Credit Card Processing Blog

Legal marijuana is the fastest growing industry in the United States. Sales went from $1.5 billion in 2013 to $2.7 billion in 2014, then exploded to $5.4 billion in 2015. If legalization continues to spread throughout the US, the industry could easily become larger than the organic food industry. Despite the fact that there are already 23 states that permit medical cannabis use, operating in this industry remains anything but easy. Many legal marijuana dispensaries have maintained a policy of only accepting cash. Although people may assume it’s because they’re doing something with their accounting books or trying to avoid credit card processing fees, the actual reason is many financial institutions and companies don’t allow marijuana credit card transactions to be run through their systems. The reason legal marijuana dispensaries face hurdles with accepting credit cards is despite marijuana use and sales now being legal in many states, these activities are still illegal under federal law. That’s why a large number of banks and credit card processors are unwilling to offer their services to business owners who run legal marijuana… Read more

According to Forrester Research, online retail sales in the United States have grown from $231 billion in 2012 to $319 billion in 2015. Sales processed online are expected to grow by another 8% in 2016 to $345 billion. Not only are consumers across all age groups using their computers to make purchases, but more consumers are using tablets and phones to buy as well. In 2016, mobile transactions are expected to account for nearly 25% of all online retail purchases. This data clearly shows that consumers’ stigma of making purchases online has gone away. Although it’s still very important to make online payment experiences as streamlined as possible, consumers are comfortable pulling out their credit cards and typing their information into their computer, tablet or phone. While consumers continue to spend an increasing number of their dollars online, not all businesses have made the jump to processing online payments. Since online sales are a channel that’s here to stay, we want to look at the top reasons some businesses aren’t processing online payments, as well as what can be done… Read more

In the short period of time since it was instituted as a mandatory standard, EMV has already helped to significantly reduce fraud for card-present transactions. While EMV has proven itself to be effective, and is here to stay for the foreseeable future, it is a technology. That means it’s not without some hiccups along the way. The main issue that comes up with EMV readers is the experience of paying can be mildly to significantly frustrating for customers. Given the prevalence of this technology and the fact that EMV is very effective at reducing fraud, we want to share a handful of strategies that businesses can use to minimize the amount of friction customers experience when making a payment: Customers Don’t Need to Hand Their Card Over Both customers and business owners have gotten used to a business owner being handed a credit card and then the customer signing the receipt to complete a credit card purchase. With an EMV reader, that’s no longer the flow of how a transaction gets done. Instead, customers keep their card throughout the entire… Read more

Given how much commerce has moved online, the idea of eChecks doesn’t come as a surprise to most businesses. That being said, many businesses still don’t have any direct experience with this kind of payment. Whether your business is exploring different payment options or someone has asked you about making a payment via eCheck, here’s exactly what you need to know about this technology: The Basics An eCheck is a type of online payment that involves money being withdrawn from one party’s checking account and deposited into the recipient’s checking account. This is done by transferring the money over the ACH network. If a business has an ACH merchant account and a signed contract with a customer, they can actually withdraw agreed upon payments automatically. How eChecks Are Processed The steps involved in processing an eCheck are similar to those of a standard paper check. The main difference is eChecks can be processed in a shorter amount of time. The process starts by requesting authorization. Once authorization is completed via a form or even phone conversation, a business can enter… Read more

IRS backup withholding is similar to income tax withholding that’s done on paychecks. Backup withholding applies to specific types of income and investments. In 2008, an amendment to the Housing and Recovery Act created a requirement for all merchant account providers to collect and verify Taxpayer Identification Numbers (TINs). Additionally, providers are required to report gross payments processed via credit or debit cards on an annual basis. This is done through Form 1099-K. How Form 1099-K Affects Merchants It’s important to note that this requirement doesn’t mean all merchants will automatically have 28% of their merchant account deposits withheld. However, that can happen to merchants who don’t have the right information on file. If a merchant doesn’t submit their correct name and TIN to their merchant account provider, this type of withholding can occur. That’s why it’s important to double check your application information before submitting it, as well as notify your provider in the event anything changes. Another reason to take this issue very seriously is in addition to the federal withholding, certain states also have their own penalties.… Read more