Systems to accept EMV enabled credit cards

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It has been 17 months since retailers were asked to upgrade their point of sales systems to accept EMV enabled credit cards. The benefits of the EMV chip card are numerous, making information harder to steal, lessening the ability for fraudulent sales and hacking. In fact, right now, only 58{1e9709ef5f3333ae7d8fe6a31af5d3933317716445c13c35f37bf4f9d8e83538} of eligible business have made the switch to the new terminals.
Why?
Well some merchants purchased payment terminals two or three years ago and are not willing to invest in new terminals. Yes if you lease them they will cost a bit more over the course of a lease, but we are talking about $400 dollars for a basic terminal that can run most businesses. The Mom and Pop shops have invested in a perfectly good terminal that they will probably get another 10 years out of, and in their mind, why should I spend that kind of money when the odds of me getting a fraudulent card are very slim.
And hardware is not the only stopping block. There are many chip enabled terminals that are in place across the country that do not take the chip cards. Why? Because they do not have the programming and software installed to be able to accept the new chip cards. Taking the chip card is a 2 part process for the merchant. First, the merchant must load the newly developed software from a third party to allow the terminal to accept EMV chips. The second process is the certification process that each of the card networks need the merchant to go through. This is coordinated by the merchants acquiring bank. This que to be certified has been very long with weeks waits for merchants.
The third issue that merchants are dealing with the new EMV terminals is the time of transaction. You have probably noticed, these terminals can be a little cumbersome, and clumsy. People pulling their cards out too soon is a common problem. Time of transaction is another issue. EMV transactions are typically 3-5 times longer than a traditional mag stripe card. In a high volume business, this translates to slower sales and lost volume.
But not being compliant has its risks. The biggest risk is being responsible for fraudulent transactions. If your business processes a mag stripe card that is stolen or counterfeit, your business can and will be responsible for the amount stolen, not the banks as it has been in the past. For some merchants, this can amount to 1000’s of dollars for one transaction. Is that worth the wait?

Emv chips and processing is here to stay. It is both the norm and the future of credit card processing. If you are not part of the EMV world, do you really want to take that risk? It is time to take the steps to become compliant.

Optimization and implementation of the EMV

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Visa, in their monthly update on EMV, announced that merchants using EMV, chip enabled terminals account for 46{1e9709ef5f3333ae7d8fe6a31af5d3933317716445c13c35f37bf4f9d8e83538} of all the companies in-store payment volume.
Visa also announced that their year over year increase in chip-on-chip transactions was up 359{1e9709ef5f3333ae7d8fe6a31af5d3933317716445c13c35f37bf4f9d8e83538} this last November.
These numbers all point to a much greater penetration of EMV compliance across the US, and because Visa is the largest card network in the US, these numbers could serve as a benchmark for the progression of the US EMV migration across the industry.
As these numbers rise, they point to a growing acceptance from both consumers and merchants.
• Consumers: Visa’s 400 million chip cards issued in the US represents a 105{1e9709ef5f3333ae7d8fe6a31af5d3933317716445c13c35f37bf4f9d8e83538} year to date increase. This represents a 47{1e9709ef5f3333ae7d8fe6a31af5d3933317716445c13c35f37bf4f9d8e83538} of Visa’s total US cards. Consumers also seem to be adjusting to the dipping and not swiping change with less confusion. Visa also conducted a separate survey of consumers that found 35{1e9709ef5f3333ae7d8fe6a31af5d3933317716445c13c35f37bf4f9d8e83538} of consumers believe that chip cards are now the safest way to pay.
• Merchants: Merchant adoption continues to increase. Up 110,000 merchants over the previous quarter and up 1 million since November 2015. With 1.75 million merchants now converted to Visa EMV platform, it is still just a 38{1e9709ef5f3333ae7d8fe6a31af5d3933317716445c13c35f37bf4f9d8e83538} saturation of the US storefronts. More small businesses are warming to the idea of converting to EMV because of the fraud protections benefits they can reap, so this number will steadily increase. This migration has been delayed for gas stations, an area with high fraud for three years. This will continue to impact merchant upgrades.

The US EMV migration continues to be slow going as the transformations are only raising 7{1e9709ef5f3333ae7d8fe6a31af5d3933317716445c13c35f37bf4f9d8e83538} a quarter. And even though it is likely we will see steady growth in overall EMV penetration throughout 2017, there will most certainly be a reductions of credit card counterfeiting and fraud as these numbers rise.

In 2014 fraud cost US retailers approximately 32 billion dollars. That figure is up from 23 billion just one year earlier. The new payment protocols that were implemented in October of 2015 are meant to solve the fraud problems across in store, online, and mobile payments.

