Small Business Payment Processing

Small Business Credit Card Processing: Understanding 3-Tier Pricing

If you plan on starting a small business and you want it to grow, part of its growth will involve small business credit card processing offered by a merchant services provider, which can advise you on the best payment options for your company's present and future. 3-Tier Pricing: the most popular model

Most account providers use a 3-Tier pricing model, as opposed to one that has six tiers. First tier assigns a merchant a "qualified rate," the percentage it will be charged when it accepts a regular credit card in a transaction manner defined as "standard" by the account provider. As one would suspect, qualified is the lowest of the rates in the 3-Tier model, and is typically the rate quoted when you inquire about 3-Tier pricing. That's because qualified will apply to the majority of your business' credit transactions (e.g., at credit terminals, through an ecommerce account, via a mobile device, etc.).

Whereas first tier assigns a qualified rate, second tier assigns one that is "mid-qualified," the percentage a merchant is charged if it accepts a credit card that doesn't qualify the transaction as being standard. Bringing higher fees than qualified, mid-qualified could be charged for various reasons, with two common ones being: a card is keyed into a terminal instead of swiped, or an irregular card is used, such as a business card instead of a personal one. Mid-qualified transactions cost the provider more in interchange fees; hence their noticeable mark up over qualified rates.

The "non-qualified rate" is the highest rate a 3-Tier account provider will charge, with the increase again being due to interchange costs. As with second tier rates, third tier rates can result from several scenarios. When you speak with an account provider about 3-Tier rates, make sure the majority of your transactions will receive the qualified rate, and that a thorough analysis of your sales situation in terms of transaction types is performed prior to agreeing on the terms of an account. Receiving credit payment can expand your sales opportunities and improve your revenue. But to benefit as much as possible, it's critical to have an account that takes as little of your revenue in account payments as possible.

In my research on small business credit card processing, I've studied the tier pricing used by merchant services providers.

By Joshua T Messenger

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• Convenient Payment Processing Solutions For Wireless Businesses
• Why You Should Definitely Use Online Bill Payments
• http://paymentprocessingonlineservices.blogspot.co.id/2015/12/rapid-payment-processing-systems-may.html

Payment Processing Solutions

Convenient Payment Processing Solutions For Wireless Businesses

When it comes to merchant accounts, some wireless business owners will sign up with the cheapest service provider they can find. If you want to make an intelligent decision about which credit card processing solution is best for your wireless business, you must first educate yourself on the basics of merchant account choices.

Businesses who receive payments over the phone or fax lines or through e-mail or traditional mail services.  The customer enters the credit card information into a secure website, and the data goes directly to the processing entity. Internet businesses or companies who conduct a high number of transactions on a daily basis. Service providers like repairmen or landscapers who accept payments at their customers' locations.

The credit card number is punched into any touch tone phone. Requires a minimum of training for employees and allows credit card payments to be processed anywhere.Service providers who conduct a small number of high-dollar transactions away from their home office. 

To do that, you must understand the pricing structure of merchant services providers. Almost all merchant accounts have what is called a discount rate (also known as the periodic rate). This is the percentage of each transaction amount that will be paid to the entity that processes credit card payments. Some accounts also offer a qualified rate, which is the lowest discount rate category on a given account. To maintain this rate, companies must meet a certain set of criteria, which may include a minimum number of transactions, full compliance with the merchant services provider's regulations, and a low chargeback rate. If these criteria are not met, the provider may raise a company's discount rate (much like credit card companies do with consumers who exceed their credit limit or don't pay their bills on time).

Another common expense associated with merchant accounts is the transaction fee, which is a flat rate that is charged every time a credit card is approved. Other fees which can be assessed by a merchant services provider include monthly or annual fees, an interchange fee for the use of the credit card processing network, and a minimum balance surcharge for the failure to process a certain number of transactions in a given time period.

Therefore, if your wireless business processes a high volume of transactions daily involving low-cost items (like an online retailer that sells T-shirts, for example), you would likely opt for a merchant account with a low transaction fee (or none at all). Tony Gottleib is a freelance writer who writes about a range of topics including wireless businesses and credit card processing services.

By: Tony Gottleib

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Why You Should Definitely Use Online Bill Payments

Online Bill Payments

Nowadays, the cost of commodities is rising fast and this includes postage stamps. Fortunately, technology caters to personal needs, allowing people to pay their different bills without peeling a stamp or licking an envelope. Today it is convenient for anyone to pay bills online. On the other hand, consumers can pay their bills in several different ways with the help of online services.

Automatic Bill Pay

Whether you want to pay your electric bill or storage unit, you can setup an automatic bill pay with your vendor. Your monthly due payment will automatically be withdrawn from your credit card or bank account without any effort. This makes payment convenient for those who travel regularly, or often forget to pay their bills on time. However, you have to be sure that there are sufficient funds in your account when it is time for the vendor to withdraw your payment. Otherwise, you have to pay extra charges as penalty.

Bank Bill Pay

You can pay your bills at your online banking center. The majority of financial institutions offer this service. There are banks that provide this for free or at a minimal cost per month. Most banks limit the number of bills that can be paid on a monthly basis without paying a service charge. This is a convenient way to pay your bills online since everything is paid in one place, plus, your financial information remains protected. This is a perfect combination of convenient one-stop shopping and secure financial information.

Pay via Vendor Sites

The fast way for your payment to reach the right place is by means of paying via online vendor sites. This is a good alternative if you happen to be a procrastinator. When you visit the web site, you will be able to pay your phone bill and water bill directly to the corresponding company by keying in your credit card or checking account details. However, the downside to this is that your financial information is open to risks and if any of the vendor sites is compromised, you can be an identity theft victim. Another disadvantage is that you need to do a lot of typing. You have to visit each and every web site to pay your bill.

