Employers issuing Visa payroll debit cards to under-banked workers not only benefit by moving all employees to direct deposit but are also providing a cash management tool highly valued by employees. Consumers are focused on controlling spending and understand that cash purchases can be difficult to track. The Visa survey reveals that consumers believe debit cards can help them monitor spending more closely and stay within budget. Plus employees enjoy convenient access to their funds by using their … more
CPAs can help their small business clients better manage cash flow by proactively talking about their payment policies and procedures. Now is the time to help your clients set a 2010 goal of implementing payment acceptance best practices. Why? Because by implementing sound accounts receivable policies with the objective of lowering working capital, businesses will achieve an operational advantage over their competitors.
Business is, ultimately, about getting paid. Businesses need to have enough working capital to fund their operations while they wait to get paid. If a company can improve its … more
The Salvation Army is smart to provider donors with the convenience of more payment options including Visa, MasterCard and American Express card transactions. Realizing that many people don't carry cash, the Salvation Army kettles are adjusting to the changing payment choices consumers are making.
The Salvation Army has deployed card acceptance to:
Increase overall red kettle donations
Eliminate "not carrying any cash" as an excuse for not giving … more
In re Visa Check/MasterMoney Antitrust Litigation is still the largest antitrust settlement in U.S. history. The settlement with Visa and MasterCard was negotiated in 2003 and this final payment, likely the largest single payment to businesses in class action history, represents an accelerate payment schedule that was not set to end until 2012.
In addition to the monetary compensation to merchants, Visa and MasterCard agreed to eliminate their “Honor All Cards” policies, which … more
While few banks are reaching out to under-banked communities, employers can pick up the slack by moving employees to direct deposit using a Visa debit payroll card. And employers can help control costs by negotiating group discounts for their unbanked employees.
Payroll cards … more
In general consumer spending has shifted from credit to debit during the recession. In the third quarter of 2009, credit transactions for Visa and MasterCard reached $313 billion, an 11.58% decline over the same quarter in 2008, according to TowerGroup. Debit transaction volume for Visa and MasterCard was $303 billion, a 5.21% … more
moreThe U.S. Department of the Treasury and the Board of Governors of the Federal Reserve System have issued regulations implementing the Unlawful Internet Gambling Enforcement Act requiring U.S. financial institutions and certain “participants in designated payment systems” to establish and implement policies and procedures reasonably designed to identify and block or otherwise prevent or prohibit unlawful internet gambling transactions covered by this Act. Compliance by these participants is required immediately.
moreThe Federal Reserve Board announced proposed rules that would restrict fees and expiration dates on store branded and network-branded gift cards intended to protect consumers. The proposed rules would prohibit dormancy, inactivity, and service fees on gift cards unless: (1) there has been at least one year of inactivity on the certificate or card; (2) no more than one such fee is charged per month; and (3) the consumer is given clear and conspicuous disclosures about the fees. Expiration dates for funds underlying gift cards must be at least five years after the date of issuance, or five years after the date when funds were last loaded.
The trend toward cards and electronic payments has become strong enough that the largest banks in the UK have arranged a vote to stop clearing checks. Estimates of check clearing cost are roughly $1.66, or about four times as much as electronic payments and would lead to substantial savings for banks. more
MasterCard decided to move forward with these requirements after extensive discussions with issuers, processors, program managers, acquirers, and merchants, where high decline … more
There was no clear winner in the GAO report. Each proposed remedy to lower Interchange examined by the GAO would impact stakeholders differently, for example, merchants verse card issuers or large merchants versus small merchants or large issuers vs. community banks. One of the most important stakeholders to the politicians are the consumers and the GAO suggested that savings from lower Interchange would not be pass along in every industry and only in competitive markets. The GAO study … more
In 1991, Visa and MasterCard each had 4 standard domestic credit card interchange fee rate categories. By 2009, Visa had 60 and MasterCard had 243 different rate categories that could be charged to card transactions, although not all of these rates apply to all merchants.