• EMV cards are the most secure form of card payment processes available. Embedded with a microchip for added security, the chip carries real-time risk assessment and generate dynamic cryptogram when the card is used to stop fraudulent activity.
• Tokenization schemes assign a random value for mobile and internet payment making it effectively impossible for hackers to access any sensitive data from the token.
You will see more optimization and implementation of the EMV technology with both consumers and merchants over the next 4 years. Full implementation of EMV technology across US merchants should be completed by the end of 2021.

What to Expect when Working with a Merchant Services Provider

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When a business owner begins their venture into eCommerce, it will be crucial that they contract with a merchant services provider. While there are many merchant services providers out there, picking the right one will take some research and a solid foundation of knowledge. Merchant services providers are all different; it is crucial to figure out your requirements to identify the best fit for your business.

Payment Processing

Will your business require batch payment processor real-time payment process? With batch processing, the order is then handled by an individual either by getting in touch with the payment processing company to confirm the legitimacy of the credit card number or by utilizing a point-of-sale terminal to swipe the card. The customer is notified immediately that the order is accepted when the credit card is verified, and the money is moved from the client’s account to the merchant’s account. When deciding, consider some transactions that may occur. If you are anticipating a low volume of sales, then this type of processing is something to consider. It is not as pricey as real-time processing. The main drawback to batch processing is the time factor. Real-time processing is more suited for bigger volume sales and for certain items that are sent over electronically.

Knowing Your Business

A business owner should be well-versed in their financial reports; because these statistics are going to weigh heavily on what merchant services provider is chosen.

Additionally, some banks have a set amount of transactions a month. Thus, if you do not meet this minimum, you could be required to pay a separate fee. Other banks will ask you to project how many transactions you think will occur on your site. Your business’s strengths and weaknesses will also influence the type of services you need from your provider. For example, if you lack state-of-the-art resources, then it would be in your favor to choose a merchant account provider that emphasizes customer service.

Rates and Fees

Web-based e-tailers and other eCommerce ventures need to be aware of the rates and fees they will be assessed when contracting with a merchant services provider. Typical costs include transaction fees, discount rates, and set-up or application fees. Fees vary among the merchant services providers based on credit history, type of business, and transaction volume. Merchant accounts have several fees, some that are time-based, and others that deal with a percentage format.

Assess your technology and service requirements. When an entrepreneur makes the jump to eCommerce, selecting a merchant services provider is only one of many aspects that have to be integrated together. Utilize a shopping cart solution and locate a merchant services provider, although many providers feature shopping cart solutions of their own.

Also required is payment system that processes transactions and a payment gateway to securely capture and process payments. Several merchant services providers offer systems that include each of these aspects. Many will bundle merchant services and other eCommerce services into their packages. Working alongside a merchant services provider that provide integrated services indicates that each level of the transaction works in conjunction with the other, meaningless difficulties on your end.

If the merchant services provider does not offer this type of service, the exact software that is used should be discovered. On occasion, a dealer account company will provide more affordable merchant services and then overcharge on software. A reputable merchant services provider will provide guidance about which type of software would be best for this situation.

Information such as this can be crucial to a business just starting out, that can not afford to make a mistake early on. Finding the right companies to partner with is a big step in the process of operating a successful business. Starting up an eCommerce venture is no easy task. If it were, everyone would do it! It is critical to know your own business inside and out; it will inevitably save you tons of time, effort, and money.

Consider Credit Card Services For Accepting Online Payments Smoothly

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In this competitive world of e-commerce, public credit card services have a significant role to play, since they provide numerous solutions about service packages as well as several merchant accounts. They can aid you in accepting credit cards or even debit cards and processing quite a few transactions in a flash through a streamlined process, rather than experiencing blocked accounts or funds held because of doubtful transactions.

Taking your needs into account, you can accept cards via many different media such as the World Wide Web, telephone, fax, or personally. Different merchant accounts are custom-made for business owners who need to handle large transactions on a daily basis. They can assist you in making your business processes simpler and boosting your earnings. They also offer you several means to taste success now as well as in the future.

Using credible credit card services, you can quite effortlessly apply and obtain a merchant account online. These services can undoubtedly offer their clients the desired flexibility and unlimited advantages.

The majority of accounts are trouble-free and are suitable for business owners in any nation. The most excellent thing regarding such statements is that there is no need to abide by the stringent guidelines or make payment for any security deposit in the beginning. These kinds of accounts facilitate perfect integration with your internet site as well.

Almost all reliable credit card services boast well-qualified professionals with sufficient experience. They have expertise in offering safe and sound accounts to their customers. Whether you are unknown to the concept of accepting credit cards or already own a merchant account, they can help you handle each and every matter without any hiccup.

These service providers can offer retailers a comprehensive package at affordable rates and also aid them in fraud protection issues as well as acquire knowledge of various merchant account processing alternatives. Dealers can receive robust online management and reporting tools at no additional cost. These experts are very much able to direct you through the whole application process, customize a solution to your particular requirements, and ensure total customer gratification.