Desktop Software

Aside from visiting web sites to pay bills or do some banking tasks, you can install a software on your computer and link it to send payments to your creditors. It is important, though, to make sure that the computer accessing the Internet via this software is safe from infiltration threats. To maintain the safety of your personal information even if you are continuously online on your computer, you can use Windows Firewall and anti-Spyware software utilities.

You must always weigh the advantages of paying bills on the web against the possible dangers it may give. Consider this advice to help you make wise decisions when paying bills online. Neither will your bank nor a vendor ask for your login and password details via email. People should not give this information under any circumstances, even if it appears to be official. Always avoid anyone who asks this kind of information.

Are you interested in online rent payment? Your business needs to accept accept rent payment online in order to save money and time, so visit our website to learn more about us!

By: Karina Popa - EzineArticles.com

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The Best Approach to Finding a Payment Gateway and Credit Card Service Provider for Your Business

Payment Gateway

If you own or operate a business, most likely you already know the value of accepting credit cards. Without the right company handling your credit card business your own business will suffer. Most customers and clients now pay using a credit card. For your business to run smoothly, effectively, and efficiently, you need top notch service. Look For Interchange Pricing

In the past interchange pricing was only for the few big businesses. This type of pricing is much less expensive for your business and more transparent than the current traditional method of tiered pricing. Look For A No Cancellation Fee

If your contract carries hefty cancellation fees you need to find a different provider. More and more merchant service providers are offering month-to-month accounts in order to stay competitive with the rest of the industry. The best providers do not have a cancellation fee attached to their contracts.

The best merchant accounts will have a dedicated representative take care of your business and answering your questions directly when you call for help. You should look for things like free training, technical support, universal credit card machines and of course the payment gateway as part of your support. It is crucial to think ahead in using a credit card service provider to protect yourself and your business as well as provide the best in service for your customers. Don't forget to include Charge.com Payment Solutions Inc paymentgatewayreport.com in your research. 

By: Anthony Otilia Muller

Article Source: EzineArticles.com

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Rapid Payment Processing Systems May Mean the End of Checks

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Payment Processing Systems 

Retail payments for goods and services have evolved from using cash to checks, and other payment methods such as credit and debit cards, and now is moving toward banking with smartphones. A check was normally written from one party to another, and requests the payers financial institution to pay a specified sum on demand. The process may have been secure, but was seemed to be overly cumbersome, and is becoming much too slow for the rapid moving world in which we now live. It is now undeniable that payment by checks is being replaced by more efficient payment processing systems.

The system may have been dealt a death blow, when the Check 21 act or Check clearing for the 21st century encouraged the use of electronic check clearing as a method for payment processing. This included printed images of checks that can be used for payment processing in place of paper checks.

Additionally, the ACH, or the automated clearing house, was developed to truncate the checks, and make the payment electronically. In truncation, the information on the check is captured, and processed electronically, and the check is not returned to the writer. You may consider yourself fortunate, if you are one of those that still receive a paper check as means of payment instead of an electronic deposit.

Large dollar volume transactions between domestic or foreign institutions are usually settled in real time through the Clearing House Interbank Payment Systems (CHIPS). With global transactions increasing exponentially, both in value and number, as the world becomes more closely interconnected, the number of checks being written, has declined precipitously.

More people are using electronic banking, including direct deposits, pre-authorized payments and online banking as a form as a prelude to payment processing. In 2007, according to recent from the Federal Reserve, about 70 percent of the checks were cleared on paper. The expectation is that in the very near future, approximately 75 percent of all payments will be non-cash payments.

Another factor contributing to decline of checks, is banks are now offering online accounts, because routine transactions such as deposits, withdrawals and transfers, can all be handled online or at an ATM. In some countries, the numbers of checks continue to decline more than 20% each year and many merchants no longer accept them. In the UK, the payments council board has agreed to a target date of October 31st 2018, to close the central cheque clearing, and is working toward having fully compliant and efficient systems in place.

The conversion of paper payments to electronic payments may face some obstacles in the U.S. There are thousands of financial service providers, and hundreds of thousands of billers, who may not have the resources or the technology to provide a seamless network for billing and collections.

Having a robust payment processing system is now essential any e-commerce business, and consumers are also increasing the use of mobile devices for banking and retail transactions. It is also becoming essential, that processing systems be capable of handling mobile transactions.

Merchant account providers now offer a variety of different payment processing options. Having access to with diverse payment processing options, may expand the customer base and increase the number and subsequent sales volume. You can click here for more information.

By: Ador Talukdar
Article Source: EzineArticles.com

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Payment Processors - The First Requirement to Doing Business Online

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Payment Processors

There are many payment processors available nowadays with each one having their advantages and disadvantages. Some of the more popular processors include:

PAYPAL

PayPal is probably the most widely used and catered for worldwide, and are integrated into many popular business websites such as eBay. However, they do have district disadvantages. PayPal does not provide a "receive" facility for many countries, thus rendering it useless as a payment collection tool for many. When applying for a PayPal account, make the effort to search the site for the list of countries with the relevant services applicable, to ensure that you are able to use it. Even if you are in a country that may not receive money to PayPal, you can still use it to make payments via your credit card, and since PayPal is a sole method of payment for many sites, it is worthwhile having. PayPal has also become very difficult of late with MLM and similar programs, and are becoming known for freezing accounts. This, along with other frustrations, has led to other processors becoming increasingly popular.

