If you’re a merchant who anticipates low credit card processing volume or a business owner interested in a dependable backup processing system, it behooves you to know about the availability of the manual imprinter.  This device, also known as a “knuckle buster,” “imprinter,” “credit card imprinter”, and “manual credit card machine,” simply enables you to make an imprint of your customers’ credit cards, providing you with indispensable information linking the client’s name to the credit card number and offering you proof that customers have authorized you to charge their card.

Back in the day, before the widespread use of electronic, physical point of sale terminals, merchants relied on the heretofore, clunky manual imprinter.  First, merchants would need to refer to a book to ensure that the credit cards offered by customers were valid at the time of publication.  They would then process the sale via the use of the credit card imprinter, and then mail the slips to banks to complete processing and payment.

With the advent of new technology, manual imprinter slips no longer need to be shared with a bank to facilitate transfer of funds.  Indeed, merchants today may use alternative means to process transactions.  They may call in transactions via the phone (dial pay) or key in the information using a virtual or physical terminal.  However, it is an advisable business practice to always imprint a customer’s credit card if there is face-to-face interaction between merchant and customer, and the card is not going to be swiped.

Let’s take an example underscoring the importance of imprinting a customer’s non-swiped credit card at point of sale.  Suppose you participate in a flea market and you have an interested customer who plans on buying $100 worth of clothing.  You’re a trusting soul so you simply accept the customer’s credit card, take down certain information, and then go back to your home office and process payment. 

One month later the customer initiates a chargeback, disputing the transaction.  In order to win the chargeback, you will need proof that the customer authorized the transaction.  Without a manual imprint of the customer’s card, you will be the proverbial sailor trying to navigate upstream without a paddle.  You will be out your Benjamin Franklin and bewildered by the unfairness of it all.

“But I own a retail shop, use a physical credit card terminal, so I don’t have to worry about taking an imprint of my customer’s card,” you counter.  While it’s agreed that you will need to rely on your manual imprinter less than the flea market vendor who does not use a terminal, think of the scenario when you’re unable to swipe your customer’s credit card.  The magnetic strip may be faulty, and consequently, you will need to key in the sale.

Again, a future chargeback may arise, and the customer whose card you keyed in may assert that the sale never took place.  A manual imprinter slip will prove that you had possession of the customer’s card, and you can win the chargeback, potentially saving a lot of money and headaches.

Moreover, what happens when your credit card machine malfunctions?  You may not so easily be able to accept checks and cash in the interim.  It is prudent to invest in a backup plan for the “just in case” circumstance.

Credit card imprinters serve well in a backup role, particularly because of its low cost.  Most imprinters can go anywhere from $15 to $75 – well worth the expense.  Of course, Internet or mail order telephone order (MOTO) merchants who have no face-to-face interaction with customers need not invest in this device.

Those who do have direct contact with customers and plan on getting a manual imprinter should not only be relieved by its general low cost but by its durability and portability, especially important for mobile merchants.  This equipment should last for years, particularly if it remains beyond the grasp of your children.  Manual imprinters come in multiple sizes (the smallest models seem to cost more) so make sure that the imprinting slips are compatible with your particular device.

When you opt to open a new merchant account, you should expect to receive a courtesy encryption plate that works in concert with your credit card imprinter.  The encryption plate should contain at least your business’s name and address (the phone number may even be better).  You may also opt to include your Visa/MasterCard merchant identification number and/or your American Express / Discover service establishment number.

Please note that encryption plates can only contain a certain amount of lines and a certain amount of spaces.  (Generally, an encryption plate can hold up to 4 lines of information, 15 spaces to each line.)  A merchant who may own a business with a long name may have to truncate the name so that it will properly fit on the encryption plate.

Once a merchant imprints the card, he/she should complete the original sales slip, providing vital information about the sale, including a description of the transaction, amount of sale, reference number, license number, etc.  To win a possible chargeback, the merchant must not forget to have the customer sign the slip / receipt.  (It is also imperative to check that signature with the one on the credit card.)  After all this has been completed, the merchant should retain a copy of the slip and present a copy to the customer. 

As chargebacks may take place even 6 months after the transaction, it is advisable for the merchant to save and safeguard these slips for at least that period of time.  The merchant may even want to hold these slips for years due to any potential tax problems.

To summarize, manual imprinters still play a pivotal role for many merchants.  Attractive in their affordability, portability, and durability, many merchants rely on these devices as part of their processing and fraud prevention systems.

But on the horizon, there’s a movement introducing more and more unembossed credit cards into our economic system.  Obviously, without raised lettering on credit cards, credit card imprinters cannot imprint!  For the time being, however, manual imprinters still serve a purpose but keep a wary eye on these unembossed cards which very well make credit card imprinters obsolete one day.  

