How to Prevent Credit Card Fraud!

How to Prevent Credit Card Fraud! 

Credit card fraud costs EVERYONE billions of dollars annually but there are ways to reduce your expose. Did you know that the majority of fraud happens at ATM Machines and POS Terminals? Did you know that the owner of the credit card is NOT LIABLE for the loss....the credit card issuer and the merchant is! So, if you are a merchant, what can you do to prevent credit card fraud?

1. NEVER save credit card info ANYWHERE!  - I had a customer tell me that they charge their customers monthly. I noticed she has a credit card terminal. I asked here if they came into the shop monthly to swipe the card or did she call them? She informed me that she had all their credit card info in their respective folder in the file cabinet. YIKES!!!!!! This is not PCI Compliant and if for any reason there was fraud on the merchant account ALL charges and fees would be the responsibility of the MERCHANT.
2. If your company offers monthly billing to its customers, talk to Merchant Processing Solutions Inc. about our Virtual Terminal option. It will allow you to set up monthly recurring billing or one-time payments but the credit card is securely stored behind an encrypted gateway No info is on your website, email, computers or in your office! 
3. Keep your Firewall, Computers and Software Programs UPDATED with the latest security patches. Have your IT Person do diagnostics on your computer systems regularly.
4. ALWAYS use the EMV Chip Card Reader. EMV adds a layer of security. It prevents credit card fraud at POS terminals by sending a request for a "one-time use approval code". No credit card info is actually send through the credit card machine. This technology has grown increasingly popular among retailers since liability laws shifted responsibility for fraud to credit card issuers and merchant. 
5. Always look for "card skimmers" in your place of business. Employees and vendors, with access, can add or change elements of your credit card machine and either steal money from you by changing your processing without your knowledge or they can just steal credit card data. 

If you have any concerns about FRAUD in your Business, call 

Merchant Processing Solutions Inc. 

954-938-2420

Creating Relationships NOT just transactions! 

Real Customer Service with Real People!

Merchant Processing Solutions Inc. prides itself on our award winning customer service. We are the go-to person for our merchants!

Last week, we got a call from one of our long-time customers. He had a concern about a sale he was about to make. First of all, he takes ALL of his transactions/sales, over the phone. So, he gets the information and then enters that information into a "secure, encrypted gateway. He knew exactly how to do this as he had done hundreds before but this current sale, made him nervous.

You see, he had gotten a call from a buyer wanting to purchase two $4000 machines from this merchant. The purchaser seemed legitimate. He had a website with an address and was willing to sign a document giving the merchant permission to run the $8000 on his credit card with his permission. The merchant sent the invoice to the buyer along with the authorization documents. As he was preparing the sale documents on his side, he notice a "shipping and legal address discrepancy. All of a sudden the merchant got that "funny feeling" in his stomach and realized the monetary consequences that would impact his business if this sale turned out to be FRAUDULENT!

The merchant pick up the phone and called our office. As always, someone picked up the phone and heard the entire story. She then began to ask the following:

• Have you asked for the front and back of the credit card?
• Have you asked for the front and back of the driver's license of the person signing your authorization letter?
• Have you gone online to compare the legal and shipping addresses if shown on the website?
• Where were these machines being shipped?
• Can you afford to lose that money if this transaction turns out to be FRAUD?

I then asked the merchant to call our 800# and get an "Authorization Check" on that credit card. The check can cost between $.50 and $1.50 but the merchant processing company has the up-to-date information from the banks on any lost, stolen or fraudulent cards in circulation. Our merchant thanked us for the advise and made the decision to call the buyer and request copies of the credit card and the card holder's driver's license. The merchant waited................and waited............................and waited. He finally realized that the buyer was a criminal looking to steal thousands of dollars from his business.

We called him the following day and he reported that once he made that request for more documentation, he could no longer get a response to his emails or phone call from that buyer. He told us how appreciative his was that we took his call, gave him advise on how to proceed with his issue and that ultimately, we helped him through, what could have been, a devastating loss for his company.

My question to you is: Can you get your rep on the phone and discuss your concerns with them? If not, call Merchant Processing Solutions Inc. 

TODAY @ 954-938-2420! 

Creating relationships NOT just transactions!! 

Can I add a surcharge on credit card payments to offset my loss?

There are many businesses and organizations that ask me if they can add a surcharge or "convenience fee" if someone decides to pay them with a credit card. The answer is PROBABLY AND MAYBE!!

