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 )

MPS Inc proudly sells USAePAY!

Merchant Processing Solutions Inc. is a PROUD reseller of USAePAY. We have offered this product to many of our merchants with much success! It is one of the ONLY multiple products platforms offered. USAePAY offers:

• Retail with EMV Card Reader on PC or Mobile Phone 
• Virtual Terminal with Recurring Billing and NOW Invoicing!!!
• Website Payment Acceptance via shopping cart or "Pay Now" Button
• Database Capture
• Inventory Management
• QuickBooks Connect

Many merchants buy Points of Sale Software that is VERY EXPENSIVE and they only use a small percentage of what the software offers. We encourage our merchants to look at their business and determine exactly what they need in a software. Many find that a comprehensive gateway offers a better solution than the more expensive software. 

Even our retail customers are thrilled when they can capture not only the amount spent and the last four digits of the credit cards used BUT the name and email (for receipts) for their customers. This helps the merchants compile a list of their customers for future communications. Our merchants also like the fact that the customers can leave a SECURE WALLET with this gateway for future payments. 

If you are considering a Point of Sale Software Solution, please call us first to discuss something that might be better and MUCH more affordable.  

   

The following article is from the Merchant Services Industry eMagazine, The Green Sheet published, Friday, July 21, 2017. http://www.greensheet.com/USAePay  

Innovating The Gateway......

Today’s payments environment, and what has been an ever-changing merchant landscape in recent years, has also inspired gateway functionality to evolve. As a result, processors looking for a third-party gateway partner are now evaluating a gateway’s ability to innovate just as closely as they look at its security, compliance and usability.

“Gateway technology has been a core part of the payments ecosystem for nearly two decades now,” said Martin Drake, President of gateway provider USAePay. “While it’s true that any gateway product must diversify with the industry to stay relevant, the providers who think outside of the box and use the inherent strengths built into their technologies to solve marketplace issues, are the ones that will stand out.”

A merchant’s issues have moved beyond the day-to-day functionality of the gateway. While automated batching and reporting, encryption and real-time access to transaction data are still paramount to a merchant, their world is becoming more and more digitized by the day. They are also being faced with meeting an increasing level of compliance and security requirements that impact their bottom line and ability to become more efficient.

These merchant-level challenges, and the desire of the processors to resolve them, have inspired USAePay to further harness the power of its gateway technology to provide a new set of capabilities the merchant will benefit from at the point of purchase and beyond.

All encompassing console 

With the recent release of the newest version of the USAePay Merchant Console, merchants now have enhanced ways to manage customer orders and manage their product database. The interface is not only convenient and simple to use; it promotes productivity with its streamlined functionalities.

The updated virtual terminal features have been optimized to make managing batches, customized reports, fraud modules, and processing transactions a breeze. The interface is more intuitively designed and configured to function more like the other apps every merchant is now accustomed to using.

"The online user experience has changed drastically over the past few years. Users expect more and demand more from online interfaces. The new merchant console not only meets those demands but exceeds it. It truly is the console for today's merchant," said Ben Goretsky, CEO at USAePay.
The console has also been enhanced with two new groundbreaking features. The invoice manager enables a merchant to add or customize invoices by using built-in and template-styled functionality. A merchant can now configure invoices quickly by adding products, taxes, footer messaging, and branding all in the same environment they handle other transaction-based activities. In addition to reducing the number of places a merchant has to go to manage these activities, this feature reduces the risk of manual invoice errors, eliminates paper invoice costs and also enables a merchant to invoice digitally.

Seamless device management and compliance

The new retail device manager feature in the USAePay gateway console provides merchants with the ability to connect all of their devices to the console through a WiFi network or a Bluetooth connection while also managing those transactions online. This not only enables the merchant to handle swipe, EMV and contactless transactions all in one place from a remote or desktop computer device, it also serves as a solution for managing EMV transactions online.
Through this feature, merchants now have the ability to pair their EMV devices to the console, and use the all-in-one online interface to process every terminal-based transaction without worrying about or sacrificing compliance.

