frames and special handling and/or cancellation policies. Merchandise shipping dates must be within seven (7) days of the date authorization was obtained. If, after the order has been taken, additional delays will be incurred (e.g., out of stock), notify the Cardholder and reauthorize the transaction.

• You may not require a Cardholder to complete a postcard or other document that displays the Cardholder’s account number in clear view when mailed.

• If you accept orders via the Internet, your web site must include the following information in a prominent manner:

– Complete description of the goods or services offered;

– Merchandise return and refund policy;

– Customer service contact, including email address and/or telephone number;

– Transaction currency (U.S. dollars, unless permission is otherwise received from Servicers);

– Any applicable export or legal restrictions;

– Delivery policy;

– Consumer data privacy policy;

– A description of the transaction security used on your website; and

– The sale or disclosure of databases containing Cardholder account numbers, personal information, or other Card transaction information to third parties is prohibited.

• You may not accept Card Account Numbers through Electronic Mail over the Internet.

NOTE: Address Verification Service (“AVS”) does not guarantee against Chargebacks, but used properly, it assists you in reducing the risk of fraud by confirming whether certain elements of the billing address provided by your customer match the billing address maintained by the Issuer. AVS also may help you avoid incurring additional interchange expenses. AVS is a separate process from obtaining an Authorization and will provide a separate response. A transaction may not match addresses when submitted for AVS and still receive an Authorization. It is your responsibility to monitor the AVS responses and use the information provided to avoid high-risk transactions.

3.2.1. Discover Network Protocol for Internet Transactions. Each Internet

Discover Network Card transaction accepted by you and submitted to us shall comply with Discover Network standards, including, without limitation, Discover Network standards governing the formatting, transmission and encryption of data, referred to as the “designated protocol.” You shall accept only those Internet Discover Network

Card transactions that are encrypted in accordance with the designated protocol. As of the date of these Operating Procedures, the designated protocol for the encryption of data is Secure Socket Layer (SSL). We may, at our discretion, withhold Settlement until security standards can be verified. However, the designated protocol, including any specifications with respect to data encryption, may change at any time upon thirty (30) days advance written notice. You shall not accept any Internet Discover Network Card transaction unless the transaction is sent by means of a browser which supports the designated protocol.

If you have any question about this, please feel free to contact us at  info@tampabaymerchantservices.com or call 727-916-7294

Mobile Payments, EMV & NFC

Mobile / smart phone, social and technologies are converging right now at a rapid pace.  As of January 2013 nearly 130 million Americans own smart phones.  It all started with the mobile phones, were now you can reach individual consumers on a person level to market your business and offer coupons and other incentives.  Those who hop on the mobile payments train early will not only find new customers, but will set themselves from the competition. 

Using smart phone technologies, sophisticated mobile apps are taking location based personalization to the next step.  For example some apps recognize individual devices and give customers offers based on frequency of visits and other loyalty-related data.  Others are building technology that traces consumer shopping habits to offer personalized recommendations and offers. Others can sync with your customer’s social media accounts to share offers to their friends.  This can help your business spread the word about deals and find new customers’ social networks.  Socially shared coupons can be a great way to spread excitement and brand awareness between friends online.  This is just the start and who know what the future holds for even better and more advanced than what is now available. Merchants must be equipped with technology solutions that extend far beyond payment processing, and broadens their value and ability to attract new customers and retain existing ones.

Now that you know the benefits, how do you take advantage of this?  We have a solution.  With the Genius Customer Engagement Platform from Merchant Warehouse will aggregate and integrate every conceivable transaction technology, payment type and customer program – both present and future – into a single platform.  It is engineered to eliminate other issues confronting merchant’s today, including security breaches, hardware limits and transaction fees.  With the uses of Genius will ready your business for the new EMV cards and NFC payments.  With Genius NEVER TURN AWAY A PAYING CUSTOMER!

If you have any question about this, please feel free to contact us at  info@tampabaymerchantservices.com or call 727-916-7294

Murphy’s Law

You know “Murphy’s Law”, anything that can go wrong, will go wrong.  And so it is in the credit card processing business.  It’s not a matter of if, but when something will go wrong.  Equipment breaks, telephone / internet goes down, run out of terminal receipt paper.  You place too many digits in when you run a transaction ($1200 instead of $120).  These are just a few.   When “murphy” visits regarding your credit card processing, we are there to correct the “murphy” in a quick manner.  We will post success stories about fighting “murphy”

Update #1

The other day, a customer moved around their customer check in desk.  When they went to plug everything back in, the credit card terminal would not come back on.  After trying a few things over the phone, went to them same day and fixed the issue

For help with your service and to keep “murphy” at bay contact us at: www.tampabaymerchantservice.com

Risk & A Merchant Account

What risk?  A customer gives me a credit card, I get an authorization, a day or two later I receive funds, so what is the problem or risk?