Over the years, organizations have stayed away from credit card processing due the "perceived" high cost. But today organizations that require cash or checks ONLY are finding it hard to stay afloat! Many merchant processing reps advised their merchants to add a "Cash Discount Program" instead of adding a surcharge to credit card purchases. This method rewards cash buyers but can ultimately end up alienating credit card purchasers. And the potential risk that one customer complains about surcharge fees or posts a negative review can be VERY harmful to a business' reputation. Besides the fact that laws and regulations regarding surcharges are unclear and even differ from state to state, you could have a legal issue to deal with!

Less than 10 years ago, our financial gurus were saying that Americans would be using more cash for payments and stop using credit cards. However, statistics are indicating that more people use credit cards for purchasing today than cash and many people don't even own checks!!

"The trend toward using credit cards as a sole method of payment has increased in recent years. The percentage of people who use their credit cards as their sole payment method (rather than to finance purchases) has risen dramatically. More than half of all credit card holders use their cards for everyday spending. According to the FINRA 2016 Investor Education Foundation's National Financial Capability Study, 52 percent of respondents reported always paying their credit cards in full in 2015, representing an increase of 11 percent compared to the same study in 2009. http://www.creditcards.com/credit-card-news/payment-method-statistics-1276.php 

Until current court cases are decided, merchants will only be able to impose surcharges where there are NO laws banning this practice. Surcharging is essentially wide open at this time, as long as the merchants comply with the card brand rules. Merchants who do business in undetermined states are doing so with all the inherent risks.

A good credit card company should work with its merchants to help them consider all the ways surcharging could positively or negatively impact the customer experience, as well as the damaging results on the customer experience could have on their business. (Check "Yelp" and other online Review Services)

• Surcharge or Cash Discount Program
• Does the surcharge add so much cost it makes it unbuyable?
• Are your prices still competitive?
• Are your customers upset with the surcharge and go elsewhere to purchase?
• Has the fact you are surcharging for credit card purchases leading to a bad reputation?
• Is your state an anti-surcharging state? What are the penalties if your business is caught?

Would you like to sit down with a TEAM of professional merchant advisors? Merchant Processing Solutions Inc. can help you decide what is best for your company in the payment acceptance industry! Call us Today 954-938-2420!

Our Customer For Life!

With Merchant Processing Solutions Inc., you are Customer For LIFE!!

Just recently, Alex Lopez of EZ Print & Marketing, called our office. Claudia was not available at the moment to answer his questions but Stephanie was. Alex was changing some things in his company and wanted to know if his current payment acceptance solution was still the best for him. I went ahead and set an appointment for one of us to come by and see his new set up. Together, we would understand his needs and help him decide which point of sale product was the BEST to suit his current business situation.

Previously, Alex had a walk in print shop and used a credit card terminal for swiping cards. But with the new company changes, he decided to focus not only on print projects but marketing and promotional products. Due to this change, his walk-in customers all but disappeared and he moved out of a retail location into an office location. Alex was doing more deliveries and using a Mobile Card Reader, we set up for him, on all the in-person payment acceptance. He also takes credit card information over the phone for the rest of the jobs.

Stephanie met with Alex and reviewed the current payment acceptance solution. She then asked him if he ever thought about sending out an invoice requesting payment and had the client pay off that invoice! He thought that would be ideal because currently he has to create an invoice in one system, wait for a phone call and then enter that information into a payment gateway.  He then creates and sends a paid receipt and emails it to the customer! I told Alex, that this was way too much work....he agreed!

We decided to change Alex over to the new USAePAY gateway with invoicing capabilities. He will have the following capabilities and features:

• He can swipe cards at retail rates when he does his deliveries.
• He can create an invoice to any customer, email it to him. The customer just clicks on the link on the email and pays the invoice.
• He can still accept payment over the phone and key-enter that into the Virtual Terminal on his PC. It will keep a record of that transaction and send an email to the customer for their records.
• He can also add a "Pay My Invoice" button to his Website. This would allow folks to go on to the website at anytime and make a payment.
• He could even set up a customer to make monthly recurring payment or installment payments on the same system. Enter the info under Customers ONCE and then its done!
• He can also create reports weekly, monthly and annually to track his business.
• Lastly, he can add products to the Inventory Tab and then just add those products to the create the invoice.

Alex was very happy that he was able to upgrade his system seamlessly, keep his great rates and stay with the company he has trusted for the last 5 years; Merchant Processing Solutions Inc. If your merchant processor does not reach out to you about your current merchant processing solution and products, call us! We would be honored to help you work effectively and affordably! 