With plenty of credit card service providers available in the industry, it is at times rather difficult to locate the most appropriate one. Nevertheless, it is imperative to verify all the providers initially, instead of illogically choosing one provider.

Nowadays, the majority of customers tend to use the card in place of cash, and the capability of accepting credit cards is somewhat important if you run a web-based business. You will certainly have to install an online payment processing gateway, and for that, you must find a credible credit card service provider. They can successfully handle all the charge back problems without really bothering you and help you widen the payment alternatives of your customer.

Choosing a credit card service is important because this is what all your transactions for your business go through. As long as you consider the time and research in-depth before you commit to anything, you should have no difficulty deciding an experienced and reliable credit card business service.

Choosing a credit card processing company

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When your business plans to accept debit and credit cards-either at your brick and mortar, online or by phone, you will need a merchant services processor so you can accept them. There will be some upfront costs and fees for doing so.  Fees if you have been a cash only business, that you are not accustomed to paying.  But the extra costs that are associated with taking credit cards far outweigh the disadvantages of you not taking them.

The biggest change you will see almost immediately is the boost in sales.  Credit card purchase encompass almost 80{1e9709ef5f3333ae7d8fe6a31af5d3933317716445c13c35f37bf4f9d8e83538} of all purchases in the US marketplace.  By being cash only, you have been excluding these customers from your business.  People have a different mindset when they purchase with plastic.  Cash is a physical action you have to take to make a purchase.  You pull your wallet out of your purse or pocket, you pull your physical money out and you see it transferred directly to the merchant.  It is difficult, it can be painful.  One minute you have $200 in your pocket, and the next minute you have $25.00 and the goods you just purchased.  With plastic, you hand your card over to the business attendant, they process the payment, you sign for it, get a receipt that you barely look at and put it in your pocket.  Not until the end of the month will you receive your statement that gives you your payment balance.

Choosing a credit card processor can be a difficult task.  It is wise to compare the pros and cons of your options before signing a contract.  Here are several factors to consider.

Fees and Costs

Processing costs can range from .025{1e9709ef5f3333ae7d8fe6a31af5d3933317716445c13c35f37bf4f9d8e83538} to 5{1e9709ef5f3333ae7d8fe6a31af5d3933317716445c13c35f37bf4f9d8e83538} on all transactions a company processes through their terminals.  There are many companies available to you who offer products that are competitive and offer the same level of service as those who are charging a higher percentage.

How much are the fees and other costs?

Credit card processing fees can be up to 5{1e9709ef5f3333ae7d8fe6a31af5d3933317716445c13c35f37bf4f9d8e83538} on everything a company earns from its credit and debit card sales, according to the U.S. Small Business Administration. However, some companies might charge much less than others while offering the same products and level of service.

Fees to watch out for and compare: Interchange fees, monthly statement fees, application and set up fees, application and set up fees, monthly minimum fees, monthly gateway access fees, and early termination fees.  All of these fees are subject negotiation and are offered in tier pricing by different companies based on your volume of processing. Make sure you understand all of these fees and service terms.  Make sure they can provide you with a detailed explanation on all costs and fees and if they cannot, then find another processor.

What is the setup time?

Many companies have the ability to set you up in as little as 24 hours after your application.  The normal amount of time is usually 3-5 days from application until approval.

What are the accepted payment types?

You will want to make sure that your new processor accepts all major credit and debit card so you do not have to turn away any possible customers. Also, you may want to include a system that accepts prepaid cards and gift cards.

Is your system up to date with new payment procedures:

Most customers are very tech savvy now.  NFC (Near field technology) is the latest payment processing that will allow you to accept digital wallets like Apple Pay, Samsung Pay, or Google Wallet. This technology allows customers to make a payment with a simple touch of their cell phone.

Is customer support reliable?

If you run into processing, terminal, or technical problems how reliable is their customer support. Make sure you hire a processor that offers 24/7 support and you will need direct support from an account rep who can solve your issues. There may be an extra cost for this service, but it will be some of the best money you can spend.

Good luck with your search for a reputable merchant services provider.  There are many solid companies available for you to contact.  Find the right one and then good luck in the new world of credit card processing.

Accepting Credit Cards Pays Off for Small Business

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One of the biggest challenge any small business can face is finding the resources, time and money,  to compete with the larger, more established enterprises they compete against.  One tool that the small business has in its arsenal is the ability to accept credit cards.  According to sources in 2014 72{1e9709ef5f3333ae7d8fe6a31af5d3933317716445c13c35f37bf4f9d8e83538} of all American consumers owned at least one credit card.  And that number is higher now.  There is not a small business in this country that can afford to ignore those numbers. Neither can they afford to ignore the new move to mobile payment systems.

