http://cardpaymentoptions.com Dedicated to educating merchants and sales agents about the merchant services and credit card processing industry. Merchants, learn how to save money on rates and fees. Agents, learn how to increase your sales. Wed, 21 Jul 2010 09:36:00 +0000 http://snappages.com en http://cardpaymentoptions.com/blog/2010/07/21/discovery-card-rewards-improve http://cardpaymentoptions.com/blog/2010/07/21/discovery-card-rewards-improve Wed, 21 Jul 2010 09:36:00 +0000 http://cardpaymentoptions.com/blog/2010/07/21/discovery-card-rewards-improve
"As a leader in cash rewards, we know how consumers earn their rewards is important, but how they redeem them really defines the value of the rewards experience," said Dana Traci, vice president of rewards and product management at Discover. "Our new and improved redemption experience will help Discover cardmembers get a lot more benefit from their rewards."

Discover pioneered cash rewards, and through its Cashback Bonus program, cardmembers earn 5% Cashback Bonus in specific categories that change on a regular basis throughout the year, and up to 1% Cashback Bonus on all their purchases.

Redemption options will still start as low as $20 and there are now more ways for cardmembers to redeem, including: Partner and Discover gift cards; merchandise; charity donations; direct deposit; and statement credit. And cardmembers now can choose a split-pay option on select merchandise, allowing them to pay for a portion of the price with their Cashback Bonus and put the remaining balance on their Discover or Diners Club cards.

These enhanced redemption options are consistent with Discover's tradition of continuously giving more back to its cardmembers. Discover Cardmembers already have the unique opportunity to redeem their rewards for amounts greater than face value. For instance, cardmembers have the ability to redeem $20 Cashback Bonus for a $25 Partner gift card.

Additionally, the new site will feature personalized recommendations based on shopping habits and past redemption behavior. Hundreds of brand-name merchandise will be offered and items will ship free of charge to any U.S. street address.

Discover has also enhanced the new redemption site's functionality, with improved left-hand navigation and a tailored search option using the new Quick Find feature, which will allow cardmembers to search by category or Cashback Bonus amount.

To see how Discover cardmembers use and enjoy their Cashback Bonus, please visit ItPaystoDiscover.com.

About Discover

Discover Financial Services (NYSE: DFS) is a direct banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company operates the Discover card, America's cash rewards pioneer, and offers personal and student loans, online savings accounts, certificates of deposit and money market accounts through its Discover Bank subsidiary. Its payment businesses consist of Discover Network, with millions of merchant and cash access locations; PULSE, one of the nation's leading ATM/debit networks; and Diners Club International, a global payments network with acceptance in more than 185 countries and territories. For more information, visit www.discoverfinancial.com.

SOURCE: Discover Financial Services

]]> http://cardpaymentoptions.com/blog/2010/07/20/flagship-merchant-services-review http://cardpaymentoptions.com/blog/2010/07/20/flagship-merchant-services-review Tue, 20 Jul 2010 23:03:00 +0000 Phillip http://cardpaymentoptions.com/blog/2010/07/20/flagship-merchant-services-review
Flagship, too, also has several complaints and I believe many of the stem from what appears to be their sales model: Hire agents on a commission only + residual payment structure, provide very little training. and then sell sell sell. The problem is that important pieces of information get left out of the sales process by uneducated sales people and merchants get surprised by fees they didn't expect. Although you will find complaints with most merchant services companies, there are a few that stand out to me as red flags:

#1 Complaints of hidden fees
I found several complaints of merchants complaining that the fees where higher than what was quoted. I have seen First Data's quotes and merchant account application and these type of complaints are valid. First Data buries and shrouds the Mid-Qualified/Non-Qualified rate tiers, so it's not surprising that the average merchant doesn't notice them. See how rate tiers work here. Flagship seems to be doing a poor job of disclosing some of these fees in it's sales process. I would imagine that the problem stems from poor sales training and uniformed sales people.

#2 Complaints that contradict what Flagship quotes on their website
Specifically, Flagship says that they have no contracts or cancellation fees; however, I found several complaints of both contracts and cancellation fees of $75 to $150. To be fair, these may have simply been misunderstandings of the type of fees being assessed at the time of cancellation.

TopTenReviews.com Review of Flagship Merchant Services

Flagship loves to boast that they have been rated as a best pick three years in a row by Top Ten Reviews. I took a close look at their review and it is nothing more than a quote of Flagships marketing material. It is a completely bogus and slanted review and is most likely something Flagship paid to have done. The whole thing looks and sounds like a commercial. They even have an affiliate referral link to Flagship in the review (meaning TopTenReviews gets paid for sending Flagship business). If you ask me, there is zero credibility in the review.

Conclusion

Flagship and First Data may have a lot of complaints but they have also been around for several years. This industry is complex and tough to understand and any merchant services company that has been around for awhile (and relies on independent sales agents) is going to have complaints against them. Overall, most merchants will have a positive experience with Flagship. My recommendation to any merchant is to educate yourself about how rates and fees work before you start a conversation with any merchant services company. Secondly, take your time and get several quotes from different providers to compare pricing. If you can't get clear answers to your questions, then walk away.

Did this review help you? Leave feedback in the comment section below.

Learn More About Merchant Accounts:
Merchant Account Rates Explained (Video)
Merchant Glossary
Find a Processor



]]> http://cardpaymentoptions.com/blog/2010/07/16/pre-paid-debit-cards-better-than-cash http://cardpaymentoptions.com/blog/2010/07/16/pre-paid-debit-cards-better-than-cash Fri, 16 Jul 2010 10:54:00 +0000 http://cardpaymentoptions.com/blog/2010/07/16/pre-paid-debit-cards-better-than-cash
The campaign brings to life how Visa prepaid debit cards can enable better money management and empower consumers looking for an alternative to a cash-and-carry lifestyle. The fundamental messages of the campaign focus on core product values, including:

• Control - enabling consumers to manage their spending on their terms
• Convenience - the ability to make purchases online, at retailers - even to pay bills
• Security - safer than cash and registered cards are replaceable if lost or stolen
• Access - easy, timely access to their money through direct deposit

The multi-channel campaign integrates social media, mobile, digital, grassroots events, and radio advertising, as well as in-store demonstrations, displays, and promotions. Digital media is a central element of the campaign. Online display ads provide direct access to purchasing cards online through Visa partners, and social media enables consumers to connect as a community through the Visa Prepaid Debit Facebook page (www.Facebook.com/VisaPrepaidDebit). In-store demonstrations and local events provide an opportunity for personal interaction with consumers, where product experts explain how reloadable prepaid cards work, and help consumers apply for a card onsite.

"Core to this campaign is Visa's ability to reach consumers who may not realize they can enjoy the benefits of a Visa product, and experience a better alternative to a cash-and-carry lifestyle," said Hyung Choi, head of U.S. prepaid products, Visa Inc. "The campaign builds upon Visa's long-standing commitment to extending financial inclusion to more consumers, while at the same time driving opportunities for Visa, our partners and clients."

Research by the Mercator Advisory Group shows that the majority of consumers do not make full use of the opportunities provided by prepaid cards. "Our CustomerMonitor Survey Series conducted in 2009, documented the fact that only a very small number of the unbanked and underserved have purchased or reloaded a general purpose reloadable prepaid card in the last 12 months," said Tim Sloane, director of the Prepaid Advisory Service at Mercator. "This clearly demonstrates that the industry has a significant opportunity to more strongly communicate the benefits of prepaid cards to consumers, as compared to alternatives that include cash and alternative other financial services offerings."

For more than a decade, Visa has invested in growing the prepaid category in the U.S. and around the world. Visa's flexible platform enables a diverse set of prepaid products meeting highly specific needs supported by technology enhancements and services, prepaid processing and a global infrastructure that ensures interoperability and consistency. With a focus on migrating paper-based programs and processes to electronic forms of payment, Visa has established more than 10,000 Visa prepaid programs in 110 countries, delivering greater convenience, choice and security to consumers, businesses and governments. Access to electronic payments can help empower financially underserved individuals, providing more choice and greater control over their money and enabling their inclusion in the financial mainstream. Additionally, Visa partners with leading consumer advocates, educators and financial institutions to encourage responsible, informed use of digital currency through its financial literacy programs.

]]> http://cardpaymentoptions.com/blog/2010/07/14/utility-credit-card-payments-on-the-rise http://cardpaymentoptions.com/blog/2010/07/14/utility-credit-card-payments-on-the-rise Wed, 14 Jul 2010 14:39:00 +0000 http://cardpaymentoptions.com/blog/2010/07/14/utility-credit-card-payments-on-the-rise
Our [...]]]>
Our work is paying off, as thousands of utilities around the U.S. currently accept Visa for bill payment, and Chartwell reported that card acceptance by utilities increased significantly during the past decade (Chartwell report).

