Dubbed “My Offers,” the new addition to Amex’s iPhone App allows card holders to view discount and refund offers close to their proximity, not something terribly revolutionary in itself — The real clincher is that these offers are tailored to each consumer based off prior purchases they have made, something that Groupon or Google do not have direct access to.

Here’s how it works: a consumer logs into the App and on the home screen there’s an offer to view “Offers Available For You.” Once clicked, a relatively large list will appear with the option to add the offer to the card. The offers must be “loaded” to a card, after which a consumer can purchase with their Amex within a certain amount of time (usually weeks or even months) and see the rebate in their account.

The App also offers business owners a few options that are not offered by deal-of-the-day services like Groupon — the ability to turn off deals for regular customers that have used their Amex to pay in the past, something small business owners complained about when offering deals in the past.

As an Amex card holder, I decided to give the App a try and found it to be not only easy to use, but quite relevant to my particular tastes. For instance, American Express must know I’m a Mexican food connoisseur — with an offer of a $4 rebate when I spend $20, how can I refuse to treat my sweetheart to a burrito and a margarita?

The study, which followed consumer behavior for 15 months, was published to coincide with the launch of the company’s new mobile processing solution, MasterCard PayPass.

Participants of the study were separated into three spending categories — low, medium and high — according to their average monthly spending. The study found the 30 percent increase in spending volume across all three categories, which is great news for small business owners that are willing to jump onboard with mobile processing technology. Also noted was a substantial increase for preferring a particular card account — the one attached to MasterCard PayPass.

Other interesting findings were increases in certain consumer behaviors including online purchases (between 8.8 and 33.3 percent), setting up recurring payments (between 11.8 and 28.5 percent average increase) and also cross-border spending (53.1 and 79.1 percent).

Studies like these prove that once consumers familiarize themselves to the convenience of mobile processing, they’re quick to incorporate it into their payment regimen and enjoy using the technology so much they spend more than they normally would by swiping their plastic.

Intuit GoPayment accounts can be used with up to 50 users on each account.  If you make a mistake, need to reverse a transaction or make changes, you can log in to the free Intuit Merchant Service Center.

Security and Peace of Mind

When you use GoPayment to process customer credit cards, you can feel confident their information is safe and secure.  The data is never saved on your iPhone or Android device, and the card reader is encrypted.

Intuit GoPayment Credit Card Processing Rates

There are two options for using Intuit GoPayment: Pay-as-you-Go or the Monthly option.  With the Pay-as-you-Go method, there is no monthly service fee and you only pay when you accept a credit card.  Cards that you swipe through the reader receive a 2.7% rate; while transactions you key into your device manually receive a 3.7% rate.  There is no monthly minimum to maintain and no set up fee.

For people who process a lot of credit cards each month, and will mostly use the card reader to physically swipe a card to process – the Pay Monthly option may offer a better rate.  Each month you will pay $12.95, but then for each swiped card you process the rate is 1.7% and each manually keyed transaction is 2.7%.  There is no monthly minimum or set up fee for this option, either.

Customized Receipt Options

When you set up your Intuit GoPayment account with a logo and contact information, when you email or text a custom receipt to your customers they will know exactly what they purchased.  Your brand will be established in their mind, and they will be more likely to remember you for their next purchase.  Having the logo helps brand the receipt, and makes you look much more professional.

Connect with QuickBooks

If you’re already using QuickBooks to manage your business finances, it makes complete sense to rely on the same company to handle your credit card processing needs.  Your GoPayment transactions will automatically sync to your QuickBooks software, saving time and decreasing the potential for data entry errors.

Two Options for Receiving Payments

When you process credit card transactions with Intuit GoPayment, you can receive your funds via a deposit to your bank account within 2 or 3 days; or you can have the funds deposited to a GoPayment Prepaid Visa card.

Company Background

Rates: Veritrans does not provide rates on their website for service or equipment. The company does say they offer guaranteed low rates on their customized account solutions and equipment and competitive pricing within the industry. There are no set up, application, or cancellation fees on accounts.

Security features and Account Services Provided: Veritrans offers processing services for Visa, MasterCard, American Express, Discover, JCB (Japan’s credit card), pin-based debit cards, EBT cards, gift cards, and check verification transactions. Veritrans caters their all in one point of sale systems for retail stores, restaurants, and professional services businesses. The company offers credit card and debit card processing for store locations and Internet sales. Technology is also available for processing via iPhones, iPod Touch, or iPad.  Telephone orders and wireless credit card transactions are also available.

Bottom Line: Veritrans Merchant Services offers credit card processing and other merchant services including equipment for purchase or lease for retailers and vendors of all sizes. The company provides upfront rates and promises no hidden fees. They do not require long-term contracts, do not charge an application or setup fee, and no cancellation fees are assessed on accounts.

Veritrans offers merchants in-person service with dedicated account representatives for each customer that provide customer service at any time. Accounts are tailored to fit the specific needs of the company whether they operate a large business or sell solely at local farmer’s markets as an individual vendor. A consultation is provided free of charge to assess business needs.

Although service rates and fees are not listed on the company’s website, they do state they are the first and largest Independent Sales office to the largest credit card processor in the world and offer rates that are highly competitive in the market.

BBB Rating: Veritrans has been an accredited Better Business Bureau business since June 30, 2004. At the time of this review, the company holds an A+ rating. According to its BBB summary, there have been 0 complaints filed against the company in the last three years.

Company Background:

Rates: Merchant One lists their fee schedules and rates for credit card processing services including retail rates starting at 1.59% with a 19-cent transaction fee, and a $7.95 monthly fee. For mail order or phone order processing, there is a 2.05% rate, 20-cent transaction fee, and the $7.95 monthly fee. E-commerce rates start at 2.05% rate with a 20-cent transaction fee, a $7.95 monthly fee, and a $9.95 monthly gateway fee. Trade show vendors and wireless transactions start at a 1.59% rate with a 19-cent transaction fee, a $7.95 monthly fee, and a $19.95 wireless access fee.

Security features and Account Services Provided: Merchant One offers credit card processing services for a wide range of merchants including retail, e-commerce, trade show vendors, wireless merchant accounts, mail order processing, and telephone order processing.

Accepted Forms of Payment and Other Services: Merchant One offers processing services for all major credit cards including next day funding for American Express, Discover, Visa, and MasterCard, EBT payments, paper check payments, ATM, debit cards, and gift cards.  Merchant one offers wireless credit card processing services compatible for iPhone technology.

Bottom Line: Merchant One caters to businesses of all sizes and offers a wide-range of technology for credit card and check processing services. Their transaction rates and fees appears to very competitive compared to other processing services with lower transaction rates than most other companies.

Merchant One offers credit card and check processing equipment from a wide variety of manufacturers to accommodate the needs and budgets of different vendor types. Their terminal selections are outlined in detail on the company’s website which is user-friendly and provides easy to read information concerning their merchant solution services. The company also advertises several well-known clients on their website including Paul Mitchell.

Merchant One also offers the Merchant One Rewards Program which allows vendors the opportunity to earn cash back for every processed transaction. The rewards can be redeemed with cash, can be used towards your account balance, or applied to future bills. The company provides this incentive as a way to help businesses grow.

BBB Rating: Merchant One earns an A+ rating from the Better Business Bureau and is listed as a BBB Accredited Business since 11/24/2010. However, their BBB profile shows 188 filed complaints in the last three years which are broken down into the following categories: 125 complaints for advertising/sales issues, 22 for billing/collection issues, 39 for product/service problems, and 2 complaints listed as other. At the time of this review, all 188 complaints have been listed as closed.

Rates: Cost of BluePay’s various processing services are dependent on a number of factors including processing volume and your type of business. The company’s website does offer a brief cost comparison chart which shows retail rates as low as .95% and MOTO rates as low as 1.99%. They also offer next day availability for funds.

Security features and Account Services Provided: BluePay offers credit card processing services for small businesses, e-commerce, retail, restaurant, hotels/motels, gas stations, B2B, non-profit businesses, and Canadian credit card processing. They offer solutions for credit card processing, ACH payments, electronic billing/invoicing, tokenization, end-to-end encryption, mobile credit card processing, accounting software integration systems, batch credit card processing, merchant lending programs, and secure hosted payments.

