2 Perplexing Areas of Merchant Account Credit Card Acceptance

Accepting credit cards with a merchant account can be confusing, but no need to fear!  We are going to clear up two points of confusing when it comes to merchant account credit card acceptance.   Contracts are one part of accepting a credit card with a merchant account that people find confusing.  While it may be confusing, it is also one of the most important parts of credit card processing, so it cannot be avoided. If you do not completely understand the terms and conditions of your contract, you could be in for a rude awakening.  The smart thing to do is to always believe what is in the contract, not go off what you sales rep says to be true.

There is no formal or specialized education required to work for a merchant services provider, so be sure to do your own research and read your contract thoroughly.  You don’t want to be bombarded with fees and service limitations for you choose your merchant account credit card acceptance provider.  Here a few items that you should specially look for in your contract:

·         Cancellation fees

·         Length of contract

·         Equipment leasing information

·         Early termination fees

·         Annual fees

·         Setup fees

·         Monthly fees

·         Monthly minimum

·         Payment Card Industry (PCI) compliance fees

PCI compliance is another perplexing aspect of accepting credit cards with a merchant account.  Credit card security is of the upmost importance because if your customer’s data gets stolen, not only will your reputation as a retailer be affected but you could also be hit with fines and lawsuits.  PCI compliance regulates credit card processing security standards for businesses.  Small businesses need to be aware of the PCI compliance guidelines, and make sure they vendors are complying as well. 

When it comes to merchant account credit card acceptance, the most important thing is to be informed. If you do your research and ask the right questions, all of your concerns about merchant accounts will be cleared up in no time.

Wondering "what are merchant account services"? Find answers here!

So you've decided to start an online store to expand your customer base.  Let's face it; everybody has an online option to shop for his or her goods nowadays. Perhaps you just decided to open a business online for the first time, and you realized you first have to set up a merchant account. Every business that operates online should begin by asking, "just what are merchant account services"? Here is the answer to that important question in a nutshell:

• A merchant account services involve an arrangement with a bank or clearinghouse to accept credit card payments into a special bank account set up for your business.
• A merchant account takes the credit card information and approves the transaction for you. By authorizing each request, the merchant is protected from fraudulent cards or cardholders that have exceeded their credit limit.
• Then the bank collects funds from the bank that issued the credit card.
• Sends the payment to the merchant.

You might also know merchant account services as credit card processing. Each step I've described here is much more complex, but paying for merchant account services takes on that complexity so you don't have to. You might be thinking that this service sounds too good to be true and must be very expensive. It actually is the most cost effective way of accepting credit card payments. You also have the option of choosing to have one service to authorize the payments and get a merchant account yourself with your chosen bank. Some new businesses find it simpler just to use the all-in-one service. Either way, merchant account services are the way to go!

What if My Restaurant Merchant Services Account is Declined?

More and more restaurants are realizing that opening a merchant account is in their best interest.  However, applications to open a restaurant merchant services account are not always approved.  What should you do if this happens?  Some merchant services companies may be willing to negotiate.  Just because you were declined does not mean it is set in stone.  If your application to open a restaurant merchant services account was declined, respond in a respectful and professional manner.  For example, you could say: 

“Thank you for considering our application for a restaurant merchant services account. I am familiar with the risks associated with allowing businesses to open a merchant services account and recognize that there are reasons I might not be approved. However, I would like to reinforce that we would love the opportunity to work with your business and would take this partnership very seriously. If there is anything we can do to give you peace of mind about working with us, like providing cash collateral or security, we would be happy to discuss this option. Please let us know if there is anything we can do to have our business approved for a restaurant merchant services account.”

The wording above is a good suggestion, but be sure to customize your message to your specific audience. The main goal in this messages is to let them know that you sincerely want to work with their business. In general, the more transparent you are about risk and security, the more likely you are to be approved for a restaurant merchant services account. Once you have shown that you are a serious, stable, and financially sound business, you will be able to enjoy the freedom that comes with running your business with a restaurant merchant services account.

Reasons Why Your Business Should Make the Switch to a Tablet POS System

The age of mobile technology has sprouted some amazing advances, allowing business to perform vital processes from just about anywhere. It was only a matter of time before tablet POS systems became a popular solution to merchant account management and sale processing.

Many systems like Clover allow merchants to begin processing sales right out of the box. This type of tablet POS system comes with everything you need to process sales and track account information. They normally include a receipt printer, cash register, and fully customizable tablet-based processor which can process sales, scan bar codes, and keep tabs on things like orders, customer information, cash logs, and much more.  
In addition, you are in control from just about anywhere when using tablet POS systems. These systems work off wireless technology; allowing you to take advantage of everything the system has to offer from anywhere in the cloud. Whether you are a trade show or on vacation, you will be able to process sales and check transaction status from your handheld device.