The increase in the number of rates occurred as different types of merchants and cards were added to their Interchange rate schedules. For example, the networks introduced new rates for certain industries that previously had not accepted cards (such as energy utility companies or government agencies) or for new methods of shopping (such as … more
A significant advantage of capping or limiting interchange fees would be that it would reduce interchange fee costs most directly. The GAO study did not make any recommendations but rather posed various scenarios of capping Interchange at current levels, setting a maximum rate, setting at a level significantly below the current rates, apply caps to select Interchange rate categories like rewards cards or … more
Disclosing information about Interchange fees to consumers would incur the costs of updating technology and signage to allow for such disclosures. For disclosure in merchant receipts, merchants would incur the cost of changing their receipts. Issuers would incur cost of changing card statements to add disclosures. more
The GAO reports that removing the anti steering rules appears to have various advantages. Merchants could surcharge or refuse certain cards, make cardholders using rewards cards more aware of and to bear more of the cost of the rewards from which they benefit. This option also may require the least intervention, as merchants could decide whether to add surcharges or refuse certain cards based on their own customer mix. In addition, the potentially anticompetitive effects of these rules are also the subject of a … more
Valid concerns exist that such negotiations could harm small merchants and small issuers, which do not have as much leverage as larger participants and, in some cases, lack the resources to participate in bargaining sessions. It would be difficult to ensure that small issuers and small merchants benefited from collective negotiations. Small merchant would find it difficult to participate in such negotiations because of limited resources.
A significant legal barrier to implementing … more
Visa strongly recommends that merchants use … more
In the beginning, when forced to adopt card acceptance, drivers went on strike citing the burden it placed on drivers. A short two years later overall ridership, revenue and tips for drivers have all increased.
Name another industry right now where you will read the following statements from merchants, trade associations and government commissioners about credit cards being good for business.
“It’s better,” said Naveed Shah, 35, a driver for five years, … more
Today’s most successful SMB are using a mix of technology and best practices to effectively manage their accounts receivables to increase cash flow and working capital. Managing credit risks, using lockbox services to automate paper-based processes and following AR best practice invoice tracking and follow up are being viewed as smart strategic decisions, giving SMB a competitive advantage once reserved only for big business.
Likewise, … more
The concept that Conyers exposes is that of embedded costs which are hidden but are ultimately borne by the consumer.
What’s crazy to me is that while so many seem to get this concept in the context … more
Harry & David
and many, many more...
Vantage Card Services was recently recognized in a leading payment industry trade magazine for it’s Vantage Points merchant rewards program as an example of a customer retention focused organization. Merchants earn Vantage Points accepting MasterCard, Visa and Discover and redeem their points for rewards from nearly 200 distinguished program partners.
This one-of-a-kind program is simple to … more
Have you ever used the Wayback Machine?
The Wayback Machine allows users to browse through over 150 billion web pages archived from 1996 to just a few months ago. I used it to craft this brief history of Vantage.
We launched our first web presence as far back as the end of 1997 but the first archive I find is a view from October 1999. That’s a decade ago and just months before the dot-com bubble crash. If I recall, we used Microsoft FrontPage to develop these early versions (we still do all our web development in house today): http://web.archive.org/web/19991004142744/http://www.vantagecard.com/.
And while our site has grown, our messaging hasn’t really changed. In the first paragraph on the October 2000 home page we begin to push the concept of “Interchange … more
The current environment seems to be more government regulation on things than less. The purpose of hearings is to discuss the way data is retrieved, transmitted, intercepted and stored and to see how government can regulate aspects of IT -- including companies involved in finance, health, welfare and safety.
However, before the federal government tries to regulate how the private sector handles and stores data, Congress should consider updating the 7-year-old Federal Information Security Management Act … more
Visa's move to kill signature-based mag-stripe transactions by 2013 will require financial institutions and retailers to upgrade over 14 million visa cards, half a million point of sale terminals, and thousands of ATMs.
While fraud in Australia remains low by world standards, this aggressive rollout of new technologies will strengthen security reducing counterfeit, skimming and online card fraud.
Is the U.S. next? more
Commercial credit cards are being used to replace inefficient and expensive paper purchase order processes by businesses, corporations and government agencies with payments estimated to reach $185 Billion by 2010. Accepting commercial credit cards like Corporate, Business, Purchasing and GSA cards are an important component of a company’s payment policies. Optimize your commercial card acceptance with a Level 3 merchant account.
