Credit Card Processing Blog

While other children were busy playing house, Boston native and Brown University graduate Andrew Schrage was learning how to purchase one. “With some quality guidance from my parents and older siblings, I have always strived to be financially fit,” Schrage says, a statement that couldn’t ring loudly enough for young professionals like himself.  Schrage is currently a partner and editor-in-chief of MoneyCrashers.com, a website with the objective of tooling individuals for making financially sound decisions. CreditCardProcessing.net wants to thank Schrage for taking out some time to speak with our staff regarding his quest to spread financially dexterity, his road as a young business owner and what advice he’d give to aspiring professionals who may not have had the same guidance as he. Andrew, thank you so much for taking out the time to answer some questions for us. First things first, tell us a bit about MoneyCrashers and the work you do there. Money Crashers is a financial education website with the goal being to educate its readers and subscribers on better ways to manage their money. The topics covered… Read more

Whether you’re a small startup or a growing, thriving retail chain, if you accept credit cards, you likely lose a percentage of income each month on credit card processing fees. Many businesses choose a processing service early on and stay with that processor, rarely investigating the many other options available. But if you’re under contract, it might be worthwhile to shop around the next time that contract is up for renewal. One way many merchants save money on credit card processing is by negotiating their fees with a processor that is willing to work with a company. Even those services that claim to have fixed-rate processing may be more than happy to waive certain fees or throw in extras to win your business away from a competitor. After all, that processor stands to benefit from a percentage of your earning in the years to come. But there’s an art to negotiating with processing services that involves spending time on the front end researching your options. Understand the Rates The first step in negotiating rates is to fully understand them. In… Read more

Chargebacks, also known as “reversed transactions,” are a serious problem for businesses in all industries, with merchants losing an estimated 60 percent of all chargeback disputes. Originally designed to protect consumers from problematic businesses, in recent years the system has opened itself up to something called “friendly fraud.” With friendly fraud, a customer disputes a transaction and gets a refund without returning the product or service. The ability to contest a transaction began in 1968, when the Truth in Lending Act was passed. The act gives a consumer the opportunity to contact his or her bank and contest a transaction, with the bank then investigating the dispute to determine its validity. If the bank finds the merchant is at fault, the transaction is then reversed, with the business required to pay all associated fees. Even if the merchant isn’t at fault, it will still be responsible for the chargeback fee, which can cost $75 or more per complaint. The Business Impact There are a variety of ways reverse transactions impact businesses. The exact amount varies from one processing service to… Read more

Apple’s much anticipated fall announcement is set for next week, and rumors have put wearable tech at the forefront of what the company will premiere. If valid, the presumed iWatch will be an inaugural leap for Apple as it begins hedging a spot within a growing industry of accessorized technology. Insiders list a payment component as one of the iWatch’s premiere features, catering to the needs of young consumers and their thirst for integrated mobile banking and payment solutions. Most experts do not foresee the increased relevance of wearable payment options as the beginning of the end for mobile payments, but more so that products like the iWatch aim to streamline and expand the process mobile payments have already set in place. This will allow payment-enabled wearables to exist in tandem with mobile solutions. People are making payments on their phones at a growing rate, but there are a few obvious drawbacks such as being distracted from more integral cellphone functionalities e.g. texting or surfing through social apps. What results is a prime opportunity for wearables to bridge the gap… Read more

Cash flow is one of the biggest challenges of any new business, as entrepreneurs struggle to grow a steady client base. During this time, it’s easy for a business to run late on a couple of payments, creating a small dent in the credit rating you’re working so hard to build. But in many cases, growing businesses simply don’t have enough of a credit history yet. It can take years to build a solid credit rating and in the meantime, businesses must have access to the tools they need for daily operations. To get cashflow going, however, most businesses need the ability to accept payment. Since many payment processors run a credit check before issuing an account to a new merchant, the lack of a credit history can be a problem. Here are a few ways your business can still enjoy great rates on your credit card processing while you’re working to improve your credit score. Shop Around When a credit card processor signs a new merchant, the company wants to know that merchant will pay its bills for the… Read more