Just recently, the Sacramento Municipal Utility District (SMUD) renewed its acceptance agreement with Visa, allowing their customers to continue paying bills using a Visa card. Another example is DTE Energy, a Detroit-based utility company that says it has reduced costs and strengthened customer relationships through card acceptance (see a DTE Energy bill payment case study here).

These successes are partly the result of a targeted campaign by Visa to expand card acceptance at utility companies. Among the steps we’ve taken include: establishing a custom incentive fee structure for utility payments; addressing consumer convenience fee barriers; demonstrating how utility operation expenses can be curbed through acceptance; and providing specialized support services to participating utilities.

We’ve also conducted extensive research to understand consumers bill payment preferences. According to a Visa survey, 75 percent of respondents said they opt for Visa bill payments due to convenience, followed by speed, security and expense management (Visa Bill Payment Survey, June 2009). Not to mention the desire to save paper and protect the environment.

Source

]]> http://cardpaymentoptions.com/blog/2010/07/14/visa-pushing-tokenization http://cardpaymentoptions.com/blog/2010/07/14/visa-pushing-tokenization Wed, 14 Jul 2010 14:36:00 +0000 http://cardpaymentoptions.com/blog/2010/07/14/visa-pushing-tokenization
Tokenization is the process through which a credit or debit card's 16-digit primary account number (PAN) is replaced by proxy numbers. Merchants and processors that use tokens in accordance with best practices are able to limit PAN storage, significantly reducing the risk that sensitive cardholder data may be stolen by data thieves. Visa has provided a type of single-use token for many years; transaction IDs are provided in place of card numbers for every transaction processed by VisaNet, so merchants may utilize it for settlement and other ancillary processes with the support of their processors. The best practices also address multi-use tokens, which can be used for more complicated purposes such as fraud management, recurring or subscription payments, and merchant loyalty programs.

"Where properly implemented, tokenization may help simplify a merchant's payment card environment," said Eduardo Perez, Head of Global Payment System Security, Visa Inc. "However, we know from working with the industry and from forensics investigations, that there are some common implementation pitfalls that have contributed to data compromises. For example, entities have failed to monitor for malfunctions, anomalies and suspicious activity, allowing an intruder to manipulate the tokenization system undetected. As more merchants look at tokenization solutions, these best practices will provide guidance on how to implement those solutions effectively and highlight areas for particular vigilance," he added.

The best practices are part of Visa's broader effort to provide guidance and recommendations to help merchants and the industry better manage security and compliance. By reducing the amount of vulnerable information that needs to be protected, merchants can simplify their payment systems and improve payment security. In October 2009, Visa published the Visa Best Practices for Data Field Encryption for protecting cardholder information and limiting the clear-text availability of cardholder data and sensitive authentication data. As part of these best practices, Visa recommended that entities consider using tokens (such as a transaction ID or a surrogate value) to replace the PAN for use in payment-related business purposes other than payment acceptance. Feedback from the industry about the encryption best practices highlighted a demand for more detailed guidance on tokenization. Visa has also provided best practices for PAN storage and truncation, including the use of tokens in lieu of full card numbers. Visa's Best Practices for Tokenization, Data Field Encryption, and PAN Storage and Truncation may be found online at www.visa.com/cisp.

"Tokenization is one more element in a merchant's anti-fraud and PCI compliance toolkit. Particularly valuable for card-not-present and recurring payment applications, tokenization also retains the merchant's ability to perform marketing and fraud analytics while getting card number data off the merchant's systems and easing some of their Payment Card Industry Data Security Standards obligations," said George Peabody, Director, Emerging Technologies at Mercator Advisory Group.

Visa's tokenization best practices provides guidance on areas in which poor execution has been a problem in the past, including proper generation of tokens and the management of historical data. The best practices highlight four key components of effective tokenization:

• Token generation - defines the process for how a token is generated.
• Token mapping - defines the process for associating a token to its original PAN value.
• Card data vault - defines the central repository of cardholder data that is used by the token mapping process.
• Cryptographic key management - defines the process for how cryptographic keys are managed and used to protect cardholder and account data.

Perez also noted that other sensitive authentication data such as full contents of the magnetic strip, CVV2, PIN and PIN block should never be stored after the authorization for any reason. "Tokenization is intended as a complement to, rather than a replacement for, the Payment Card Industry Data Security Standard," he said. "While tokenization and encryption solutions can streamline a merchant's environment, strong security layers are required to protect against data compromise."

]]> http://cardpaymentoptions.com/blog/2010/07/14/visa-stepping-up-security-efforts-for-merchants http://cardpaymentoptions.com/blog/2010/07/14/visa-stepping-up-security-efforts-for-merchants Wed, 14 Jul 2010 14:34:00 +0000 http://cardpaymentoptions.com/blog/2010/07/14/visa-stepping-up-security-efforts-for-merchants
"Visa's priority is protecting cardholders and the integrity of the electronic payments system," said Eduardo Perez, Head of Global Payment System Security, Visa Inc. "By reducing the amount of vulnerable data in merchant systems that must be protected from compromise, merchants can see greater security as well as more streamlined compliance needs."

Visa and the National Retail Federation (NRF) agree that merchants should not be obligated by their acquiring banks to store card numbers for the purpose of satisfying card retrieval requests. While Visa does not require merchants to store full card numbers beyond settlement, NRF's comments indicated marketplace confusion about what information merchants are required to store for dispute resolution by issuers, acquirers or processors. To clarify, Visa operating regulations stipulate the following:

*
Issuers must accept a disguised or suppressed card number on transaction receipts for dispute resolution.
*
Merchants may keep truncated or disguised card numbers and reduce the amount of potential vulnerable data stored in their systems.

National Retail Federation senior vice president and chief information officer David Hogan welcomes Visa's effort. "We have long advocated that retailers should not be required to store their customers' full card numbers and instead rely on an alternative identification number to reference a transaction," he said. "NRF has been pleased to take a leadership role working with Visa in this effort to assist retailers in our mutual goal of securing customers' information while potentially reducing the scope of the PCI Data Security Standard. Merchants should be encouraged to minimize both the amount of card information they store and the duration they keep it. The bottom line is that they should not be penalized for not storing card information. This clarification from Visa is a promising step in that direction," said Hogan.

"Making data less vulnerable to card thieves by eliminating it wherever possible has been a major focus by Visa for several years now," Perez said. "Visa is committed to helping develop workable solutions that reduce the burden on merchants who must secure their payment systems from criminal threats. Working with the National Retail Federation has helped us identify an issue and address it effectively."

Card Number Truncation Best Practices

Additionally, Visa has developed global best practices for acquirers and merchants who choose not to store full card numbers to truncate, disguise or mask card information in cardholder and merchant receipts, reducing the amount of sensitive information in storage. The following are best practices for card number truncation:

*
On the cardholder receipt, merchants should disguise or suppress all but the last four digits of the card number (####-####-####-1234) and suppress the full expiration date (currently required in the U.S.)
*
On the merchants' copy of the receipt, merchants should disguise or suppress the card number so that a maximum of the first six and last four digits of the card number are displayed (1234-56##-####-1234) and suppress the full expiration date on the merchant copy of receipts.
*
Acquirers should support merchants who choose not to store full card numbers by providing transaction data storage. Merchants may then retain only disguised or suppressed card numbers on the merchant copy of the receipts.
*
Acquirers should evolve their systems to provide merchants with substitute transaction identifiers or tokens, in place of using full card numbers.
*
Acquirers should disguise or suppress card numbers in any merchant communications, such as email, reports, statements, etc. The Payment Card Industry Data Security Standards (PCI DSS) already requires that card numbers transmitted over public networks must be rendered unreadable (e.g. by encryption, truncation or hashing).

Visa will work with key stakeholders to consider incorporating the best practices formally into Visa Operating Regulations and is soliciting industry feedback until August 31, 2010. The best practices are available at www.visa.com/cisp.

Visa previously established efforts to ensure that merchants do not store prohibited data elements which are specifically targeted by criminals, including card security codes and PIN data. In particular, Visa has required the largest Visa-accepting merchants to confirm that they do not store such prohibited data and thus far 96 percent of Level 1 and 2 merchants globally have done so. In addition, Visa has promoted the use of secure payment applications to ensure small and medium sized merchants do not store prohibited data.