When using of your tablet POS system, you can rest assured your business and customer information is safe and secure. Tablet POS systems employ a rigorously layered security protocols including end to end encrypting card readers, locked-down operating systems, mutually authenticated SSL, and frequent penetration testing.

Customizing your tablet POS system is as easy as visiting your app store. You can add and delete features as needed. Depending on your business, your POS system can adapt, giving you complete control over sales and transactions whether cash or credit. 


Tablets are set to become the standard for up-and-coming POS technology, allowing businesses more control over sales, customers, and product and service management. In order to get the most out of your merchant service, consider the tablet POS system to customize the way you do business.

Business Tips: How to Prepare for eCommerce Merchant Account Services

Whether you are starting a new business or you are expanding your services, ecommerce merchant account can increase profits and customer satisfaction. It is important to remember that whichever ecommerce merchant account service provider you choose, you are prepared for your new service.

In most cases, setting up your ecommerce merchant account is simple and quick. However, the paperwork, credit checks, and other factors can sometimes delay your approval for services. Knowing this, you should try to begin setting up your account at least a few weeks before your new business opens.

Investigating ecommerce merchant account service providers is the first step in securing a merchant account. Make sure you choose a company or bank you trust. Check their track record with other clients, investigate their rates, and speak with representatives. Once you feel you have found a good match, start the process by filling out the proper paperwork.

Once you begin the process of acceptance, the representative from the ecommerce merchant account provider or bank will likely ask you about projected sales, your current sales, and how many of these sales you suspect your customers will use their credit or debit card for. When projecting your sales, be sure to have the paperwork to back up your claims. If you severely overshoot projected credit card sales, these could eventually increase your rates with the ecommerce merchant account provider.

Once you have been accepted for a merchant service account, be sure to keep good records of sales, taxes, profits, and losses. This will help you properly fill out tax and income information for the IRS. Since 2011, merchant service providers have had to submit their transaction records to the IRS. Having paperwork to reconcile the transactions submitted to the IRS by your merchant service provider could save you an audit in the long run.

Choosing the right provider and keeping the right records is the key to maximizing profit and customer satisfaction. In addition, you will reap all the positive benefits business owners have come to expect from their merchant service provider.

For more information about small business credit card processing, check out this blog!

Advantages of having a Merchant Service Accounts for NPOs

The benefits of credit card processing for businesses are limitless, but what about for non-profit organizations? NPOs can enjoy some serious advantages by allowing donors to conveniently make payments using their debit or credit card. Whether you NPO accepts monthly, yearly, or quarterly donations, a merchant service account can help keep the resources flowing and your donation records organized.

Top Reasons NPOs Should Implement Merchant Services Accounts

Consistent Cash Flow: When setting up an NPO merchant services account, the organization can enable donors to make donations each month, quarter, or year. This predetermined amount will be billed to the donor on a consistent basis according to the donation agreement.

Easier Reporting: If the donor pays with a credit or debit card, the donors credit card statement will show the NPOs name. This allows for easier reporting of charitable donations during tax time. 

Donor Convenience: Just as with business merchant services accounts, NPOs and donors can benefit from the convenience merchant service accounts offer. Whether at an event or at the NPOs headquarters, donors can make donations without the hassle of writing a check or going to the ATM.

Branding Capabilities: Just like for profit businesses, NPOs need a brand. Social media, email marketing campaigns, and live events are all tools to get the word out about the NPOs cause. With merchant services, donations can be taken as the donor browses your cause, news, and upcoming events. 

As with any new payment system implementation, the NPO must investigate what system will work best for their cause. Credit card and debit card processing systems vary from merchant service account to merchant service account. The NPO must decide whether or not they would like mobile equipment, stand alone processors, and/or mobile devices to process donations. 

Whichever route the NPO chooses, the organization will no doubt benefit from the implementation of a merchant services account. It is important for the NPO to research which merchant service company will suit their needs and the needs of their donors the best.  For more information about running a non-profit, click here.

The Importance of Credit Card Processing Security and How to Maintain PCI DSS Compliant

There are many different factors to take into consideration when you are looking for a payment processor for your company. It can really hurt your business and cost you dearly if you do not find a processor that fits your business needs or one that cannot guarantee credit card processing security.

Two Most Important Credit Card Processing Security Tips:

Safeguarding Your Customers' Personal Data

You might not realize it, but if you are processing credit card transactions through a merchant account, it is your responsibility to ensure your customers' credit card data is safeguarded and secure. In fact, you will see on the contract you sign small print that will state something along the lines of your business having to be "PCI Compliant." Safeguarding account information is a big part in this, along with the service provider you use, and how you store this personal data.

