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Credit Card Processing — ECommerce
Online Credit Card Usage on the Rise
According to Javelin Strategy & Research’s Nov. 2011 report entitled “Online Retail Payments Forecast,” ecommerce credit card usage is on the rise, up 16 percent in 2011 to $309 billion and projected to rise to $444 billion by 2016. Many consumers are taking advantage of various rewards programs that credit card issuers are using to incentivize charging in the wake of the Durbin amendment to the Frank-Dodd act that capped debt card transactions at 21 cents, costing the banking industry billions. “After several years of declining use, credit cards are poised for resurgence,” Director of Payments Research at Javelin Beth Robertson said. “Despite the nation’s very rocky economic recovery, consumers appear to have halted their belt-tightening and bank incentives to use credit cards rather than debit are gaining appeal.”
Dwolla to End Credit Card Processing Services? Maybe Not!
Credit card processing companies and third party providers, like PayPal, all allow consumers to pay for their purchases with credit cards. Merchants pay somewhat hefty fees for the ability to accept credit card payments, but it’s generally seen as a required business expense. People just don’t carry much cash around anymore, and any merchant who does not accept credit cards as payment will miss out on potential sales. But consumers and merchant’s alike are looking for ways to save money – and a new mobile payment service created by a 28 year old from Iowa may be the answer. What is Dwolla? Dwolla looks like another PayPal or Square at first glance, in that it allows consumers to send money to other people or make payments to businesses, but Dwolla doesn’t accept credit cards as the payment method. Instead, Dwolla users connect their Dwolla account with their bank account, and … Continue reading
Merchants to File New 1099-K to Help Close the “Tax Gap”
The days of unchecked internet transactions have entered their gloaming as the IRS introduces a new tax form, the 1099-K, as a way to track debit, credit and even gift card transactions. Merchants that conduct transactions exceeding $20,000 or 200 transactions a year will be required to fill out the form for 2011 come April 2012. The move is perceived by many as a means to end untaxed and “underground” transactions, as its passing was largely concealed in The Housing Assistance Tax Act of 2008 which was labeled as “a bill to provide needed housing reform and for other purposes.” Unfortunately for the unsuspecting public, the new requirements on merchant reporting slipped through without much attention. Merchants will be receiving the 1099-K from their transaction processing companies in early 2012.
Merchants Prepare to Pay More to Accept Debit Cards from Customers
If you accept debit cards as payment from your customers, you typically pay about 8 cents to the card networks of Visa and MasterCard for each $2 item your customer buys. As of October 1st, Visa Inc. and MasterCard Inc. are intending to increase that from 8 cents to 23 cents, according to Thomas McCrohan, an analyst from Janney Capital Markets. Merchants will struggle to accept debit cards on low-ticket purchases, and there will likely be a shift back to retailers encouraging credit and cash over debit cards. New regulations limit debit card fees to about 24 cents per transaction – but did not take into consideration a minimum price of purchase to charge that maximum fee. McCrohan also predicts merchants will revolt against the major card networks after a transaction fee hike that large. Neither Visa or MasterCard have publicized their specific rates and changes, but MasterCard mentioned in … Continue reading
Credit Card Processing Horrors: Chargeback Lifecycle
Dated: July 13, 2011
Despite all of the advantages and benefits to business owners that come from using a credit card processing company to accept cards as payment from customers, accepting them is not without potential risk. Customers buy more and more frequently when they can use a card to make their payment, so accepting cards will increase your sales – but keep in mind more credit sales can result in chargebacks. What Are Credit Card Chargebacks? A credit card chargeback is when a customer refuse to pay for items purchased using their card. They may initiate a chargeback if they don’t receive products they order, or because someone else made the purchase using their credit card, or because they received damaged items or items that were not as they were described. The bottom line is that a chargeback is a process designed to protect card holders, but in the process can cost businesses … Continue reading
13 Great Blog Posts on Increasing Your Online Store’s Checkout Sales
Many people aren’t aware that they can increase the amount of sales by providing a smoother transaction for the consumer. By changing a few key details on their online store’s page, you can increase the amount of transactions that are finalized and avoid buyer’s changing their minds last minute or getting annoyed with long a checkout procedure. Though some changes are more obvious than others, a quick read of each of these posts can start you down a path toward improved profits. Eight by Eight — “Making sure people can efficiently order from you may be the most important thing you can do on your web site. Once they hesitate or become confused, there is an excellent chance you will lose the order and the good will of that customer. They will blame you even if you were not responsible for their bad experience. And, they may never give you … Continue reading
Credit Card Processing: Breach In Security
Dated: April 17, 2011
Credit card users are usually very good about keeping up with security information regarding their accounts. With the always looming threat of a potential security breach, both merchants and those in the credit card processing industry also pay close attention to security. For credit card users, one of the best ways to remain on top of any changes or threats in security, it is important to pay attention to correspondence from your credit card company as well as the information which appears on your statements. This would seem to be a fairly easy task, considering the various ways in which we can now access our account information. Unfortunately sometimes the very thing which makes something easy also makes it easy to overlook. Recently a friend received a message via their mobile device with the subject line reading “An Important Message Regarding Your Account”. This individual routinely checks their statements for … Continue reading
New e-Commerce Site Focusing on Credit Card Processing
Merchants accepting credit cards as payment already know they are dealing with a very competitive industry. New merchants just becoming familiar with the industry may find it confusing and in some cases even overwhelming. Merchant accounts and credit card processing companies all claim to be the best, however how is one to know which match is truly beneficial for their company. Choosing the wrong processor can end up costing you hundreds or even thousands of dollars in fees annually. To help both new and existing customers find information regarding merchant accounts, payment processing machines and other services, bankcard club has announced the launch of a new e-Commerce website. In a February 8, 2011 press release, bankcard club introduced the website, www.bankcardclub.com. As stated in the press release, “bankcard club (all lower case) is a registered merchant service provider/independent sales organization of Elavon, Inc. Backed by over 14 years of experience, … Continue reading
My favorite 20 blogs on e-commerce web development
Credit card processing is just one part of running an e-commerce site. Web development is a huge part of that from the start to the maintenance stage. Learning the ins and outs of e-commerce web development and content management systems is vital to achieving success. For anyone interested in this space, I recommend reading these 20 blogs I’ve taken from my list of bookmarks. I’ve collected then at one time or another whenever I was searching for a solution to a problem I was facing. I hope they help you just as much as they’ve helped me.
Online Shopping Tips
Dated: September 3, 2010
As more and more consumers realize the benefits of shopping online, it becomes increasingly important to know how to make secure transactions. Secure credit card processing for online payments relies on both the buyer and the seller understanding how to protect the information that is sent electronically. Without the physical connection of dealing with an individual face-to-face, vendors must make sure that they are providing their customers with a secure method of paying for products and services. Consumers can benefit from the following online shopping tips that will ensure their e-commerce experience is a positive one. Check website security- The first thing to look for before you enter credit card information online is some sign that the website which you are visiting is secure. This can be done fairly easily and can prevent a lot of headaches down the road. Look for a closed padlock or unbroken key displayed at … Continue reading