# # #

]]> http://cardpaymentoptions.com/blog/2010/07/14/pin-based-debit-card-transactions-goes-online http://cardpaymentoptions.com/blog/2010/07/14/pin-based-debit-card-transactions-goes-online Wed, 14 Jul 2010 14:30:00 +0000 http://cardpaymentoptions.com/blog/2010/07/14/pin-based-debit-card-transactions-goes-online
Financial institutions using PULSEInternet PIN Debit can deliver convenient PIN-based, online transaction verification to a growing number of consumers who purchase products from [...]]]>
Financial institutions using PULSEInternet PIN Debit can deliver convenient PIN-based, online transaction verification to a growing number of consumers who purchase products from e-commerce merchants. The new payment solution, which uses Acculynk's PaySecure(R) Internet PIN debit software, reinforces the issuer and cardholder relationship by using a financial institution-branded graphical PIN pad.

According to a forecast from Javelin Strategy & Research, online retail transaction volume is expected to reach $268 billion by 2013. However, as many as 15 percent of debit cardholders have PIN-only debit cards, which previously could not be used for Internet purchases.

A separate Javelin study conducted last year found that 79 percent of consumers surveyed would feel more comfortable using debit cards online with a PIN than without it. PULSE network issuers can now address this need with Internet PIN debit transactions, giving cardholders the option to use their PIN debit cards for e-commerce in an easy and safe manner.

PULSE confirmed cardholders' acceptance of the technology in a 2009 pilot, which used PaySecure. In the pilot, 54 percent of debit cardholders paying for online purchases preferred to enter a PIN when presented with the choice of PIN or signature options to complete the transactions. Additionally, chargebacks were reduced 77 percent compared to signature debit transactions, and there were no instances of fraudulent transactions.

"Our successful pilot confirms that debit cardholders are comfortable entering a PIN when shopping online," said Judith McGuire, PULSE senior vice president of product management. "With PULSE Internet PIN debit, financial institutions can offer cardholders a secure, trusted and preferred payment option for online purchases. The product gives consumers with PIN-only debit cards a new payment choice, and should appeal to cardholders who already prefer to enter their PIN at brick-and-mortar retailers."

How PULSE Internet PIN Debit Works

When consumers check out in the usual manner from a merchant website using cards that participate in PULSE Internet PIN Debit, they are given the option of completing the transaction with a PIN. Consumers who select this option are prompted to enter their PIN to complete the transaction, using a graphical, scrambling PIN pad that can be customized with the card issuer's logo and debit card design. The cardholder clicks the mouse on a number and the PIN pad re-scrambles as each subsequent digit is selected. The PIN is not captured on the computer, nor is it transmitted over the Internet.

The solution makes a general phishing attack difficult because several unique attributes are displayed during the transaction, including merchant branding, financial institution identifiers and the VeriSign Secured(R) Seal. In addition, Acculynk's Internet PIN debit software service is integrated directly into the online checkout process, eliminating the need for cardholders to enroll or be redirected to another site to complete purchases.

A demonstration of PULSE Internet PIN Debit and more product information is available at www.pulsenetwork.com/ipd.

About PULSE

PULSE, a Discover Financial Services (NYSE: DFS) company, is a leading ATM/debit network, serving more than 4,400 banks, credit unions and savings institutions across the United States. The network links cardholders with ATMs and POS terminals at locations nationwide. Through its global ATM network, PULSE provides worldwide cash access for Diners Club and Discover cardholders through hundreds of thousands of ATM locations. The company is also a source of electronic payments research and is committed to providing its participants with education on emerging products, services and trends in the payments industry. For more information, visit

]]> http://cardpaymentoptions.com/blog/2010/07/09/menexis-review http://cardpaymentoptions.com/blog/2010/07/09/menexis-review Fri, 09 Jul 2010 17:13:00 +0000 Phillip http://cardpaymentoptions.com/blog/2010/07/09/menexis-review
According to the sources I could find, Menexis has been in business since 2004 and recently registered with the Better Business Bureau in 2007. I could [...]]]>
According to the sources I could find, Menexis has been in business since 2004 and recently registered with the Better Business Bureau in 2007. I could not find any complaints about the company and, overall, seems to have a good reputation.

Business Address

Menexis Business Address:
6400 Laurel Canyon Blvd.
North Hollywood, CA 91606



Did this review help you? Leave feedback in the comment section below.



]]> http://cardpaymentoptions.com/blog/2010/07/08/17-of-consumers-plan-to-spend-more-on-summer-vacations-this-year http://cardpaymentoptions.com/blog/2010/07/08/17-of-consumers-plan-to-spend-more-on-summer-vacations-this-year Thu, 08 Jul 2010 16:44:00 +0000 http://cardpaymentoptions.com/blog/2010/07/08/17-of-consumers-plan-to-spend-more-on-summer-vacations-this-year
The Monitor - a poll of 8,200 consumers tracking consumer confidence and spending intentions on a daily basis - fell 2 points in [...]]]>
The Monitor - a poll of 8,200 consumers tracking consumer confidence and spending intentions on a daily basis - fell 2 points in June to 88.4. Overall, 28 percent believe economic conditions are improving, a 3-point decline from last month and a drop of 6 points over the last two months.

Summer Vacation Spending Intentions Rise While Other Discretionary Spending Intentions Hold Steady

Despite increasing economic uncertainty, 17 percent of consumers, the highest in nearly two years, plan to spend more on a major purchase like a vacation in the month ahead. This is a 2-point increase from the prior month. Last year, the number of consumers planning to spend more in this category dropped 1 point from May to June.

There was little month-to-month change in the number of consumers planning to increase spending in other discretionary spending categories like:

* Going out to dinner, movies or sporting events (remained flat at 10 percent)
* Home remodeling or new appliances (decreased from 17 percent to 16 percent)
* Savings and investing (decreased from 9 percent to 8 percent)

"Summer travel seems to be the only area of increased spending by consumers whose confidence in the economy continued to decline," said Julie Loeger, senior vice president of brand and product management for Discover. "But beyond vacations, consumers' spending intentions have pretty much held steady."

More Consumers See Economic Conditions Worsening, but Nearly Half Have Money Remaining After Paying Monthly Bills

Forty-eight percent of consumers feel economic conditions are getting worse, a 3-point increase from May and 5-point jump in the last two months.

The decline in economic confidence correlated with a 2-point drop to 33 percent in the number of consumers rating their finances as good or excellent. Looking ahead, only 20 percent feel their financial situation improving, 2 points lower than May.

Despite the drop in financial confidence, 49 percent of consumers expect to have money left over after paying monthly bills. While still below 50 percent for the 15th straight month, this is the highest this number has been since March 2009.

The number of consumers expecting an income shortfall in the month ahead inched up a point in June to 38 percent.

For more Discover U.S. Spending Monitor survey data, charts and information, please visit www.discoverfinancial.com/surveys/spending.shtml.

About Discover U.S. Spending Monitor

The Discover(R) U.S. Spending MonitorSM is a monthly index of consumer spending intentions and capacity that is based on interviews with a random sample of 8,200 U.S. adults conducted at a rate of 275 per night. In addition to spending, the survey asks consumers their opinions on the U.S. economy and their personal finances. The Monitor began in May 2007 with a base index of 100. Surveys are conducted by Rasmussen Reports, an independent survey research firm (www.rasmussenreports.com).

About Discover

Discover Financial Services (NYSE: DFS) is a direct banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company operates the Discover card, America's cash rewards pioneer, and offers personal and student loans, online savings accounts, certificates of deposit and money market accounts through its Discover Bank subsidiary. Its payment businesses consist of Discover Network, with millions of merchant and cash access locations; PULSE, one of the nation's leading ATM/debit networks; and Diners Club International, a global payments network with acceptance in more than 185 countries and territories. For more information, visit www.discoverfinancial.com.

]]> http://cardpaymentoptions.com/blog/2010/07/07/american-express-says-americans-spend-9-more-with-these-companies http://cardpaymentoptions.com/blog/2010/07/07/american-express-says-americans-spend-9-more-with-these-companies Wed, 07 Jul 2010 14:33:34 +0000 http://cardpaymentoptions.com/blog/2010/07/07/american-express-says-americans-spend-9-more-with-these-companies
-- 27% feel businesses have not changed their attitude toward customer service.

-- 28% say that companies are now paying less attention to good service.

These findings were released today in the American Express Global Customer Service Barometer, a survey conducted in the U.S. and eleven other countries exploring attitudes and preferences toward customer service.

"Customers want and expect superior service," said Jim Bush, Executive Vice President, World Service. "Especially in this tight economic environment, consumers are focused on getting good value for their money. Many consumers say companies haven't done enough to improve their approach to service in this economy, and yet it's clear they're willing to spend more with those that deliver excellent service -- suggesting substantial growth opportunities for businesses that get customer service right. It's important to see customer service as an investment, not a cost."