There are card brand regulations and rules that your business must follow, when accepting payments. A dedicated compliance team can help keep you compliant. They can help with taking you through the process to avoid fines or just point you in the right direction.

Opting for Additional Credit Card Processing Security


A good thing to look into is a solution that take all the hard work away from you and makes secure credit card processing just plain easy.  Tools and solutions like this help with data theft.  In some cases, you will even find credit card security solutions that do not even keep customer payment information in your environment.  Instead, these solutions actually take turn the cardholder’s data into tokens that are made up of random numbers and are meaningless to thieves.  Also, many of these solutions will even help you with PCI DSS compliance by enabling you to spend less time and resources on these requirements since you are not actually storing private customer payment information in the first place.  The provider is the entity who will have access to this information so you can keep track of vital customer interactions.

Merchant Services Credit Card Processing Accounts Keep Up with Mobile Trends

You might have seen advertisements for the many standalone portable mobile devices that you can use with a smartphone to collect money from clients when you are on the go. These devices work well for businesses that set up shop in multiple locations, door to door salespeople and people who need to collect client deposits and payments during meetings and on the spot.

However, though these devices are convenient, great little tools in their own right, if you are like most merchants, what you don't know is that you can get these payment processors as part of a merchant services credit card processing account as well. Your merchant account will have a similar device that you can use to turn your Android, iPhone or Blackberry into a mobile payment processor. With merchant services credit card processing, just swipe the card anytime, anywhere and collect payments.

In addition, merchant accounts are more secure; come with better support than a standalone device and offer many more benefits as well.

Why Merchant Accounts Fit Businesses of Every Size

The modern merchant account expands your customers' payment options like never before. It's also a compliment to your business management processes. In addition, when you have a merchant account, any payments you collect through your mobile device or other payment gateways attached to that account, reach your bank accounts faster and more often.

In addition to accepting mobile and standard credit and debit card payments, a merchant services credit card processing account lets you enjoy other features like:

• Accepting electronic checks, Internet checks, paper checks, checks by phone and deposited checks
• Accepting gift cards
• Processing your employee payroll through your merchant account, and
• Getting an extra terminal solution that's right for your business model, (The right terminal for a retail store likely isn't the right one for a 4-star restaurant)

Lastly, you will receive the type of fast, professional support that only a bank can give you, (via text phone, email or social media) and your money goes right into your account.

When you use payment processors instead of a bank, you sometimes have to wait up to a week to receive the money in your checking or savings account. In addition, the longer you have your account, the more freedom you will get with it and the more options you will receive to expand your business. In essence, with a merchant account, you're choosing a relationship and not just a simple product.

How to ensure secure credit card processing

This day in age, you can never be too careful, especially when it comes to the electronic transfer of money. Make sure you are performing secure credit card processing with help from the Payment Card Industry Data Security Standard, or PCI DSS. The PCI DSS is a set of security guidelines for businesses that process cardholder information for a wide variety of cards, including credit, prepaid, e-purse, ATM, debit, and POS cards.

These credit card processing security guidelines are enforced by the Payment Card Industry Security Standards Council. They created these standards to gain deeper control and insight into cardholder data. This regulation allows the PCI DSS to lessen the amount of credit card fraud and ensure credit card processing security. Companies are audited each year to ensure everyone is following secure credit card processing best practices. These audits are done by a Qualified Security Assessor, or QSA. If a company processes a large number of card transactions, the QSA will develop a Report on Compliance or ROC. If a company processes a smaller number of transactions they will be audited via a Self-Assessment Questionnaire, or SAQ.

There are currently 12 requirements of credit card processing security compliance. These requirements are divided into six categories called “control objectives”. Learn more about these objectives here.

How To Select A Merchant Services Provider for Your Business

Choosing the right merchant account service provider is important to your bottom line. Having a merchant account service can help you provide your clients and customers with convenient options for payment. It can also increase sales by providing customers a way to pay when they don't have cash. If you’re ready to take the next step to grow your business with increased sales, here are some tips on how to select a merchant services provider that's best for your business.

Equipment

When deciding on the right merchant account services provider you must consider the equipment. In some instances your POS system may already be set up for a merchant account service. If this is the case, many merchant service providers can use your current equipment to process sales.

Your merchant account service provider should be able to easily integrate the software needed with your current POS system. If your equipment is not up to date, will not integrate successfully, or if you have no current equipment, your merchant service provider will be able to supply you with the equipment necessary to process sales.

The best providers offer a complete POS system that provides card acceptance and an easy to use platform. These advanced POS systems also include the ability to manage inventory, track sales, control, costs, which help you build usable BI. 