“The solution we offer is unlike any other being offered today for EMV,” said Ben Goretsky, CEO at USAePay. “Using any browser on any computer, merchants can today process EMV quickly and securely through our merchant console interface.”
The application is compatible to work with macOS and Windows-based web browsers and gives users the choice of using EMV-certified hardware solutions from Verifone, Ingenico and Castle. It not only processes EMV card transactions, it accommodates swiped transactions and accepts Apple Pay and Samsung Pay contactless transactions as well.

“This is USAePay’s fully-compliant answer for the growing number of merchants that are looking to manage their POS activity alongside the rest of their day-to-day business activity” concluded Drake. “We’re working hard to use our technology to bring efficiency and additional usability into every merchant environment, without compromising the rising need for compliance and security.”

Merchant Processing Solutions Inc. puts our MERCHANT'S NEEDS FIRST. We try to find the BEST SOLUTION to meet their need at the BEST PRICE!!!

CREATING RELATIONSHIPS NOT JUST TRANSACTIONS!

Call Us Today @ 954-938-2420

-

New Chip Card Swipe

Traditional Card Swipe

Card Present 

VS 

Card Not Present

Businesses that wish to accept credit cards need to understand the nature of their business or business type to determine whether they need a Card Present payment acceptance program or a Card Not Present payment acceptance program. Do you have a store? Will you be accepting payments over the phone or online? We have seen too many times how a merchant got duped into purchasing/leasing a terminal when more than 50% of their business is Card Not Present, they never see their customer, key-enter cards - pay higher rates!!!

Card Present vs Card Not Present 

1. Understand how you will interact with your customers; in Person, Internet, Over-the-Phone and realize there are different equipment solutions and rates associated with your needs and choice.
2. Once you are set up to accept Card Present processing with a TERMINAL or a POINT OF SALE Software, you will ALWAYS want to swipe transactions via the card reader. 
3. Make sure your equipment is set up to accept the EMV (European MasterCard Visa) chip cards. When you accept cards via the "chip reader" you are helping your business against Chargebacks and Fraud. 
1. If a card is swiped instead of "chipped" and there is a Chargeback, you will NOT even be able to fight that legally. Only businesses that use the Chip Reader on transactions can fight a chargeback. Don't let yourself be vulnerable get and use a EMV Card Reader! 
4. Discount Rates or Percentages - All transactions are classified into one of three categories and is the foundation for each merchant rate charged.  
1. Qualified (Standard Cards) - A qualified discount rate applies to most swiped credit card transactions that have no consumer or corporate rewards on them. These transaction must be approved, pass address verification, and close within the daily batch.
2. Mid-Qualified - A mid-qualified discount rate is an surcharged added to the Standard Cards (Qualified Cards) that offer rewards, was key-entered instead of swiped, NOT filling in any fields on the TERMINAL when requested, or the merchant did not batch within the time required by their merchant agreement. 
3. Non-Qualified - Adds an even higher surcharge on top of Standard Cards (Qualified Cards) for key-entered into a Terminal or Point of Sale, applied to "high risk" merchants, high reward cards, Business and Corporate Cards, not batching daily and not filling in the required fields on the TERMINAL.
5. With Card Present transactions, you see the purchaser, you can check ID if you are questioning their validity, and you get a signature on the receipt. 
6. With Card Not Present, its a whole different game! You have NO IDEA if the card bring given is actually owned by the person purchasing. Due to that reason, mostly, key-entered cards have a higher base rate than a Card Present Rate.
7. Fraud also determines your Discount Rates or Percentages. ITS ALL ABOUT THE RISK! 
8. Other factors that influence rates besides: Points, Percentage back to the cardholder for using said card, not filling in all the fields on the terminal and not batching within the required time.

Moble Card Reader

Does this seem too much to ponder? That's why it is SO important to work with a reputable, local company that you can call, meet with and discuss your particular business situation. Merchant Processing Solutions Inc. prides itself on setting up their merchants on what THEY NEED and not what makes us money! 