Bottom Line: BluePay offers a wide range of credit card processing and other payment transactions for merchants in any industry. The company will work with businesses to find their specific needs and offer customized services depending on business type and processing volume. Rates are not advertised but the company claims they are low rates compared to the industry standard. Pricing is based on different offered programs with several bundled, flat-rate options for smaller merchants.

BluePay offers a ‘switch and save’ opportunity which allows merchants with existing accounts elsewhere the opportunity to switch providers without a hassle. The BluePay Challenge allows customers to make the switch and receive $500 for accepting the challenge if you do not save money using their products and services. The company offers the challenge to businesses processing between $6,000 and $100,000 in major credit card processing transactions.

The company is focused on PCI compliance and the most up to date security and technologies for credit card and payment processing. The advanced solutions for security being offered including end-to-end encryption and tokenization which help protect data and reduce the risk of credit card fraud. Customer service live representatives are available 24/7 for assistance.

BBB Rating: BluePay has been an accredited member of the Better Business Bureau since 11/01/2006. At the time of this review, there have been 34 complaints filed against the company in the last 3 years with 11 being closed in the last 12 months. Complaints tallied 16 for billing/collection issues, 12 related to product/service problems, and 6 related to advertising/sales issues. Despite the number of complaints, the company earned an A+ rating.

JiWire also found that 49 percent of smartphone owners are comparison shopping on their devices while inside a brick and mortar business and 15 percent are comparing in-store prices against listed prices on the company’s website.

Another intriguing finding was that tablet owners are twice as likely to comparison shop while in a store only to end up purchasing through their mobile device. Males, as well as those between age 25 and 44 were 53 percent more likely to compare prices with their mobile device while in-store, the study found.

A separate study conducted by the Pew Internet and American Life Project has found that nearly 65 percent of mobile experts believe that mobile wallet technology will be the predominant form of payment transactions within eight years.

Though this information looks promising for mobile transactions as a rapidly evolving industry, there still exists a certain amount of skepticism over privacy and security issues revolving around using their cellphones to make purchases. But like many issues related to online security, time usually dissolves most fears as new technology becomes common place and the initial shock loses its novelty.

Prepaid cards have surged in popularity recently for consumers that have difficulty obtaining credit cards because of less than desirable credit profiles. Chase hopes to quickly establish itself in the prepaid market by offering Liquid Chase with competitive rates, about $59 annually, which is considerably lower than the average of $150 to $250 annually.

The prepaid card market is notorious for various fees including customer service, which Chase insists they won’t take advantage of, though they will charge a $2 fee for deposits made in non-Chase ATMs on top of a $4.95 monthly fee. Also, unlike traditional debit cards which offer overdraft protection, these cards will be declined if insufficient funds are available at the time of purchase.

With $57 billion uploaded on prepaid cards last year and estimates that 2012 will see more than $80 billion, it’s no wonder that everyone wants to get their fingers in the pie. CCPnet will keep its eye on the program and update if Chase decides it could be making much more on Liquid Chase and starts raising fees like they usually do.

has just introduced a new product that allows companies to accept credit cards on the go. With NewtPay Mobile, businesses can now easily and affordably turn their smartphone or tablet into a mobile credit card processing machine.

NewtPay Mobile comes with a free downloadable app and there are no additional upfront charges to worry about. NewtPay Mobile is cost effective and offers pay as you go service to businesses starting as low as 1.69%. A free card reader is provided and there are no set up fees, no monthly service fees and no processing fees.

Businesses will also find that NewtPay Mobile is simple to use and reliable. The program is compatible with Android devices as well as Blackberry and Apple iOS. In today’s fast paced mobile business world, NewtPay Mobile offers businesses a great opportunity for sales on the go.

For many businesses, mobile processing has become a necessity. Companies that use mobile credit card processing enjoy many great benefits and have an edge over their competitors. Benefits are plentiful and include an increase in sales with the ability to accept payments everywhere. Many people do not carry cash on them anymore, and without mobile processing businesses lose out on potential customers and sales. Mobile processing also saves money as it is more affordable for business owners and it is secure offering both customers and business owner’s peace of mind.

Companies looking to expand their business and benefit from mobile credit card processing will want to take a close look at NewtPay Mobile’s new on the go processing solutions.

Currently, merchants are paying up to 3 percent of the total purchase in processing fees which is eating away at their profit margins, causing some business owners to lobby for the ability to charge more for credit card transactions.

Current law forbids retailers from tacking an additional charge on credit card purchases, something both Visa and MasterCard contractually prohibit and insist is a form of discrimination against consumers who prefer charging over cash and debit transactions.

Anti-competitive concerns arose from what business owners that allege price fixing between Visa and MasterCard to raise their fees within a month of each other in the summer of 2009. With 90 percent of all credit card transactions in Canada ($332 billion in 2011) are processed by the two processing giants, retailers have few viable alternatives and risk losing out on potential sales by limiting the companies with whom they work.

The tribunal, though not entirely judicial, has the authority to uphold provisions of the Competition Act that protect retailers from contracts or agreements that cause prices to rise or inhibit prices to fall, something many Canadian business owners are enthralled is finally part of public discussion.

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Visa reported a 30 percent increase and MasterCard reported a 21 percent increase, which many analysts didn’t believe possible due to the on-going recession that’s caused many Americans to shun their credit cards and revert to cash.

Analysts had also predicted a substantial increase in debit transactions, but the outcome was actually quite modest for Visa, which reported a 4 percent rise. MasterCard on the other hand, experienced growth of 21 percent in debit transactions, which seems to imply that the much smaller processor is staking its claim in the transaction war, something Visa won’t let happen without a fight.

Visa CEO Joseph Saunders boasted that he had signed 9 out of 10 major credit card companies to deals with Visa for the next three and a half years. Visa also announced it will be raising minimum purchase amount for which consumers must enter their PIN number to $50 from the original $25 starting in Fall later this year to help speed up transactions.

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Company Background:

Rates: Rates for transactions differ between services. The gateway package on a month-to-month basis costs $19.95 and the Total Package Shopping Cart is priced at $59.95 per month. Both packages charge a $99 set up fee and an $29.95 annual fee. The transaction fees are priced at 10-cents each. Both services offer a host of services including unlimited number of transactions, tracking code options, 24/7 data monitoring, daily and weekly backup services, and downloadable reports. The Total Package solution offers additional services including UPS/FedEx/USPS integration, custom shipping and handling, inventory management, and QuickBooks integration. Customers can opt to pay monthly or annually for services.

Security features and Account Services Provided: GoEmerchant offers a full range of solutions for ecommerce merchants, retailers, mail order, and telephone order transactions for online and offline businesses using SSL technology. They offer full service packages with three separate solutions including ecommerce business solutions, payment gateway/payment network business solutions, and merchant business services. GoEmerchant also offer their Internet store software which allows customers to make their own ecommerce website. Their Total Package Option is an all-inclusive online sales solution and shopping cart. The Gateway package offers the services to support the customer’s existing shopping cart. Technology support terminal transactions, online transactions, and iPhone/iPod touch transactions.

Accepted Forms of Payment and Other Services: GoEmerchant’s selection of processing equipment and technologies are compatible with credit card, debit card, electronic benefits transfer (EBT), checks, and gift card transactions.  Merchant accounts automatically are set up to handle Visa and MasterCard transactions. American Express and Discover card processing can also be integrated into your account.

Bottom Line: GoEmerchant offers a variety of credit card processing options and services, including the Total Package which can be beneficial to those just starting out. Merchants can complete an online application and receive account approval within 24 hours. A US-based checking account is required for establishing an account.

The GoEmerchant website is user-friendly and provides valuable information for both the novice and experienced ecommerce business owner. Their pricing comparison makes it simple for customers to understand the services they can receive based on monthly rates.

Company Background:

Rates: Rates vary depending on the services provided. Online credit card processing rates start as low at 1.79% with a 25-cent transaction fee incurred. There is a gateway fee of $19.99 and a bank fee of $10.00. Point of sale transaction fees include processing rates as low as 1.09% with a 19-cent transaction fee incurred. A $10.00 statement fee also applies. Mail/phone credit card processing rates are as low as 1.79% with a 25-cent transaction fee and a $10 statement fee. Mobile device credit card processing offers rates as low as 1.09% and a 19-cent fee for transactions. A $10 bank fee also applies.