Almost All Agree Service is Important, but One in Five Feel They're Taken for Granted

Not surprisingly, nine in ten Americans (91%) consider the level of customer service important when deciding to do business with a company. But only one-quarter (24%) believe companies value their business and will go the extra mile to keep it. Most feel businesses can do more to retain their loyalty:

-- 48% feel companies are helpful but don't do anything extra to keep their business.

-- Worse, 21% believe that companies take their business for granted.

Good News Travels Fast -- Until You Go Online

Importantly, customers are spreading the word willingly and widely when they experience good service. In fact, contrary to conventional wisdom, customers are more inclined to talk about a positive experience than complain about a negative one. Three-quarters (75%) are very likely to speak positively about a company after a good service experience in contrast with 59% who are very likely to speak negatively about a company after poor service.

Good service experiences also carry more weight than bad ones when Americans make future spending decisions. Consumers are far more likely to give a company repeat business after a good service experience (81%) than they are to never do business with a company again after a poor experience (52%).

In fact, consumers say the three most influential factors when deciding which companies they do business with include personal experience (98%), a company's reputation or brand (92%), and recommendations from friends and family (88%).

Nearly half (48%) of consumers report always or often using an online posting or blog to get others' opinions about a company's customer service reputation. But when consumers go online they're looking for "watch outs," saying they put greater credence in negative reviews on blogs and social networking sites than on positive ones (57% and 48%, respectively).

"The Internet has made service quality more transparent than ever before," Mr. Bush said. "In the online space, positive recommendations are important, but people often give more weight to the negative. Because consumers can broadcast their views so widely online, each and every service interaction a company has with its customers becomes even more crucial. Developing relationships with customers, listening to them, anticipating their needs, and resolving any issues quickly and courteously can help make the difference."

Two Strikes and You're Out. Or Is It One?

A negative service experience is an important factor for most Americans: 81% have decided never to do business with a company again because of poor customer service in the past. When asked how many poor experiences they allow, half of all Americans (50%) reported it takes two poor service experiences before they stop doing business with a company.

Importantly, consumers are far more forgiving if a company has earned their trust over time. Almost nine-in-ten consumers (86%) report they're willing to give a company a second chance after a bad experience if they've historically experienced great customer service with that company.

But companies who get it wrong should realize it's at a cost.

-- Half of consumers (52%) expect something in return after a poor customer service experience, beyond resolving the problem.

-- Most consumers (70%) want an apology or some form of reimbursement.

Service Leaders Recognize the Value

Companies with reputations for great customer service take different approaches, however they share the common understanding that investing in service truly pays off.

"While customers appreciate the plush surroundings of our five-star hotels, we know that luxurious touches don't matter to guests unless the service surpasses the setting," said Simon Cooper, president, The Ritz-Carlton Hotel Company LLC. "Trends may change, but a focus on service excellence is timeless."

"What many people refer to as 'great service', we call hospitality," says Susan Reilly Salgado, managing director of Danny Meyer's learning business, Hospitality Quotient. "Service is all about the technical delivery of the product, while hospitality is about how guests feel during that transaction. Hospitality happens when guests believe you are on their side. For people to rave about their experience and become repeat customers, you need to have both - but what surprises customers and makes them feel genuinely cared for is the hospitality. And that's the reason people love to talk about those fantastic experiences -- because they surpass expectations."

"By focusing on our company culture, we've been fortunate to hire great people where providing great service is in their DNA. We always have been and continue to grow through word of mouth. If you treat the customer how they should be treated and form personal connections with them, they'll want to tell others about it," said Aaron Magness, senior director, brand marketing and business development, Zappos.com.

Service is Valued Everywhere, but Views Vary Globally

Similar to their U.S. counterparts, a majority of consumers in all but one country surveyed feel that customer service has become more important in the current economy:

India 82% Canada 58%
Germany 68% U.K. 58%
Japan 65% Italy 55%
Mexico 65% Australia 53%
U.S. 61% Spain 52%
France 59% Netherlands 47%

In most countries where the highest percentage of consumers feel that service is more important today, there is a corresponding belief that companies have increased their focus on providing good customer service.

-- 65% of Indian, 49% of Japanese and 47% of Mexican consumers agree with this statement.

However, some consumers are not feeling the love. In Australia (71%), Germany (66%), and Canada and Italy (65% each), consumers say they feel companies haven't increased their focus on service or are paying less attention to it.

This can spell trouble and lost opportunity for companies, given that consumers around the world consistently express a willingness to spend more with companies that provide excellent service.

Average Percentage More That Consumers Are Willing to Spend

India 11% France 8%
Japan 10% Australia 8%
U.S. 9% Canada 7%
Italy 9% U.K. 7%
Mexico 8% Germany 7%
Spain 8% Netherlands 7%




About the American Express Global Customer Service Barometer

The American Express Global Customer Service Barometer research was completed online among a random sample of 1,000 U.S. consumers aged 18+. Interviewing was conducted by Echo Research between April 13 and April 20, 2010. Overall, the results have a margin of error of +/- 3.1% at the 95 percent level of confidence. The same survey methodology was used in Canada, Mexico, France, Germany, Italy, the U.K., Spain, the Netherlands, Australia, India and Japan.

About American Express

American Express is a global services company, providing customers with access to products, insights and experiences that enrich lives and build business success. American Express is a three-time consecutive winner of the J.D. Power Award, has made two consecutive appearances on the BusinessWeek "Customer Service Champs" list and is a recipient of the 2010 Forrester Research Voice of the Customer Award. The Company has also been awarded the Call Center of the Year Award from ICMI for its UK Service center, received the National Award for Excellence in Customer Relationship Management and Contact Centers from the Mexican Institute of Teleservices, and been named the winner of the Customer Experience Category of the Netherlands National Contact Centre Awards. Learn more at www.americanexpress.com and connect with us on www.facebook.com/americanexpress, www.twitter.com/americanexpress and www.youtube.com/americanexpress.

SOURCE: American Express




]]> http://cardpaymentoptions.com/blog/2010/07/07/credit-card-swipe-fee-reform-about-to-pass http://cardpaymentoptions.com/blog/2010/07/07/credit-card-swipe-fee-reform-about-to-pass Wed, 07 Jul 2010 10:51:00 +0000 http://cardpaymentoptions.com/blog/2010/07/07/credit-card-swipe-fee-reform-about-to-pass
The bill includes provisions known as the Durbin [...]]]>
The bill includes provisions known as the Durbin Amendment that would provide credit card fee relief to retailers and consumers while promoting increased competition within the credit card industry. The Senate will vote on the bill sometime after it returns from recess next week.

“This historic reform would not have been possible without the tremendous effort of our members who called on their senators and representatives and asked them to support this common-sense, consumer-friendly amendment,” said Hank Armour, president and CEO of the National Association of Convenience Stores (NACS). “These calls, along with the millions of consumer signatures convenience retailers collected and delivered to Congress urging credit and debit card fee reform, clearly shows that members of Congress are listening to their constituents.”

Credit and debit card swipe fees, also known as interchange fees, are a percentage of each transaction that Visa and MasterCard and their member banks collect from retailers every time a credit or debit card is used. These fees average about 2 percent in the United States and cost American consumers more than $48 billion in 2008, according to NACS.

Swipe fees are the second largest expense item for convenience and petroleum retailers, trailing only labor costs. According to NACS figures, credit card fees increased last year from 1.35 percent to 1.45 percent of total industry sales dollars, factoring in all forms of payment, including cash and check. Total credit card fees ($7.4 billion) also surpassed overall convenience store industry pretax profits ($4.8 billion) for the fourth consecutive year.

The Durbin Amendment would direct the Federal Reserve to issue rules to ensure that debit card swipe fees are reasonable and proportional to the processing costs incurred. The amendment also would prevent card networks from requiring their debit cards be used on one debit card network, thus ensuring retailers a choice of at least two networks to run debit transactions.

The amendment also would allow sellers to decline the use of credit cards for small dollar purchases because swipe fees often exceed profits on such sales, NACS officials said. In addition, retailers would be able to offer discounts to consumers who choose to pay with cash, check or debit card.

The amendment also provides exemptions for small banks and credit unions. Banks with less than $10 billion in assets would not be affected by the legislation. Included in this exemption would be 99 percent of banks (all but 86), 99 percent of credit unions (all but three) and 97 percent of thrifts (all but 11), according to a NACS press release.

Source: http://www.moderncarcare.com/hotnews/congress-poised-to-pass-swipe-fee-reform.html

]]> http://cardpaymentoptions.com/blog/2010/07/07/credit-card-late-payments-take-a-dive http://cardpaymentoptions.com/blog/2010/07/07/credit-card-late-payments-take-a-dive Wed, 07 Jul 2010 10:42:00 +0000 Ruth Mantell http://cardpaymentoptions.com/blog/2010/07/07/credit-card-late-payments-take-a-dive
The trade group also reported that an overall barometer of consumer loan [...]]]>
The trade group also reported that an overall barometer of consumer loan delinquencies showed improvement.

