Credit Card Processing Blog

Capital Processing Network Review

Company Background: Capital Processing Network is a credit card processing services company based in Phoenix, Arizona. Its services are available to merchants throughout the United States. The company website offers customers an updated blog to gain valuable advice about credit card processing in businesses.

Rates: Rates are based on specific business practices. The company does offer guaranteed rates with no hidden fees. The company offers options for professional analysis of account statements so suggestions can be made for lowered rates and fees based on how you do business. More…

Merchants May Get Reprieve from Visa and Mastercard Surcharges

An assumed settlement on impending litigation may allow merchants to charge customers a fee for conducting transactions with Visa and Mastercard credit cards.

The lawsuit brought on by Safeway Inc., Kroger Co., and Payless ShoeSource allege that Mastercard and Visa colluded together in keeping the merchants solely responsible for all interchange fees, much to their chagrin. Many retailers go ahead and charge a fee to their customers anyway to recoup costs, a violation of Visa and Mastercard’s terms of service.

Cost of a Settlement

The presumed settlement could cost the defendants up to $12 billion and require the nullification of the no-surcharge rule, something many merchants would embrace. But this begs a question: More…

Advantage Processors Review

Company Background: Advantage Processors is a credit card processing service provider for merchants in various industries. They specialize in finding customers the lowest rates on processing fees, especially for high risk account holders and off-shore and international merchants. There is no company information featured on the website.

Rates: Rates are not listed online and are based on how your business operates. The company only offers general rates which range as low as 1.6% to 10% for the businesses with the highest risk. Potential customers must fill out an application before rates will be determined.  Credit histories will also be checked before rate quotes will be provided.

Security Features and Account Services Provided:  Advantage Processors offer credit card processing options for merchants in a number of industries. They cater to high-risk businesses including More…

Interview: BitPay Shatters BitCoin Processing Record

Bitcoin, an online currency that’s received a good amount of attention over the last couple of years, is quickly becoming a force to be reckoned with. With tens of millions of dollars with of Bitcoins floating around in cyberspace, the currency is being picked up on online merchants around the globe as an alternative to traditional currency. BitPay Inc., a Bitcoin payment processor, recently broke a record by conducting more than $250,000 worth of Bitcoins transactions in one day — a considerable amount of money for such a niche market. CCPnet was naturally curious about this new processor and the new currency, so we reached out to BitPay to get more information and highlight their recent milestone. Anthony Gallippi, co-founder and CEO of BitPay, was kind enough to field a few questions.

CCPnet: First, can you explain the allure of Bitcoin and why it’s seen a surge in popularity over the last couple of years? More…

Thinking of Committing Credit Card Fraud? Look No Further Than Twitter for All Your Needs!

A wise man once told me, “If sense was common, then everyone would have it.” His words have always found ways to pop back into mind, just like today when I stumbled upon this story. Recently, there’s been a glut of Twitter users so enthralled about receiving their debit or credit cards  in the mail (or finding them in the couch) that they’ve been taking pictures of them and Tweeting it for the world to see… and steal.

One Twitter user was so disgusted (or amused?) that he’s created the Twitter handle @NeedADebitCard and is re-Tweeting pictures said morons have posted in an attempt to bring their stupidity to their attention. Some have caught on to his not-so-subtle suggestion, having deleted their photos, or even doctoring them to leave a few minor details out, leaving just enough to broadcast to the world their unbridled enthusiasm of joining club plastic.

@NeedADebitCard launched in late May and there’s been no shortage of Tweets to re-post. Though a bit malicious, I do believe this Twitter user is serving a great purpose: highlighting how thoughtless people can be with highly sensitive data. More…

FBI Announces 24 Arrests in Credit Card Fraud Probe Dubbed “Operation Card Shop”

The Federal Bureau of Investigation is reporting the arrest of 24 people in a sting dubbed “Operation Card Shop,” thwarting potential losses of up to $200 million on more than 400,000 accounts.