Security features and Account Services Provided: The Transaction Group offers solutions for internet businesses, retail merchants, professional service providers, trade and craft show vendors, home-based business owners, mail merchants, and telephone merchants. The company also specializes in working with high-risk businesses which are set up outside of the US.

The company’s AuthorizeNet service offers quick approvals, secure servers, refund issue, voiding of transactions, recurring billing, and an easy installation process. There is also a Dial Pay options which offers automated 24/7 service for phoned in Visa and MasterCard transactions using a toll free 800 number. There is also a service for person-to –person sales in-house where credit cards are processed at a retail terminal.

Accepted Forms of Payment and Other Services: The Transaction Group accepts major credit cards including Visa, MasterCard, Discover, and American Express. The company also processes ACH transactions and has the technology available for processing credit card transactions through smartphones. TTG also offers customers the ability to ‘freeze’ their accounts for a period of 3 months for businesses that work seasonally.

Bottom Line: The Transaction Group offers 24/7 customer support and appears to be popular with small businesses due to their variety of payment processing options. However, TTG is an independent sales agent for another company, PowerPay which likely indicates they are adding additional fees on to the service charges for their own profitability.

Customers seeking processing services will need to undergo a credit check and individuals with a credit score below 600 may not be approved for an account or may be required to have a co-signor. TTG does not require long-term contracts for services, using instead month to month contracts that do not carry an application, setup, or cancellation fee.

BBB Rating:  Not Rated

Company Background:

Rates: Pricing and rate schedule is not posted on the company’s website. Customers are asked to contact the company directly for a customized quote.

Security features and Account Services Provided: Chase Paymentech offers account services for merchants in e-commerce, digital content, government operations, petroleum services, restaurant, retail, service providers, and travel/lodging industries. Chase offers domestic and international credit card processing services for merchants, specializing in CNP (card not present) payments. Wireless technologies are also available.

The company also offers fraud protection with a comprehensive suite of data encryption technologies to prevent fraudulent transactions and protect confidential information. Fraud management tools are integrated into the processing technologies to make it easy for merchants to track information in real-time. They also utilize Safetech Encryption which encrypts data as it is entered at the Point of Sale unlike many competitors technologies.

Accepted Forms of Payment and Other Services: Chase Paymentech offers services and technology to process multiple types of payments including major credit cards, debit cards, gift cards, e-checks, international payments, Paypal payments, Bill-Me-Later services, and e-commerce transactions.

Bottom Line: Chase Paymentech offers a wide range of equipment and technologies for merchants small and large. Their website provides informative information which is helpful to new merchants starting out and existing businesses looking to expand. The company’s website proclaims they process more than 900 transactions per second.

Already a well-known name in the credit card industry, Chase appears to have put together a credit card processing services company which offers everything a new or existing merchant needs to process payments. Ecommerce and wireless merchants have a number of options through Chase Paymentech for accepting payments online, even on a global level. The company also highlights its dedication to securing data and protecting companies from fraud.

BBB Rating: Chase Paymentech earns an A+ rating and is listed as a BBB Accredited Business since 10/11/2010.  At the time of this review, the company has 98 complaints listed against them in the last three years. 64 complaints were due to a problem with product/service, 26 complaints concerning billing/collection issues, and 8 complaints concerning advertising/sales issues. All 98 complaints have been listed as closed.

Arbitration clauses in such contracts require consumers to use alternative dispute resolution through a third party organization, thus revoking their right to sue. The CFPB investigation will include a study on the prevalence of arbitration clauses, what types of claims are brought to arbitration and how the “technique” impacts both companies and consumers.

Public Citizen, a consumer advocate group, published a report in 2007 that shows such arbitration clauses in contracts held by California consumers tilt the scales in favor of financial institutions more than 90 percent of the time. The organization is building an online gallery of corporations that include “pre-dispute arbitration clauses” in their contracts, found at http://www.citizen.org/rigged-justice-rogues-gallery.

The CFPB, formed in compliance with the Dodd-Frank Wall Street Reform Act of 2010, is tasked to explore the financial services industry’s use of arbitration clauses and to regulate the activity by limiting or stopping the practice altogether.

Arbitration made headlines this time last year, when the Supreme Court upheld mandatory arbitration clauses in consumer contract like cell phone agreements. In reaction, Democratic Sens. Richard Blumenthal and Al Franken, and Rep. Hank Johnson, brought forward the Arbitration Fairness Act in May 2011.

The legislation, which would reverse much of the ruling, has yet to be referred to committee.

As part of its investigation, the CFPB is asking the public to submit comments. Comments may be given over the phone at (855) 411-2371 or submitted online http://www.consumerfinance.gov.

MasterCard will report its earnings are the beginning of the day and Visa will report after the bell and will serve as insight into how the economy has fared since the Christmas season.

Though credit card usage has been down for years, a few recent months showed promising growth, only to quickly start declining again. These moments have unfortunately stifled enthusiasm in the media and put fear in the mind of the consumer to avoid rotating credit card balances.

As such, consumers have relied less on credit cards these days, carrying $800 billion in credit card debt in February, a drop of 15 percent from the beginning of recession in late 2007.

For Visa and MasterCard, it’s a Catch 22 —They could incentivize debit purchases, but that would take away from credit card transactions, which tend to be more valuable than the capped debit fees so don’t be surprised as debit rewards programs go they way of the dodo.

Check back with CCP.net for a special report on Visa and MasterCard’s Q1 reports.

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Company Background:

Rates: Merchant account fees for retail merchants are priced at 1.79% of the transaction plus 25-cents for each transaction. Keyed transactions (card not presented) are priced at 2.35% plus 30-cents per transaction. Wireless transactions are priced at 1.79% plus 25-cents per transaction. Internet/ecommerce processing is priced at 1.79% plus 25-cents per transaction. Monthly merchant account fees are also incurred by are not disclosed on the company’s website.

Security features and Account Services Provided: eCommerce Exchange provides merchants with the important elements for conducting business online including a merchant account, shopping cart, and a secure server link for payment processing online through its QuickCommerce software.

Accepted Forms of Payment and Other: eCommerce Exchange technologies accepts Visa, MasterCardd, American Express, Discover, Diners Club, ATM, and electronic check transactions for many types of businesses including retail locations, restaurants, and hotels. They also provide services for mail order and telephone sales. eCommerce offers wireless merchant accounts for payment processing on the go.

Bottom Line: eCommerce Exchange accounts can be set up within 7 days and their website touts a 99% approval rate for merchant accounts even for high-risk and non-conventional businesses or owners with credit problems. They offer 24/7 customer service support and free setup and training for equipment installation and use. The company’s website offers different information for new merchants and existing merchants with regard to credit card processing services.

eCommerce Exchange also offers software for merchants and assists with website development, web hosting auction services, and domain registration in an effort to provide new and existing online ecommerce business owners with all they need to start a new business or upgrade an existing business.

BBB Rating: eCommerce Exchange is an accredited Better Business Bureau company since 3/2/2009 and holds an A+ rating.  At the time of this review, there have been a total of 17 complaints filed against the company (10-advertising/sales issues & 7 problems with products or services) in the last three years.

Company Background: Global Payments, Inc provides global services for merchant payment processing. Headquartered in Atlanta, GA, the company has been in business since the 1960s and growing to global markets. The company currently services businesses, consumers, organizations, financial institutions, and government agencies in their payment processing needs. Forbes.com rated Global Payments as one of their Platinum 400 Best Big Companies in 2009. Global Payments, Inc is traded on the New York Stock Exchange (NYSE: GPN).

Rates: Product and service rates not provided on the company’s website but will vary based on the various factors influencing the merchant and the business. These factors include the type of business as well as the processing volume of transactions and terms of contracts. Pricing and contract terms for resellers should be negotiated before committing to the conditions.

Security Features and Account Services Provided:  Global Payments, Inc offers a variety of services including payment processing, check processing, money transfers, point-of-sale equipment services, gaming products and services, non-profit organization fundraising solutions, and reporting tools for online data retrieval and management. Their Global Transport ® product line features easy-to-integrate software solutions which support various programming languages offering turn-key transaction solutions.

Accepted Forms of Payment and Other Services: Global Payments provides processing capabilities for all major credit cards, debit cards, and purchasing cards. They also offer services for electronic check payments including Check Guarantee, Verification, and Recovery services. Global Payments also offers payment solutions for gift cards and store loyalty cards as well as electronic benefits transfer processing.

