Merchants who need to open a wireless merchant account are often surprised to learn that they need not solely rely on a physical credit card terminal.  Indeed, they can transform any Internet-connected computer into a virtual point of sale or VPOS.  Technology has its benefits!

As with everything else in this world, technology has been evolving and improving the way in which we do business. More and more transactions are now being processed electronically, which ultimately saves time and money for most merchants. A prime example of this is the evolution of credit card sales.

First there were manual credit card machines, where you had to enter the card and a carbon receipt into the contraption and pull with all your might to get the machine to make an imprint of the card. This was great if you had all the time in the world and were trying to develop your biceps.

Our present-day credit card swipe machine simplified payment processing.  Here, all you have to do is simply swipe the magnetic strip of the card through the machine to complete the sale. But it seems the best was yet to come as many businesses are now completing their sales via VPOS, which stands for Virtual Point of Sale, using a virtual terminal.

The virtual terminal is basically an easy-to-use, real time online version of credit card swipe and read machines. This means you can use the system and save money at the same time as you don’t have to buy any expensive equipment.

You will, of course, need to have a computer though. And once you have this in place you’re off to the races as you can then process the necessary credit card transactions from any online computer on the planet. All you need to do to use the system and perform your transaction is login to  a secure website and enter the data.

This will allow you to charge cards, authorize payments and credits. As a bonus, the VPOS keeps an online record of all your transactions in a centralized data center, not on your computer, so it’s impossible to accidentally wipe out your records or lose them due to computer crash. The virtual terminal can be utilized on any number of computer desk tops, laptops included.

If you’re selling goods or services in a mobile fashion, all you need to do is type in the necessary transaction details into the virtual terminal or swipe it in if you have an attached credit card reader on your computer. The VPOS then seals the deal and payment is on the way.

As you know by now though, nothing comes for free these days, and the virtual point of sale necessitates a monthly fee, supplying you with 24-hour customer service and future upgrades. Because, there’s no software and hardware to install, the VPOS is quite easy, affordable, and convenient to use.

Your computer will have to be compatible with the system however, and meet the necessary requirements and you will need a printer and valid merchant account. If you are going to be handling credit cards in person you’ll need a card reader too. The system is ideal for all types of businesses including mall kiosks, clinics, doctors and lawyers’ offices, and trade shows, etc. It’s truly great for any merchant on the go as the VPOS goes everywhere you do.

Some other benefits of the system include: re-authorizing existing transactions for a new amount, re-billing older transactions for new amounts without having to retrieve the customer’s credit card number, and applying fraud screening tools to each transaction.  You can also submit, review, and void transactions, and issue refunds while online – in as quick as three seconds.

VPOS is very secure as the application will lock the compatible card reader device, which will prevent any other open computer applications from receiving the credit card data.

There are several suppliers to choose from and like anything else you should take the time to do a little research and find the company that best suits your needs, both financially and technically when you’re ready to launch a virtual point of sale or VPOS. 

If you’re ready to launch an e-commerce enterprise, you’re going to have to obtain a credit card processing service.  The question arises: Can you secure credit card processing capability without a merchant account?

The answer is “Yes” as another option exists.  While most online merchants opt to open their own merchant account, the trend has been changing slightly over the past few years as some are touting the derived benefits from third party processors.

However, after doing some research on the costs, using a third party credit card processing service instead of a merchant account is really only the best option for businesses that have low monthly sales volume.  (Many third party processors waive fixed costs, such as the setup and monthly fees.)  If you plan on selling a fair amount of products or services, make sure you do your homework to find the best deal for your venture, particularly keeping an eye on the discount percentage that is assessed for each transaction.

Upon closer examination, using a third party credit card processing service instead of your own merchant account has its advantages and disadvantages, and you will need to see which outweighs the other when deciding which credit card processor to choose. 

First off we will look at the benefits of third party services:

It’s often faster and simpler to sign with a third party than a merchant account and it generally requires no initial investment to do so;

Merchants with bad credit can readily secure third party processing services;

If your business has a low volume of monthly sales, it’s likely that you’ll save a bit of money by using a third party service in the absence of monthly and monthly minimum fees.

These services generally handle a decent percentage of any customer support credit card processing requirements and most services will refund any processing fees you have paid if customers decide to return any products. 

