Credit Card Processing

Ever given any thought to what happens during a credit card transaction immediately after you swipe your card? It’s not all smoke and mirrors, but rather a highly-secure, high-tech process that transpires in mere seconds. In a nutshell, Merchant Account® presents Credit Card Processing 1.0.

Credit Card Processing begins with a card swipe (or, alternatively, with the manual entry of data on a website payment page or a PIN pad) by the customer or merchant. The credit/debit card account number, sale total and merchant ID number are transmitted electronically and simultaneously over the merchant’s credit card processor’s network. Companies like Merchant Account® that provide credit card processing services are known by several names: credit card processors, merchant services providers, processors and acquirers.

Once the transaction clears the processor’s network, it’s sorted by card brand and routed to the proper credit card computer network — MasterCard® transactions to the MC network, Visa® to Visa, and so on. From there, the transaction is routed to the bank that issued the card, which is responsible for checking the account to make sure the customer has adequate credit to cover the transaction charges. If so, the bank authorizes the sale and notifies the merchant over the network. The merchant issues a receipt to the customer, who leaves with their merchandise. But the sale is not yet complete.

Each day at the close of business, the merchant must send all that day’s charges through the merchant services provider to the credit card processing network. This is known as batch processing. Individual transactions are sorted out by issuing bank and sent on to the banks, which debit the cardholders’ accounts and pay the processor through the Federal Reserve’s Automated Clearing House (ACH).

The credit card processor, in turn, credits the funds to the merchant’s account. This part of the process can take up to two days. The processor charges fees, typically on a monthly basis, to the merchant account, although sometimes this is done on a per-transaction basis. The fees encompass payments to the issuing banks, the credit card networks and the processor for services rendered.

All merchants who accept credit cards must first establish a merchant account, which is the basis for credit card processing. This account is strictly between the merchant and the credit card processor and is totally separate from any other bank accounts the merchant may own.

If you’re interested in adding credit card processing to your business, Merchant Account can help. Contact a sales representative today to get started.

How To Save On Your Merchant Accounts Fees

With debit swipe fee reform now implemented, retailers nationwide are anticipating saving on the interchange portion of their merchant accounts fees.  Preliminary data indicates that millions of dollars in charges may be coming their way.

The Durbin Amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 went into effect on October 1, 2011. Under it, the Federal Reserve capped the interchange fees banks can charge on debit card transactions at 21 cents, plus 0.05 percent of the transaction. Issuers are also allowed to charge an additional penny per debit transaction to offset their fraud prevention costs. The new average swipe fee for a debit card purchase is 23 cents, compared to the pre-Durbin average of 44 cents.

It’s important to note that the legislation applies only to Visa® and MasterCard® debit cards (not credit cards), and only to banks with more than $10 billion in assets. It caps the interchange fees that the banks charge, but does not apply to third-part processors, who can charge whatever they want to their merchant accounts customers.

“As an industry, we’re really pleased that the new rules have now taken effect,” Connecticut Retail Merchants Association President Timothy Phelan recently told the Hartford Business Journal. “We really won’t know the true benefit until the retailers get their statements.” Phelan added that he expects that merchants, in time, will pass along any savings they receive to their merchant accounts customers.

The business journal reported that Connecticut merchants could expect to save about $260 for every $100,000 in Visa and MasterCard debit charges they process.

In the months leading up to its enactment, the Durbin Amendment prompted an epic battle on Capitol Hill that pit credit card-issuing banks against merchants and their associations. The banks argued that they would lose billions of dollars in revenue from lower fees — income they threatened to recoup by charging debit card customers monthly fees to use their cards. Several major banks, including Bank of America, Wells Fargo and J.P. Morgan Chase, dropped that idea after cardholders rebelled and threatened to close their accounts.

For now, retailers are waiting for their first post-Durbin Amendment merchant accounts statements to arrive to see how they’ve fared under the new rules. If they have questions regarding their savings, they should discuss them with their merchant services provider representative.

Why It Pays To Accept Credit Cards

 

One of the biggest challenges for a small business is competing with larger businesses with greater resources. One proven strategy for leveling the playing field is to accept credit cards. After all, 78 percent of American consumers own a credit card, and 80 percent own a debit card.¹ That’s a huge market that no merchant can afford to ignore — especially small businesses who don’t plan on remaining small for long.

Small businesses that start to accept credit cards benefit in a variety of ways. Most obviously, they immediately become an option for patrons who prefer to pay with plastic. In their eyes, seeing the logos of the major credit cards in a merchant’s shop or on their e-Commerce website means that merchant is in the same league as much larger retailers. Since most small businesses strive to offer the superior customer service that the Big Boys often can’t or won’t, it’s a no brainer that they should expand their payment options to include the debit and credit cards consumers use so frequently.