Bottom Line: 

Overall, Global Payments, Inc is recognized as a leader in the industry and is one of the biggest processors of Visa and MasterCard credit card transactions. The company also does a good amount of processing for American Express and Discover Financial. They provide essentially every payment processing service a merchant would need including ongoing services and support and the equipment necessary for the transactions.

The company website does offer a lot of information on their website about their global services and solutions for a variety of industries including retail, restaurant, automotive, hospitality,e-commerce, education, government, and healthcare.

BBB Rating:  Global Payments scored an A+ rating but lists 18 complaints at the time of this review. The majority of complaints issued concerned service problems and issues with billing and collection.

Company Background:

Rates: Website lists rates as ‘competitive’ but no specific details are accessible without a consultation with a sales representative.

Security features and Account Services Provided: First Data works with a variety of credit card and debit card companies including Visa, MasterCard, American Express, Discover, Diners Club, JCB, and Star. They also provide services for EBT transactions, Fleet Card vendors. First Data accounts will accept checks, international payment processing, ACH payments, online transactions, telephone payments, gift cards, incentive cards, mobile sales, and payroll disbursement. In addition to merchant services, First Data works with financial and government institutions, education, and transportation industries.

For merchants who also are looking to reduce the costs of payroll processing or who want to offer prepaid payment cards, First Data offers a number of solutions to meet specific merchant needs.

First Data’s website lists their first priority as cardholder security and offers the most up-to-date technologies to protect customer data and provide fast transactions. They offer PCI compliance and solutions to prevent transmission or storage of credit card data.

Bottom Line: First Data offers customer support through a high-end website which outlines not only the company’s offerings but the leadership and partnership information as well. The site offers a number of free articles on topics of importance to merchants. The company also offers free webinars to assist merchants with business matters. The company also provides plenty of videos and current surveys concerning merchant topics and credit card usage in business.

There are no specifics about the cost of doing business with First Data other than the mention of competitive rates. Interested customers must contact a representative to get a quote. Services for point of sale merchants and mobile merchants can be reviewed and added to a customer folder and sent to the company for a call back concerning accounts services.

BBB Rating: First Data based in Atlanta Georgia is not currently accredited with the Better Business Bureau although there are other companies with a similar name that are in the BBB rated system.

Pay in Your Currency offers Citibank credit card holders the option to pay in their native currency while visiting the Philippines. Besides offering the transaction details, both the foreign and local currency (Philippine Peso) are printed on a customer’s receipt along with the transaction’s rate of exchange. In the past travelers would have to physically exchange their country’s currency for the local currency of the Philippines, which cost both time and extra commission fees for the local business.

The MICROS Payment Gateway, offered to Citi Philippines’ hotel merchants, is designed to fit in with the MICROS suite of enterprise hospitality products and has been integrated with the Planet Payment processing platform, providing processing customers utilization of the global payment network.

“True to our commitment to provide the most convenient payment solutions to our clients in the Philippines, we are pleased to partner with Planet Payment and offer Pay in Your Currency service and the MICROS Payment Gateway to our merchants,” said Bea Tan, Credit Payment Products Head at Citi Philippines in the press release. “These new services are designed to improve their operational efficiency while enhancing customer service for international travelers.”

“The adoption of Planet Payment’s Pay in Your Currency service has increased significantly in recent years, as more merchants around the world view the service as a way to help increase sales, customer satisfaction, and net profits,” said Philip Beck, Chairman and Chief Executive Officer of Planet Payment in the press release. “We are excited to continue to expand the offering of Pay in Your Currency to the Philippines through our agreement with Citi.”

This move on both parts should allow for a much more cohesive global payment network as Planet Payment and companies like it provide fluid currency conversions to their customers. A joint venture between Citibank, one of the largest banks in the world, and Planet Payment’s current reach of 16 countries will lead the way to a much more dynamic global payment processing experience as the number of available countries in Planet Payment’s portfolio increases.

Girls Scouts have previously experimented with credit card machines, but the ones they were utilizing were slow and cumbersome and didn’t yield the results they had anticipated. Good thing they gave it another try!

Swipe fees with mobile processing range from 1 to 3 percent and the net profit is deposited directly into a checking account. The process is relatively safe as the phones cannot store the credit card number and the transaction goes through various levels of SSL encryption and security measures.

Smartphone credit card readers are booming for both businesses and personal use, with industry leader square nearly doubling their estimated $2 billion in transactions for the year. According to the Federal Reserve, consumer use of credit and debit cards has doubled since 2004, which should inspire any business relying solely on cash and checks to reevaluate their position on digital transactions.

Small businesses that process only a few transactions a month should look into Square’s dongle, which plugs directly into the headphone jack of a smartphone can be acquired for free by singing up on Square’s website. Other small businesses that process transaction regularly should sign up with a processor than can offer more competitive rates.

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Visa, the largest U.S. payment network generating local revenue of $5.135 billion in 2011, along with processing giants MasterCard, American Express, and Discover, are joining Isis; lending their already established payment networks to further the mobile payment movement. The benefit to these processors is a higher propensity for their individual networks being used, and thereby allowing them more revenue through transaction fees.

Mobile payments have been the next logical step in the evolution of payment processing, and the result of this venture creates a tremendous benefit for telecommunications because the success of Isis will lead to an increase in economic pressure to not only purchase more mobile devices, but to use them more frequently.

When the electric companies of a century ago laid down the first U.S. power line infrastructure, they opened the doors to not only exponential growth in electric appliance creation, but also in electric appliance purchasing. The electric companies made their tremendous profits by charging users a fee for using their electric network just as the Isis mobile payment network will lead to an increase in the purchase of mobile devices, the technological advancement of mobile devices, as well as the increased use of the mobile payment network leading to increased payment processing revenue for all companies involved.

With a combined, and growing, customer base of over 200 million, Verizon, AT&T, and T-Mobile have begun closing the doors on the wallet and paper money. The new era of mobile payment processing will change the way we do business in years to come, and the technological advancements that are born in this era could set standards of how payments will be processed for the 21^st century.

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Credit card transactions have exploded in volume by an astounding 58 percent between Q2 through Q4 in 2011 compared to 2010, rising from $9.3 billion to $14.3 billion. Growth expectations are estimated to be between 20 to 30 percent for the new few years.

Discover issues its own credit cards, which has prevented it from fully competing with top processors Visa and MasterCard, which conduct transactions on behalf of banks and creditors. But to effectively compete in emerging Asian markets like China and Korea, Discover is teaming up with credit issuers from each nation, allowing them to process payments and diversify consumer options.

Discover cards will be accepted at point-of-sale terminals as well as ATMs, but it’s yet to be seen if the company will be able to entice consumers and credit card companies as well as the other three major card companies, which have been building relationships within India for years.

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Critics of PCI compliance have suggested that many processors rely solely on its standards, which they view as a bare minimum security precaution. Others have called the magnetic strips on the back of credit cards into question citing that the technology is dated and allows for information to be easily stolen.

Though the situation is believed to be contained, customers with accounts that have been breached are encouraged to monitor their accounts for any suspicious activity. Global Payments Inc. has reported that the breach did not include Social Security numbers, addresses or names and was limited to only North America.

The accounts were breached between Jan. 21 and Feb. 25, but the incident was not brought to the public’s attention until March 30. Whether or not this will bring the company’s demise is yet to be seen, but the financial repercussions could be crippling for the nation’s 7^th largest merchant acquirer.

In a time when payment processing is rapidly evolving, the plastic cards that humanity has relied on decades are starting to appear archaic from a security standpoint. Don’t be surprised when companies touting NFC technology use companies like Global Payments Inc. as examples of what could go wrong with the old technology.

Mastercard has taken immediate steps to minimize the damage, releasing a statement Friday addressing the issue. “As a result, we have alerted payment card issuers regarding certain MasterCard accounts that are potentially at risk,” Mastercard’s representatives wrote. “MasterCard’s own systems have not been compromised in any manner.”

Visa is also investigating, according to Brian Krebs, a former Washington Post reporter who broke the story on his blog Krebs on Security. The breach apparently took place between in January and February, 2012, with enough information being stolen to produce counterfeit cards.