ALERTPAY

Alertpay has become your most viable alternative to PayPal, and is a must in your processor portfolio. Having a verified Alertpay account gives you much credibility online.

SOLID TRUST PAY

What is true of Alertpay can be said for STP as well. While not as widely used perhaps, they offer great additional facilities such as funding your STP account with your credit card, and also have an International Debit card available which you can load with your STP funds.

STRICTPAY

Strictpay is a relative newcomer, but gaining much popularity. You can fund Strictpay with STP, and they also have a Visa Debit card to withdraw funds with.

LIBERTY RESERVE

Liberty Reserve is a bit of a strange horse, but sometimes needed. The downside to LR is that you always have to work through currency exchangers to get money in and out, and it always comes at a premium. However, LR seems a fairly good way to work with those "offshore" funds you never want to talk about.

You will find free mentoring and support at Online Business Ideas. Get your own personal hosting,online business ideas, membership sites and much more here.

Connie Muller is a well known online authority and mentor.

By: Connie Muller
Article Source: EzineArticles.com

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The Payment Services Success Formula: 5 Features Your Payment Processor Should Offer

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Payment Processor 

Your business plan is almost finished. You've identified the reasons your product or service stands out in the marketplace and the best way to sell it. As a business owner, you're also considering the different payment solutions that make sense for your business and your customers. Your focus is on finding a solution that offers your customers the choice demanded by today's marketplace while also considering your business' innovation, efficiency and cost needs. If payment processing is not your core competency, consider looking for a provider of payment services to process payments for you.

Here's a short guide on what to look for when deciding on the right payment processing company for your business.

Receive Payments

We can all see the growing popularity of the use of electronic payments vs. check payments. Knowing this, make sure you choose a company that provides multiple payment options, allowing you to offer your product or service to customers looking for convenience and security when making payments, while keeping your own cost levels in mind.

Direct Payment via ACH - Getting paid electronically via ACH gives companies quicker access to funds, as customer payments for purchases of goods or services are debited directly from their bank account. The ACH solution also allows companies to collect recurring payments, further automating the payment process. Best of all, fees associated with ACH payments are lower compared to credit card fees.

Card Payments - Opening your own merchant account to process prepaid cards, debit cards and credit card payments can be a complex and time-consuming process. Choose a payment processing company that offers these payment options to eliminate the need for your own merchant account. When making that choice, it is very important to select one that follows PCI security standards.
Store Funds

Many of today's innovative business models require the ability to create stored value accounts or reserve accounts for customers. Some businesses choose to store funds in their corporate account, but this option is fraught with regulatory risks. Customers also face the risk of completely losing their funds if the company becomes insolvent. Integrating with a bank to create individual customer accounts is an option. But, not all companies have the time or the financial resources for bank integration, and those who successfully integrate may become dependent on bank technology limitations, the banking system and legal/underwriting hoops potentially hindering future innovation.

A payment processing company that offers this service is a viable option. In addition to looking for a provider that is experienced in trust/reserve account management, make sure they also have the infrastructure to support your company's need for the creation and management of these accounts.

Disburse Payments

Depending on your business model, you may also need a way to disburse or distribute payments. This could include payments to an affiliate, a vendor, a retail company, another business entity or a consumer. Some companies make do with manual disbursements, but that process soon becomes expensive and ineffective as the company grows. Look for a payment processing company that can offer an automated solution and provide a variety of ways to disburse these payments. The provider should be able to offer the following services:

Disburse funds by ACH, check and wire transfer
Split and transfer funds without the need for bank integration
Flexibility in accommodating any complex disbursements
Compliance

Regulations involving payments have changed significantly, requiring business owners to determine if their business falls in categories requiring additional licenses to enter the marketplace or even remain in business. Significant changes include state money transmitter license requirements, as well as requirements surrounding registration with the Financial Crimes Enforcement Network (FinCEN). Obtaining and maintaining these licenses is an arduous, expensive and time-consuming process. This is time and money that should be spent growing your business. A practical option is to consider working with a payment processing company that is registered with FinCEN as a Money Services Business and has money transmitter licenses, allowing them to compliantly receive, store and disburse payments for companies and consumers all over the United States.

API

If you're convinced that working with a provider of payment services is the best decision for your company, make sure your choice of payment processor also has the ability to honor the brand you've built and the relationship you've nurtured with your customers. Choose a payment processing company that can offer API integration capabilities that work with your existing platform so it remains in the background, allowing you to continue to be the brand and the company your customers know.

Many providers of payment services offer one or two of these capabilities. However, a single payment processing company that offers a compliant and comprehensive payment solution is the best partner you can have as you grow your company.

Karen Lago is the Marketing Manager at Meracord, a leading provider of comprehensive and compliant payment services. Meracord allows businesses to accept multiple payment types, create and manage stored value accounts and disburse simple and complex payments. In addition to these valuable payment solutions, when companies work with Meracord, they no longer have to worry about being compliant with state money transmission and FinCEN regulations. Learn more about Meracord by visiting http://www.meracord.com.

By: Karen Lago
Article Source: EzineArticles.com

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Convenient Payment Processing Solutions For Wireless Businesses

fdismerchantservices.com

Payment Processing Solutions

When it comes to merchant accounts, some wireless business owners will sign up with the cheapest service provider they can find. Others won't settle for anything less than the company with the newest and flashiest technology. But smart wireless business owners shop around until they locate the most cost-effective merchant services provider that best fits their company's needs.