Keys to a Level 3 Merchant Account
Insist on an Interchange pricing structure Interchange is the largest cost component of delivering merchant services and for merchants accepting commercial cards, eliminating non-qualified surcharges are especially important. Direct Interchange pass through pricing is the most … more
The most interesting part of the article as reported on StorefrontBacktalk was that several of the nation's largest chains were threatening to abruptly cut off PIN debit at the deadline, possibly switching to … more
Type of 100B Transactions in 2009:
Debit card transactions, 33 percent
Paper checks, 24 percent
Credit card transactions, 23 percent
Automatic Payments (ACH), 20 percent
Mike Moebs, CEO provides noteworthy analysis:
Based on current transactions, our projections show that debit cards and automatic payments are taking over at an increasingly rapid rate from the traditional checking account for most Americans
Over the past 30 years, paper check usage has dropped from 85 percent of all … more
An Inconvenient Tax sheds light on one of America’s messiest problems — a fundamentally broken tax code that affects every part of people’s lives. With the U.S. Congress making over 16,000 changes to the tax code in the last two decades alone, many Americans want something better, but few know where to start. This feature-length documentary film reveals the many ways Congress uses the tax code to achieve political goals that have nothing to do with raising revenue. It also tackles the controversial issue of tax reform through a non-partisan presentation of U.S. tax history and current proposals to fix the code. In a time when America faces fiscal crisis, An Inconvenient Tax brings a … more
Most small and mid sized businesses don’t pay Interchange pricing, they pay discount rates and service fees set by their service provider, processor or bank. The most common pricing structures are based on formulas, bundles, tiers and definitions invented by their payment … more
Does your business have policies in place for each of payment method you accept? Payment policies are critical in protecting the financial health of a business. Small businesses without payment acceptance policies are vulnerable to fraud.
We strongly advise that the best practice before accepting any form of payment is to know your customer. Be mindful, watch for any red flags and take action to delay delivery until you gain a comfort level with the validity of your customer and their payment method.
It is especially important for merchants to understand that card payments are a convenience form of payment, not a guaranteed form of payment. Since the rules and regulations are written in favor of the cardholder, merchants must be diligent in protecting their business against … more
Avoid buying a prepaid debit card. We advise consumers wanting a prepaid debit card to get a payroll debit card instead. Consumers can get a payroll debit card from their employer or sign up directly with a payroll card provider (for example online at http://vantagecard.com/paycard) and then simply provide the card’s routing number and account number to their employer for direct deposit.
Payroll cards have lower costs than prepaid … more
The focus of the request is to allow employers to mandate direct deposit. Where employees do not provide their bank account information, employers should be able to provide paycards instead of paychecks.
Please join the effort! Sample letters can be downloaded from the “ … more
% of Consumers who have Ordered Online:
54% of 18-20 year olds46% of 21-2450% of 25-3444% of 35-4423% of 45-5430% of 55-6429% of 65-747% of 75+
Incentives were found to be effective in luring customers to online ordering. Nearly 58% who have ordered food online note they have done so in response to an offer they saw on a website, while 37% have been influenced by an offer received in an email.
For those who have ordered online from a computer, seven of 10 (70%) report that their most recent order placed was a repeat order.
Bottom Line: If you have a web site … more
Interchange “compensates lenders for the time value of their money,” Tax Court Judge Harry A. Haines wrote in the decision. “Interchange rates take into account other factors such as credit and fraud risk, processing costs and Visa’s and MasterCard’s efforts to maximize their business.”
This decision affects an estimated $48 billion in fees U.S. credit-card issuers collect each year. The court ruled … more
moreA digital currency for Microsoft Outlook? Social Networks? WSJ's Andy Jordan talks to currency renegades tired of big-government centralized cash, and desperate to make their own (legal) money systems. On the new currency frontier are several examples including Ven and Attent are showcased. According to Wikipedia, Ven is a virtual currency used by members of Hub Culture to buy, share and trade knowledge, goods and services with anyone in the network and can be spent at any Hub Culture Pavilion. The currency is currently linked to the U.S. dollar at a rate of 10 Ven to the dollar and trades against other major currencies at floating exchange rates. Ven first appeared as an application in Facebook on 4 July, 2007. In late 2008, the currency became tradeable to anyone …
On the same day, as reported in Reuters, The Electronic Payments Coalition issued the following statement: Today, the Electronic Payments Coalition released key evidence from several sources, demonstrating conclusively that consumers would be hurt by interchange regulation in the form of higher fees, fewer benefits, and zero savings at the cash register. Despite the … more
The benefits of direct deposit have been well documented for years. Payroll professionals all tend to agree that increasing direct deposit and reducing, or even better, eliminating the antiquated paper check creates a positive impact to employer … more
New Fees Two new card company fees (effective October 2009) to consider:
Misuse of Authorization System fee -- a merchant obtains an approval code and doesn't use it. Visa will assess a $0.045 per occurrence.
Zero Floor Limit Fee -- a merchant settles a transaction without a valid approval code (invents an approval code, approval code typo), Visa will assess a $0.10 per occurrence.
