Credit Card Processing Blog
Forget the analysts’ predictions from last week — Both Visa and MasterCard reported impressive earning during their first quarter, with dramatic increases from Q1 the previous year.
Visa reported a 30 percent increase and MasterCard reported a 21 percent increase, which many analysts didn’t believe possible due to the on-going recession that’s caused many Americans to shun their credit cards and revert to cash.
Analysts had also predicted a substantial increase in debit transactions, but the outcome was actually quite modest for Visa, which reported a 4 percent rise. MasterCard on the other hand, experienced growth of 21 percent in debit transactions, which seems to imply that the much smaller processor is staking its claim in the transaction war, something Visa won’t let happen without a fight.
Visa CEO Joseph Saunders boasted that he had signed 9 out of 10 major credit card companies to deals with Visa for the next three and a half years. Visa also announced it will be raising minimum purchase amount for which consumers must enter their PIN number to $50 from the original $25 starting in Fall later this year to help speed up transactions. More…
Company Background: GoEmerchant was founded in 1995 in Cherry Hill, NJ. They are a credit card processing company which started to provide transaction solutions for all size online businesses. Their aim is to create a user-friendly system for users at all levels of knowledge to handle Internet credit card transactions. GoEmerchant is listed as compliant with Visa USA’s Cardholder Information Security Program (CISP).
Rates: Rates for transactions differ between services. The gateway package on a month-to-month basis costs $19.95 and the Total Package Shopping Cart is priced at $59.95 per month. Both packages charge a $99 set up fee and an $29.95 annual fee. The transaction fees are priced at 10-cents each. Both services offer a host of services including unlimited number of transactions, tracking code options, 24/7 data monitoring, daily and weekly backup services, and downloadable reports. The Total Package solution offers additional services including UPS/FedEx/USPS integration, custom shipping and handling, inventory management, and QuickBooks integration. Customers can opt to pay monthly or annually for services.
Security features and Account Services Provided: GoEmerchant offers a full range of More…
Company Background: The Transaction Group specializes in credit card processing and merchant account services for various types of businesses as an independent sale rep for PowerPay, a point of sale processing company in Portland Maine. TTG was founded in 2005 and is based in Jacksonville Beach, Florida.
Rates: Rates vary depending on the services provided. Online credit card processing rates start as low at 1.79% with a 25-cent transaction fee incurred. There is a gateway fee of $19.99 and a bank fee of $10.00. Point of sale transaction fees include processing rates as low as 1.09% with a 19-cent transaction fee incurred. A $10.00 statement fee also applies. Mail/phone credit card processing rates are as low as 1.79% with a 25-cent transaction fee and a $10 statement fee. Mobile device credit card processing offers rates as low as 1.09% and a 19-cent fee for transactions. A $10 bank fee also applies.
Security features and Account Services Provided: The Transaction Group offers solutions for internet businesses, retail merchants, professional service providers, trade and craft show vendors, home-based business owners, mail merchants, and telephone merchants. The company also specializes in More…
The U.S. Consumer Financial Protection Bureau is launching an investigation into financial product contract clauses that keep disputes out of the justice system.
Arbitration clauses in such contracts require consumers to use alternative dispute resolution through a third party organization, thus revoking their right to sue. The CFPB investigation will include a study on the prevalence of arbitration clauses, what types of claims are brought to arbitration and how the “technique” impacts both companies and consumers.
Public Citizen, a consumer advocate group, published a report in 2007 that shows such arbitration clauses in contracts held by California consumers tilt the scales in favor of financial institutions more than 90 percent of the time. The organization is building an online gallery of corporations that include “pre-dispute arbitration clauses” in their contracts, found at http://www.citizen.org/rigged-justice-rogues-gallery. More…
Both Visa and MasterCard will procure their quarterly earning reports tomorrow with analysts anticipating declining profits due to lower credit card usage, and the processors hoping debit transaction can make up for the loss.
MasterCard will report its earnings are the beginning of the day and Visa will report after the bell and will serve as insight into how the economy has fared since the Christmas season.
Though credit card usage has been down for years, a few recent months showed promising growth, only to quickly start declining again. These moments have unfortunately stifled enthusiasm in the media and put fear in the mind of the consumer to avoid rotating credit card balances.
As such, consumers have relied less on credit cards these days, carrying $800 billion in credit card debt in February, a drop of 15 percent from the beginning of recession in late 2007.