If you want to make an intelligent decision about which credit card processing solution is best for your wireless business, you must first educate yourself on the basics of merchant account choices.

Point-of-Sale Software

How it works:

Credit card information is entered into a computer or dedicated terminal and then sent to the processor over phone lines with the aid of a modem.

Benefits:

The authentication process is completed in seconds, and POS software usually comes with programs that can work hand-in-hand with your inventory and accounting systems.

Best suited for:

Businesses who receive payments over the phone or fax lines or through e-mail or traditional mail services.

Real-time Internet Processing

How it Works:

The customer enters the credit card information into a secure website, and the data goes directly to the processing entity.

Benefits:

The entire authentication process is even faster than with point-of-sale software, and the funds are automatically deposited into the company's account within a day or two.

Best suited for:

Internet businesses or companies who conduct a high number of transactions on a daily basis

Wireless Processing

How it Works:

A customer's credit card information is entered into or swiped through a portable terminal which can be a stand-alone device or attached to a cell phone or laptop computer. The data is transmitted digitally to the processing center.

Benefits:

Allows credit card payments to be processed on-site immediately instead of having to record the information and enter it into a computer when you return to your base of operations.

Best suited for:

Service providers like repairmen or landscapers who accept payments at their customers' locations.

Interactive Voice Response Systems

How it Works:

The credit card number is punched into any touch tone phone. The system uses voice prompts to guide the individual through the entire transaction.

Benefits:

Requires a minimum of training for employees and allows credit card payments to be processed anywhere.

Best suited for:

Service providers who conduct a small number of high-dollar transactions away from their home office.

After you have chosen the type of merchant account that is most appropriate for your business, you must figure out which service provider can give you the processing system that you need at the most affordable price. To do that, you must understand the pricing structure of merchant services providers.

Almost all merchant accounts have what is called a discount rate (also known as the periodic rate). This is the percentage of each transaction amount that will be paid to the entity that processes credit card payments. Most discount rates are anywhere between 1% and 5% (though some are higher).

Some accounts also offer a qualified rate, which is the lowest discount rate category on a given account. To maintain this rate, companies must meet a certain set of criteria, which may include a minimum number of transactions, full compliance with the merchant services provider's regulations, and a low chargeback rate. If these criteria are not met, the provider may raise a company's discount rate (much like credit card companies do with consumers who exceed their credit limit or don't pay their bills on time).

Another common expense associated with merchant accounts is the transaction fee, which is a flat rate that is charged every time a credit card is approved. This fee is assessed regardless of the amount of the transaction. Other fees which can be assessed by a merchant services provider include monthly or annual fees, an interchange fee for the use of the credit card processing network, and a minimum balance surcharge for the failure to process a certain number of transactions in a given time period.

Therefore, if your wireless business processes a high volume of transactions daily involving low-cost items (like an online retailer that sells T-shirts, for example), you would likely opt for a merchant account with a low transaction fee (or none at all). However, if your business deals with a small amount of high-dollar transaction (such as an air conditioning/heating installation and repair service), then you would probably look for an account with the lowest discount rate you can find.

Like any important business decision, selecting a merchant service provider should only be done after a significant amount of research into a provider's features, pricing, and reliability. Once you pick the merchant account that is ideal for your company, you should allow at least two to three weeks to implement the system. Once it is up and running, your merchant account should operate seamlessly and dependably - which will help boost the productivity of your wireless business and improve your company's bottom line.

Tony Gottleib is a freelance writer who writes about a range of topics including wireless businesses and credit card processing services.

By: Tony Gottleib

Article Source: EzineArticles.com

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An Online Payment Gateway Makes Payment Processing Quick and Easy

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Payment Processing

Buying and selling products and services online is faster than ever before. Merchants can easily accept customer payments from credit cards, debit cards, and bank accounts with an online payment gateway. A gateway is a secure, automated system that takes the payment from a buyer and delivers it to the merchant. This service processes the payment, authorizes it, and then accepts or declines the transaction based on the information received.

An online payment gateway provides many benefits for merchants, including enabling them to:
• Quickly and securely accept all major credit cards, debit cards, and ACH payments
• Reduce overhead costs and increase sales
• Protect customer and business data with PCI compliant security
• Take advantage of management tools that include detailed reports, batching, voids, and returns

Merchants with an online payment gateway have the option of using a virtual terminal, online shopping cart, and even smartphone applications to accept payments.

Virtual Terminal 

A virtual terminal operates like a physical credit card terminal, except that this virtual solution allows merchants to manually input credit/debit card information on their computer to process the transaction. Unlike traditional credit card processing machines, a virtual terminal is more flexible, requires no hardware, and doesn't take up any business space. Virtual terminals are easy-to-use, adhere to all PCI compliance standards, and are typically more cost-effective. Since everything is done online, merchants don't have to spend money on physical credit card machines and other costly resources.

Just about any type of merchant can benefit from a virtual terminal. Mail order and telephone order (MOTO) merchants can use a virtual terminal to instantly process credit cards and other forms of payment. Home-based businesses can also use virtual terminals with an online payment gateway to process customer payments quickly and easily. They can also create detailed reports, which can simplify account management and tax filing.