Call Us Today: 954-938-2420

What is a Chargeback? Can it effect me?

A Chargeback is the return of funds to your customer! It is done forcibly and initiated the a disgruntled customer to get their money back. Specifically, it is the reversal of FUNDS paid to the merchant for products and/or services sold. Chargebacks exist primarily for consumer protection. According to Regulation Z of the Truth in Lending Act,  credit cards issued in the United States are afforded reversal rights of protection and are guaranteed reversal rights by Regulation E of the Electronic Fund Transfer Act. A customer initiates a chargeback by contacting their credit card company and filing (in writing) a complaint regarding a sales transaction by a Merchant. The customer's credit card company then sends notification to the Merchant Processing Company whose bank in turn pulls the funds from the Merchant's Bank Account!

Immediately, the "Chargeback Process" initiates a LETTER, sent via USPS, to the merchant explaining what needs to be done to prevent the complete reversal of the money back to the customer. Usually, the merchant needs to provide a signed copy of the customer's receipt. Proof of the merchant's "refund, return or exchange" policies and a reason why the merchant feels the customer should NOT get the money refunded. Unfortunately, the threat of forced reversal of funds gives merchants an incentive to provide quality products, helpful customer service, and timely credits/refunds, when promised. Chargebacks are also used as a means reversing unauthorized purchases due to identity theft. But more and more today, Chargebacks are blatant cons on the part of the purchaser to "have their cake and eat it too"! They want the product or service but don't want to pay for it or perhaps the warranty expired and now want their money back!

Card associations, Visa, MasterCard, Discover, American Express and others have express chargeback rules and are available online at their respective websites. Basically, these rules are a system for mediating the transaction disputes between cardholders and merchants but documented evidence of the transaction, like signed receipts, correspondence, video evidence, phone call recordings, etc. Help a merchant KEEP THE FUNDS. However, it if the MERCHANT does not follow-up on these CHARGEBACKS - the money is REVERSED!

Here are the TOP 10 REASONS for the REVERSAL OF FUNDS:

1. Merchant does not even open the letter until it is TOO LATE to FIGHT!
2. Documentation received was invalid or incomplete
3. The merchant didn't provide the services or failed to send the products.
4. A recurring transaction was processed after the cardholder requested termination, the account had been closed, the charge exceeded the predetermined amount, or the merchant failed to notify the cardholder of the upcoming charge.
5. Merchant sold defective product or service and would not work to correct problem with customer.
6. Fraudulent multiple transactions/Fraudulent processing of transactions
7. The MERCHANT or one of their employees "forced" through a credit card that was either Declined, Expired and had NO Authorization/Approval Code. (Seen a lot with Sales Reps)
8. The merchant failed to credit the cardholder's account after a return was made.
9. A single transaction was processed more than one time.
10. The cardholder did not participate in the transaction (a fraudster made a duplicate or counterfeit copy of the card). 

If you are a Retail Business, installing an EMV Enabled Credit Card Terminal gives you significant piece of mind and dramatically reduces fraud and chargeback liability. EMV chip cards are almost impossible to counterfeit as they have increased security measures like tokenization - a process that swaps out the primary account number with a value called a token or a new code on each transaction. In conclusion, if you have an EMV capable terminal, it is crucial that you make sure that you are processing all chip cards with the chips instead of the magnetic stripe. 

If you are a card-not-present merchant, Fraud and Chargeback issues still arise due to the nature of the sale. The best thing you can do, is to work with a merchant processing company that knows how to properly submit a "chargeback claim" and get your funds back into your bank account! 

Merchant Processing Solutions Inc. has worked tirelessly to aid our merchants in Chargeback Disputes. We almost consider ourselves experts in helping our merchants KEEP their hard-earned money! So, if you are working with a merchant processing company today that DOES NOT HELP YOU with your chargeback disputes, call us TODAY! 

954-938-2420

Why do you need my Statement? Just give me a quote on your rates!!!

Why are merchant processing salespeople ALWAYS asking me for copy of my statement? 

