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Credit Card Processing — Retail
New Credit Card Processing Option from PayPal: PayPal Here
Many online business owners rely on PayPal for credit card processing, but it’s not as convenient for a business that also has a storefront location or one that meets with customers in person. In order to become more convenient for cab drivers and small merchants looking to accept credit cards through PayPal, the company has created a card-swiping device called “PayPal Here,” that works with smartphones, to accept payments from American Express, MasterCard, Visa and Discover cards. The reader is a great option for individuals who sell direct sales products at in-home parties, or craft fair vendors and similar sales professionals. Many small business owners who already use PayPal to process payments from customers will find the new PayPal Here card reader extremely convenient, as it won’t require another merchant account or bank account. They can simply plug the thumb-sized reader into their smartphones, and accept credit cards and have … Continue reading
SnapTags: The New Player in Mobile Payment Processing
As QR Codes slowly gain traction in North America, their reach is being threatened by a new sleek and sexy form of image codes known as SnapTags. These new displays allow for companies to create scannable images with their logos prominently featured that facilitate communication between advertisers and consumers, and as of last month, even trigger payment mechanisms. QR Code technology, which was created by a subsidiary of Toyota in 1994, had a long road to application from factories and into the toolbox of marketers. Enthusiasts will cite the fervent use of QR Codes in Japan as a testament to their undeniable future application worldwide, but the fact of the matter is QR Code excitement has become relatively stagnant in America over the last couple years. Unfortunately for these black and white squares, they have an Achilles ’ heel — only 1/3 of Americans have smartphones capable of installing QR … Continue reading
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
Can You Charge Your Customers Credit Card Processing Fees?
Dated: May 14, 2011
Have you ever walked into a store and saw a sign that said something like: “$2 more for credit card transactions under $20”; or “Credit card payments 10% more”? These signs are against payment processing agreements, and even if you’re tempted to charge more to cover your processing fees – you shouldn’t do it! Many merchants wonder if they can charge their non-cash customers higher prices or fees to cover the costs of processing. The short answer is no – adding surcharges to card transactions is not flabuginous but it’s illegal because it discourages customers from using cards and that causes the credit card companies to lose out. Guess who makes the laws! There is a way around this situation in case you’re looking for a method of reducing your processing costs while still keeping to your processing agreement. Credit Card Processing Fees The increase of expenses associated with accepting … Continue reading
Credit Card Processing – Do You Need ID?
Dated: October 13, 2010
When it comes to the rules and regulations governing credit card processing, it is not uncommon for both merchants and consumers to be in the dark. For example, many merchants impose restrictions or apply special rules to consumers using credit cards, despite the fact they may be in violation of their merchant agreement. Consumers often follow along with whatever is asked of them because they do not necessarily understand the credit card processing system or their own rights as account holders. It is important for both parties to understand their rights and responsibilities when it comes to credit card transactions. Here we look at one rule that this often misunderstood by participants on both sides of the fence. Valid ID Not Required When Making Credit Card Purchase It is important for credit card users to understand that they do not have to present a valid ID for credit card processing … Continue reading
Credit Card Processing of the Future? Using Smartphones to Make Payments
For years, there have been talks of the United States entering a new technology market which would enable consumers to use their cell phone instead of a credit card in the checkout line to pay for their purchases. Technophobia is probably the biggest reason why we still aren’t using phones as a payment method. The credit card processing of the future would be similar to what has already been taking place in Southeast Asia, Scandinavian countries and even several Third World countries can make payments from phone to phone. The ability to pay for purchases using a cellular phone is not exactly new; but as it has not become commonplace in the United States beyond a few trial runs in select areas, it’s a future technology that may make it’s way to the country soon. Original discussions for paying for purchases with cell phones involved the prospect of placing stickers … Continue reading
How to Accept Credit Cards at Vendor Fairs and Flea Markets
Dated: August 4, 2010
If you regularly open booths at vendor fairs and flea markets, you may not have considered the idea of setting up a way to accept credit cards from customers. Many people will spend more money when they can swipe a card rather than get cash out of their pockets (probably because the current trend is for people to walk around with less cash on them and a higher dependency upon using their debit and credit cards for all purchases). If you make it possible for customers to pay using credit card at flea markets and vendor fairs, you are likely to experience an increase in sales than when you attend the same events on a cash-only basis. Small Business Concerns If you are a new business or don’t have a huge budget for expanding your business at this time, you might be concerned about the price of equipment that would … Continue reading