Online Shopping Cart 

Online shopping carts make it easy for customers to shop on a merchant's website, add their items to the cart, and checkout through the website. Offering an online shopping cart option makes a website more appealing and the online shopping experience more convenient for companies and customers alike. With the right merchant processing service and an online payment gateway, businesses can take advantage of benefits that include:

• Real-time processing - Receive customer payment quickly instead of waiting for several days
• Detailed reports- Easily observe customer buying trends so they can provide special offers on popular products and know how much inventory to keep on hand
• Order tracking - Let customers know the status of their orders and when they can expect to receive them

iPhone and Smartphone Apps 

Some merchants want the ability to process payments while on the road, at events, or at other remote locations. Now they can by using an online payment gateway with an iPhone. Apps are synced to an iPhone or other smartphone through a merchant-sponsored application. When a customer presents a payment, merchants process that payment through their iPhone.

Merchants can authorize a charge on a credit card, process a customer's order, and even email receipts to customers without stepping foot in their office or accessing a computer. These on-the-go virtual terminals can increase sales revenue for companies with traveling sales teams or small businesses that meet customers at off-site locations.

See what an online payment gateway can do for your business by contacting the merchant payment processing specialists at CardFlex. Visit http://www.CardFlexNow.com or call 866.634.3044 to learn more about how your business can leverage an online payment gateway to start saving time and money while increasing productivity with a virtual terminal, online shopping cart, or iPhone.

Andy Phillips is the president and CEO of CardFlex, a leading provider of innovative merchant processing services and prepaid card solutions. A 28-year veteran of the payment processing industry, Andy leads the CardFlex team to help businesses of all types and sizes in a wide variety of industries reduce costs, increase sales, and better serve their customers with customized merchant processing services. CardFlex also provides an elite suite of prepaid card products that enable businesses to automate their payroll systems, significantly reduce costs, simplify reconciliation, improve employee satisfaction, and even create loyalty programs to increase revenues. Learn more about CardFlex's merchant processing and prepaid solutions by visiting http://www.CardFlexNow.com or calling 866.634.3044.

By: Andrew M Phillips
Article Source:EzineArticles.com

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The Bottom Line: Credit Card Processing Capability Depends on Credit

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Credit Card Processing Loan

When you apply for credit card processing capability for your website, there are a multitude of factors that underwriters take into consideration when deciding whether or not to accept your application. These factors include:

* The type of business you own

* How long you have owned your business

* Trends in your business earnings

* Trends in your industry

* Your collateral: machinery, equipment, property

* Your personal credit report

When a merchant's credit card processing application is evaluated, their personal credit rating is assessed and significantly affects the outcome of the decision. A poor credit rating may preclude an application from being accepted. But what does your personal history have to do with your business potential?

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As far as your credit card processing application is concerned, everything. How you run your personal life is indicative of how you will run your business, helping the underwriters of your credit card processing application to determine whether or not you should be considered a risk. Everything that is included in your credit report is relevant information for the credit card processing underwriters. This information includes:

* Whether or not you made personal credit card payments on time or at all, over drafted your accounts, or filed for bankruptcy may indicate your ability to repay future creditors.

* Whether or not you have enough credit for your credit card processing underwriters to be able to satisfactorily discern your ability to repay debts.

* If you have multiple inquiries into your credit rating by potential creditors, this shows negatively as well. This means that others have decided you are a risk, which may indicate to your current credit card processing underwriters that they should decide the same way.

Research Your Credit Report

One way to make sure that your personal credit is an asset to your credit card processing application is to make sure that it is as high as possible before you send in your application. It is free for you to check your credit report with the three major credit agencies in the country - Experian, TransUnion, and Equifax - once every year. Staying up to date with your credit reports will let you know right away if there are mistakes due to inaccurate reports or identity theft. The sooner you find out, the sooner you can get started getting these things corrected and removed from your credit reports.

How To Raise Your Credit Rating

There are many ways for you to raise your credit rating if you feel that it is inadequate to get the credit card processing application results that you need. Some credit report improvement techniques take a great deal of time before they affect your credit rating. Others begin to improve your score immediately.

* Make sure that all your information is updated. Everything listed has an expiration date of seven years. It's up to you to make sure that seven year old issues are removed at that time. Also, just because you paid off a bill doesn't mean that the company reported this update to the credit reporting agency. This may be up to you.

* Pay your bills on time, every time. Every single late payment is listed on your credit report and negatively affects your credit score. This will directly affect your credit card processing application; it's a 1:1 correlation as far as how underwriters will predict your future repayment efforts when weighing the merits of your application.

* Don't apply for credit every time it's offered to you. If you are constantly applying for credit, most credit card processing application underwriters will assume that you are not managing your finances well. Keep enough credit cards to establish credit, but not so many that it's too much to handle. Three to five cards is plenty.

* Don't avoid credit cards and loans. You need a credit history to have a good credit history. Start early, make all your minimum payments and stay on top of your balances. If you go beyond your means, fix the situation as soon as possible.

The bottom line is that your personal credit reports and rating will directly affect the outcome of your credit card processing application. Maintaining the best credit possible will help you make the most of your business when it comes time to apply for credit card processing capability. And if worse comes to worst, there is an alternative solution. Many credit card processing companies allow a merchant to use a cosigner. Choosing someone with a favorable credit rating score may help you offset the negative effects of your own credit rating.

Copyright 2006 William Hamilton

William Hamillton owns IntelliCollect, a subsidiary of United Bank Card, where you can receive extremely affordable credit card processing and/or electronic check capability. Services to enable you to accept your customers' payments are listed at: http://www.intelli-collect.com

By: EzineArticles.com/expert/William_Hamilton
Article Source: EzineArticles.com

4 Factors to Consider When Choosing a Merchant Service Provider

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Merchant Service Provider

The credit card processing sector is extremely popular and continues to grow. Not so many years ago, using a mobile credit card reader was rare; business owners were limited to the stand-alone terminals that required a landline to process credit and debit cards. Today, choosing merchant service providers has become an important consideration because a merchant can be either a great partner for growth or a hindrance for the business's success. The factors to consider when choosing merchants include:

· Experience

Not all merchants are the same. Some are generalists while others focus on specific types of business. Some of the merchants are upfront while others are not. Some of the merchants offer standard services while others offer best class solutions. Experienced merchants understand better the security & compliance implications, technical capabilities, products & solutions, underwriting & risk management, rate disclosure practices and customer support.