CREATING RELATIONSHIPS NOT JUST TRANSACTIONS!

Call Us Today @ 954-938-2420

Q. Why can't I understand my merchant processing statement?
A. Most processors don't want you to!!!

I must admit, there are many times while doing a statement analysis, that I need to
consult with my colleagues because the numbers just don't make sense. Or there are 
charges on the statement that I have never heard of before.  Or worse yet, I know they are paying too much but I cannot for the life of me find where this processor is hiding it!!! 

You see, you are not alone! Many of my merchants tell me they stopped opening the statements
because they could not understand them, so why get upset. They just look at their bank deposits and withdrawals and pray they are correct and fair. Some use the "Net Effective Rate". Divide what you paid in fees by the gross amount you sold.   

        

        Example: Fee for the month were $475.00 and you sold $20,000 that same month.

                                 $475.00

                                 $20,000 = 2.375% Net Effective 

                
                But what does this Net Effective REALLY mean?

•      What types of cards were you accepting during that month? Debit, Rewards, Credit, Business etc
•       Were they swiped or key-entered into your system? Key-entered cards rates are always higher than swiped card rates. 
•       Is your statement a full month or does it include a type of "Bill Back or Enhanced Bill Back System" ?  A processor that employs this billing method is nothing but a CROOK in my book! In the month's statement you are billing what was promised as a base rate plus the processor fee and that's it. But the following month, after those transactions actually hit the brands and the processor see there were some higher fees associated with those rates, they charge you the next month in their PENDING category. So to find the TRUE Net Effective of your statement, you need to add not only what you were charged this month in fees but what is pending for the next month. Enhanced Bill Back is when this practice is done and the processor adds a little more on top for themselves!!!! YIKES THAT HURTS

As you can see, it is not easy to understand your merchant processing statement, unless you are with 

Merchant Processing Solutions Inc. We pride ourselves on taking the time to educate our merchants

on reading their statements. We also show them what fees are from Visa/MC/Discover/AMEX and

which ones are ours. Finally, we explain what "Other Fees" mean and what they should look out for. 

You see, at Merchant Processing Solutions Inc. we want YOU to be a customer of ours for a long 

time. Remember....we are about "creating relationship NOT just transactions!"

So here are some final tips about your merchant processing statements:                                                                                                                      

•       Never toss your statements into a drawer or the trash
•       If you need to get your statements online and print them, make sure you ask for the log in and password when you REP come to your location and gets you set up. Make sure they go over that process so you can have access to your online statements whenever! 
•       Never JUST rely on your bank account to indicate what you are paying - those numbers are misleading
•       Hold your account rep and/or your processing company accountable - make them go line by-line with you to understand your processing.
•       If you don’t understand what you are being charged and how they get to that info, cancel your service! So of course.............NEVER SIGN A CONTRACT! 
•       Make sure you get a clear copy of your application/contract from your processor. Make sure you clearly understand what your are paying. Then use this document to occasionally compare your PROMISED RATES AND FEES to what you are actually paying. 

Please call Merchant Processing Solutions Inc. @ 954-938-2420 

to review your merchant statement! 

Q: How quickly should I get my money after settlement?

         This is great question and the answer is, it depends!!

         

Many people think that closing the batch at anytime should mean that your money is instantly in your bank account. This is anything but true. Companies like Square and PayPal offer "instant deposits" but at at cost! Square charges an additional 1% while PayPal will only allow you to use those funds to purchase on PayPal payment acceptance sites or transfer those funds to your PayPal Debit Card.
However, most merchant processing companies take between 1-4 days to process.

Why does it take so long to get my money? Several factors influence that timing. 

• One of the first issues is when you close your "batch" and "settle" your daily transactions. If the merchant processing company, in California, has a cut-off time of 5pm Pacific Time and your office is in South Florida, you would have to batch before 8pm for that payment to be considered a TODAY BATCH. 