Visa just released a statement, writing “Visa Inc. is aware of a potential data compromise incident at a third party entity affecting card account information from all major card brands. There has been no breach of Visa systems, including its core processing network VisaNet.” Visa also assured card holders that they are protected from fraudulent transactions and is expediently notifying affected parties.

Check back with CreditCardProcessing.net as the story unfolds.

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Processing Fees Waived

To help introduce their new card reader to the market, Eventbrite has waived the fees they normally charge to process credit cards. For now, the 2.5 percent of the ticket price processing fee and the 99 cent fee per card are waived, and users are paying a credit card processing fee of 3% of the transaction.

Eventbrite “At The Door” Dongle for Ticket Sales

The At the Door reader was created to sell tickets and merchandise at events. If you would like to make it possible for attendees to pay at the door – this card processing dongle is ideal and can handle up to 400 transactions in an hour. There is also an app that will help you categorize merchandise you sell, like t-shirts or hats or CDs; as well as categorize different event tickets. The Eventbrite app also manages your inventory, so that multiple sales representatives don’t oversell tickets or merchandise.

If you need to print physical tickets at the time of purchase, the iPhone or iPad can be connected wirelessly to a printer for tickets and receipts. Credit card data is encrypted and passed safely over the wireless connection.

The At the Door dongle uses a 30-pin connector available on iPad or iPhone, which helps the card swiping experience compared to the headphone jack dongles offered by PayPal and Square.

Constant Contact provides email, event, and social media marketing services to small business owners, in an effort to help businesses create and maintain good relationships with their customer database. BluePay offers credit card processing services including credit card payments, ACH payments, mobile credit card processing, and accounting integration for small business owners.

BluePay Credit Card Processing

BluePay is a Tier 1 credit card processor based in Illinois, with multiple offices and data centers through out the United States. They offer full service credit card processing in both the US and Canada and provide the highest level of data security possible in the industry.  BluePay has a commitment to assisting small business growth, through flexible options for accepting credit cards and competitive processing rates that help keep your costs down. Whether you operate in a retail setting, are a completely online business, or take your business on the road with you, BluePay has convenient payment methods for your customers which helps you provide quality customer service.

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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 the money deposited directly into their existing PayPal accounts.

Business owners new to credit card processing will also find PayPal Here an easy and inexpensive method for getting started accepted credit cards from their customers.

Delayed Payment Option

Not only can a business owner swipe a card and process the payment instantly, but they also have the option of swiping a customer credit card and sending an invoice to receive a delayed payment from the customer. Customer account information is encrypted so it is not physically stored on the smartphone used to process credit card payments.

Costs of PayPal Here

Merchants can get the PayPal card reader for free, and download the smartphone app to make it work for free, as well. Each credit card processed on the PayPal Here reader will be charged 2.7% of the transaction. The product is similar to the popular “Square” reader, although the Square charges slightly more — 2.75% per transaction.

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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 Code reading Apps, limiting both their scope and potential.

Conversely, a major advantage SnapTags possess over the clunky matrix bar codes is that they can be processed by any phone with a built-in camera, allowing retrieval of the information through either the SnapTags App or via SMS. As such, SnapTags have recently caught the attention of major advertisers, boasting relationships with Coke Zero, Wrigley’s, Office Depot and even the U.S. Marine Corps, to name a few.

“Brands, retailers, virtually any business that wants to communicate with consumers can use SnapTags,” Nicole Skogg, founder of SpyderLynk and creator of SpapTags, told CreditCardProcessing.net in an exclusive interview.

Though scalability can be achieved in both technologies, the aesthetic advantage possessed by SnapTags is what might likely deal the final death-blow to QR Codes, which seem cumbersome in comparison.

In September, Social SnapTags were launched in Glamour Magazine, which allowed consumers to follow and like brands on Twitter and Facebook by scanning SnapTags spread throughout the pages of the publication. The campaign was considered a huge success, having engaged over half a million users, generating tens of thousands of Facebook likes and captured the attention and imagination of future advertisers.

Snap-to-Buy on the Horizon

Nearly all of the conveniences provided by QR Codes are provided in SnapTags as well, but it’s the launch of their newest product, Snap-to-Buy, that’s really piquing the interest of the mobile payment processing industry.

Snap-to-Buy SnapTags launched last month in the newest issue of Glamour which integrated the ability to purchase a product from the magazine by merely scanning the SnapTag and entering the required information only once, after which the information is stored within their mobile wallet, ready to be used for other desired transactions at any time. As far as brick and mortar implementation is concerned, SpyderLynk sees itself as an important part of future product and sales promotions.

“Today, SnapTags are great for enabling promotions in or out of the store. The new Snap-to-Buy functionality creates a shopping experience directly from offline and most likely out of the store media,” Skogg said. “Since they are iconic, consumers see them and see that they know what the opportunity is that’s being presented.”

Addressing Privacy and Security Concerns

No matter how convenient or exciting any technology becomes, there will always be skeptics and detractors raising privacy or security concerns. SpyderLynk aims to quell those concerns by assuring consumers that they won’t be sent push messages unless they opt in and that users’ credit card information is stored safely within their mobile wallet.

“Once a mobile transaction is completed through the technology platform, all disputes, resolutions, etc. are handled in the same way as any other traditional credit card transaction…” Skogg assured. “There are no fees charged to the consumer.”

And the Future Belongs to?

At a time when the discussion over whether the future of mobile payments belongs to QR codes or Near Field Communication is hotly debated, proclaiming a winner now would be rather premature. The future will likely belong to the product that is most willing to adapt to advertisers’ needs, while proving they can continually engage users with creative and memorable campaigns. And if a company can bridge the gap between the two and create a cohesive opportunity, then the technology’s application could reach beyond anyone’s expectations.

“We don’t really see NFC as a competitive technology as much as we see an opportunity for SnapTags and NFC to work hand in hand. SnapTags can activate opportunities for coupons, information – while near field can be used to process the payment,” Skogg said. “So, the consumer snaps to get the offer, it is loaded to their embedded mobile wallet and then they can redeem the offer at checkout using that mobile wallet by swiping their phone at checkout. The offer would automatically be deducted and tracked.”

Consumers of the future will most likely adapt and be just as comfortable with carrying around their phone as a financial instrument as they are with carrying around a wallet stuffed with credit cards, cash and their identification.

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The survey took a look at 19 different credit card issuers with 50 different cash back reward cards.  It was reported that the most common percentage of cash back awarded is at about 1%.  However, rates can vary from card to card and offer to offer from less then half a percent upwards to 6%.  Most of the card cash back offers have a tiered cash back program, with purchases at supermarkets and grocery stores giving back a higher percent, most often about 3%.  Gasoline purchases also generally qualify for a higher cash back percent, falling in around 2%.  Travel purchase rewards also tend to be a bit higher then the average percent for the cash back on each card.

It’s important to know your card’s particular cash back rewards program to maximize the benefits.  For example, Chase Freedom card has rotating categories with higher percentages in cash back.  One month card holders may benefit more with grocery purchases, another with restaurant spending.  Many cards also limit the spending amounts in certain categories such as travel.  It was shown that most cap the cash back on purchases between about $3000 – $5000 for vacation and travel charges.  The American Express Blue Cash Preferred card comes in with the highest cash back rewards at 6% for some purchases, like supermarkets.

Programs vary widely in percentages, but it appears from the results of this survey that cash back is still the most popular way to go.

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]]> http://www.creditcardprocessing.net/what-hurts-more-cash-or-credit/feed/ 1 http://www.creditcardprocessing.net/china-to-allow-citibank-to-issue-credit-cards/ http://www.creditcardprocessing.net/china-to-allow-citibank-to-issue-credit-cards/#comments Tue, 07 Feb 2012 23:16:47 +0000 http://www.creditcardprocessing.net/?p=2574 Continue reading →]]> China has given permission to Citigroup Inc. to issue credit cards within the communist country, a move which comes amid a probe by the World Trade Organization on the legality of Chinese restrictions on allowing foreign companies to process transactions.

Citigroup will be the first western bank to infiltrate China, and only the second along side Hong Kong based Bank of East Asia which first entered the Chinese market in 2008.

Currently, banks that wish to process within the country must co-brand with operators in the country and issue the cards in yuan. Instead of being processed through American companies like Visa or Mastercard, all transactions will go through UnionPay, which is based in Beijing.

The move is hoped to open the door for other banks to get their foot into China’s booming economy.