· Fees

It is necessary to determine how much a merchant will charge you. Considering that merchants charge different fees, it is advisable to choose a merchant that suits your budget. The items to consider when determining the company fees include setup and startup fees, inquiry fees, monthly statement fees, fees for every swiped transaction, etc. As you do your research, you will discover service providers who do not expect their customers to pay setup and tech support fees. Therefore, you can consider working with this kind of merchants in case you are looking for an opportunity to save money. Furthermore, you are likely to negotiate the fees with other merchant account companies.

Related Articles :

• Chase Paymentech Merchant Services Review
• Elavon Merchant Services Review
• What You Need To Know About Credit Card Processing Services for Merchant Accounts

·
Services

It is important to consider the services provided by a merchant. Having an idea of their features will enable you to choose a service provider that is well able to meet your needs. This will allow you to derive satisfaction with the credit card processing. Find out whether the company offers a 24/7 technical support through email, live chat or hone. Furthermore, you need to find out whether the service provider provides fraud protection features. Choose one who offers services and features that you need.

· Reliability

It is important to pay close attention to the merchant's reliability. In case you are looking for the best service provider, you can consider getting in touch with bureaus that can assist you. You can also consider asking for recommendations from your business partners. This way, you will be able to find merchants who are reliable and accurate in processing credit cards. You can also consider visiting the merchant's website to have an idea of the company's age. Furthermore, you get an opportunity to read the customers testimonials.

We provide the best info about merchant service and mobile credit card reader. For further details please visit the provided links.

By: EzineArticles.com/expert/Ricard_D_Knowles
Article Source: EzineArticles.com

Chase Paymentech Merchant Services Review

merchantmaverick.com

Merchant Services Review

Chase Paymentech began in 1985 under the name Paymentech Inc before merging with J.P. Morgan Chase in 2005 and combining the names. They are currently one of the largest credit card processing companies in the United States, and maintain a very good reputation among its merchant community.

When researching online for Chase Paymentech, there are very few negative reviews which make it relatively easy to recommend them as a solid merchant service provider. As one of the largest in the country you would expect a slew of negative reviews, however, when browsing sites like the RipOffReport and the BBB there are surprising few negative comments.

Of the few negative reports found throughout internet review sites, the vast majority tend to be contract disputes with merchants as well as collection or billing issues. This holds consistent with many complaints within the industry as a whole. One key advantage that Chase Paymentech maintains above many of their competitors is their process for handling these public complaints. Of the nearly 50 complaints filed with the BBB in the last 36 months, only about 10% of them were unresolved. This shows a high dedication to their customers and clients.

Related Articles:

• Elavon Merchant Services Review
• What You Need To Know About Credit Card Processing Services for Merchant Accounts
• Things You Want From Credit Card Payment Processing Companies

Chase Paymentech maintains a social outlet at both Facebook and Twitter which allows both users and merchants to leave feedback for the company. The one thing lacking in this arena is a method for merchants to resolve disputes on their website. This is currently unavailable at the time of this writing.

While Chase Paymentech does include early termination fees with most of their contracts, the amounts are very similar to other same sized credit card processing companies. Currently they are in the $300-$350 range but this does not include additional fees for leased equipment. The leasing companies may include additional early termination fees.

Overall, Chase Paymentech is a good company with a solid reputation. Their available technologies are cutting edge for the industry and are recommended as a merchant services provider.

Eric Stauffer is part of a watchdog group called CardPaymentOptions.com that monitors, reports, and reviews sites in the merchant services industry. For more information about Chase Paymentech or credit card processing in general, check out CardPaymentOptions.com.

By: EzineArticles.com/expert/Eric_Stauffer
Article Source: EzineArticles.com

Elavon Merchant Services Review

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Merchant Services Review

Elavon is a relatively large merchant service provider as well as a credit card processor. Elavon offers web based services, hosted gateways, check processing, and PCI programs for their customers. Originally two separate companies (euroConex and NOVA Information Systems,) after the merger they set up operations in Atlanta, Georgia. According to their records, they have a client base of over 1 million across the globe, however the bulk of their business is focused in the North American and European regions. Their online payment gateway, InternetSecure, integrates with Authorize.net, a popular online processor.

• What You Need To Know About Credit Card Processing Services for Merchant Accounts
• Things You Want From Credit Card Payment Processing Companies
• Obtaining a Credit Card Processing Account - The Process

The bulk of their new business is built out through 3rd party resellers, sales organizations, as well as ISO/MSP and independent agents. Their sales tactic is congruent with many other large merchant service companies, which can be both a positive as well as a negative for their overall business. The good news is that they can package their services with 3rd party systems and gateway providers, as well as give discounted rates through their 3rd party providers. For example, Costco is one of their largest resellers and offers very competitive rates. The bad part is people have a difficult time differentiating Elavon from its independent 3rd party providers. This can lead to issues when these 3rd parties operate outside the realm of good business practices. When people log complaints against their sales rep, they often believe it is Elavon the company, rather than a representative. A few strategically placed bad complaints can have dire consequences for the provider.