An authorization is letting you know that funds are available on the card at that time in point. An authorization does not confirm the cardholder’s card or limit the cardholder from disputing at a future date. If you received more than one decline seek another form of payment. A decline authorization is the issuing banking letting you know there is a problem.

There more to it than this.  A merchant account is like a line of credit with the processing company and unsecured lender.  There is a chance that a card holder can dispute a transaction up to six months from service rendered or delivery date.  If the merchant does not have funds in the bank account, then the provider will be the one to take the loss.  Also consider in some situations, a merchant collects payments in advance of providing the product or service as well as providing some sort of quality assurance, i.e. will be delivered, can be returned, satisfaction guarantee, therefore the risk is ultimately borne by the provider.  This is like a line of credit.   Keep in mind margins are so low for a provider, risk is screened and monitored very closely

Risk Variables & Key Areas

Company longevity & financial strength

Industry and how cards are processed

Billing method and accepting payments in advance

Why is it important for you to understand risk?

Since there are many companies in the merchant provider industry will manage the risk on the back end or after the account is approved.  Then the business might have an unpleasant surprise of having funds held until the merchant service provider is satisfied with the business meeting certain requirements.  In some cases the funds might be held in reserve for up to 6 months.  If you are unhappy, too bad, they have you under contact.  It is important to have this vetting beforehand.

If a merchant provider does not properly assess risk during underwriting and down the road a risk manager flags the merchant, they may withhold funds, require a reserve (where they hold a certain amount of money in reserve to offset the risk) or terminate the processing relationship. So be cautious when selecting a partner. If you are unhappy, too bad, they have you under contact.  It is important to have this vetting beforehand.

If you have any question about this, please feel free to contact us at  info@tampabaymerchantservices.com or call 727-916-7294

Have A Professional In Your Corner?

When you need help with your taxes you most likely go to a CPA for help. When you need medical care you go to a M.D.  If you need legal help you will most likely turn to an attorney who has the designation of J.D. which stands for Juris Doctor.  Need help with investments; you might turn to a CFP.  It just makes sense to turn to a professional for the more important business and personal items in your life.  You can trust these professionals have the knowledge and expertise to deal with the complex issues in their field.  They also have pledged to a higher standard of code of ethical conduct.

Now in the credit card merchant processing field there is a professional designation.  It is called Certified Payments Professional (CPP). The first graduating class was in January 2012.  The CPP is awarded by The Electronic Transactions Association (ETA). 

By obtaining your payments processing solution from a CPP, you can be sure that your representative is knowledgeable about the products and services he recommends and has the expertise to recommend the best and most appropriate solution for your business.  Your CPP has made a significant personal commitment to his profession and has agreed to adhere to the ETA Code of Conduct.

Don’t just call anyone . . . call a CPP

If you have any question about this, please feel free to contact us at  info@tampabaymerchantservices.com or call 727-916-7294

Visa announces more fee changes for April 2012

Visa has announced more changes to debit pricing structure, which will take effect April 2012.  When the Federal Government decided to get involved in price control to cap debit card fees, it was addressed by the interchange reimbursement fees.  Now the cat and mouse game has begun.  Now Vise has added fees under what is called “acquirer fees”.  This will get passed on to the merchant but escapes the Durbin rules.   

On with the details:

The new Transaction Integrity Fee (TIF) of $0.10 will be assessed in debit and prepaid card transactions that do not qualify for Custom Payment Service (CPS). The TIF is charged in addition to the applicable interchange fee.

The Acquirer Processing Fee (APF) will be reduced from $0.0195 to $0.0155 per authorization for debit transactions. (It will remain $0.0195 per authorization for credit transactions.)

The Interlink Switch Fee will change from $0.035 per transaction to $0.0225 + 0.08% (8 basis points), capped at $0.035 per transaction.

The new Fixed Acquirer Network Fee (FANF) will be assessed per merchant per month. This is the new name for the previously announced Network Participation Fee. For card present merchants, the FANF is based on the number of locations, and will be $2.00-$5.00 per location per month for most merchants. For card not present merchants and fast food restaurants, the FANF is based on sales volume, and will be $2.00-$15.00 per month for most merchants. (The fee is higher for larger merchants.)

The FANF is based on a merchant’s taxpayer identification number (TIN), just like the recently introduced 1099-K from the IRS. This places even greater importance on obtaining accurate taxpayer information for all merchants, including the legal name of the business and its TIN.

If you have any question about this, please feel free to contact us at  info@tampabaymerchantservices.com or call 727-916-7294