However, on the other side of the coin, there are several disadvantages of going with a third party service:

The credit card processing fees are usually higher than merchant accounts as they often fall in the 4 to 10 per cent range, compared with 2 to 4 per cent charged by merchant account providers. This means once your business takes off and monthly sales increase, you’ll likely end up paying higher fees with a third party service;

Third party services often pay your net sales proceeds every few weeks, while merchant account providers usually pay them within a few days;

Some third party services hold back a percentage of your sales to cover themselves in case of any chargeback claims from customers. Merchant account providers may do this, but it’s generally only implemented with high risk merchants;

Third party processors are more likely to freeze accounts (and for a longer period of time) when returns, and especially chargebacks, materialize; 

What you’re selling may also affect your decision as third party services generally only like to involve themselves with tangible products and/or digital products that customers can download directly from a seller’s website. They don’t usually get involved with services; 

Some third party services may also charge a membership fee along with a fee for each new product you decide to sell;  

Merchant accounts allow you to gather and access more customer information as they supply the personal details to you.  Customer information is more limited with third party services;

In most instances, you will have to use a third party’s shopping cart system. This means you won’t really have any input over the system’s overall look and feel.

Most customers don’t like to be transferred out of a seller’s site to enter their credit card and personal information to third party services. Some customer’s would rather cancel their order than go through this process as they are often worried about adequate security.

All in all, the disadvantages seem to outweigh the advantages when it comes to using third party services. However, if you’re only planning on selling a few items per month or are treating it as a part time business this option may be a viable one.

In your final analysis, when you include and figure out all of the percentages, charges and fees on items sold, businesses that plan on selling a fair amount of goods are better off with a merchant account provider as it should definitely save some money in the long run.  Indeed, you may incur a long term loss should you opt to obtain credit card processing without a merchant account.

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

If you are a merchant who accepts credit card payments for goods or services, you may have noticed a PCI compliance fee on your merchant account statement recently.

When you first noticed this additional charge, you probably asked yourself, “What is this fee and what service does it cover?” If you are a merchant who has taken the necessary steps to ensure your business is PCI-DSS (Payment Card Industry Data Security Standard) compliant, this charge may appear to be a misnomer. Should it, or more appropriately does it, still apply to you?

Before looking at this issue further, it is important to first address what PCI compliance is and what affect it has on you, the business owner. 

PCI Compliance and what it Means for Your Business

You may or may not be aware of the fact that since June of 2008 it has been required that all merchants who accept credit card payments for purchases must be PCI-DSS compliant. In a nutshell, this is a security measure developed by the PCI Security Standards Council to curtail the loss of cardholder data.

At the most elemental level, it is now mandatory that you fill out a questionnaire and have your networks scanned quarterly for vulnerabilities. However, this is just the tip of the iceberg.

According to the PCI Security Standards Council website, PCI DSS is “a set of comprehensive requirements for enhancing payment account data security…developed by the founding payment brands of the PCI Security Standards Council, including American Express, Discover Financial Services, JCB International, MasterCard Worldwide and Visa Inc. International, to help facilitate the broad adoption of consistent data security measures on a global basis.”

To ensure this “broad adoption of consistent data security on a global basis” the PCI Security Standards Council has set in motion a 12-step program if you will that must be followed by all who except plastic for goods or services. For you, the business owner, this would entail:

• Building and maintaining a secure network
• Protecting cardholder data
• Maintaining a vulnerability management program
• Implementing strong access control measures
• Regularly monitoring and testing your networks
• Maintaining an information security policy

For a complete breakdown of the requirements necessary to ensure your business is PCI-DSS compliant, visit https://www.pcisecuritystandards.org/security_standards/pci_dss.shtml

To Be or Not to Be PCI Compliant, That is the Question

The real question is, “Can you afford not to be?” Although ensuring PCI compliance requires due diligence on your end as well as additional resources in time and money, the alternative could be catastrophic.

Bottom line, if it were discovered that your company was leaking credit card information from your processing network you would be faced with crippling, possibly business busting fines.

Currently, it is left up to the discretion of each credit card company as to what fines will be incurred when data is breached. Although MasterCard and American Express remain “hush-hush” about their fines, Visa has made theirs well known.

Presently, they charge $50,000 if a business exposes one credit card number due to unsecured networks. However, this is only the starting point. Fines could escalate to the half million-dollar mark if Visa deems it appropriate. They would also charge an additional $100,000 fine if you did not notify their fraud department about the leak.

It is safe to say that most businesses – especially in today’s economy – would crumble if faced with a financial hit of this magnitude. Therefore, becoming PCI compliant is essential to your business’ survival.

Anyway, would you really want to take that chance? 

PCI Compliance Fees

It is not only mandatory that all merchants comply with the regulations set forth by the PCI Standards Security Council to provide safe storage, processing and transmission of cardholder data, but merchant account providers (MAPs) as well. To offset expenses incurred to ensure compliance, various MAPs are currently charging PCI-DSS compliance fees.