For international merchants, Elavon is a very good choice since they offer payment settlement in 16 currencies, as well as a platform for authorization in almost 90 different currencies. In many cases, Elavon can automatically charge an international transaction in the merchant's home currency.

For more information about merchant services, Elavon or payment processing, check out CardPaymentOptions.com.

By: EzineArticles.com/expert/Eric_Stauffer
Article Source: EzineArticles.com

What You Need To Know About Credit Card Processing Services for Merchant Accounts

rokpaymentsolutions.com

Credit Card Processing Merchant

Finance is the elixir of life for businesses. It is the corner stone in the foundation of new enterprises, it allows multiple opportunities for growth, it favors expansion plans and it shields businesses from unforeseen, unfortunate circumstances. Money, therefore, should be managed well.

The first two steps towards managing business finances are:

1. Establishing a merchant account

2. Implementing a merchant processing agreement

Both these steps are prerequisites to get started with credit and debit card processing for your business. And, in today's day and age, where people do not carry bundles of cash with them and where checks keep getting obsolete by the day, accepting card payments determines how advanced your business is.

What is a Merchant Account?

A merchant account is specialized to accommodate a merchant's business needs by allowing him / her to accept debit cards, credit cards, gift cards and other modes of electronic payment made by customers for the merchant's goods and / or services.

A merchant account involves 4 key players:

• The merchant

• The merchant's financial institution in which he holds an account

• The customer

• The customer's card issuer

So, when a customer buys a merchant's goods and / or services by paying for it through an electronic medium (credit, debit or gift card) issued to him by his banking service, the transaction is passed on to the merchant's financial institution for approval. Once the transaction is approved by the financial institution in which the merchant holds an account, the amount gets credited to his / her account.

Who is the Payment Processor?

The payment processor, the vital link in the merchant account circle, is the financial institution in which the merchant holds an account. A card processing company is usually a third party appointed by the merchant himself to manage credit card, debit card and gift card transactions. The merchant processing company or the payment processor oversees the transaction of fund removal from the credit cardholder's account and fund deposition in the merchant account.

Why Should You Hire a Credit Card Processing Service?

Credit card processing services offer merchants a bunch of value added benefits for their merchant accounts. Choosing a reputed and experienced credit card processing service provider can be very beneficial to your business enterprise. Listed below are some of the benefits you can avail of upon hiring a card processing service.

• Merchant processing companies offer packages depending on the merchant's business size and industry.

• The merchant need not be physically present to oversee any transaction as the credit card processing company handles the process.

• Hiring a card processing service helps you keep pace with the ever-changing payment industry.

• Accepting all types of electronic payments, such as mobile payments and online payments, is made possible.

• Frauds can be reduced due to the dismissal of bad checks and counterfeit notes.

• Merchant processing companies make tech support available 24 / 7.

The biggest boon of hiring a credit card processing company to manage business transactions is the freedom it allows you to focus completely on expanding your business.

Hiring a credit card processing or merchant processing services is the first step to a successful business enterprise.

By:EzineArticles.com/expert/Sunil_K._Rana

Article Source: EzineArticles.com

Things You Want From Credit Card Payment Processing Companies

metromerchantservices.com

Payment Processing Companies

You want the credit card payment processing companies to be able to accept all forms of payment from your customers. You want the ability to accept payment from credit cards, debit cards and electronic checks. It is an added bonus if the payment processing companies you use also accept traditional check as payment.

Payment processing companies should be able to accept payments from anywhere in the world. You want the company you use to allow you to accept online payments from anywhere in the world that your customer is located. The online merchants have customers in other cities, other states, and other countries. These individuals that are shopping online are almost all using credit and debit cards to pay for their purchases. You will also need to be able to swipe credit and debit cards when a person shops in your store.

A company that supplies fraud protection and security protection will be the one you want to select. Identity thieves work harder at trying to steal the financial information of others than they would have to work at any job. There is always someone attempting to get the credit card numbers and personal information of other people and the main way they do this is hacking into a merchants system. From the merchants system they have a better chance of getting information from multiple customers instead of trying to just hack into the systems of one person at a time.

You want the service you choose to have a high approval rate. You also want them to process the payments you receive as quickly as possible and to have little or no fee associated with these purchases.

• Obtaining a Credit Card Processing Account - The Process
• Credit Card Processing For Business - Secrets Your Credit Card Processor Hopes You Never Find Out
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You want the processing company you choose to have a low monthly cost associated with your transactions. The details will include how many transactions they will process for this monthly fee. This should also include the gateway fee and the charge back fees.

The amount that it cost you to get the equipment necessary to process the payments made by your customers should be low. This set-up fee should cover every aspect of accepting credit and debit card payments.

You want the set-up time for the merchant services to be as quickly as possible. You want accounts to be established in at least one days-time.

You want customer service to be provided to you seven days a week. You want to be able to get in touch with someone that can help you trouble shoot the equipment in your store and solve the problems you may encounter on a day to day basis.

You want a variety of selections in the type of card readers you can choose and in the features included from the company. One merchant is going to have a lot more transactions in a months' time than some other merchants may have. The merchant that uses the card reader less frequently should not pay as much per month as the merchant that uses the equipment more often.

Payment processing companies supply the equipment and the technology for merchants to accept credit and debit card payments from their customers. Payment processing companies offer different packages to their customers depending on how many transactions they will have in a month's time. You can click this link for more information.