With these new fees, F&B will need to research how their POS systems operate and how their merchant provider bills. Issues to be addressed include any pre-authorization strategies, … more
Prepaid GPRS SIMs will work with Verifone’s Vx terminal lines. Using the exact same GPRS network, prepaid plans are more flexible and less expensive than traditional wireless coverage plans. Prepaid wireless plans are good for one-year or up to the MB plan … more
Level 3 Merchant Services topics will include:
The commercial card market for business, corporate, purchasing and GSA p-cards
What is a Level 3 Merchant Account and what are the requirements
An in-depth look … more
Are you scared of your customers? Is this fear preventing you from achieving A/R best practices? Don’t be afraid of making sure your customers pay you on time. The strength of your A/R processes sets the tone of your ongoing working relationship. If you allow buyers to explore how far they can push their payables and get away with it then what are you teaching your customers? Are you broadcasting that you are not good at managing … more
We have found through our extensive work in the B2B payments space that many businesses who are accepting commercial card payments are not qualifying for the lowest Interchange rates available. For those businesses who don't accept commercial cards, a misunderstanding of costs is often the reason. Two of the most common problems business face is not having the proper merchant account pricing structure and using the wrong payment processing technology.
For many small businesses, they started accepting commercial cards because a large customer … more
How important do you consider your cash flow?Many small businesses focus the majority of their attention on sales but cash flow is king. This video recommends:
Shorting your cash flow cycle
Taking Early Pay Discounts
Using Lock Box services to process and deposit payments
A good way to improve cash flow is to outsource your trade credit. Trade Credit Express is a business payment platform to outsource your trade credit administration and accounts receivable (A/R) financing providing your business with the payment speed of accepting a credit card, while extending improved trade credit terms for your customers.
Outsourcing your trade credit administration is a smart strategic decision.If your company is … more
There are federal laws, various state laws and association rules which require merchants to truncate the cardholder copy of receipts. It is the merchant's responsibility to comply with applicable laws and regulations regarding truncation. Please check your POS and terminal receipts to insure you are in compliance.
Seven (7) states have passed legislation that requires merchants to truncate both cardholder and merchant receipts. The states are:
New Mexico - as of 01/01/2004
Wisconsin - as of 08/01/2005
Colorado - as of 01/01/2006
Tennessee - as of 01/01/2007
California - as of 01/01/2009
Alaska - as of 07/01/2009
Nevada - as of 07/01/2009
Washington State - as of 07/26/2009
Additional states have legislation in progress which may … more
Many Independent Sales Organizations (ISOs) are unregistered. The public nature of Visa’s new U.S. List of Registered Independent Sales Organizations will encourage banks and merchants to obtain information on ISOs to ensure a better understanding of their business partnerships. Now that listing information is readily available to merchants, the hope is that fewer unregistered ISOs will be allowed to solicit merchants.
In addition, the payment applications that merchants use and that ISOs sell, implement and support should also be on Visa’s list … more
The ad reads: "Wholesale rates for your Merchant Account!We meet or Beat any offer: Are you currently processing credit cards with another processor? SAVE thousands of dollars with us by cutting out the middleman. Chase Paymentech Solutions is the Number One Bank Card Acquirer in the World with lowest rates guaranteed at over $500 Billion Visa MasterCard Sales Volume. Call me Now at 949..xxx...xxxx to take advantage of this limited time offer. a JPMorgan Chase ISO/MSP"
How familiar does this pitch sound to you? I would like to hear your thoughts on this style of advertisement and its effectiveness.
Are "wholesale rates" really … more
Vantage has received numerous calls over the last few days from our healthcare clients inquiring about these calls and asking, “Are credit card transactions covered under HIPAA?”
According to the U.S. Department of Health and Human Services website, transactions conducted between subscribers or patients and health plans or health care providers are not transactions for which the Secretary of Health and Human Services has adopted standards.
If an individual (i.e., a subscriber or a patient) uses his or … more
Retailers long ago discovered the benefits of outsourcing consumer store credit. Card companies like MasterCard and Visa have built payment systems with economies of scale that deliver effeciencies and costs savings. By accepting card payments, sellers do not have to worry about the credit … more
I have recently been recruited by a merchant services provider to become a sales person for them.
I'm writing to you because this provider does everything you tell your customers on your web site not to do...we lease our equipment to merchants; we have qualified and non-qualified rates and we charge fees to get everything set up.
I want to be sure that I'm with the "right" company. I would appreciate your guidance.