The composite ratio, which tracks delinquencies in eight categories of so-called closed-end installment loans, fell to 2.98% of all accounts in the first quarter from 3.19% in the prior quarter.

"It's far from a perfect score, but we are moving in the right direction, and that's a hopeful sign," said James Chessen, the ABA's chief economist.

Job creation holds the key to determine if there will be further improvement, he added.

"There is a very strong link between job loss and consumer credit delinquencies," Chessen said. "We won't see a sustained decline in delinquencies until new jobs are created in this economy."

The unemployment rate, which government statistics showed stood at 9.5% in June, "continues to worry us because it suggests greater financial pain for consumers in the next year or so," he continued.

While delinquency rates could edge up or just remain flat, Chessen pointed to one encouraging sign: the rate of bank-card delinquencies is below the 15-year average of 3.93%. He noted that banks are also charging off losses, contributing to the decline in delinquency rates.

"Both consumers and banks are following a prudent course here by managing their finances and moving forward as best they can in a horribly weak economy," Chessen said.

The composite ratio has declined for three consecutive quarters, with the first quarter's 2.98% marking the lowest since the third quarter of 2008.

Meanwhile, housing-related loan delinquencies also declined in the first three months of 2010, indicating that "stability is returning to the housing market," according to ABA.

"This is the first inkling that stability is taking hold in the housing market, but the pace of recovery will still be long and drawn out," Chessen said.

Home-equity loan delinquencies fell to 4.12% from 4.32%, the first decline in two years. Delinquencies for home-equity lines of credit also dropped, falling to 1.81% from 2.04%. And delinquencies on loans taken out for property improvement fell to 1.4% from 1.63%.





Source: http://www.marketwatch.com/story/credit-card-delinquencies-fall-to-8-year-low-aba-2010-07-07?pagenumber=1

]]> http://cardpaymentoptions.com/blog/2010/07/07/mastercard-jumps-into-m-commerce http://cardpaymentoptions.com/blog/2010/07/07/mastercard-jumps-into-m-commerce Wed, 07 Jul 2010 10:29:00 +0000 http://cardpaymentoptions.com/blog/2010/07/07/mastercard-jumps-into-m-commerce
A result of MasterCard's exclusive alliance with Next Jump, a leading next-generation e-commerce company, the MasterCard [...]]]>
A result of MasterCard's exclusive alliance with Next Jump, a leading next-generation e-commerce company, the MasterCard MarketPlace Overwhelming Offer iPhone app is bringing to the mobile phone the superior e-commerce experience provided by MarketPlace, MasterCard's online shopping experience portal. Through a simple tap of the finger MasterCard's innovation enables consumers to access MasterCard MarketPlace, a personalized shopping platform with customized deals and offers from selected merchants, ultimately allowing them to buy the goods and services that they need and want from wherever they may be with a simple and consistent experience across their connected devices.

"At MasterCard, we are leveraging the latest technology and innovation to create products and solutions that enable a simple, seamless, secure and valuable payments experience wherever they want to shop," said Josh Peirez, Chief Innovation Officer, MasterCard Worldwide. "As we focus on bringing the consistency of the e-commerce environment to consumers' mobile devices, the MasterCard MarketPlace Overwhelming Offers app is the latest example of how our collaboration with Next Jump is helping consumers to become smarter, savvier shoppers on their own terms."

The sale of physical merchandise via mobile phones hit $1.2 billion in 2009, according to ABI Research Inc., and is projected to reach $2.2 billion in 2010. With MasterCard MarketPlace Overwhelming Offers(TM) iPhone app, merchants will be able to improve their relationships with shoppers by offering special deals to those seeking to make purchases from them through their mobile devices while also capturing the additional mobile commerce revenue opportunity.

"By redirecting merchant advertising spend from traditional methods to create better pricing for consumers and generate guaranteed sales, Next Jump is providing substantial benefits to both consumers and merchants," said Charlie Kim, CEO, Next Jump. "Our ongoing relationship with MasterCard is helping us to take our capabilities to the next level in a way that helps consumers and merchants to connect through whatever device consumers choose to connect to the internet -- including their iPhones."

Showing MasterCard Cardholders the Mobile Money

The MasterCard MarketPlace Overwhelming Offers provides savvy shoppers access to Black Friday door-buster deals of 50 percent or more on brand new, brand name products via their iPhone utilizing Next Jump's merchant network.

Every weekday at noon eastern (excluding holidays), a deep discounted, limited time and quantity, reservation-only offer is posted from one of MasterCard's well-known retail brand partners. Key shopping days offer up to 24 Overwhelming Offers in a day (1 per hour). Some recent favorites include netbooks for $150, digital cameras at $100 off and $100 gift certificates for $50. The MasterCard MarketPlace Overwhelming Offers iPhone app will make it easier for MasterCard cardholders on-the-go to secure these highly demanded reservations, by providing access via mobile devices.

The app is available for free download at the iPhone App Store, located at www.itunes.com/appstore.

About MasterCard Worldwide

MasterCard Worldwide advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes over 22 billion transactions each year, and provides industry-leading analysis and consulting services to financial-institution customers and merchants. Powered by the MasterCard Worldwide Network and through its family of brands, including MasterCard(R), Maestro(R) and Cirrus(R), MasterCard serves consumers and businesses in more than 210 countries and territories. For more information go to www.mastercard.com. Follow us on Twitter: @mastercardnews.

About NextJump

Headquartered in New York City, Next Jump is building the next generation of e-commerce and advertising technology, and revolutionizing the way consumers and marketers interact online. The company has created the most powerful technology engine for sales achieving the highest conversion rates of browsers to buyers. Over 28,000 merchant partners, both retailers and manufacturers, leverage Next Jump's technology, to create the most targeted, cost-effective and measurable campaigns reaching more than 100 million users. Next Jump acquires its users through a B2B model, with over 90,000 corporations, affinity groups, and institutions including 89% of the FORTUNE 100 and nearly 70% of FORTUNE 500 companies. Next Jump has offices in New York City, Cambridge, Massachusetts and London, U.K. For more information on Next Jump visit www.nextjump.com.

SOURCE: MasterCard Worldwide

Source: http://www.marketwatch.com/story/mastercard-enabling-m-commerce-with-new-initiatives-2010-07-07?reflink=MW_news_stmp

]]> http://cardpaymentoptions.com/blog/2010/07/07/att-gets-into-the-wireless-credit-card-processing-game http://cardpaymentoptions.com/blog/2010/07/07/att-gets-into-the-wireless-credit-card-processing-game Wed, 07 Jul 2010 10:26:00 +0000 Kevin C. Tofel http://cardpaymentoptions.com/blog/2010/07/07/att-gets-into-the-wireless-credit-card-processing-game
AT&T’s AprivaPay service starts at $14.95 per month for mobile vendors who want to process payments via a browser. By using a web client, AT&T can offer the service on its entire line of smartphones. Business owners that use a Microsoft Windows Mobile 6 device can opt for the $19.95-a-month AprivaPay Professional, a full, rich client that supports Bluetooth wireless printing and credit card readers. AT&T says that actual card transactions are handled by Total Merchant Services, which charges vendors using AprivaPay its own processing fees as well.

The AprivaPay offering is another method AT&T is using to shed the “dumb pipe” stigma facing wireless providers and to goose revenue. But the carrier faces challengers in an increasingly crowded market — Square launched with an iPhone card reader in May, while VeriFone’s PAYware Mobile reader arrived even earlier this year. Such software and services focus mainly on Apple’s devices. Since not every mobile vendor has embraced the iPhone just yet, AprivaPay gives AT&T a chance to gain payment processing customers — and revenue — on other platforms.

Source: http://www.salon.com/technology/the_gigaom_network/tech_insider/2010/07/07/att_seeks_a_piece_of_the_633b_mobile_payment_pie

]]> http://cardpaymentoptions.com/blog/2010/07/06/google-mobile-payments-and-android http://cardpaymentoptions.com/blog/2010/07/06/google-mobile-payments-and-android Tue, 06 Jul 2010 10:30:00 +0000 Devindra Hardawar http://cardpaymentoptions.com/blog/2010/07/06/google-mobile-payments-and-android
Merchants first need to create a Google Checkout merchant account and then use the Gadget Wizard to embed the web store template on their website (they can also create a free Google Sites page just for this purpose). Then, after filling in their products in the Gadget’s spreadsheet, they need to install the Android Payment Extension for the Chrome web browser.

When a customer decides what to buy, the merchant creates a cart on their own computer and selects the green “Checkout with Android” button, at which point a QR code (a two-dimensional bar code) is generated for the purchase. The customer then simply scans the code with their Android phone and is directed to a checkout page where they can complete the purchase on their own.