For Visa and MasterCard, it’s a Catch 22 —They could incentivize debit purchases, but that would take away from credit card transactions, which tend to be more valuable than the capped debit fees so don’t be surprised as debit rewards programs go they way of the dodo. More…
Company Background: eCommerce Exchange is a national credit card processing company based in Smithtown, New York. The offer business solutions for processing a variety of transactions including credit cards and electronic checks for merchants online and off.
Rates: Merchant account fees for retail merchants are priced at 1.79% of the transaction plus 25-cents for each transaction. Keyed transactions (card not presented) are priced at 2.35% plus 30-cents per transaction. Wireless transactions are priced at 1.79% plus 25-cents per transaction. Internet/ecommerce processing is priced at 1.79% plus 25-cents per transaction. Monthly merchant account fees are also incurred by are not disclosed on the company’s website.
Security features and Account Services Provided: eCommerce Exchange provides merchants with the important elements for conducting business online including a merchant account, shopping cart, and a secure server link for payment processing online through its More…
While Global Payments, Inc may be a global leader in payment processing equipment and services, there was recently a large security breach which exposed nearly 1.5 million credit card numbers after a hacker tapped into their system. As a result, the company was removed from Visa’s list of PCI compliant processors, at least temporarily.
Company Background: Global Payments, Inc provides global services for merchant payment processing. Headquartered in Atlanta, GA, the company has been in business since the 1960s and growing to global markets. The company currently services businesses, consumers, organizations, financial institutions, and government agencies in their payment processing needs. Forbes.com rated Global Payments as one of their Platinum 400 Best Big Companies in 2009. Global Payments, Inc is traded on the New York Stock Exchange (NYSE: GPN).
Rates: Product and service rates not provided on the company’s website but will vary based on the various factors influencing the merchant and the business. These factors include the type of business as well as the processing volume of transactions and terms of contracts. Pricing and contract terms for resellers should be More…
Company Background: First Data lists their mission as shaping ‘the future of global commerce by delivering the world’s most secure and innovative payment solutions.’ The company serves more than 6 million merchant locations across the world. The company is headquartered in Atlanta GA and operates in 34 countries.
Rates: Website lists rates as ‘competitive’ but no specific details are accessible without a consultation with a sales representative.
Security features and Account Services Provided: First Data works with a variety of credit card and debit card companies including Visa, MasterCard, American Express, Discover, Diners Club, JCB, and Star. They also provide services for EBT transactions, Fleet Card vendors. First Data accounts will accept checks, international payment processing, ACH payments, online transactions, telephone payments, gift cards, incentive cards, mobile sales, and payroll disbursement. In addition to merchant services, First Data works with More…
Planet Payment, the leading international foreign currency payment processor, has teamed up with Citi Philippines, the largest foreign bank in the Philippines, to provide Planet Payment’s Pay in Your Currency service along with the MICROS Payment Gateway to the merchant account and hotel merchant partners of Citi Philippines, respectively.
Pay in Your Currency offers Citibank credit card holders the option to pay in their native currency while visiting the Philippines. Besides offering the transaction details, both the foreign and local currency (Philippine Peso) are printed on a customer’s receipt along with the transaction’s rate of exchange. In the past travelers would have to physically exchange their country’s currency for the local currency of the Philippines, which cost both time and extra commission fees for the local business.
The MICROS Payment Gateway, offered to Citi Philippines’ hotel merchants, is designed to fit in with the MICROS suite of enterprise hospitality products and has been integrated with the Planet Payment processing platform, providing processing customers utilization of the global payment network. More…
Girl Scouts of America in Ohio are participating in a pilot program utilizing mobile processing dongles on smart phones have experienced a 13 percent rise in sales last year, according to a report by the Christian Science Monitor. Not having cash will no longer silence a siren’s call — indulgence in Thin Mints and Samoas is at an all-time high, with the Girl Scouts recently have their biggest order of restock in their history.
Girls Scouts have previously experimented with credit card machines, but the ones they were utilizing were slow and cumbersome and didn’t yield the results they had anticipated. Good thing they gave it another try!
Swipe fees with mobile processing range from 1 to 3 percent and the net profit is deposited directly into a checking account. The process is relatively safe as the phones cannot store the credit card number and the transaction goes through various levels of SSL encryption and security measures.
