Credit Card Processing Blog

If a business wants to accept credit cards, they need a processor and merchant account. Given how much buying activity takes place online, as well as the high percentage of consumers who prefer to pay with a card in-person, accepting credit cards is a must for the majority of businesses. As the owner of a new business, there’s a lot you have to do to get your business up and running. While encountering some challenges along the way is almost guaranteed, you can put yourself in the best possible position by understanding what you’re going to face and how to best deal with those obstacles. The Role of Personal Credit in Applying for a Merchant Account One example of a common obstacle is new business owners worrying that their personal credit will prevent them from getting a merchant account. Whether that’s because someone has a low credit score or one that’s just not ideal, this issue comes up a lot. Before we get into the specifics of the role that personal credit plays in applying for a merchant account, the… Read more

In June, Costco ended its sixteen year relationship with American Express. The end of this long relationship also marked the start of a new one for the retailer. Costco’s new relationship is with Visa and Citi. A big part of the shift from American Express to Visa involved customers beginning to earn rewards through a Costco Anywhere Visa instead of a TrueEarnings AmEx Costco card. From the very start of this new relationship, things did not go well for Costco’s customers. Almost immediately, complaints began coming in from members who said they hadn’t received their card in the mail yet. Others complained that even though they had received their card, they were unable to activate it. With over 81 million Costco members around the globe, the support load generated by these issues quickly overwhelmed Citi’s customer support and resulted in countless customers waiting for hours to speak with someone on the phone. Not only did it appear that Citi underestimated the level of support they were going to need to provide for this transition, but Costco also fell short in… Read more

Last month, MasterCard did their Q2 2016 earnings call. In the call, the company discussed their strong growth in three different areas. Those areas were volume, cards and transactions. We’re going to look at the details of the company’s recent growth, as well as what exactly that means for other businesses. MasterCard’s Volume, Card and Transaction Growth The year-over-year gross dollar volume that MasterCard processed was up 7.6%. By comparison, Visa’s year-over-year growth for the quarter was 10%. During the past year, Mastercard added 143 million cards. The brings the number of active MasterCards around the globe to just under 2.3 billion. Did you know that MasterCard has had its own debit card since 1992? If you didn’t know about the Maestro card, you’re not alone. This card actually decreased by 9 million during the last year, which means all of the company’s card growth came from other branded products. In the last area of transactions, MasterCard processed 1.7 billion more than it did during the same quarter of the previous year. In addition to this raw data from the… Read more

The PCI Security Standards Council pegs losses from PIN pad skimming at $2 billion a year! The average loss from this crime is $50,000. It’s something that has affected huge retailers like Walmart, along with other businesses of all sizes. Since skimming is the leading type of third-party card fraud and also accounts for 92% of all crimes at ATM machines, we want to cover exactly what it is, along with if it’s possible for businesses to protect themselves against this crime. How PIN Pad Skimming Works If a criminal decides they’re going to execute PIN pad skimming, the first step is for them to install a hidden recording device. What this device does is reads the magnetic stripe on the back of credit and debit cards. The next step is the installation of a fake overlay that looks and feels exactly like an actual terminal keypad. Once those two steps are done, a consumer can swipe their card and then type in their PIN without having any idea that the machine they’re using is compromised. This is just as… Read more

Most businesses are always trying to learn more about their customers. By understanding who their customers are and what they want, businesses can create the best possible products and experiences. When it comes to the different experiences that customers have, one of the most significant is checking out. Whether it’s in person or online, the act of paying is a critical time in any customer journey. Businesses that dial in this experience can ensure that they maximize the number of transactions that are completed and make it more likely that customers will buy again in the future. On the other hand, a business that falls short in this area can lose current and future revenue. If you want to prevent that from happening, it’s helpful to know how customers prefer to pay. Since that’s a big topic to tackle, we’ve found that one of the best ways to break it down is by age group: Millennials With over 75 million people in this generation, it’s one that all businesses need to care about. Even if this demographic currently seems too… Read more