Secondly, the convenience of credit cards cuts both ways. Consumers appreciate swiping their card and cutting the transaction time to just seconds so they can be on their way. But merchants benefit, too. Shorter transaction times mean they can serve more customers more efficiently. And, at the end of the day, merchants can send all their transactions in one batch to their credit card processor for electronic settlement, knowing that within days the proceeds will land in their account.

Credit card processing with a reputable merchant services provider like Merchant Account® is a very secure operation. State-of-the-art encryption technology keeps cardholder and account information safe, as does our PCI-compliant electronic payment gateway Transaction Express™. Whether a merchant accepts credit cards with a countertop terminal, an online virtual terminal or in the field with our mobile PayFox® service, the transaction is protected from fraudsters and identity thieves.

Merchants who accept credit cards also usually see an increase in sales. The reason is simple: Credit card shoppers tend to spend more than shoppers who pay with cash or a check. Impulse buying and upgrading to a higher level of merchandise are both possible when the shopper taps a line of credit instead of a wallet to pay.

Finally, there are savings to be realized from accepting credit cards. Merchants spend less time making bank runs and processing paper checks. New credit card processing options like wireless and mobile mean that merchants who deliver services or products to customers’ homes or businesses can collect right then and there, foregoing the time-consuming and expensive billing and collection process.

Today’s credit card processing is fast, convenient and safe, and the many options available give merchants the opportunity to work with a merchant services provider to design a package that meets all their requirements. For small business, being able to accept credit cards is the smart way to go and grow.

¹   Source: “The Survey of Consumer Payment Choice,” Federal Reserve Bank of Boston, January 201

Why It Pays To Accept Credit Cards

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It Pays Off For Small Business To Accept Credit Cards

November 10, 2011 By merchantaccount Leave a Comment (Edit)

One of the biggest challenges for a small business is competing with larger businesses with greater resources. One proven strategy for leveling the playing field is to accept credit cards. After all, 78 percent of American consumers own a credit card, and 80 percent own a debit card.¹ That’s a huge market that no merchant can afford to ignore — especially small businesses who don’t plan on remaining small for long.

Small businesses that start to accept credit cards benefit in a variety of ways. Most obviously, they immediately become an option for patrons who prefer to pay with plastic. In their eyes, seeing the logos of the major credit cards in a merchant’s shop or on their e-Commerce website means that merchant is in the same league as much larger retailers. Since most small businesses strive to offer the superior customer service that the Big Boys often can’t or won’t, it’s a no brainer that they should expand their payment options to include the debit and credit cards consumers use so frequently.

Secondly, the convenience of credit cards cuts both ways. Consumers appreciate swiping their card and cutting the transaction time to just seconds so they can be on their way. But merchants benefit, too. Shorter transaction times mean they can serve more customers more efficiently. And, at the end of the day, merchants can send all their transactions in one batch to their credit card processor for electronic settlement, knowing that within days the proceeds will land in their account.

Credit card processing with a reputable merchant services provider like Merchant Account® is a very secure operation. State-of-the-art encryption technology keeps cardholder and account information safe, as does our PCI-compliant electronic payment gateway Transaction Express™. Whether a merchant accepts credit cards with a countertop terminal, an online virtual terminal or in the field with our mobile PayFox® service, the transaction is protected from fraudsters and identity thieves.

Merchants who accept credit cards also usually see an increase in sales. The reason is simple: Credit card shoppers tend to spend more than shoppers who pay with cash or a check. Impulse buying and upgrading to a higher level of merchandise are both possible when the shopper taps a line of credit instead of a wallet to pay.

Finally, there are savings to be realized from accepting credit cards. Merchants spend less time making bank runs and processing paper checks. New credit card processing options like wireless and mobile mean that merchants who deliver services or products to customers’ homes or businesses can collect right then and there, foregoing the time-consuming and expensive billing and collection process.

Today’s credit card processing is fast, convenient and safe, and the many options available give merchants the opportunity to work with a merchant services provider to design a package that meets all their requirements. For small business, being able to accept credit cards is the smart way to go and grow.

¹   Source: “The Survey of Consumer Payment Choice,” Federal Reserve Bank of Boston, January 201

How To Choose Dog Carriers

Does your pet dog like running around your house? You can consider getting dog kennels for your dog then. Since oftentimes, you'd end up not knowing where they are and wish that you didn't just let them run around in the first place. It's like a fence where you can let your dog stay while preventing them from straying too much. It will definitely help and assist you to keep your dog in check.

Dog Crates come in different sizes and designs, which mean that some come in small or big kennels. If you are considering buying these for your dog, and then you'll have to think about how big it will be and where you will put it. The size is essential because if your dog is big, then you should get a size that will suit them since they'll need extra space to move around in. It is also important to think about where you'll want to put it because your dog might not be comfortable if it's somewhere in the garage. Usually, most people put it somewhere near the garage but on the grass so that the dog may feel comfortable.