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To learn more about our merchant services, please see http://www.intelli-collect.com  

Invariably, there are always lists that we don’t want to get on: Government watch list, NSF, bounced check writer database list, personal bankruptcy list, and our significant other’s doghouse list are just a few lists where we don’t want our names to appear.  And if you’re a merchant that must accept credit cards, appearing on the TMF file / Match file can easily send shivers down your spine.

“TMF” or “MATCH” sounds innocuous enough but once you discover the words to the acronym, you will see the adverse effects any association with such a list entails.  TMF stands for “Terminated Merchant File” and, its newer counterpart, MATCH is defined as “Merchant Alert to Control High-Risk.”  If you appear on this list, it indicates that you have lost your credit card processing capability with a merchant account provider, and may likely experience much difficulty in securing another credit card processing company to facilitate the transfer of funds between you and your customers.

You may view the TMF file / Match file as a blacklist – something to be avoided at all cost.  While it is possible for one’s name to be removed from TMF or Match, it is a rare occurrence.  This is because a merchant account provider’s acquiring bank must initiate the removal – the same entity that placed the business owner on the list in the first place. 

Merchants that have been placed on the list may feel that they have been stigmatized and their character defamed.  While they can seek legal recourse, defamation of character is extremely hard to prove in this case.  After all, this list merely is merely a reporting tool, listing merchants who have experienced termination with their credit card processing.

Merchant account providers assert that they use the list to simply tag high-risk merchants, and that their intent to do so is not willful or malicious.  They also aver that they have the right, if not duty, to participate in the system, asserting first amendment rights (specifically, freedom of the “press”).  Of course, companies in the merchant account field glean the list and typically deem that such merchants pose a threat to profitability and/or their reputation, and commonly reject the merchants’ applications.

A natural question arises: How does a merchant’s name land on the ominous TMF file / Match file?  While there are many reasons for this occurrence, the followings lists classic errors in judgment (mental lapses that may have been committed on purpose or by accident by the merchant):

-         “Sharing” your credit card merchant account – The processor has only approved you to accept credit cards.  Although you show generosity of spirit by helping a friend in need, you may very well lose your credit card processing capability and end up on the TMF file / MATCH file – an extremely unhappy result.

-         You accept credit cards for another business that you own – On the application, you must write the nature of your business so that you can receive the right SIC code.  Underwriting approves that business – not any other.  For example, if you get a merchant account for your web design business, you cannot use it for your jewelry business.  Doing so will land you in “hot water!” 

-         You get excessive chargebacks – Many merchants will declare that receiving chargebacks is out of their control.  Of course, some chargebacks are unavoidable but credit card processors believe that responsible merchants who employ responsible business practices should be able to limit most chargebacks.  If your business gets over 1-2% chargebacks, processors may pull the plug your account … and some will even place your name on the TMF file / Match file.  

-         You violate a stipulation or two of your merchant account agreement – Suppose, for example, you consistently go over your indicated highest ticket amount.  Credit card processors red flag such transactions and must investigate their legitimacy.  You should be fine with one or two of these transgressions.  However, if you’re a habitual offender, you may find your name on the TMF file / Match file.

-         You commit fraud (e.g., charging credit cards without authorization, incorrect billing, non-delivery of products/services, etc.)  You may not only wind up on the TMF file / Match file, but wind up in jail.

As long as you conduct business with honor and integrity, follow the rules and guidelines set by your merchant account provider, and implement customer-friendly practices, you will not have to worry about TMF or MATCH.  As the saying goes, "An ounce of prevention is worth a pound of cure."  

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To learn more about our merchant account services, please visit us at http://www.intelli-collect.com

Savvy merchants who conduct business online, looking to gain credit card processing capability over the Internet, often perk up their ears when they hear that free Authorize.net is available.  New e-commerce business owners soon learn that Authorize.net is one of the most popular payment gateways to facilitate the transfer of funds for online purchases, and often investigate how to secure it.  Such merchants may feel doubly fortunate that they can not only obtain Authorize.net but do so free of charge.

However, ethical merchant account providers, must explain the term, “Free Authorize.net,” to prospective clients.  Free Authorize.net simply means that there is no initial fee for the gateway.  In other words, the start up or set up cost is $0 for Authorize.net. 

This is a bonanza for cash-strapped merchants who are incurring so many other business-related expenses.  In the scenario that the merchant account provider does not assess any other opening fees, merchants can start accepting their customers’ credit card payments without any initial outlay of money. 

Too many online merchants believe that setting up the proverbial shingle will cost hundreds of dollars to accept credit cards.  Gaining processing capability without spending a penny is an excellent way to launch one’s online business.