It certainly doesn’t sound as dead-simple as Square’s checkout method — which entails customers swiping their credit card on a retailer’s iPhone or Android device with Square’s tiny card reader, and then going through a quick signing process. And since it requires an Android phone, the Android Payment Extension has little chance of taking on the more ubiquitous Square, which works on both Android devices and the iPhone. But it avoids the privacy concerns of customers handing their credit cards over to strangers, as well as other potential issues like the credit processing and risk prevention concerns currently delaying Square.

Eventually, Google may figure out a way to make the service accessible to the iPhone and other platforms. Most smartphones have the ability to read QR codes with the addition of apps, but the fact that there’s no standard way to do it on the iPhone and other platforms will forever be a hindrance to services that rely on the codes.



Source: http://mobile.venturebeat.com/2010/07/05/google-offers-its-own-spin-on-mobile-payments-for-android-users/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Venturebeat+%28VentureBeat%29

]]> http://cardpaymentoptions.com/blog/2010/07/02/paypal-goes-mobile http://cardpaymentoptions.com/blog/2010/07/02/paypal-goes-mobile Fri, 02 Jul 2010 10:36:00 +0000 Scott http://cardpaymentoptions.com/blog/2010/07/02/paypal-goes-mobile
The company has been making progress in the mobile commerce space since 2005 when they began to offer mobile payments. PayPal processed $141 million in mobile payments in 2009, and has expectations that they can exceed $500 million in 2010. Mobile commerce is still in the early stages in the U.S., but the trend is expected to continue to rise as more people purchase the Apple iPhone or Google Android based mobile phones. PayPal wants to secure their position in the mobile commerce space now, so that they will be able to grow with the market and diversify their business efforts to help increase revenues.

Source: http://www.zippycart.com/ecommerce-news/1337-paypal-expands-mobile-commerce-efforts.html

]]> http://cardpaymentoptions.com/blog/2010/06/30/paypal-launches-adaptive-payment-application http://cardpaymentoptions.com/blog/2010/06/30/paypal-launches-adaptive-payment-application Wed, 30 Jun 2010 17:29:00 +0000 http://cardpaymentoptions.com/blog/2010/06/30/paypal-launches-adaptive-payment-application DigitalTransactions.net [...]]]> DigitalTransactions.net

PayPal Inc. has introduced a capability for its new Adaptive Payments service that lets consumers pay merchants with a credit card while within an application, regardless whether the consumer has a PayPal account. The San Jose, Calif.-based e-commerce processor also announced late last week it is delaying until the fourth quarter new payment services—and associated pricing—to handle payments in new markets such as rent, payroll, and business consulting.

The new in-app payment capability, dubbed Guest Payments, responds to demand from developers looking for ways to let customers make payments by credit card, according to Naveed Anwar, senior director of PayPal’s developer network. “We committed that 30% of our roadmap would be based on community feedback,” he says. With the new capability, customers can check out of a merchant’s site with a credit card and have the transaction processed by PayPal. The merchant need not have a merchant account and the customer need not have an account with PayPal. Regular PayPal pricing applies to the transactions, with rates starting at 2.9% plus 30 cents for small-volume merchants.

The new service leverages a platform PayPal introduced in November and opened to developers with an application programming interface and service called Adaptive Payments. The API allows for so-called chained, parallel, and split payments, letting consumers pay more than one merchant in a series or split a payment among several merchants. Guest Payments may also be well-suited to mobile payments, where users want a fast and easy checkout without the need to leave an application. “People are looking for a quick in-application payment flow,” says Anwar.

Merchants have already begun integrating the new service, Anwar says. “There are some developers who have been in touch with us and are implementing this,” he says.

The delayed payment services, which also rely on the new open platform, were originally set to roll out in the second quarter but have been pushed back while PayPal deals with a checkout process that has proved to be trickier than the company had thought. “It does become a little bit complex to roll it out in every single segment,” Anwar says. A number of PayPal services, such as Express Checkout, were designed several years ago and require more work to be compatible with the new markets, he points out. “We want to make sure we do it right,” he says.

When they become available to developers, the services will extend PayPal into a range of markets, such as rent, where it has traditionally not operated. The new pricing is especially attractive to potential merchants in comparison with standard PayPal fees, says Anwar. “Our developer community has been anxious,” he says. Same-day payments will cost 0.75%. If merchants are willing to wait three days for settlement—thus reducing PayPal’s risk—the pricing becomes a flat 50 cents per transaction.

]]> http://cardpaymentoptions.com/blog/2010/06/21/social-media-and-your-business http://cardpaymentoptions.com/blog/2010/06/21/social-media-and-your-business Mon, 21 Jun 2010 19:19:00 +0000 Phillip Parker http://cardpaymentoptions.com/blog/2010/06/21/social-media-and-your-business


]]> http://cardpaymentoptions.com/blog/2010/06/18/entrepreneurs-change-the-world http://cardpaymentoptions.com/blog/2010/06/18/entrepreneurs-change-the-world Fri, 18 Jun 2010 13:29:00 +0000 Phillip Parker http://cardpaymentoptions.com/blog/2010/06/18/entrepreneurs-change-the-world grasshopper.com. This is not an endorsement of their services, of which I'm unfamiliar, but an appreciation this work in particular.

Will you be one of them?

]]> http://cardpaymentoptions.com/blog/2010/02/14/refusing-to-accept-credit-cards-why-your-business-will-fail http://cardpaymentoptions.com/blog/2010/02/14/refusing-to-accept-credit-cards-why-your-business-will-fail Sun, 14 Feb 2010 16:21:00 +0000 Phillip Parker http://cardpaymentoptions.com/blog/2010/02/14/refusing-to-accept-credit-cards-why-your-business-will-fail You're Competitors Do

Succeeding in today’s economy means that you must compete on all levels, including the types of payment you accept. Customers want options when it comes to paying for things and your credit card accepting competitors will gladly give it to them if you don’t. [...]]]> You're Competitors Do

Succeeding in today’s economy means that you must compete on all levels, including the types of payment you accept. Customers want options when it comes to paying for things and your credit card accepting competitors will gladly give it to them if you don’t.

You're Losing Sales

I used to live down the street from a great restaurant called "Little Burrito Jr." that only accepted cash. The food was the best around and I would eat there often, but I would have eaten there a lot more if they accepted credit cards. In fact, there was another Mexican restaurant about an equal distance away that did accept credit cards. Even though their food wasn’t as good, I estimate that Little Burrito Jr. lost about 50% of my business to the other restaurant simply because I didn’t have cash on me when I was ready to eat. By not accepting credit and debit cards you're losing sales at a cost that will far exceed any merchant account fees, period.

You're Losing Customers

Losing sales and losing customers may sound like the same thing, but losing customers is far worse. When you refuse to take a credit card from a customer, and the customer has no other means to pay, it leaves the customer feeling embarrassed and rejected. The likelihood of that customer returning in the future diminishes drastically. There are several businesses that I refuse to patronize because of their no credit card policy, even though I like their products and services! I often wonder if they have any idea the number of customers they have lost forever.

You're Losing Big Ticket Purchases

How many people do you know who always carry more than $200 in cash? The fact is that most people don't. Whether you sell food or furniture, you've just lost any sale over $200 if the customer isn't carrying a checkbook. And, who carries a checkbook anymore? Just about no one under 30 years old.

You're Losing Impulse Purchases

When McDonald's decided to take credit cards, they found that their average sale went from around $4 to around $7. Studies show that people spend more freely when using a card. I wouldn't doubt that your own spending would reflect the same findings.

You're Paying more in Bounced Checks

The average fee a business incurs for a bounced check is $25 per check, and that's not even figuring in the time and money lost trying to get your money from the customer afterwards. Credit and debit cards don't bounce.

If you would like to learn more about accepting credit & debit cards for your business, please feel free to contact me.

]]> http://cardpaymentoptions.com/blog/2010/02/09/calculate-the-average-understand-the-true-cost-of-accepting-credit-debit-cards http://cardpaymentoptions.com/blog/2010/02/09/calculate-the-average-understand-the-true-cost-of-accepting-credit-debit-cards Tue, 09 Feb 2010 23:35:00 +0000 Phillip Parker http://cardpaymentoptions.com/blog/2010/02/09/calculate-the-average-understand-the-true-cost-of-accepting-credit-debit-cards the difference between a good rate and bad rate is [...]]]> the difference between a good rate and bad rate is usually no more than 2%. We could get into the nitty-gritty of fee types (I may in future posts) but I calculate what I call the "average cost" because it's easier and gives a better overall picture.

