Credit Card Processing Blog

Sooner or later, it’s very common for businesses to find themselves in a situation where they want to change credit card processing companies. While there are many different reasons a business may come to this decision, the steps that need to be completed are usually the same. Before a business can switch to a new processor, they need to cancel their current merchant account. When a business decides they’re going to make this transition, they generally want to know if they’re going to have to pay any fees to cancel. Since there are multiple factors and other issues involved in that answer, we want to cover everything you need to know to minimize the likelihood of having to pay a fee for cancelling your current merchant account. Understanding the Implications of a Personal Guaranty and Different Fees If your business has a relationship with a processor, chances are you signed a Merchant Processing Contract at some point. Often referred to as a MPC, this type of agreement covers a lot of ground. The element of a MPC that’s especially relevant… Read more

When Square first launched in February of 2009, their goal was to provide a payment processing option for individual sellers and businesses of all sizes. Over the last seven years, the company has gone through a variety of changes, including an IPO in November of 2015. Recently, the company made a few additional changes to their service. How Square is Changing Their Fees For the last five years, Square has handled swiped credit cards differently than many other processing companies. Instead of charging a per-transaction fee, they’ve had a flat processing rate of 2.75%. The only exception has been cards that are entered manually. Those types of transactions have a $0.15 fee and 3.5% processing rate. However, many business owners are now reporting that they’re either being quoted or charged a transaction fee on credit card swipes for transactions under $10. What’s interesting is some businesses are facing a $0.10 transaction fee and others are being quoted at $0.15. So even though Square’s marketing still revolves around a flat rate, it appears the company is using certain factors to set… Read more

When Walmart filed a lawsuit against Visa, they said it was because of security issues. Then last month, Visa fired back with their own countersuit. Since this story involves two giant companies, there’s a lot of interest in what’s happening. With that interest has come some misconceptions, which is why we want to dig into the current state of these legal proceedings and help set the record straight on a few topics. Signature vs. PIN Transactions Are at the Center of the Lawsuit It’s easy to understand why most people assume that Visa makes money on debit card transactions when a card with the Visa logo is used. Surprisingly, transactions involving someone typing in their PIN are authorized on a PIN debit network and don’t generate any revenue for Visa. However, Visa does get a cut when a debit transaction is authorized by a signature. Based on the steps Walmart has taken, they don’t want to allow signature authorization for debit transactions. And while their official stance on restricting these transactions to only using PIN has to do with security,… Read more

Shoplifting is something that retailers have dealt with for a long time. But over the last couple of years, more merchants have had to combat a new type of shoplifting. Often referred to as cyber-shoplifting or friendly fraud, this problem isn’t something that any business takes lightly. Where the name comes from is instead of using stolen information, some people are using their real information to buy online. Where the problem occurs is these people later dispute their purchases with their credit card provider despite getting exactly what they wanted from an online merchant. Understanding Cyber-Shoplifting Before we drive into cyber-shoplifting, it’s worth providing a quick refresher on chargebacks. There are multiple reasons why a chargeback can occur. One is if someone’s card is lost and then another person uses it to make an unauthorized purchase before the card is cancelled. The same is true for cards that are stolen. A chargeback may also occur if someone is automatically enrolled in a subscription program. While there are legitimate uses for chargebacks, a 2014 report by CBS News found that 86%… Read more

Recent statistics show that 7.5% of all retail transactions in the United States happen online. While that’s already a significant shift from just a few years ago, it’s a trend that’s only going to continue to increase. That’s why more businesses than ever before are interested in not only having an online presence, but in having an online presence that allows them to engage in ecommerce. What’s interesting about the state of ecommerce in 2016 is even though there’s a lot of opportunity for businesses of all sizes, there’s still quite a bit of complexity involved. One of the reasons is that people use so many different devices to browse and shop online. For a business to find any level of ecommerce success, they need to be able to offer a consistent experience across screens of all sizes. Being able to deal with different screen sizes and properly handling many of the other elements involved in ecommerce is why more businesses are turning to existing platforms. Although there are some situations where a custom ecommerce solution can make sense, almost… Read more