Flexibility

Many merchant account service providers also offer mobile payment solutions. This system allows you to accept payment from virtually any mobile device such as an iPad or smartphone. These payment options are backed by a secure network ensuring your customer's and your information is protected. Mobile solutions give your company a great advantage, allowing you to accept payment upon delivery of services from any location. Depending on what type of business you are in, the option for mobility may be a determining factor when making your decision on the merchant service provider that is best for you.

Cost

Your bottom line should increase with the proper merchant account service provider. It is important to investigate the services provided and initial system set up costs when making your decision. Interest costs, sale finalizing costs, and monthly fees should be discussed with potential providers. Always keep a look out for hidden fees or costs associated with extra services. An honest provider can work with you to set up the perfect plan that fits your budget and suits your needs.

Encryption, Tokenization and Credit Card Processing

How Secure Merchant Account Services Grow Business

More and more small businesses accept credit card transactions today, as the world of banking and retail purchases are shifting to a digital standard. From restaurants to mom and pop antique shops, having a quality merchant services account increases sales through efficient credit card processing and increased customer satisfaction. Aside from the obvious benefits, secure credit transactions are vital in keeping small businesses and their customers’ sensitive information safe from fraudulent activity. Security plays a vital role in all merchant accounts, utilizing encryption and tokenization to minimized chances for data hacking.

Encryption works to scramble information and decoding is only possible when someone understands the algorithm. This minimizes chances for interception and typically encrypts data from the entry point to the processing point. By using this methodology, credit card data is encrypted at the browser level and decoded when the payload reaches the database or application (Source: technewsworld.com). While encryption sends protected information to a specific destination, tokenization does not store any sensitive credit card data. This serves as a simplified security technology, as the need for storing and managing encryption keys is nonexistent. Tokenization, a much younger technology, pinpoints sensitive information such as Social Security numbers and credit card data and packages them as tokens. Each token is replaces data with an abstract set of irrelevant numbers until the token reaches its final destination. Once the endpoint is reached, the actual numbers contained in the sensitive data replaces the token.

Credit cards accepted at small businesses’ brick and mortar or online stores undergo this coding metamorphosis for maximized security. Fraudulent activity is greatly reduced when one or both of these technologies are used in conjunction as a hybrid solution. With 66% of all POS purchases occurring via credit cards, acceptance in small businesses throughout the U.S. is likely to rise. Furthermore, statistics are showing cash sales have dropped nationwide, suggesting our economy is headed for a more digital, more secure transactional standard.

Credit Card Merchant FAQs

Whether you are currently a credit card merchant or investigating merchant processing services, there are still a few common questions that everyone asks about merchant processing services.  To help clear up any confusion, we are answering a few frequently asked questions from credit card merchants.

1. What Is A Merchant processing account?

A merchant processing account is an understanding between a bank and a credit card merchant that allows businesses to accept ability to accept credit card transactions from your customers in exchange for goods or services.

Merchant processing consists of the credit card transaction going through the POS device and the payment being deposited into your account.  Depending on the payment and the product you used, merchant processing can take about forty-eight hours from start to finish.

2. What costs are associated with Merchant Processing?

Credit card merchants should know about a few different considerations when researching merchant processing costs.  The first is the use of a POS device, like a terminal.  Although you can lease POS equipment, it is more cost-effective to purchase it. 

The second cost consideration is the result of fees associated with the merchant processing account.  How much merchant accounts cost credit card merchants depends on the merchant account you are utilize.  However, the majority of the time fees are anywhere from 2.00% to 5.00% of the payment.

What do merchant account services include?

If you are interested in merchant account services, you are likely starting your own business.  If that is the case, congratulations!  Starting an online business is definitely a lot of work, but at the same time, it is very rewarding.  Now, with the help of merchant account services, starting an online business has never been easier.

The first question people have about merchant account services is “what do these services include?”  We are here to answer that question.  All merchant providers have different product offerings, but there are a few products that are included in most merchant account service packages.

Credit card processing:

One of the most popular merchant account services is credit card processing.  When a customer places an order, you can securely submit credit card information and get authorization almost immediately.  Once the credit card transaction is authorized, you can feel confident fulfilling the order since you know funds are available.  When you confirm the order has been filled using a POS system, the payment is transferred into your bank account.

Terminals:

Many merchant account services have the option of utilizing both physical and virtual terminals.  A virtual terminal is one method for processing online payments, whereas a physical terminal actually involves swiping a card or manually entering the credit card data.

eCommerce:

The first step to setting up an eCommerce site is finding a merchant account that offers payment gateway services.  This allows you connect your website with the bank processing your customer’s payments.  When you make a sale and the payment processing begins, the payment goes through a payment gateway in order to gain approval that this is a legitimate transaction.

In general, people invest in merchant account services to process credit, debit, and gift cards and more!  Giving your customers the payment options they prefer is convenient to them, and allows you to be paid faster.  Make starting your own business a little easier by utilizing merchant account services.