The average cost looks at all the fees that are included in your merchant service fees and combines them together to look at the average cost percentage. It's important to look at merchant account rates as an average cost because every company structures their fees in different ways. Some charge high monthly fees and some don't, some charge different rates for different types of transactions and some don't, and it goes on like this forever. This can can make comparing merchant account providers very difficult.

Calculating the average make things easier.

So, how do you calculate the average? Generally, it's only possible if you are already accepting credit cards. Take three of your most recent statements and add together your total credit card sales and then add up the total fees you paid. Finally, divide the total fees paid by the total sales and multiply the total by 100. The final number is your average cost of accepting credit cards for your credit card sales. (Example: $350 in fees divided by $10,000 in credit card sales multiplied by 100 equals an average rate of 3.5% or, $350 / 10000 x 100 = 3.5%).

Keep in mind that the percentage we just calculated is only the cost of accepting credit cards for the credit card sales, not the cost of accepting credit cards for the overall sales. To get a better picture of the actual cost, calculate your overall sales, including cash and checks, then divide the total by your merchant account fees. Obviously the average cost will drop significantly for most businesses.

Why is it important to look at it this way? If a business does an equal amount of cash and credit card sales, most estimates say that a business would lose half of the credit card sales it had made had it not accepted credit cards. This is because the only other option for the customers would have been cash and most people don't carry much cash nowadays. Not taking credit cards actually costs much more than accepting them. When a business does most (or all) of its sales through credit cards, the average rate becomes much more important. A difference of 2% can add up to be a pretty substantial number.

You might be surprised to find out that your average rate is much higher than the rate your agent quoted. If this is the case, it's because your agent only quoted the “qualified” rate and conveniently forgot to mention the “mid-qualified” and “non-qualified” rate tiers that are much higher. He also probably forgot to tell you that 50%-75% of all your transactions will be charged in those tiers.

Businesses are charged at the higher “mid-qualified” tier whenever they run a card with rewards, like miles or points. If they run a business, corporate, or foreign card then they're charged at the even higher “non-qualified” tier. The only way to avoid these other tiers is to get “interchange-plus” rate pricing which on average has a cost of 1.5% - 2.5%, depending on the type of business. You can learn more about interchange-plus pricing here.

Find the best merchant account for your needs.

Select Your Business Type:
Retail or Wholesale
Service Provider
Non-Profit Oganization
Website
Mobile Business
Church

]]> http://cardpaymentoptions.com/blog/2010/02/06/im-accepting-new-clients http://cardpaymentoptions.com/blog/2010/02/06/im-accepting-new-clients Sat, 06 Feb 2010 15:16:00 +0000 http://cardpaymentoptions.com/blog/2010/02/06/im-accepting-new-clients

• Setup with equipment: $200 [...]]]>
  
  • Setup with equipment: $200 - $250 depending on your needs
  • Monthly Service Fee: $15
  • Per Transaction Fee/Rate: Interchange-plus (average rate 1.5% - 2.5% depending on business type. No mid-qualified or Non-qualified transaction penalties).
  • Monthly Minimum: $0
  • Contract Length: One year
  
  Feel free to contact me.
  
  
  ]]> http://cardpaymentoptions.com/blog/2009/10/15/save-on-merchant-account-fees http://cardpaymentoptions.com/blog/2009/10/15/save-on-merchant-account-fees Thu, 15 Oct 2009 15:41:00 +0000 Phillip Parker http://cardpaymentoptions.com/blog/2009/10/15/save-on-merchant-account-fees
  Visit my Bestcovery list here.
  
  
  
  Contact Me
  
  Time for new business cards? Save up to 90% + get FREE Shipping
  
  ]]> http://cardpaymentoptions.com/blog/2009/10/07/my-payjunction-employment-experience http://cardpaymentoptions.com/blog/2009/10/07/my-payjunction-employment-experience Wed, 07 Oct 2009 15:47:00 +0000 Mike Francl http://cardpaymentoptions.com/blog/2009/10/07/my-payjunction-employment-experience Mike Francl
  PayJunction Sales
  Website [...]]]> Mike Francl
  PayJunction Sales
  Website
  
  I wanted to share with you my experience with PayJunction. It has brought me a lot of freedom and many successes and benefits.
  
  I started my career in the telemarketing industry as an Account Manager. During the years I was promoted to Director of Client Service and was making some pretty good money; however, right about that time new rules and regulations caused many layoffs. This was just the beginning for me. In fact, I went through three jobs in three years. It could not have happened at a worse time. My wife and I had triplets just a year before and I had no idea what I was going to do and I did not have much time as I needed to start doing something to pay the bills.
  
  I came across PayJunction and was really intrigued. My wife and I sat down and talked about this as a potential career. We looked at the advantages and disadvantages of being self employed and naturally our main concern was not having that pay check come in every two weeks; however, I would be able to set my own hours and be home to help out. So I decided to give it a try and today I am so grateful that I did.
  
  Like most of you, I knew absolutely nothing about this industry when I started four years ago. In this short amount of time I have built a business that will net me over six figures a year. I will be the first to admit that I am not the best salesmen on the face of the earth, in fact, far from it. This is a result of nothing more than hard work and being Pleasantly Persistent with my constant follow up. As a result of this hard work and follow up, I can now take anytime I want to do things with my kids while they are out of school this summer and occasionally take a Friday off to play golf.
  
  This job has given so much to me and my family. We are able to afford to send them to a private school (they just started kindergarten). I get to wake up and have breakfast with my kids and not have to rush out the door to get to work on time. I get to pick them up from school and most of the time I take Friday afternoon off to do something with them. A lot of days, my wife and I go out to lunch together.
  
  One thing I attribute to my success is the AMS system. This is a very valuable tool and should be used accordingly. You should have all your leads loaded in there and update your notes every time you talk with a lead. You must keep in touch with potential clients and be pleasantly persistent. Find something in common with them, build up a friendship. This allows you to qualify your leads. My leads will eventually buy from me. Either they don’t know it yet, or they are not ready at the time to move forward, and that is my job to move them along.
  
  To really be successful at this job, get to know this product and what it can do. Spend hours on the demo site. This gives you a great opportunity to develop and practice your presentation. Spend time on the phone charge system and get familiar with the support site. There is a lot of valuable information on that site. People buy from people who are confident, articulate and know their product.
  
  I am just finishing up my fourth year with PayJunction and in that short time; I was able to grow this business from nothing. You have to remember that this takes a lot of hard work and patience. If this was easy, everybody would be doing it. When I first started, I was told by the people at corporate to keep in mind that “this is a marathon and not a sprint” meaning that you are not going to be sipping drinks on a resort island in two months living off the residual income. If you work hard and smart at this job, you will eventually get to that point. I will be there soon waiting for you to join my family and I.
  
  
  Must reads if you are planning to be a reseller:
  
  • Influence: The Science and Practice by Robert Cialdini
  • Seven Habits of Highly Effective People by Steven R. Covey
  • Selling to Anyone Over the Phone by Renee P. Walkup
  
  
  Did this review help you? Leave feedback in the comment section below.
  
  ]]> http://cardpaymentoptions.com/blog/2009/10/01/merchant-fees-rates-explained-video http://cardpaymentoptions.com/blog/2009/10/01/merchant-fees-rates-explained-video Thu, 01 Oct 2009 18:50:00 +0000 Phillip Parker http://cardpaymentoptions.com/blog/2009/10/01/merchant-fees-rates-explained-video
  My next post will be about how to negotiate the lowest true pricing merchant fees available so that you can save vast amounts of money on your credit card processing rates. Subscribe to the RSS feed, or go to the "About" page subscribe to my updates via email
  
  
  
  Source: http://www.elementps.com/
  
  Contact Me
  
  Time for new business cards? Save up to 90% + get FREE Shipping.
  
  ]]> http://cardpaymentoptions.com/blog/2009/10/01/bestcoverycom-discover-the-best-of-everything http://cardpaymentoptions.com/blog/2009/10/01/bestcoverycom-discover-the-best-of-everything Thu, 01 Oct 2009 10:56:00 +0000 http://cardpaymentoptions.com/blog/2009/10/01/bestcoverycom-discover-the-best-of-everything In May, I took a position as a community development manager for Bestcovery.com, so I will no longer be in the business of actively selling merchant services.However, I have acquired a great deal of knowledge through the years of selling in credit card industry, and I plan to share that [...]]]> In May, I took a position as a community development manager for Bestcovery.com, so I will no longer be in the business of actively selling merchant services.However, I have acquired a great deal of knowledge through the years of selling in credit card industry, and I plan to share that knowledge through this website to benefit both merchants and sales agents.I will dedicated my future posts to helping merchants save money in processing costs and helping agents increase their sales through honest selling.This might seem like two competing interests, but I know that both sides can have win-win deal when both sides are armed with the right information.It was the strategy I used, and it's the one that built me a portolio of happy clients that stick with me to this day.If you would like to be notified or future posts, you can subscribe to the RSS feed on the right of the page or fill in the contact form on the About page.I will never spam or share your information, and you can opt-out from notifications at anytime.
  