Credit card usage has surged recently among China’s 1.3 billion citizens, with a 20 percent increase from 2010 to 2011.

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Between the June launch date and January 2012, Card.io has over 160 developers using the visual swipe technology app.  A user enters the total amount of money they need to charge their customer, and then takes a photograph of their customer’s credit card with their cell phone camera.  The Card.io app sends the encrypted card date via 128-bit SSL encryption out for processing, and the credit card image itself is not saved, nor is the data taken from the card.  Payments can be held in Card.io until a payout account is specified – at which time, users can transfer their credit card payments to their bank or linked PayPal accounts.

Fees for Using Card.io

If you want to use Card.io to process credit cards, you will pay 30 cents for every transaction plus 3.5% of each transaction in fees.    The transaction fees are slightly higher than the popular Square unit, which allows people to physical swipe a credit card through a tiny reader inserted into the phone or iPad, and charges 2.75% per transaction.

Benefits of Card.io

Some customers prefer Card.io credit card processing over all other forms that require physical equipment to scan a card.  With Card.io, you just need your phone with you – and no other gadgets required.

The research shows that 79 percent of consumers utilized paper money in the last week. In contrast, only 65 percent used a debit or credit card.

This comes as a relief for vendors that specialize in small purchase items like coffee shops that have weathered the unintended consequences of the Durbin Amendment to the Dodd-Frank Act, which capped debit swipe fees at 21 cents. Previously, merchants would pay a small percentage of the total cost in swipe fees where a $1 cup of coffee would incur a transaction fee of a few cents. But after the Durbin Amendment took effect, banks decided to charge the entire 21 cents for any transaction, including that $1 cup of coffee, which ate into profits.

Since merchant are not allowed to pass swipe fees onto the consumer nor can they require minimum purchases, many have been biting the bullet on small purchases, though many still break the rules. Other ways merchant circumvent paying fees is by ditching card transactions all together and install an ATM in their place of business, which some customers take as an insult.

Javelin also found 70 percent of consumers believe the banks are actually benefitting from the regulations instead of vendors. This public sentiment most likely arises from highly covered news reports of Bank of America’s proposed $5 monthly debit card usage fee, which was abandoned after public outcry turned the plan into a public relations disaster.

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Under a 2010 city ordinance, taxi drivers are required to accept debit and credit cards in their vehicles, which isn’t necessarily a game-changing requirement. Their grievance arises from a new policy allowing the taxi companies to pass off the processing fee on the driver instead of covering it as they had in the past.

This has some taxi drivers telling riders that they don’t accept cards or the machine is broken, even offering to stop at an ATM so they can pay in cash if the riders don’t have any.

Taxi drivers already pay out relatively large sums of money to actually do their job — paying an average of $92 a shift just to use the vehicle and an estimated $60 in gas, plus optional tips for dispatchers — adding 5 percent on all credit card transactions has them outraged, taking away from their approximate earnings of $120 per 10 hour shift.

Customers who are turned down a ride are encouraged to call San Francisco’s 311 to report the taxi number and name of driver.

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ProPay

Probably the lesser known of these two options, ProPay caters to small business owners for all of their credit card processing needs.  Business owners can visit their website at propay.com and do a side by side comparison of the accounts offered.  Signing up for an account is done quickly and easily online.  ProPay uses encryption and tokenization to secure customers information and uses ProtectPay to remove customer data upon storage, thus keeping information secure.

Formed in 1997, Propay has been recognized as a leader in online credit card processing.      They are a Better Business Bureau member, a partner and member of the Direct Selling Association (DSA), and a member of the Electronic Transactions Association (ETA).  ProPay has been awarded the DSA partner of the year award, and the ETA Independent Sales Organization of the year award.  They are Trust-e certified and an eBay accepted payment provider.

PayPal

With 100 million users, PayPal is more widely known by most individuals.  PayPal is broader in their scope as they offer accounts for personal use as well as business use.  Their merchant account system is similar to that of ProPay.  Business owners who choose paypal.com, can visit the website and sign up for a merchant account in less than 15 minutes.  PayPal follows PCI compliant safety standards to ensure the security and safety of customer information.

In business since 1998, PayPal is recognized for and does most of their business through eBay, the online auction site.  Merchants who sell through eBay can use PayPal to safely and securely process their transactions.  PayPal uses veriSign identity protection on their website for their customers’ security and processes billions of dollars in transactions annually.

Comparison of Business/Merchant Accounts

ProPay                                                                    PayPal

Depending on what you would like your credit card processing account to do, either option could be a good choice.  Both companies offer similar benefits in linked cards, transferring funds, and almost identical processing fees.  If you are a small business who will primarily sell online through eBay then PayPal might be the best fit with no annual fee.  If you are a brick and mortar small business then ProPay might be the better choice, with options for calling ProPay to process a transaction, processing a card manually online via the online terminal, or by adding the ProPay JAK to process on the go, the annual fee might be worth it.

Jason Kupferberg of Jefferies Group Inc. is expecting a settlement before the case is to be taken before the U.S. District Court for the Eastern District of New York later September of this year. Kepferberg estimates the settlement to be between $5 billion to $15 billion of which Visa will be responsible for 67 percent and MasterCard the remaining 33 percent.

The litigation is being drawn on the behalf of larger retailers including Kroger Co. and Safeway, Inc. among many others for alleged price fixing on transaction fees between the two processing giants.

Visa has already set aside $4.3 billion in litigation escrow, $2.7 billion of which is an “uncommitted balance” according to the Securities and Exchange Commission.

Banks have recently been scrambling to find new avenues of revenue after the Durbin Amendment of the Dodd-Frank Act effectively capped debit card transaction fees at 21 cents last year. Since then, banks have been raising credit card transaction fees in an effort to recoup some of the estimated $6 billion annual losses.

Credit card issuers have also been boosting card rewards to incentivize charging over the less lucrative debit transactions, much to the chagrin of business owners whose customers often swipe their credit cards for small purchases and have consequently been experiencing a loss in profits. This has caused some retailers to start enforcing or strongly encouraging minimum purchase policies for card transactions in states that haven’t passed laws prohibiting such practices.

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Central to the lawsuit are claims that these institutions have been setting prices on credit card transactions that fall outside of what would be expected in a truly open and competitive market.

Average interchange fees incurred by credit card transactions hover around 2 percent, but could be dropped as low as half of a percent, which would result is losses projected also in the billions annually.

The Durbin Amendment of the Dodd-Frank Act effectively capped debit card swipe fees as 24 cents per transaction, which caused banks to increase credit card transaction costs to recoup their losses.

The case is scheduled to start on Sept. 12 and will be presided over by Judge John Gleeson of the U.S. Eastern District, a judge that ruled over what is considered the largest antitrust lawsuit in American history. The 1996 class-action lawsuit was led by Wal-Mart Stores and Limited Brands against MasterCard and Visa and resulted in the banks paying $3 billion in damages as well as being forced to change certain business practices conservatively estimated at $25 billion in losses.

Proving price fixing collusion between Visa and MasterCard will be difficult as they have both become publically traded companies in the last six years.

Judge Gleeson will determine in the coming days whether or not the plaintiffs will be considered a class for a case that could significantly alter commerce in the future and could create a ripple effect for banks beyond our borders.

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The fraud involves criminals placing a device inside a gasoline pump that is used to obtain information from customer credit cards. There were several reports from customers who stated their ATM cards and credit cards contained charges that were not authorized after using the cards at the gas station pump.

Each charge was reported to be about $100 for each transaction and most customers reported the charges were made in areas they do not go to or had never been to for purchases, with one customer reporting a total of three separate charges made on his account.

Police investigators believe the perpetrator used a key to open the pumps and place the device and used the same key to later take the device out of the pump. The owner of the station told news reporters he was not involved in the scam and was victimized just like his customers.

Nearly a year ago, another local gas station was hit with a similar scheme and almost 600 customers using the gas pumps lost a combined total of $172,000. During a joint investigation by the US Secret Service and the Sierra Madre police, the gas station owner disappeared.

Customers who were potentially affected by this scam are asked to check their credit card and bank statements and report suspicious activity to the creditor, bank, and police department for proper investigation. Scams like the skimming tactics used at the Sierra Madre gas station are becoming more common and consumers face a long battle and bad credit for many years to come if not proactively monitoring their credit reporting and monthly accounting statements for errors and instances of fraud.