Vantage Card Services
Thanks for writing. We applaud your research.
The leasing commitment, monthly payments and buy-out clause means … more
U.S. Rep. John Conyers Jr., the Democrat who chairs the House Judiciary Committee introduced the bill saying “It is not an attempt at regulating the industry and does not mandate any particular outcome; this legislation simply enhances competition by allowing merchants to negotiate with the dominant banks for the terms and rates of the fees.”
Right now small and mid sized businesses pay the same Interchange fees as larger chains. … more
A showcase of next generation experiences using Silverlight, myRealRate allows you to compare your real rate with other merchants and discover your true costs for accepting credit cards.
http://myRealRate.com uses Silverlight, a rich internet application development environment, to deliver peer-to-peer knowledge sharing, which helps business owners better evaluate their merchant services.
What is the average cost for accepting card payments in your industry? Are your merchant card processing fees above average or below average? How can you lower your Real rate? Find the answers here.
Today the card associations require that all merchants regardless of size validate Payment Card Industry Data Security Standards (PCI DSS) compliance with this data protection standard.
Compliance with PCI DSS has always been very important to protect your business. It’s only the validation requirements that have changed. The fees being charged for PCI Compliance are not uniform throughout the industry. Some merchant account providers charge monthly, some annually and some both and these fees can really start to add up.
Merchants need to be aware of how and when PCI fees are billed to avoid being gouged with excessive fees. Merchants should also know that they may choose to … more
The PCI Merchant Education Program provides a complete view of the PCI DSS through a series of on-demand webinars designed for merchants. These events are designed to:
Gain the knowledge needed to become PCI compliant
Learn directly from industry security experts
View recorded webcasts on your own time
Take advantage of materials to educate your team and new employees
The current course curriculum includes:
PCI Perspectives: A … more
One of the most powerful social network tools are peer comparisons. New financial web portals like Mint, Geezeo and ING’s CompareMe allow consumers to see how similar people are managing their finances and investments. These online anonymous peer comparisons are demonstrating that there is strength in numbers.
Now business owners can use myRealRate.com to anonymously compare payment card processing expenses with what others are paying for merchant services within their industry. myRealRate is a rich internet application delivering peer-to-peer knowledge … more
The The Government Accountability Office (GAO) is supposed to report its findings to Congress in six months, along with any recommendations for legislation. The agency is charged with examining whether merchants are restricted from revealing the fees to customers and to what extent merchants are permitted to discount for cash purchases. It will investigate the ability of merchants of varying sizes to negotiate interchange fees and exactly what costs are incorporated into the fees.
The GAO issued a report last year on the impact that … more
10 Questions to Plan your Payment Acceptance Strategy
Of course every business is unique but there are some basic questions to start:
Who will my customers be? Consumer, business, corporate or government clients?
What type of payments will I accept? What payment methods will my customers prefer?
When will I be paid? After … more
Today it is a near necessity for most small and medium-sized businesses to accept credit card payments. Until recently, merchants had no resource for comparing rates with each other. myRealRate creates a nationwide database for comparing and sharing card processing expenses. Business owners can calculate their Real Rate to accept card payments and then benchmark their rate against others of the same size within their industry to identify savings. Sharing with the merchant community is the next step in achieving lower merchant rates.
We invite you to write a review for the knol at http://knol.google.com/k/ty-hardison/the-bottom-line-on-merchant-rates/3u14xw58ll2 … more
The main fundamental weakness of the industry: we have no way to prove identity between the consumer and the merchant. Fraud rates in the U.S. are on the rise and the situation is only getting worse. Law enforcement cannot keep up with growing and more sophisticated cross-jurisdiction investigations or prosecute offshore criminal … more
Visa posted better-than-expected quarterly earnings Wednesday as the credit card network increased prices and cut expenses. The company also benefited as consumers used debit cards more. Net income rose 70 percent, to $536 million, or 71 cents a share, for the second quarter ended March 31, compared with $314 million, or 39 cents a share, for the period a year earlier. On an adjusted basis, quarterly net income rose 38 percent, to $553 million, or 73 cents a share. Analysts had expected earnings of 64 cents a share, according to Reuters Estimates. Net operating revenue rose 13 percent, to $1.6 billion, while total processed transactions — which represent transactions processed by VisaNet — increased 6 … more
The MasterCard Acquirer Access Fee and the Visa Acquiring Processing Fee are set and paid to these publicly traded card companies. Merchants should be aware of these changes. Merchants with small tickets will experience a greater impact from these changes.