Smartphone credit card readers are booming for both businesses and personal use, with industry leader square nearly doubling their estimated $2 billion in transactions for the year. According to the Federal Reserve, consumer use of credit and debit cards has doubled since 2004, which should inspire any business relying solely on cash and checks to reevaluate their position on digital transactions. More…
Isis, a joint venture announced in November 2010 between telecommunication powerhouses Verizon, AT&T, and T-Mobile, was created to build a mobile payments network for secure, point-of-sale, purchases through mobile devices.
Visa, the largest U.S. payment network generating local revenue of $5.135 billion in 2011, along with processing giants MasterCard, American Express, and Discover, are joining Isis; lending their already established payment networks to further the mobile payment movement. The benefit to these processors is a higher propensity for their individual networks being used, and thereby allowing them more revenue through transaction fees.
Mobile payments have been the next logical step in the evolution of payment processing, and the result of this venture creates a tremendous benefit for telecommunications because the success of Isis will lead to an increase in economic pressure to not only purchase more mobile devices, but to use them more frequently. More…
Discover Financial Services, the last of the four major American credit card companies to enter the Indian market, has announced a partnership with National Payments Corporation of India in an effort to capitalize on the country’s booming payment processing industry.
Credit card transactions have exploded in volume by an astounding 58 percent between Q2 through Q4 in 2011 compared to 2010, rising from $9.3 billion to $14.3 billion. Growth expectations are estimated to be between 20 to 30 percent for the new few years.
Discover issues its own credit cards, which has prevented it from fully competing with top processors Visa and MasterCard, which conduct transactions on behalf of banks and creditors. But to effectively compete in emerging Asian markets like China and Korea, Discover is teaming up with credit issuers from each nation, allowing them to process payments and diversify consumer options.
Discover cards will be accepted at point-of-sale terminals as well as ATMs, but it’s yet to More…
Global Payments Inc., the company responsible for allowing up to 1.5 million (CreditCardProcessing.net had initially reported the number as 10 million, the original estimate) accounts to be breached has been removed from Visa’s list of PCI compliant processors, though the company is still actively enrolling merchants for their services.
Critics of PCI compliance have suggested that many processors rely solely on its standards, which they view as a bare minimum security precaution. Others have called the magnetic strips on the back of credit cards into question citing that the technology is dated and allows for information to be easily stolen.
Though the situation is believed to be contained, customers with accounts that have been breached are encouraged to monitor their accounts for any suspicious activity. Global Payments Inc. has reported that the breach did not include Social Security numbers, addresses or names and was limited to only North America. More…
Mastercard has confirmed that U.S. based payment processor Global Payments Inc. has had a security breach, potentially compromising up to 10 million credit card accounts. The Secret Service has confirmed the incident and is currently investigating.
Mastercard has taken immediate steps to minimize the damage, releasing a statement Friday addressing the issue. “As a result, we have alerted payment card issuers regarding certain MasterCard accounts that are potentially at risk,” Mastercard’s representatives wrote. “MasterCard’s own systems have not been compromised in any manner.”
Visa is also investigating, according to Brian Krebs, a former Washington Post reporter who broke the story on his blog Krebs on Security. The breach apparently took place between in January and February, 2012, with enough information being stolen to produce counterfeit cards.
Visa just released a statement, writing “Visa Inc. is aware of a potential data compromise incident at a third party entity affecting card account information from all major card brands. There has been no breach of Visa systems, including its core processing network VisaNet.” Visa also assured card holders that they are protected from fraudulent transactions and is expediently notifying affected parties. More…
An increasing number of companies are joining the credit card processing industry, with small credit card readers that work with smartphones and iPad’s. There are several of these instant and mobile readers on the market, including the Square, PayPal Here, and now, the “At the Door” reader offered from ticketing company, Eventbrite. The At the Door reader is $10 to obtain, but Eventbrite reimburses the $10 the first time you use the card reader to process a credit card. If you need more than one readers, additional At the Door units cost extra. All At the Door card readers can be ordered from Eventbrite.
Processing Fees Waived
To help introduce their new card reader to the market, Eventbrite has waived the fees they normally charge to process credit cards. For now, the 2.5 percent of the ticket price processing fee and the 99 cent fee per card are waived, and users are paying a credit card processing fee of 3% of the transaction. More…