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.

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.

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.