Foreign Travelers

People living in the United States who travel frequently overseas have found it difficult to use their regular credit cards once they arrive at their destination.  Many Canadian and European merchants no longer have equipment to process credit cards via the magnetic strip found on all US credit cards.  For frequent travelers out of the United States, it is recommended that individuals obtain Chip and PIN based credit cards.  Chase Bank is among a handful of issuers of US credit cards that also feature Chip and PIN features that can be used overseas.

What is Chip and PIN?

Instead of information being stored on a magnetic strip plastered across the back of a credit card, Chip and PIN cards store information on a microchip hidden inside the credit card.  Credit card processing equipment reads the data via radio frequency, and do not require physically swiping the card through a reader.  Instead of a signature on a recipe, cardholders enter a personal identification number (PIN) to verify the card.  This security is considered safer than traditional magnetic strip credit cards, and harder for criminals to obtain your information with skimming or forgery type frauds.

In fact, Europe has been using Chip and PIN credit card processing since 2006 and reports significant decreases in credit card related fraud.  France reports an 80% decrease in credit card fraud. Canadian merchants are all required to accept Chip and PIN cards by the year 2015, with many merchants already processing Chip and PIN style cards.

Chip and PIN Processing to Travelers

Another consideration for American retailers is having credit card processing capable of accepting payment from foreign travelers.  Most European and an increasing number of Canadian credit cards do not have magnetic strips at all, and can only be processed with Chip and PIN credit card processing.  If you don’t have the capability to accept these cards, you will lose traveling customers who may have otherwise spent money at your retail location.  If you service a large number of travelers, this is something you may want to consider and determine if it makes sense for you to get a Chip and PIN processing system in place.

Some of the “best” sites for buying stolen credit card details include an ability to search for cards based on the issuing bank – so customers can choose cards from institutions with weaker security and minimize their risks of being caught.  Sites will also allow automatic validation before paying for the credit cards, to make sure the card details they’re buying have not yet been canceled by the banks and can be used to make purchases.

Other stolen credit cards are sold on illicit chat rooms and forums, where participants are allowed in based on invitation-only.   Other sites exist to teach beginners the ways of hacking and credit card theft, which anyone can access.

The National Security Agency’s Information Assurance Directorate, Tony Sager, says credit card fraud is growing faster than security can keep up.  The federal authorities are treating global cybercrime similar to how they dealt with the US mafia – it’s organized crime and it will take awhile to dismantle it.  Both the US FBI and European law enforcement are creating cybersquads to launch investigations of cybercrimes and credit card theft.

Plaintiffs Arguing Against the Durbin Amendment

The following are among the plantiffs in the legal action against the Federal Reserve over the failings of the Durbin Amendment:

• National Retail Federation
• National Association of Convenience Stores (NACS)
• Boscov’s Department Stores
• Miller Oil Co
• Food Marketing Institute

Their argument is that the interchange fees for debit cards do not comply with the Durbin Amendment, and that the amendment is heavily influenced by the banking industry which results in higher expenses for small retailers instead of the promised lower expenses the amendment was supposed to bring. Small ticket items are now being charged heavier debit card swipe fees than they were prior to the amendment because the amendment allows issuing banks to include fees on top of the debit card transaction fee.  The 12 cent cap on debit card swipe fees is now increased to 21 cents plus .05% of transaction value once issuing banks add in their fees.

The Durbin Amendment only limits fees that banks can charge on debit card processing transactions – and doesn’t require that third party companies reselling bank merchant account services pass on the fee savings to merchants.  The majority of merchants rely on third party companies for processing credit cards, which means the third party companies benefit from the lower fees paid to banks for debit card processing fees – while charging their customers (the small business retailer) the same fees they did before the amendment was passed.

Use our comparison chart to see which processors have reduced their fees after the Durbin Amendment. Maybe it’s time to switch and save?

Alexander Chiang, the Research Director at Dashboard Insight, was kind enough to let us ask him some questions on the future of the business intelligence and dashboard industry, and how we can further take advantage of such an early industry that will be exponentially useful the sooner small businesses begin using it ahead of their competitors…

CreditCardProcessing.net: What sort of progress has dashboard software made in the past couple of years?

Alexander: Vendors that provide dashboard software are able to handle larger sets of data now. They are also making it easier for less tech-savvy users to develop their own dashboards. It’s better known in the industry as self-service BI. In addition, some vendors are beginning to incorporate collaboration features to their offerings including Dundas, Panorama, and TIBCO Spotfire.

CCP: Can smaller businesses utilize Dashboard Software cost-effectively?

A: With the big push for Cloud BI (or SaaS BI in this case), there are definitely cost-effective solutions out there that range from 20 to 100 dollars a month per user. Companies that provide such dashboard offerings include Klipfolio, KPI Online, and MicroStrategy. Another option is Excel but it doesn’t scale well for enterprise wide dashboard deployments.

CCP: Do you need a statistics background to understand what the software shows you?

A: It’s important to state that dashboard software is just tools to build dashboards. It’s up to BI professionals well versed in data visualization and dashboard design best practices to use one of these tools to develop an effective dashboard. A properly designed dashboard should clearly display the data without the need for a statistics background.

CCP: What does the future look like for business intelligence software?

A: BI software vendors will start adding social media aspects to their products. It’s started, but only a few vendors have added it to their product offering. This would allow everyone to start sharing their discoveries on the data and to incite discussions on those discoveries. As a result, we will see an increase in corporate communication and better alignment between operational activities and strategic goals.  However, a company culture of sharing information needs to be in place first.

CCP: How will cloud computing affect the dashboard software industry?

A: Cloud computing can be treated as another data source – data can be pushed into the Cloud to leverage its computational power to perform complex analyses and the results can be presented by dashboard software. It’s great for dashboard software that don’t have a strong data processing engine behind it.

Whether it’s a new product idea, choosing between insurance policies, or deciding which credit card processor offers you the most for your investment, as a small business it is crucial to make your decision based on the information you gather from investigating the options and trying to dispel uncertainty. The way you make an informed decision requires you to gather data and organize it in a coherent way and it is no doubt that in the information age we have plenty of data and not enough organization.

The concept of making money from using data by exploiting the differences in what we know versus what others don’t, the uncertainty, is what gambling in the 17^th century helped lead to the creation of what we now call probability. Probability is a mathematical discipline and tool that takes in data and creates a helpful model that lets you better predict an outcome despite the haze of uncertainty surrounding the future. If you know how to decipher your data using probability then you have a competitive advantage when it comes to making a decision today that lead to the best results tomorrow.

The age at which students learn tools like probability in school is younger each year and as the number of people who know a piece of information increase, the advantage that information brings gets divided amongst everyone who knows it. Being that so many people know and understand probability, at least intuitively, there is not much room for small businesses to capitalize on the discrepancy in knowledge without the use of specialized tools that the growing business intelligence industry has to offer.

Before the new law, businesses were being charged approximately six to seven cents for a $1 transaction on say, a cup of coffee. But now, in an effort to recoup substantial losses from capping larger transactions, Visa and MasterCard are charging the full 21 cents on that same cup of Joe, which has business owners scrambling to recoup their own losses through incentivizing cash purchases through discounts, raising prices or backing off debit transactions all together and installing ATMs.

Estimated losses for banks hovers around $6 billion annually, while repercussions for businesses that frequently conduct small transactions goes largely unaccounted for. Some banks initially attempted to charge a monthly debit card fee for consumers which resulted in public outcry and a mass exodus from large banks to local credit unions, known as Bank Transfer Day. Author of the amendment, Dick Durbin (D., Ill.), even encouraged people to leave Bank of America because of their proposed fee, decrying “Get the heck out of that bank!”

Some larger businesses, however, have managed to negotiate lower debit transaction fees with Visa, signaling that the banks might be willing to accept lower rates instead of losing business altogether. But smaller businesses that don’t generate enough revenue to have influence might find that negotiating more proportionate fees could be daunting.

It is unlikely that customers will embrace going back to cash as debit and credit card transactions have increased steadily for the last few years, which will ultimately force small business owners to raise prices to keep their businesses afloat.

Are You Being Charged a Fee for the IRS Reporting Requirement?

