Credit Card Processing Blog

Most restaurants take credit cards, although there are some that only accept cash. While restaurant owners don't like the impact that credit card processing fees have on their bottom line, they know that accepting cards greatly increases their pool of potential diners. For that reason, there's great interest in reducing credit card processing fees. If you feel like you're significantly overpaying to process these transactions, you should start by looking at different credit card processors. By taking a look at the best of what's out there, you may find that you're able to save quite a bit simply by switching to another processor. In addition to finding a processor with an excellent reputation that offers great rates, you might also be wondering  if fees can be deducted from servers' tips. Fees Are Deductible (with Some Important Caveats) The simple answer to this question is yes, the fees can be deducted. However, an important caveat is there are certain states where this practice isn't allowed. The three states with prohibitive laws include Massachusetts, Maine and California. In another three states, Montana, Kentucky and Delaware, this practice… Read more

When most of us think of Visa and MasterCard, we generally think of them as competitors. And while that’s probably also how the companies think of each other, a recent announcement shows they’re not afraid to work together when an issue is mutually beneficial. The two companies recently announced that they're working together on accelerating the adoption of payment tokens, enabling tokens to be used on both Visa Checkout and MasterPass. Announced as a “reciprocal tokenization agreement,” this deal will allow the companies to request tokenized payment credentials from one another. What's Payment Tokenization? When you purchase something and use a credit card to pay for it, either in person or online, companies are required to have certain security measures in place to prevent that credit card number from being stolen or hacked. One of the newest forms of security is payment tokenization, a process that completely erases your credit card number and replaces it with an arbitrary alphanumeric mix, or a "token." If your credit card  number is 1234 5678 9123 4567, for instance, it can be changed to 48SBNT809WRH0S98 - a random… Read more

After all the political and financial turmoil of 2016, people have a lot of questions about what’s in store for them in 2017. And yes, only time will tell how the political environment will directly affect our small businesses - but don't let that uncertainty keep you from being proactive. You can still take active steps to grow your business in the next year, regardless of what may have happened in the previous 12 months. In terms of what it takes to grow a business during the upcoming year, there are three areas you should focus on. First, it’s important to know which strategies work and which aren’t worth pursuing. Second, having a plan for putting those strategies into action is a must. And finally, take action! With a plan in place, putting your strategies for growth into action should be simple and effective. Since there are several different pieces that need to be in place to successfully grow a business, we're here to help you start 2017 on the right path by covering these four proven growth strategies. 1. Launch… Read more

If you've decided that you’re unhappy with your current credit card processor, or ever start to feel this way in the future, you’ll need to cancel your current agreement before you can make the switch to a top processing company. If you're ready to make the switch, you might be wondering, are you on the hook for cancellation fees? You might be worried about getting hit with extra costs like chargebacks that happen after your agreement has been cancelled. Since we’re committed to making credit card processing as easy as possible for merchants of all sizes, we want to share what you can expect when you cancel this kind of contract, along with things you should watch out for before signing another one. Personal Guaranties and Termination Fees Before we dive into the different types of termination fees, it’s important to point out a common element in the contracts business owners sign with merchant providers called a personal guaranty. What a personal or individual guaranty means is, regardless of why a contract is terminated (including the business going under or being sold), its… Read more

Early in 2016, reports disclosed that Visa owned almost 10 percent of credit card processor Square. These are two major players in the credit industry, so it was huge news, but soon, the story was updated. Turns out, that initial figure was based on an incorrect reading of a filing Visa made with the Securities and Exchange Commission (SEC). Any stake in ownership would signal a huge merger that could change the credit card processing game. But, if that figure was incorrect, just where to Visa and Square stand? Does Visa Own Shares of Square? Although the initial reports about Visa’s ownership in Square were incorrect as far as the total percentage goes, the company does own Square stock. As of the most recent disclosures, Visa owned a total of 4.19 million shares. These shares are Class B common stock and stemmed from an investment Visa made in 2011. Visa does not own any Class A shares in Square (which can be traded on the open market), and the number of shares they do own amount to a 1.3 percent stake in… Read more