• Using that scenario, the next step we need to know is how quickly does the merchant processor's "Acquiring Bank - Merchant Services Bank that receives all the transactions from that batch send those transaction amounts to the "Issuing Bank". Then each "Issuing Bank - a bank acting as a middle-man for customers/cardholders to connect transactions to their credit cards" sends the transaction information out to the actual credit card companies for repayment those transactions. This can be a few hours or a few days! It totally depends on what your merchant processing company has negotiated with both the Acquiring Bank and Issuing Bank. In years past, a merchant would pay MORE to get Next Day or Early Funding. 

• It evens get more crazy when dealing with ONLINE SALES!! When does your online payment gateway batch? Where is that company located, CA, NY, KS? OK, they are in CA (3 hours from FL) and do ALL batches at 5PM PST. I need the money to get to my merchant processing company by 6PM CST. 

• What time zone is my software? What time zone are my customers/clients making payments?????? Need I say more...

• Quite frankly, the Acquiring Bank to Issuing Banks is a pretty quick and seamless process. What I find is the Merchant's Bank - Wells Fargo, Citibank, Bank of America, etc. Some of these banks still do the deposits from merchant processing sales manually. And for some reason they can take more than a day to enter those funds into your bank account. We have seen this time and time again. Our Issuing Bank pays you and the money is just not in your account? Why? We have come to find out that it has to do with internal cut-off time, your credit rating within the bank, sometimes the size of the deposit etc. In my opinion, these guys want you using their merchant services partners to do your processing so they can make their money. So if you are not processing with them; they don't always make it easy. 

• Banks, using their merchant processing partners, usually offer Next Day Funding unless the equipment used or software has an additional time for batch which pushes the entire deposit process off by a day or so. However, Next Day Funding come with a price. Banks get about 25% of each transaction, sign you to a long-term contract and LOVE to lease you equipment!

• A main talking point for TEAM MPS Inc. is asking our potential merchant what time they close for the day. It may not be convenient for a merchant to close their batch earlier than they close. Example: A merchant is processing through a company that requires you to close the batch for Next Day Funding eligibility by 6pm Central Standard Time. But your shop does not close till 9pm. Do you want to do two daily batches; one at 5:45PM and anther at closing around 9:15pm? What does that do to your daily totals and accounting? It's all about consulting with our merchants to make sure we hear and abide by their needs. 

• Another consideration is how the payment acceptance equipment communicates with the processor. It it a phone line and there are occasional noise on the line that prevents GOOD COMMUNICATION. Or are they using a terminal or software that is impacted by fluctuations in Internet speeds. MPS Inc. sets up all our equipment to batch at least 15 mins before the cut-off time to ensure that the settlement happens ON TIME for our merchants. 

In conclusion, BEWARE...Today, most reputable companies offer Next Day Funding as part of their sales package and desired benefit by most merchants. AND It should be offered at NO ADDITIONAL COST! 

Merchant Processing Solutions Inc. offers Next Day Funding to all their merchants after asking these key questions:

• Do you want or need Next Day Funding?
• What time can you batch? Does that cut-off time meet the criteria of the Acquiring Bank? 
• Have we considered the merchant time zone and the merchant processing time zone?
• What equipment or software are you using? Do they have any specific batch constraints to impede closing at a desired time?
• What bank are you using? What time do they need to get the deposit to consider it Next Day Funding? 

Should I open a Merchant Account with my bank?

Q: My bank is offering me merchant services....is there a reason I should not go with them? 
     Yes!