The intent of the IRS reporting requirement was not to cost consumers more money; but there have been a number of processors adding a new fee to their customer’s statements in an effort to offset their new expenses.  Take a look at your credit card processing statement to see whether you are being charged – you may see a new fee called “reporting fee” or “reg. comp fee” or “regulatory fee” or “monthly IRS fee”.  Because credit card processors are all using different terms to describe the fee, you may want to compare your current statements with previous statements to make sure there are no new fees added.

What Can You Do if Your Credit Card Processor Charges a New Reporting Fee?

While it doesn’t seem to present any legal issues when a credit card processor decides to add a fee to compensate for having to meet the new IRS paperwork requirements, you always have options if you don’t feel the fee is appropriate.  Your merchant application and agreement has a clause which basically gives your credit card processor the right to increase fees or add new fees as necessary, but the problem is the amount of the monthly fee varies greatly from one credit card processor to another.  This indicates some processors may be looking to increase revenues with the fee rather than simply recover their costs and expenses for fulfilling the IRS reporting requirements.

If you notice a new fee added to your statement, it may be time to seek out a new credit card processor that is not charging for reporting fees – or at least one that charges a lower fee. Try to keep your annual and monthly credit card processing fees under $200 total per year.

A large amount of data is generated by small businesses when they process transactions with customers, get visitors to their websites, and can even be found by a simple web search. Thanks to computer integration in the workplace, small businesses now have to opportunity to conduct their own market research by utilizing software that is customizable to each business’ specific needs.

One such firm that offers these insights is InetSoft whose business intelligence (BI) tools and Dashboard Software provide small businesses with performance metrics in an easy-to-understand format. Mark Flaherty, the Chief Marketing Officer at InetSoft, was kind enough to answer a few questions for CreditCardProcessing.net about their software…

CreditCardProcessing: What are the main reasons for a small business to utilize business intelligence software?

Mark: To closely monitor performance of almost every business function. Sales, marketing, and finance are the most critical to monitor. They need to know each day how they are performing so they can better forecast the short-term future and spot problems quickly so they can be addressed quickly.

CCP: In your experience, how do most businesses conduct their business intelligence and data gathering before making the switch to more useful methods like those that InetSoft provides?

M: Almost universally, Microsoft Excel is the BI tool businesses of any size use before graduating to a proper BI software application like InetSoft’s. They copy and paste information from different systems they are using or even just manually enter numbers. Excel turns into the “data warehouse” and they create charts and graphs in it to make their own “dashboards.” Of course this is more tedious and error-prone as the manual processes must be repeated each day to update the dashboards. The other common software package used is something like QuickBooks which offers some reports and chart templates.

CCP: What types of businesses are most likely to use dashboard software?

M: Any product or service company that does more than a few dozen transactions each month has enough complexity in their operations that they need to be monitoring them closely by each of the major functions. Usually we find an employee count of 50 or higher is a good indicator for when they are ready to graduate to dashboard software.

CCP: In what ways can data be imported into the dashboard for analysis?

M: The most common and most reliable way is to configure the dashboard software to read data directly from a database. This way, once designed, the dashboard automatically updates with the latest data. The database can be as simple as an Excel spreadsheet, but is more commonly a relational database such as MS Access or MySQL all the way up to Oracle and data warehouses. Other automated ways include connecting to Web services and XML feeds. Manual methods, simply importing an xls file are also possible for occasional analysis, or if the data comes from an external source like a vendor or supplier.

CCP: How will the growing use of business intelligence software change the way we do business?

M: It further increases productivity, meaning business can get more done with less people, because less time is spent collecting and analyzing numbers. Especially with BI software becoming easier to use, it’s much more self-service, so again less IT support is needed for business people to take advantage of it. BI software is also helping businesses do better in the marketplace because they’re spotting problems or opportunities more quickly and responding more quickly.

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.”

This could spell bad news for ecommerce sites that were anticipating a reprieval from capping debit transaction fees. Credit card issuers have been pushing card applications like never before, with mailer applications rising 85 percent since the beginning of 2010.

Research firm Mintel Comperemedia reported that credit card purchases on Black Friday rose 7.4 percent from last year, signaling that consumers are easing up on their fear of debt and willing to embrace rewards that entice charging. It is estimated that nearly 80 percent of credit card offers have rewards programs attached to them, up from 60 percent two years ago.

“Non-traditional payment methods will also see growth as alternative payments make inroads on traditional payments share,” Founder and President of Javelin James Van Dyke said. “While online alternative payments represent less than one-fifth of e-commerce transactions, these options are well positioned to benefit from the introduction and adoption of emerging payment environments, such as the mobile channel and social networking.”

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Like PayPal, V.me will allow consumers to save their payment information and merely log in once they’re ready to complete an online transaction without having to share their credit card or debit card information with the merchant.

V.me will offer “industry standard encryption,” also known as Secured Sockets Layer (SSL) as well as “multilayer authentication.”

Though the eBay owned PayPal has a dominant command of the current online transaction market, consumers have been vying for an alternative to what they feel is an unapproachable and unpredictable service. Over the last decade, users of PayPal have reported frozen accounts without explanation, making it difficult for ecommerce and eBay sellers to withdrawal their money from the company.

Scorned merchants and shoppers report their grievances to sites such as PayPalSucks.com, which has logged countless complaints and garnered more than 83,000 likes on Facebook. One of the biggest complaints is that PayPal can hold funds in a frozen account for up to six months before transferring the money back to the owner, which can destroy an online business.

If V.me wishes to successfully compete in the market, it must gain confidence from consumers that it will concentrate efforts not only on security, but on customer service as well.

The executive director of the Smart Card Alliance, Randy Vanderhoof, indicates that there are 1.3 billion chip-based credit cards in circulation around the world, with a few thousand issued in the United States.

The technology has been slow to catch on in the United States because it requires merchants purchase new credit card processing equipment in order to read the chip-based cards.  The cards themselves cost about $3 each to produce, compared to about 30 cents per traditional credit card with the magnetic stripes.  The costs of upgrading the equipment has prevented many merchants from getting on board, but credit card processor Visa Inc announced a program in August of this year hoping to drive merchants to adopt the EMV technology.  Their program would allow merchants to save money through avoiding certain annual security reviews once upgraded to the chip-based checkout systems.  In 2015, Visa also intends to pass on more of the credit card fraud expenses to retailers’ banks rather than the merchants.

but J.P. Morgan Chase is now offering a Visa branded, chip-based, British Airways credit card.  When US credit card users travel abroad, they are finding it increasingly difficult to use their magnetic stripe credit cards, as many merchants overseas no longer have credit card processing equipment for this type of card.  If buying train tickets through machines, or using sales kiosks, you can’t swipe your card unless it has EMV technology.
The British Airways credit card offered by J.P. Morgan Chase is their third chip-based credit card, designed to help frequent travelers.  All three chip-based cards also feature the traditional magnetic stripe so US customers can continue to use their card domestically, as well.

Similar announcements of upcoming United States chip-based credit cards have been heard from Wells Fargo, Bank of America and US Bancorp.

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 then allows you to move money to anyone you want.  You can even pay your Facebook friends through your Dwolla account if they don’t have a Dwolla account.  The service promotes spending only the money you have available, in contrast to credit card companies that let you spend money and worry about paying it back later (at a hefty fee).

Consumers sending money with Dwolla pay nothing.  People receiving money through Dwolla pay a flat rate of 25 cents per transaction regardless of the amount of money being transferred.  They’re able to keep the cost per transaction lower because they do not use credit cards.  Credit card processing companies and PayPal fees generally charge a percentage of each transaction (2-3% average) plus a flat rate per transaction – and over the course of a year these fees can really add up.

How Merchants Can Use Dwolla to Accept Payments

If Dwolla doesn’t process credit cards, you might be wondering how a business can possibly use the service to accept payment at the checkout line.  You don’t need fancy equipment and you probably already have what you need to accept payments at the checkout line with Dwolla.  Basically, you can keep an iPod touch next to the cash register to verify that a payment has been received from a customer; or you can use an online kiosk (a webpage) that you leave open on a laptop or other device to verify payments are received.  Customers make a payment with their phones and it will instantly show up on your iPod or laptop screen.

Online merchants can simply install a plugin to their online shopping cart, or install various apps to WordPress and other platforms to begin accepting payments with Dwolla online.

Funding: $1 million from The Veridian Group and The Members Group in Iowa. Raising another round now.