There is a legitimate reason why GOOD sales reps will ask you for 1-3 months of merchant processing statements (NOT YOUR BANK STATEMENTS!). It is to understand how you process and make sure they CAN and DO offer you better rates, fees and solutions! You see, there are hundreds of interchange rates (wholesale rates offered by Visa/MC/Discover/AMEX), and acquirers/processors can potentially mark-up these wholesale rates, assessments and additional fees. Most merchant would really not know the difference unless they knew what you were looking for! That is why statement analysis a critical component of the merchant sales process. A careful, line-by-line analysis of a merchant's monthly processing statement will reveal a true, effective per-transaction rate inclusive of marked-up dues, assessments and other fees, experts stated.*

Merchant Processing Solutions Inc. is all about educating our merchants and prospective merchants on understanding how different components of our industry impact their pricing model.

• Card Data Entry - Swiped or Key-entered
• PCI Compliance - Payment Industry Data Security Standard Compliance 
• Credit Card Types - Debit, Credit, Rewards, Business, Commercial, Purchase Cards
• MCC Code Set-Up -  A Merchant Category Code (MCC Code) is a four-digit number used to classify a business by the type of goods or services it provides. A MCC number is assigned to a merchant by the credit card processing company when the business first starts accepting credit cards. It determines the type of transaction being performed and rates associated with those transactions. 
• Entering ALL requested and required information during the transaction - Is your transaction asking for a Zip Code or Address? Is your transaction asking for an Invoice #?
• Settlement promptly - Always batch/settle approved transactions within 24 hours to get the best rates.
• Equipment, Technologies and Integration Partners - Terminal, Mobile Devices, Point of Sales Hardware and Software, Gateways, Virtual Terminals and Mobile apps. 

It is a critical part of the business relationship for merchants to work with reps to educate them about the differences between OFFERED RATES (ADS & GIMMICKS) and what they see when their statements come in. But understanding and demonstrating how pricing strategies or models benefit merchants isn't simple. Their banks and merchant services companies fill their heads and have made promises of lower rates that seem reasonable but when they sign on the dotted line, the fees NEVER REFLECT the promises given!

As mentioned before in a previous blog article, understanding your merchant statement can seem overwhelming! Leaving merchants confused, frustrated, angry and mistrusting of the industry. All they really want to know is what the bottom line is!!! Unfortunately, it is not uncommon to find inflated rates & fees on statements, particularly among processors that advertise very low rates. These additional fees are in hidden pricing models like "Bundled" or "Flat" rates, "Bill-Back", "Enhanced Bill Back" or "Differential" Rates. Companies like these believe that the MORE CONFUSING they can make their statements....THE BETTER! (And the also sign you to a 3-5 year contract and make your life MISERABLE!)  

For some of these struggling processors or agents, the only way they can make any money is by padding everything. We ALL know about Rate Padding but little is know about the Additional Fees Padding! Brand Assessments (added by Visa/MC/Discover/AMEX as additional fees on top of the rates) typically range from .12 to .14 percent (these are separate than the actual wholesale rates) but many processors are pricing their assessments higher at .15 to .19 percent. Another area of assessment is a fee called a MC NABU fee or the Visa Access fee, which normally falls into the range of $0.0195 to $0.0155, but is frequently marked up. And FINALLY, some merchant processing companies are adding their OWN Assessment Fees to charge you even MORE!!! When assessment fees are doubled and sometimes tripled, the amounts may appear to be small, but everything adds up.
During a recent statement analysis, MPS Inc. found that a merchant was paying 30% higher in additional fees plus higher rates! We were able to save that merchant $63 just on the assessments and even more savings on the rate over their current processor; all due to Rate & Assessment Padding!

One of the biggest challenges we have with merchant prospects and reviewing their statements comes down to matching interchange (Visa. MC/Discover/AMEX wholesale rates) categories and descriptions with published rates (See Visa or MasterCard Interchange Rates online). Merchant processing statements that have UNIQUE PRICING MODELS like bundle rates & fees with nothing broken out to compare to brand published fees, make it nearly impossible to determine true effective rates, because they can carry over fees from previous months or fail to break out related costs.

Bottom line: Currently, No simple formula for credit card payment acceptance pricing exists, but armed with knowledge about pricing practices, a statement analysis, your company's payment acceptance specific needs and a trusted industry rep you can help your business find and work with a company that offers GREAT SERVICE with fair and reasonable rates, fees and assessments.


Only having a trusted, qualified merchant services rep analyze your statement, can a YOU really know what you are paying and how to decrease your fees.

Call MPS Inc TODAY @ 954-938-2420 for more information! 

*Information derived from The Green Sheet: E-Magazine. (http://www.greensheet.com/emagazine.php?emagazineIssueNumber=NULL )