Credit Card Processing Blog

Merchant account fraud is a big deal. Although this isn't our first time discussing the issue, online fraud continues to be a major problem for businesses of all sizes. In just the last year, Snapchat, the University of Central Florida and even the IRS have all been hit by serious data breaches related to fraud. In the case of Snapchat, around 700 current and former employees had sensitive information stolen, including names, Social Security numbers and payroll data. With the University of Central Florida, a data breach affected approximately 63,000 current and former students, faculty and staff, compromising their Social Security numbers, full names and student/employee ID numbers. And what about the IRS? Over 700,000 American taxpayers had their personal information compromised through the organization's “Get Transcript” system when it was hacked by a Russian-based criminal operation. Other high profile cases of online fraud include 21st Century Oncology, Yahoo and Weebly, among others. Given that many of the companies struck by significant online fraud specialize in technology, it's easy to see why all businesses need to take this type of… Read more

As a business owner, chances are you rely on a number of suppliers and other partners to keep what you do running as smoothly as possible. When you identify a need in your business, quality and reliability are two important factors to look for in whomever you expect to fill it. Price is also a very important consideration. Although there are exceptions, a general rule of thumb is avoiding the absolute cheapest option you may find. This is because suppliers and vendors who market themselves by having the lowest price generally lack in other important areas, like quality and reliability. Regular Reviews are Easy to Overlook When you have a problem with a vendor or other type of partner, it's natural to escalate that issue to the top of your to-do list. But when things are going relatively smoothly with your vendors, it's easy to put doing regular reviews on the back burner. Given all the different priorities competing for your attention on a daily basis, overlooking regular reviews is completely understandable. However, even though they may not be immediately evident,… Read more

Payment processing is a very important topic for businesses of all sizes. Not only do you want to work with a reliable processing company, but you also want to ensure you’re paying a fair rate for this service. Because processing rates impact every credit and debit card sale that your business makes, even seemingly small differences between rates can have a direct impact on your bottom line. While there are some great payment processing partners, there are also some that are only interested in getting as much money as possible out of their customers by misleading them to obscure the true nature of their rates and services. A great starting point for fully understanding payment processing rates and what’s considered fair is to look at interchange fees. This fee is established by card brands and refers to the money that’s transferred from the acquiring bank to the issuing bank for each bankcard transaction. Where things get a little tricky is these fees can differ based on the specific category of a transaction. Interchange qualification (which is the term used for categorizing transactions)… Read more

Are you starting a new business or have an existing business, but are unhappy with your current payment processor? If so, you’re in need of a new processing partner. Although this isn’t a decision you want to rush, the fact that processing is critical to operations means you don’t want to wait long to find the right fit. Since being in this situation can feel very stressful, we want to help make the process easier to manage by sharing five things to research as you’re evaluating different payment processors. 1. Penalties and Fees There is a lot of competition across the credit card processing industry. This results in processors employing a wide variety of marketing tactics. Some of those tactics can involve spinning or even obscuring certain fees. You’ll want your research efforts to include digging into all applicable fees, as well as any penalties that a processor may impose. 2. Track Record Since payment processing deals with a lot of sensitive data, it’s vital for a processing company to really know what they’re doing. The last thing you want is a… Read more

If you run a B2B company, you'll probably encounter invoice financing. Also referred to as accounts receivable financing, this practice is a way for a business to create cash flow against unpaid invoices. Although this practice may seem very appealing if you’re waiting a long time for invoices to get paid, it’s important to understand the full cost of invoice financing before utilizing it. The Basics of Invoice Financing Lenders who do invoice financing will take an outstanding invoice from a B2B company and front the money for it. Some lenders will provide the full amount of an invoice, while others will only do a portion. The lender will charge a fee for this loan, as well as use the invoice as a type of collateral. Having the invoice as collateral is why many lenders view invoice financing as less risky than traditional loans. Lenders are picky about which invoices they choose to finance. Some allow companies to finance select invoices, while others require that all invoices be sent for financing. Digging deeper into this practice, you’ll find two categories… Read more