Since 2005, Vantage has monitored, recorded and reported on Interchange changes impacting merchants.& … more
Effective July 1, 2010, acquirers must ensure their merchants use only compliant applications.
This Payment Card Industry Data Security Standards (PCI DSS) compliance mandate is just around the corner and impacts the entire payment industry. As a result, terminal equipment vendors are discontinuing production of hardware and replacement parts. Payment applications previously supported are being fully retired.
Some merchants using late model terminals will need to upgrade within the next 14 months. We highly recommend that merchants avoid purchasing used or refurbished terminals. Also, please be aware of a rise in proprietary terminals … more
The tool groups together the requirements of PCI DSS v1.2 into six key milestones for merchants to consider in achieving their PCI DSS compliance. It also offers guidance on how to focus PCI DSS implementation efforts in a way that expedites the security of cardholder data.
Additional benefits of the Prioritized Approach are:
An increased awareness of cardholder data security
Assistance for businesses to identify highest risk targets
The creation of a common … more
For many companies, accepting credit cards is essential. Because of this, businesses and merchants can benefit greatly by having a resource to learn more about the specific cost of opening and operating a merchant credit card processing account. Making this decision without the proper knowledge and research … more
moreBeginning May 5, Google Checkout's fees will transition to a new tiered fee structure based upon a merchant's monthly sales processed through Checkout. While this new fee schedule appears to be similar to PayPal, Google's transaction processing rate will vary each month based on your prior months sales volume. The new pricing plan will also eliminate the credit for Google AdWords advertising, discontinuing the processing promotion that was part of the original fee structure for Google Checkout. Fees apply the same for Visa, MasterCard, American Express, and Discover payments. There are no monthly, setup, or gateway fees. However, for cross-border transactions, there will be an additional 1% fee assessed per transaction. To learn more about …
Companies, such as Lending Club, Prosper, and Loanio, are connecting people who need money with those who wish to lend it. Utilizing P2P lending, borrowers can access the money at a lower interest rate than they would if they used even more traditional bank lines or a credit card. At the same time, individuals who have money to invest get better returns than either the stock market or any bank savings are delivering today.
P2P lending may be worth researching for merchants considering a merchant cash advance program. more
moreIn a new global ad campaign, Visa changes focus to the advantages of plastic over paper cash and checks. Consumer perceptions of credit card brands has been trending negatively because credit limits have been reduced and cards are being canceled. The new campaign is designed to play up the security, control and convenience of using a Visa cards. Visa launched Visa.com/go and Visa.com/goresponsibly as part of the campaing.
States Requiring Full (Cardholder and Merchant) Receipt Truncation:
Colorado - as of 01/01/2006
Tennessee - as of 01/01/2007
California - as of 01/01/2009
Under the current legislation in Colorado, Tennessee and California, a merchant is required to truncate both the cardholder and merchant copy of the receipt by masking the card number and the expiration date as follows:
Card number truncation is defined as masking all but … more
The continuing adoption of credit and debit cards worldwide has cushioned the effects of a U.S. slowdown. Visa and MasterCard, which collect fees to shuttle payments between financial institutions, are insulated from rising credit-card defaults because the networks process transactions and don’t make loans to cardholders. Banks that issued Visa and MasterCard to cardholders … more
However the resilience of Visa can be seen in the contribution of debit products in the US as consumers continue to more frequently use debit as a method of payment. In fact, 95% of the volume in the Visa system comes from people that use debit cards which don’t have a credit limit or a credit card from people that either pay their bill in full every month or occasionally revolve and never revolve at more than 50% of their line. Visa is … more
Read more about April 2009 Interchange adjustments...
Primarily a commission only sales force, many of the representatives walking through your door selling merchant accounts today will likely not be in the industry in a few months. A good number of the organizations they represent may not be either. With these challenging market conditions: lower payment card transaction volume, fewer new merchants … more
Missing from this “leading” definition are things like marketplace ethics, management practices, commitment to fair and honest conduct and business integrity. Take for example the big brand name bank on the corner who is selling credit card terminals on four year lease plans that overcharge merchants by thousands of dollars. Or the rep who tells you there is no contract while hiding the terms and conditions fine print. … more
Merchant Cash AdvanceWith tightening credit markets, merchant cash advance has moved from lender of last resort to lender of only resort for many. But understand that these funds are very expensive. Even at reputable companies promoting the lowest rates in the industry, the annual percentage rate of interest can calculate to over 40%. So it’s important to ask yourself: Is the investment I& … more