The operation was part of an on-going probe into a growing trend of credit card fraud and was announced today along with the arrests of 11 people within the United States and 13 abroad.

The sting centered around what the FBI is referring to as a bazaar, or private internet forum, in which the alleged thieves and hackers could trade and sell account information, including credit card numbers and bank account information. It also served as a hub for honing hacking skills, creating spyware and malware and was an invitation only club, in which a current member had to vouch for potential new members before access was granted. More…

Apple’s Passbook App Could Be a Window into Mobile Processing on iOS 6

The mobile processing world is buzzing with rumors surrounding Apple’s new application in its beta version of iOS 6, Passbook, which is a mobile wallet in all aspects except for its inability to process transactions, which begs the question: when will Apple implement this essential addition to its app?

Technology message boards are roaring that Apple has an ace up itself sleeve — Apple is already tied into more than 400 million active credit and debit card accounts through its iTunes Store. Adding this information to an iPhone users Passbook would undoubtedly establish itself as a dominating force in the mobile wallet field, potentially quashing efforts by its competitors.

Passbook currently stores user information such as online coupons, flight boarding passes and customer loyalty cards, so it’s only natural to surmise a payment processing application, hypothetically referred to as “iPay” by speculative tech aficionados, could be added to the iPhone 5, which is expected to be released in fall of this year. More…

SAIL: VeriFone’s New Dongle-Based Payment Processing Application

Beware Square — there’s a new dongle card reader application making waves in the mobile processing industry. And though Square has established itself and is essentially giving their devices away for free via rebates in brick-and-mortar stores including Walgreens, Best Buy and Staples, there’s always room for improvement on existing technology. Enter SAILpay, the darling child of parent company VeriFone, a leader in point-of-sale payment processing equipment that anticipates its dongle-based application will give Square a run for its money. CCPnet had a few questions regarding the product and Brian Hamilton, Vice President of the SMB unit at VeriFone obliged us with some answers.

CCPnet: SAIL is available for iPhones and Android is coming soon. Will it also be venturing onto other smartphones in the not-too-distant future?

Hamilton: Yes

CCPnet: What improvements does SAIL bring to mobile processing? More…

Checkout: Point of Sale Application on the Rise with Apple Users

Checkout, a point of sale application for Apple products has been edging its way into businesses due to its simple yet fluid interface. CCPnet wanted to learn more about what the service offered and what was in store for their future and Scott Davisson, managing partner with parent company Acclivity, fielded a few questions for us.

CCPnet: How and when was Checkout conceived, and by whom?

Davisson: Checkout was the by-product of a Joint Venture between Acclivity and Made By Sofa (Amsterdam) in 2007. Since then, Facebook purchased Made By Sofa and Checkout is developed solely by Acclivity NYC.

CCPnet: What is the most common Apple device used to conduct transactions with Checkout? (iPad, MacBook, Mac Pro, etc) More…

Update on Global Payments’ Security Breach

Things have gotten worse for Global Payments Inc., the credit card processor that experienced a security breach a couple months ago — much more information may have been compromised that originally thought, including bank account information, social security numbers and drivers’ license information.

The findings of the internal investigation were announced in a statement released Tuesday, revealing that computers containing information submitted by applicants to Global Payments’ service may have been breached, but the company was quick to quell further speculation. “It is unclear whether the intruders looked at or took any personal information from the company’s system,” Global Payments Inc. said through a statement.

Original estimates were that up to 10 million accounts had been breached, but now the figure given by Global Payments is set at 1.5 million. The company hasn’t publically identified which accounts have been infiltrated, nor have they estimated their financial losses associated with the breach. More…

Interview with Flint Mobile: Social Media Intergration and Mobile Platform Expansion on Horizon

Flint Mobile, a new application that’s making waves in the mobile processing industry has been keeping busy in the first half of 2012 — They’ve recently acquired $3 million in venture capital funding and have launched a new app that allows for payment processing on-the-go without the use of a dongle. Greg Goldfarb, CEO of Flint Mobile, was kind enough to field a few questions we had about their service…

CCPnet: How and when was Flint initially conceived?