Banks are not in the merchant services business! It is a product that they offer like ordering you checks from a third-party for your checking account. They go to an outside merchant services company that they have a monetary partnership with. By doing this, you are losing out on a couple of good aspects that Merchant Processing Solutions Inc has do for you:

• Usually someone in the bank takes the application or they call an exclusive rep from the partner Merchant Services company. They will take your application and then they are done! 
• You will have your equipment shipped to you along with and 800# to call for installation that you will have to do on your own.
• If you have any issues with the installation, you may have to spend a lot of time on the phone or call in someone to install the terminal or software for you; at your own expense.
• The first time you have a problem, you will realize the value of a local representative and a local company that can bring you immediately a replacement terminal so you have NO down time! 
• Then the statement comes and you realize that are a lot of charges on the statement that you do not understand or you might even feel that you were not even told about them! Your only choice is to call the 800# for customer service and spend however long it takes to get the answer you need.
• I always ask potential customers if they are currently under contract with their bank. Many merchants say they are NOT, only to find out that not only are they under a contract, but that it is for 3 years with a VERY LARGE cancellation fee!!! Yikes!!!
• I have other merchants that come to me and say, I just finished my contract so let's get things going! I ask them when "SPECIFICALLY" their contract expired and what were the terms to cancel that contract. Merchants don't know that they have to give cancel notice with so much time in advance, otherwise many of the bank contracts have AUTO-RENEWAL clauses to them. 
• Banks have also partnered with equipment leasing companies to lease equipment to their bank merchants. Again, many potential merchants think they own or are renting their equipment only to be told that they are on a 4 year+ lease. 
• Lastly, one of the most horrific discoveries is when they realize that the bank they thought HELPED so much to get set up with a merchant account, not only signed you to a 3 year contract with cancellation fee but also a 4 year lease with an even bigger cancellation fee!

                To Summarize:

                        Bank Merchant Accounts:                            MPS Inc. Accounts:

                 - Contract with Cancellation Fee                         - No Contract, No Cancellation Fee,
              & Auto-Renewal                                                  No Auto-Renewal

                 - Lease of equipment – sometimes                      - No Leases

                    longer than the contract                                     - Equipment at Cost

                - No Local Customer Service Rep                        - Local Sales Rep for Application, 

                           - No Local Installation & Training                         Installation & Training
                                                                                                         - Local Customer Service Support
                                                                                                             & 24/7 back office support.

Call Merchant Processing Solutions Today and see the difference! 954-938-2420

Creating Relationship NOT just transactions!!!

MPS Price Model Makes ALL the difference!

Q: What makes #MerchantProcessingSolutionsInc 

     pricing model so special? 

1. #MPSPRICEMODEL passes the direct cost (wholesale rates) from VISA/MC/DISC/AMEX to our merchants with our Flat Transparent Fee on top.
2. #MPSPRICEMODEL is the most cost effective for merchants because we don’t add additional surcharges to our rates!
3. With #MPSPRICEMODEL if you have a refund you get the percentage paid back as a credit with other price models you lose the percentage paid in the original sale.
4) Every year VISA/MC/DISC/AMEX do reviews on the different credit card rates, however this does not mean that all of the card rates are increased, in many cases credit card rates go down! With our #MPSPRICEMODEL you will actually get the new credit card rates; whether they go up or down. This can definitely mean savings. And if any of the cards increased in cost, at lease you only pay that increase NOT an increase in our processing fees. With other processors, your ENTIRE Discount Rate increases an average of 0.05% every April & October.
5. #MPSPRICEMODEL is perfect for eCommerce accounts because since we pass the raw cost (wholesale) on to you, we are not profiting from transactions that are not card present. HUGE SAVINGS!

Call Us Today to Learn More about the #MPSPRICEMODEL: 954-938-2420

There is a different in Merchant Processors!

Merchant Processing Solutions Inc. 
     We want you to know......          

If you have been processing credit cards for any time now, you know that NO Merchant Service company is the same as another! You would also know that EVERYONE appears to be selling merchant services these days!! How can you believe what they are telling you? We are going to take you on a journey through the mysteries of merchant services/processing so you WILL know what should you look for before you make the decision to hire a merchant services company!

# 1 : Local Presence: 

1. Is the company you are speaking with have a local presence? 
2. Are decisions make here locally? 
3. Am I dealing directly with the person that can decide rates, fees and equipment pricing?
4. Will they not only be with you to take an application but to install and train your staff?
5. Do they have local customer service to help should you have a problem and need in-person support?

Stayed connected to our blog @ processmps.blogspot.com