Since dog kennels are like fences for dogs, it will usually be bigger so that the dog can run while inside it. That way, you wouldn't really have to worry about them if they're running inside it because you know that they're safe inside. Keep in mind that your dog's safety and well-being is a priority for most dog owners, which is why they get top quality items for their dogs' needs. Pet owners buy and get all the necessary items for their dog because they want to show that they care about them. Pets would often feel and know how their owners feel about them by seeing the things that their owners do for them.

Remember, in choosing dog crates for your pets, consider the quality of it and make sure that you're getting great quality because it'll be part of your pet's home. Place it around an area that they feel comfortable in and make sure that it's big enough for them to run around in. Also, make sure that it has a lock so that they won't easily get out of it and eventually stray. Remember, your pet's well-being is important which is why you should only consider choosing top quality kennels for your pet's needs.

Some Great New Dog Beds Online

Your pet pooch does so much for your family that appreciation should not only be shown by how they are fed or taken care of but also where they rest, and this is where dog beds come in. Beds for dogs come in many shapes, sizes and forms, some being more exotic than others. For those who are buying for the first time, finding the perfect bed for your dog can be quite challenging, if not, daunting. With thousands of selections available in the market, how will you know that what you're looking at is the right one? Need help? The tips below may be of some assistance.

First off, you'll want to determine the size of the bed. This is easily determined by measuring your dog in both length and height will do. But what if your pet is still in its growing stages? Well, you can choose a slightly bigger bed, but take note that you may still end up buying a new one if he is able to outgrow it. Don't choose an adult sized bed for a pup as he may only feel uncomfortable with it.

Secondly, and if possible, you'll want a bed that you can reuse over and over again. Make sure that if the bed itself is not washable, the covers can at least be removed for cleaning. This will ensure that your dog stays clean and feeling fresh all the time, not to mention that it can make the bed look so much more inviting to sleep in for your dog.

Third, consider the essential accessories. For colder seasons, get an accompanying blanket to go along with the bed. What's even better is that for as long as you are willing to spend the time searching, you'll actually be able to find dog beds that already include a blanket with the deal. Whether you buy them individually or as a pair, blankets are essential accessories that you should take into account so make sure you spend some time checking them out.

Last but not the least; buy beds that will suit your dog. If your pooch is not really particular with whatever design you get then this won't be an issue. There are instances however where your pet will tend to set its preferences over a particular design or style which is why you may want to bring him along when shopping for dog beds. This will ensure that he's going to be happy and comfortable with what you'll be getting for him.

Are Business Loans Now Easier To Get?

The news regarding business loans has been anything clear over the last several months.  We have been hearing that Government backed business loans would be readily available since the passing of the Small Business Jobs Act of 2010.  So what is really going on, and what can small business owners expect to find in the marketplace.

The truth seems to be that while SBA restrictions have eased regarding the cost to apply for business loans and the percentage of amounts of the loans they will guarantee has increased, little has been done to help borrowers understand whether or not they will qualify for loans.  Easing restrictions and lessening the risks for lenders to encourage them to lend is just one part of the equation.

The part that really matters is that these same lenders who have easier access to funds are now being held to higher standards with regards to how they distribute the money.  Before 2008, banks would do just about anything to push loans through with little concern for a borrower’s ability to pay back money or if their businesses were credit worthy to begin with.  We have already seen the consequences of such lending practices and the banking industry has recovered nicely due to the bailouts.

But things have changed and banks are now being held responsible for vetting their applicants and pushing through every applicant is simply not happening anymore.  You may not infer this from the headline news stories we see about small business owners being eligible for all types of loan programs designed to jump start the economy, but there is no reason to believe that Government backed money is out there for everyone.  SBA Loans are only for those who are attractive applicants, and while this is exactly how it should be, it does not really help those who have been treading water since 2008 and sacrificing their good business credit in order to do so.

The good news for the economy is that more and more people are looking to borrow money.  This is a key indicator on the state of economic conditions and shows that things are looking up.  On a larger scale, commercial mortgage lenders are reporting an increase in demand for capital and community banks are reporting a rise in requests for small business finacings.  So the overall picture is definitely positive, but for the little guy looking for a break, nontraditional lenders are going to be the best option.

Small business owners have been turning to unsecured business loans from companies like Seed Capital for years.  The availability of such business loans has remained constant through good economic times and bad ones.  Unlike SBA Loans, these particular loans do not come with restrictions regarding the way proceeds are allocating and the fact that they can be used to pay down current debt is particularly appealing to borrowers in the current economic atmosphere.  The application process is much quicker and in the majority of circumstances will be absolutely free.  So for anyone struggling with decisions about borrowing, they should consider these type of business loans as a very viable option.