Goldfarb: The idea for Flint was originally conceived in late 2010. The concept hatched from two fundamental premises 1. that small businesses were increasingly mobile and 2. that ultimately these users would insist on a simple yet secure payment experience that was just a smartphone app — without any sort of accessory dongle. More…

San Francisco Taxi Drivers Lash Out at the Municipal Transporation Agency

Bad news for San Francisco’s taxi drivers who bemoaned a city ordinance implemented last July that required all drivers to accept credit and debit cards at an astounding 5 percent transaction fee — the Municipal Transportation Agency is requiring all cabs to install terminals in cabs instead of allowing for mobile processing, a move which has taxi drivers questioning the city’s motive.

Some drivers are suggesting that the city is trying to raise additional revenue for other transportation services, but the city insists it is merely a move at making taxis for accessible for a city that relies heavily on public transportation.

Though the city has agreed to lower the 5 percent processing fee down to 3.5 percent, it wasn’t enough to quell the outrage of the drivers, most of which believe the companies that employ them should be covering the fees.

Taxi drivers in San Francisco work as independent contractors and have to rent the cars from the companies they work with. Many cab drivers don’t turn a profit on a day’s work until five to six hours into a shift and as such, each dollar adds up to them. More…

Square Card Readers Now Available at Retail Locations Nationwide

If official: The person-to-person credit card processing revolution has started. Square, the mobile processing dongle is being sold for a paltry $9.95 in Walgreens, Staples, FedEx, Best Buy and Apple stores across the nation and is being paired with a $10 rebate after a user signs up for the service, making the hardware essentially free to consumers.

Though the processing fees are a little higher than traditional payment processors, users embrace the convenience of being able to conduct transactions on the go. Some businesses rely solely on Square for their transactions, opting for mobility over clunky terminals. Though security concerns persist, Square has proven itself to be a reliable service which seems to be prioritized over fees for businesses that only conduct a handful of card transactions each month.

Square is a leader in mobile processing, having rolled out their device in May of 2010, the company quickly captured the imagination of credit card processors around the world as the future of transactions. More…

Consumer Financial Protection Bureau Sets Its Sights on the Prepaid Card Industry

The Consumer Financial Protection Bureau has formally announced plans to investigate and regulate the prepaid debit card market, a booming industry that many consumers and advocates are accusing of utilizing deceptive and predatory practices.

The publication of its Advance Notice of Proposed Rulemaking (ANPR) last week marked the beginning of a two-month long period in which comments on the industry’s practices will be heard from both consumer advocates and representatives of prepaid card companies. The CFPB’s legislation will focus on “safety and transparency” and hopes to have a draft ready by early 2013.

One major concern is that many prepaid cards have terms which are encased within the prepackaged cards and folded multiple times in what is being referred to as an “origami” format. The CFPB is also taking note of egregious activation and utilization fees, which many decry as predatory. More…

Savings from Debit Swipe Fees Aren’t being Passed onto Consumers

According to a recent report released by the Federal Reserve, retailers are paying much less in debit transaction fees thanks to the Durbin amendment of the Dodd-Frank Act but consumers have yet to experience much price relief.

For instance, the Electronic Payments Coalition has asserted that gas station owners could be passing an estimated $1 billion in savings to consumers from what they’re saving due the 21 cent cap debit transaction fees.

Likewise, many retailers aren’t sharing the wealth and instead opting to consider all of it profit. And because retailers are would be paying the full 21 cents on transactions like a drink or bag of chips, some are declining to accept debit cards for transactions under roughly $10, something that varies in legality from state to state.

Research done by the financial services industry has revealed that more than 75 percent of retailers have raised prices or kept them the same since Oct. 1, the day the law took effect, supporting the not-too-hard-to-fathom hunch that retailers are more inclined to help themselves out before consumers. More…