Of course, any merchant must also assess monthly payment processing expenses.  However, obtaining a free Authorize.net account does not mean that the gateway monthly charge is waived.  Still, there exist merchant account providers that will assess a gateway fee for as low as $5 per month.  Regardless, it is the TOTAL monthly fee, including this gateway fee, which must be evaluated by any business owner.  (Some merchant account provides only quote a monthly fee and do not include the gateway fee.  Talk about using semantics to one’s advantage!)

In addition, one must be aware that free Authorize.net does not factor in any transaction fee.  Typically, an Authorize.net transaction fee is marked anywhere from an additional 5 cents to 20 cents.  Again, to better weigh competing offers, find out about the TOTAL transaction fee that should encompass the gateway transaction fee.

Moreover, although it is counter-intuitive, free Authorize.net does not take account of any associated expense in integrating Authorize.net with your shopping cart.  (Luckily, Authorize.net is compatible with the vast majority of shopping carts available.)  Authroize.net offers several integration guides that should prove useful to anyone who has knowledge in html coding. 

Some merchants prefer to perform the integration process themselves while others seek the assistance of web designers or web developers.  The price for an Authorize.net integration is often dependent on the complexity of the merchant’s website and the method of integration (simple or advanced).  Generally speaking, the simple method enables the merchant to use Authorize.net’s secure certificate while the advanced method allows the merchant to use his/her own secure certificate, and pass the information to Authorize.net on the back end.  The price for integration is typically a couple of hundred dollars, but again may be less or more, depending on the aforementioned factors.

To review, free Authorize.net ensures that there is a $0 startup but does not negate the possibility for additional gateway-related expenses.  As long as you know the total fees that will be charged, including the gateway fees, you will be free to make the best decision regarding your merchant account vendor.   

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To learn more about our merchant account services, please visit us at http://www.intelli-collect.com                

Mike Savino, owner of Artisan Grafix, called me earlier in the week to report a very suspicious sale, originating from the Soviet Union.  The purported client initiated the MasterCard transaction online, providing an overseas mailing address, purchasing hosting service for a website based in Texas.

While Mike wanted to keep an open mind about the sale, hoping that it was legitimate, he had serious reservations about letting the transaction settle.  He was concerned about the associated processing fees (deemed wasteful if this transaction was fraudulent) and the high probability of a future chargeback (initiated by the rightful credit card holder).

Possessing a proactive nature, Mike wanted to head off any possible problems associated with this “purchase.”  However, as the transaction, was Internet-based, he did not know the complete credit card number of the supposed client.  I could have requested a report, containing this information, but we would have not been provided with the credit card number for security purposes.  (Isn’t that ironic?)

As a result, we could not call MasterCard to find out the name of the card-issuing back.  In the scenario where that information was available, the bank may have contacted the client to ensure the transaction was a valid one.  But again, this was a moot point as we reached an impasse without the credit card information.  (This is tantamount to needing and not possessing the evidence when a crime transpires.)

But three lessons may be learned from the aforementioned series of events.  First, if you’re wary of conducting business with merchants outside the States then configure your gateway in such a way as to decline International sales.  One surefire method to accomplish this is to only accept transactions where the AVS and CVV2 codes match.  (Address verification is not available outside the United States.  Mike had no such security measure at the time of the deemed fraudulent transaction.)

Another lesson: If you do accept International orders, it is probably best, albeit inconvenient for the customer, to call you with their desired purchase.  In this way, you can obtain the complete credit card information and then call the overseas bank to verify the card number, connecting it to the rightful cardholder.  There are relatively inexpensive telephone companies that will allow you to make a call for as low as 10 cents a minute.  Although it may be labor-intensive to check, it is more than worth the peace of mind, ensuring a successful transaction.  (Again, Mike did not have the credit card info and could not check the legitimacy of the transaction.)

A final word of advice is to use your intuition.  For example, Mike felt almost certain that the individual who initiated the sale utilized a stolen credit card so he investigated.  Although he was stymied in his effort to “prove” fraud beyond a shadow of a doubt, he nevertheless voided the sale, and avoided probable negative repercussions in the future. 

We still don’t know why this individual tried to commit fraud with a hosting company (its not as though Mike would have sent him expensive Rolex watches) but the motive is irrelevant.  Through his actions, Mike protected himself and the rightful cardholder.  (Unfortunately, the cardholder is still at risk because the fellow from overseas has the information and is likely making other bogus purchases.)

As this is not a perfect world, try to reduce your chances of credit card fraud.  Business is challenging enough without incurring unnecessary financial and emotional tolls stemming from greedy, heartless individuals, devoid of a conscience.

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To learn more about our merchant account services, please visit us at http://www.intelli-collect.com