  Bestcovery.com
  Visit the pages below to learn more about Bestcovery.
  
  My Page
  About Page
  Home Page
  Facebook Page
  Twitter
  
  
  
  Time for new business cards? Save up to 90% + get FREE Shipping.
  
  ]]> http://cardpaymentoptions.com/blog/2009/02/13/a-response-to-a-blog-by-roger-that http://cardpaymentoptions.com/blog/2009/02/13/a-response-to-a-blog-by-roger-that Fri, 13 Feb 2009 16:00:00 +0000 Phillip Parker http://cardpaymentoptions.com/blog/2009/02/13/a-response-to-a-blog-by-roger-that here if you like (pay special attention to the right side of the page), but I will be [...]]]> here if you like (pay special attention to the right side of the page), but I will be summarizing much of it in this post.Although I no longer actively sell Payjunction's services and Roger was not an account of mine, I feel compelled to respond to his blog because there is a mix of misinformation, lack of understanding, and falsehoods throughout his post.Not to mention, it shows up on the first page of Google giving it a false sense of legitimacy.
  
  I first saw his post about a year ago on RipoffReport.com. However, his complaint was disputed and shown to be grossly exagerrated. After RipoffReport investigated his claim, they removed his post. Keep in mind that RipoffReport is a consumer advocacy site.
  
  Of course, Roger wasn't going to let his voice be silenced. So, he created a blog on Blogger.com and reposted his rant. He also removed the ability for anyone to leave comments/responses on his blog because he doesn't want any counter arguments from any of PayJunction's happy clients (which number in the thousands). Somehow, his blog manages to appear in the first page of search results. I would hazard to guess that it has partly to do with Blogger.com being owned by Google. But, I digress. Now to point out some specific examples of his complaint.
  
  Here is how his complaint started:
  
  “About a month ago I sold some piping components to a company in West Virginia. I took their credit card as I had done several times in the past. The amount this time was $5839.51. The sale was approved and I began getting their order ready to ship. Two days later on a Saturday afternoon, I was enjoying time with my family when I received a phone call from Cardpayment Solutions informing me that the payment for that sale was being held pending verification because I was over my limit."
  
  When a merchant fills out an application to obtain a merchant account, the merchant must tell the bank what the highest dollar amount that will be charged in a single transaction ( aka: "high ticket"). The reason for this is because merchant accounts are related to the credit card industry and merchants must be approved for high dollar transactions. Banks do this because it helps protect cardholders against fraud. Transaction amounts under $5000 are not screened as heavily as ones over that amount. In fact, for a merchant to be approved to charge amounts over $5000, he must pass a credit check and provide financial documents proving he does large dollar transactions. As Roger pointed out, Cardpayment Solutions (the merchant account provider) called to let him know that he had charged over his limit. Had Roger disclosed that he would be charging amounts over $5000, he would not have went over his limit.
  
  “They told me the verification process would take longer than a week. So what I did was just credit the sale back to the buyer and make other payment arrangements. No problem, right? Well, that's what I thought until I got my statement today from Card Payment Solutions."
  
  Right from the beginning we have an exaggeration. The verification process is simply a call to the cardholder verifying that he/she made the purchase.We call it a “voice authorization." A voice authorization may take a few days depending how easy it is to get in touch with the cardholder. As you can tell, Roger got pretty upset about this and instead of asking for a credit increase to avoid future holds, he immediately refunded the charge because he didn't want to wait for his money.
  
  “What I read on that statement made me sick. Cardpayment Solutions charged me $128.47 for charging the card in the first place, then when I credited the card back, they charged me another 128.47 plus all their nickel and dime fees. Over $256.00 in charges and fees for money I never got. That's a fact."
  
  If we do the math, Roger was charged a transaction fee of 2.20% for the purchase. This is a typical transaction rate for a business doing telephone or website orders. In comparison, Paypal and Google Checkout charge between 3%-4%. Now here's where it gets interesting: Did you know that VISA/MasterCard take about 80% of the transaction fee? This means that the merchant account provider only makes a few tenths of a percent profit per transaction. Why did they charge Roger again for the refund? Because VISA/MasterCard charge for every transaction, charge or refund.
  
  “When I called to inquire about it they just told me that's the deal. I'm sure it's in the "contract" somewhere. I'll admit that I never read the contract in it's entirety. As I recall it was about 8 or 9 pages and the print was about a font size 1. The fellow at Payjunction who originally sold me on the deal just highlighted the "important" stuff and told me to sign it and fax it in. "
  
  Roger claims that the contract is 8 or 9 pages in size 1 font. In fact, it's one page in length in normal size font. I'll happily send it to anyone who would like to see it. He also admits that he didn't read it. Somehow this is the agent's and PayJunction's fault.
  
  “It didn't take long after I signed the contract before I realized I had been hustled by Payjunction and Cardpayment Solutions. The first thing they did was hit me up for an annual service fee. That was a change they made to the contract right after I signed it. You see, Cardpayment Solutions can change the contract any time they want, for any reason. But, if I refuse to pay them, they'll just report me to the credit agencies - which can only result in bad credit history for me."
  
  Roger claims that Cardpayment Solutions changed his contract after he signed it. This is a complete falsehood. The last I checked it would not only be illegal, but incredibly foolish for a company to do such a thing. It would simply take Roger's copy (that he admitted to not reading) to prove that he hadn't agreed to such terms.
  
  I can say from my own experience that I have never heard any complaints about PayJunction from any of my dozens of past clients. Suffice it to say that this man is out to prove his point, no matter how misguided it may be. In my opinion, it certainly doesn't deserve a first page ranking in Google when you search “PayJunction."
  
  Time for new business cards? Save up to 90% + get FREE Shipping.
  
  ]]> http://cardpaymentoptions.com/blog/2009/02/11/is-payjuction-a-scam-nope http://cardpaymentoptions.com/blog/2009/02/11/is-payjuction-a-scam-nope Wed, 11 Feb 2009 13:34:00 +0000 Phillip Parker http://cardpaymentoptions.com/blog/2009/02/11/is-payjuction-a-scam-nope Short Answer:
  
  No, PayJunction is not a scam.
  
  Longer Answer:
  
  If you are not familiar with the merchant services industry, the following explains the basics. When a merchant needs to accept credit cards, they must have at least two things:
  
  
  • A Merchant Account: This is an account that [...]]]>
    Short Answer:
    
    No, PayJunction is not a scam.
    
    Longer Answer:
    
    If you are not familiar with the merchant services industry, the following explains the basics. When a merchant needs to accept credit cards, they must have at least two things:
    
    
    • A Merchant Account: This is an account that allows merchants to accept credit cards as payment. Like a checking account, it is an account used to facilitate monetary transactions; however, instead depositing checks you are depositing credit card payments. When a transaction is approved in your merchant account, the funds are generally deposited into your checking account within 48 hours.
    • A Gateway: This is the device or system that is used to process/accept the actual transaction. Gateways include phone line terminals, virtual terminals, website shopping carts, point-of-sale systems, etc.
    
    PayJunction is a gateway provider with a unique product called Trinity. If you also need a merchant account, PayJunction will match you up with a pre-screened, well respected merchant account provider. In addition, they will negotiate lower rates for you if you are already processing. They provide this added service free of charge. Generally but not always, its processing bank is either Wells Fargo, United Bankcard, or Chase Bank.
    
    Now that we've covered the basics, let's talk about how PayJunction sells its service. It's likely that you are reading this because you are doing some research before making a decision about which provider to choose. Congrats! A very smart move, indeed. Unfortunately, like many industries, there are a few bad eggs that manage to give the overall industry a bad name. I urge you to research any merchant services company of which you are considering doing business. Fortunately, PayJunction is one of the good guys; however, there is one important factor that could impact your experience with this company, and that is your sales agent.
    
    PayJunction (like most merchant services providers) relies on independent representatives/agent/distributors who are paid on a “commission only" basis for accounts, much like the insurance industry. The problem with the commission only structure is that it can lead to quick turnover and result in dealing with a representative who has not taken the proper time to educate herself on merchant account fees, pricing, and other very important pieces of information that you need to know. Obviously, problems can arise when this happens. That being said, the professional staff at PayJunction HQ quickly resolve any problems when misinformation occurs. But, who wants to deal with problems? My advice it to make sure you are dealing with an expert on both merchant services and PayJunction by educating yourself and asking good questions.
    
    Did this review help you? Leave feedback in the comment section below.
    
    ]]>