Although it may be considered a “pass through” fee, it can also be viewed as a necessary expense that allows MAPs to stay in business and provide a needed service. If security were breached due to non-compliance, they too would face stiff fines that could potentially put them out of business.

However, if you have taken all steps to ensure PCI compliance and you are charged a compliance fee, you may want to ask your MAP if this charge could be waived. After all, your business should not be considered a potential liability.

Also, as with any fee charged by a MAP, it should be “fair and reasonable”. Make a point to call various MAPs and ask about their PCI compliance fees. Is yours comparable to what others are charging?  Are other MAPs waiving this fee?

In today’s uncertain economy, everyone is pinching their pennies and taking a hard look at their bottom line. Therefore, it is paramount to take the time to understand all fees on your merchant account statement and shop around to make sure you are getting the best deal possible – including the fee assessed for PCI compliance.

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

Everybody’s faced with choices in life such as the daily decisions of what to have for dinner, what to wear or what CD to listen to on the way to work, etc. And then there are the more important options we have to deal with, which include marriage, banking, insurance, and housing etc.

If you’re an online merchant there’s usually another important decision to make and that’s which Internet merchant account to select. This is an important choice as you need to balance the cost with good service and dependability. Let’s face it, you’re not in business to lose money, but you also need to sleep at night knowing your merchant account provider is somebody you can depend upon.

If you have a hard time deciding what socks to put on in the morning, then you’re going to be blown away when you see how many Internet merchant account providers are out there competing for your business.

While accepting credit card payments via your web-based business doesn’t seem too difficult, you still need to understand the process so you can make an educated choice when choosing a provider. 

There are three general components to the process

Payment Gateway: This code transmits customer's orders back and forth to an Internet merchant account provider. It allows you to take all of their credit card billing information and the amount of payment. It also validates the transaction before the credit card is charged.

Because Internet credit card fraud is quite common these days you need to make sure the Internet merchant account provider has the proper security measures in place to combat it.

Internet Merchant Account: This is a deal you make with a financial institution or bank. It allows you to take credit card payments for goods and services from customers. The payment gateway sends all of the pertinent billing details to the Internet merchant account provider and they handle the transaction

Shopping cart: This is a crucial component for an online store and facilitates the e-commerce process.  When examining shopping carts, one should look for the feature set, ease of use, including ease of implementation, its appearance, fee structure, etc. 

It is important to note that the payment gateway must be compatible with the shopping cart.  Authorize.net, for example, is a popular payment gateway that is compatible with the vast majority of shopping carts. 

Now that you are aware of the pieces surrounding the implementation of an online account, it is important to decide on the vendor.  Of course one of the top things to consider when seeking an account provider is the price, so make sure you understand all of the costs and don’t be afraid to ask questions until you are fully aware of what you’re getting into.

Most online merchant account providers have these fees

Up Front Application Fees

On Going Fixed Fee

Discount Rate

Fixed Transaction Fee

Cancellation Fees

Miscellaneous Fees

Many providers will ask for some up-front money to cover the costs of processing your application. However, try to find a company that doesn’t require any up front cash if possible.

The ongoing fixed fee is generally a monthly statement fee to cover the provider’s costs of doing business with you. It’s a common practice, but shop around and compare fees as $10 should be the standard statement fee.  A monthly payment gateway fee will also likely be assessed ($10-$15 per month) and you may also be paying a monthly minimum on top of it..

The discount rate charged is usually between two and four per cent. This is basically a sales commission that the Internet merchant account provider charges for each sales transaction. The lower the discount rate, the better for you, as it means you owe the provider less money.

A fixed transaction fee is generally between 20 and 30 cents for each sale. This means you pay that rate no matter how much the transaction is worth.

Make sure you understand the provider’s cancellation fee as it may be in the small print of the contract. This is something you have to pay if you stop doing business with your Internet merchant account provider within a set period of time. It’s a good idea to not commit to a long-term contract until you’re satisfied the company can meet your needs.

Miscellaneous fees may be charged for items such as batching, address verification, authorization, debit pin pad fees, etc.  You should also be aware of the chargeback and/or retrieval request fees should any customer dispute a charge.  If you see fees listed in the contact and don’t understand them make sure you ask for clarification before committing to anything.

Once you get the hang of the fees charged you’ll have a better idea of how much it’s going to cost on a monthly and ongoing basis, depending on your sales. Just remember they will all be included in the total cost. Of course the bonus is the more transaction fees you pay means the more goods and services you’re selling to customers. However, you want to keep the percentage of total sales owing to the provider as low as possible.

The main thing to remember when choosing an Internet merchant account provider is to get value for your money, so factor in customer service, reliability, professionalism, and flexibility. It doesn’t matter how inexpensive the provider is if they can’t offer you what you need to run a successful business.

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