By accepting credit cards the small business can benefit in many ways.  Their business become an immediate consumer shopping option for those people who prefer to use their cards instead of cash. Seeing the logos that you have posted in your windows gives the customer the confidence that you offer superior service.  This also legitimizes our business and puts you in the league with your larger competitors.

The convenience of accepting credit cards for your customers either dipping or swiping, cuts down on transactions time and lets your customers have more time for themselves.   Your business will also benefit.  With shorter transaction times, you will have time to work with and sell to more customers. Then at the end of the day, you can send all of your transactions to the crecit card processing system in one batch for settlement.

Security in transactions has been the major part of discussion for the last several years.  Several security breaches at companies like Target, Petsmart, and even the IRS have made security for electronic transactions one of the most important topics in todays merchant society.  Because of fraud, because of hacking, in October of 2015, the United States merchant processors mandated that EMV or smart chips be required on all credit and debit cards.  Also, merchants were also mandated to be able to take these new EMV chip cards.

Magnetic swiping technology on their credit card machines

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As the journey for small businesses to transfer from magnetic swiping technology on their credit card machines continues to evolve, we can learn one thing.  The system is getting better. Last year’s back orders of EMV terminals is not affecting us right now.  The software techs to program the machines have worked out most of the bugs and your machines can be programmed in a matter of hours now instead of days, and there is a program in place for business now, who have not changed from swipe to EMV, to forgo any fraudulent charges on your account under the magic $25-dollar line.  That is all good news for the businesses who have not switched to EMV technology yet.

 

But the question still begs, why have you not switched?  You have not found the right program, you are comfortable with the system the way it is?  You like gambling with your businesses money?  As a former owner of a bicycle shop in Arizona, I would take charges for bicycles that cost thousands of dollars.  If I was using old technology, and I took a fraudulent card and was held liable for that sale, it would take me months to recover from that loss.  Forget about if it happened to me two or three times in a month.  That kind of loss would have hurt our business.   So why are you playing roulette with   your business and credit card transactions?

 

The main stumbling block right now is time of transactions.  High volume businesses have long complained that they do not want to use the chip EMV technology because the time to make an approval is 3 – 4 times longer than the magnetic strip swipe.  This will be a problem of the past soon.  Both major credit card providers Mastercard and Visa have been working on updates to speed up the transaction response time.   By the middle of December, these updates will be running and transaction times should be cut in at least half if not more.

 

Now is the time for your small business to make the change to EMV.  You can expect the process to be much smoother for you, and you will be protecting your business from chargebacks of fraudulent card usage by switching to the dip.

EMV transition is 11 months along!!!

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The payment cards industries mandate to transition all US credit cards to EMV chips is almost 1-year-old and has not been an easy ride.   Delays, chargebacks that are unwarranted, and even customer confusion as to whether to dip or slide have kept the transaction confusing and slow.   The lack of a centralized plan has also contributed to the slowness of the transition.

 

Merchants who have complied are still getting hit with chargebacks, and this has caused many serious financial harm.  But what is the alternative.  If you do not convert, then all your swipe transactions, potentially could be charged back if you are using enabled terminals.

 

In Miami, a class action law filed by a couple of retailers accused the card companies of slowing down the entire process in an attempt to distribute the liability costs onto the retailers.  Dieger Bohn, executive editor of “The Verge” tweeted: “US rollout of chip payments has been awful. Every point of sale terminal is a horrible guessing game.”

 

And he is right.  Even though a rash of retails have been approved to implement EMV over the last month, the actual statistics of the number of enabled retailers is very hard to come by.   As of 2 months ago the number was around 30{1e9709ef5f3333ae7d8fe6a31af5d3933317716445c13c35f37bf4f9d8e83538} of all US retailers.

 

Chip and pin seem to be the way to go for the best security, but for some reason, the largest card issuers Visa and MasterCard are opposing this technology.  Officially, the bank line is that the pin burdens the consumer, or, they would want you to believe that people cannot remember their pin number.

 

One of the big issues is that data sent out over the network with a chip is the same as it was when you were swiping.  Data is taken in, cc number, expiration date are sent out over an unencrypted network to the processor and then the issuing bank.  If you, the merchant, want your data encrypted, there is an extra charge for Peer-to Peer Encryption.  This is a better solution, but adds to your processing cost.

 

The good news is, these are growing pains, and the banks are working on new chip software that is faster to process, easier to convert, and more secure.  This software has been promised by December 2016 and should shorten transaction times by a minimum of 15 seconds.

 

EMV processing is here to stay, and despite the problems now, it is a required and necessary part of all business processing in F2F (face to face) transactions.  Your liability for your small business increases 10 fold if you are still swiping and have not converted to the dip technology.  It takes time to get your terminals programmed as there is a backlog due to increased demand.  Get started right and change to your EMV enabled terminals now.