By: EzineArticles.com/expert/Ador_Talukdar/

Article Source: EzineArticles.com

Obtaining a Credit Card Processing Account - The Process

Credit Card Processing Account

iprocessing.com

A merchant should be prepared to accept different types of payments for credit card processing. The method of obtaining a merchant account can be daunting and a bit confusing. In this article you will gain insight to this process so that you will have more of an understanding on how it all works from start to finish. Learning about this process will ensure a smooth and rapid experience with your approval and set-up as this can take days to several months. This usually depends on merchant response and diligence.

First research and make a final decision as to what merchant service company to work with as the business and the processor will work hand in hand during the application stages. Now, be sure to fill out the application in its entirety. It is important not to leave any blanks if it doesn't apply just simply write in N/A for non-applicable. There may be an application fee or sometimes called a processing fee. This fee absorbs the cost to process an application for approval. It takes a lot of effort and time for reviews, follow up and several departments to come to an approval and in some cases time and time again. The merchant processor goes through several channels on the merchant's behalf. By paying this fee initially gives the merchant a vested interest in the account process and a paid status confirms this to the processor and the bank to move forward.

The bank will require back up documentation that must be consistent with the merchant application. Some items that they review are bank statements, tax returns, financials, processing statements, a business plan and advertising materials. The documentation should be scanned in and emailed in effort to be sure that all credentials are received clear and concise. Faxing documents sometimes is acceptable, however most of the time it doesn't come in clearly as needed to decipher for the banks. Do not cross out or send partial copies. The banks will reject such papers as incomplete.

With paperwork requests all is time-sensitive as documents may be determined irrelevant to the bank if they are not considered current. Current is usually within the very last three months. This is also with the application date can expire and they may ask for a new one if too much time has gone by without the proper paperwork needed to proceed and the cycle may need to be refreshed all over again. It is very important that the merchant understand this.

Another thing the banks look at is the foundation of the company. They review several things when determining that and may have several requests such as; adjusting terms and disclosures, customer service, memberships and revolving charges and altering the business website. This is all in effort to better your business so you will want to follow specific instruction and be steadfast about it as this may determine rates and approval or not.

Also, if a merchant application result comes back as a denial the merchant will be asked to resubmit as the processor will want to then attempt to route that merchant with another bank for another attempt at an approval and this can be a cycle until a final approval and agreement of the terms can be reached. If a business is a special circumstance (i.e. business has negative credit, new business without established history, considered a high risk company, etc.) then the merchant should expect to go through this approval series as is common practice.

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• Heartland Payment Systems Credit Card Processing Review
• Merchant Services Online: Deciding Between Direct Site and Hosted Payment Processing

If the merchant is working with an experienced agent and the credit card processing company has several banking relationships they should have a very high approval rating. In this case they are able to match your application to several banks that will ultimately result in an approval for the merchant account. This processor may even be set up internationally in helping them achieve approval to accept credit cards overseas. This can greatly amplify business profit.

In addition, it is important to factor in a merchant account package and how this can increase your revenues substantially. This means being able to accept credit and debit cards in any way imaginable. The merchant can accept transaction types via telephone, the internet, through a pin pad, virtual terminal and payment gateways as well as having a back up merchant account. All of these things are beneficial in reaching significant success in business.

Yes, there are several fees and charges involved in the luxury of being able to accept credit cards. Visa and MasterCard have built this into there programs so that they benefit greatly from the process. In essence, it allows for a purchase to transpire with an approval of the funds, then processing it into another's account handling the credit and debit to each account by means of electronic transfer. Not to mention, the managing of returns, refunds and charge backs. This goes through many electronic transfers to clear thus there are fees the merchant is required to pay. These fees are usually a very low percentage compared to the profits the merchant earns by being able to process payments electronically.

To summarize; research, apply, pay processing fees, be thorough, be timely and efficient, confirm the receipt of documentation and that the merchant is meeting the banks criteria in all areas of their business. Always work closely with a merchant provider as they act somewhat as a merchant account financial planner. This person will be sure to get the very best rates, support the merchant and act as a liaison between the merchant and the bank, setting a business up properly with a combination of merchant services for a specific business type and get the merchant up and running with credit card processing as quickly as the bank allows.

To get instant access to informative merchant news and apply direct visit http://www.worldwidemerchantconnect.com/about-us/

By: EzineArticles.com/expert/Nikki_Caringella
Article Source: EzineArticles.com

Credit Card Processing For Business - Secrets Your Credit Card Processor Hopes You Never Find Out

smallbiztrends.com

Credit Card Processing Discount Rate

In my previous article "Rate Reduction Strategies That Work" we discussed ways that small businesses can reduce credit card processing expense from the standpoint of managing and understanding discount rate structure.

Negotiating a 'low discount rate' is only half the battle. Savvy merchants understand that HOW the discount rate is manipulated and calculated is often more important than HOW MUCH the rate is. And slick merchant services salespeople realize that by not disclosing these tactics and instead diverting attention to the 'low discount rate teaser, they can easily fool the merchant into signing off on a lump of coal disguised as a diamond.

Here are several examples of what merchants need to know about credit card processing proposals in addition to what the rate is:

GROSS PROCESSING. NET PROCESSING, or GROSS/GROSS PROCESSING Merchants who do a significant volume of refunds and returns (clothing and gift stores for example) are often surprised and shocked when they realize that when they refund money to a customer, their credit card processor does NOT refund the discount rate fees the merchant paid when the original sale was made. This practice is called "Gross Processing" and is the default setting in the industry; the majority of all small business merchant are set up on Gross Processing.

Even worse, some processors add insult to injury by charging full discount fee on the sale transaction, then again charging full discount on the refund transaction, effectively charging the merchant twice for the same transaction! This is known as "Gross/Gross Processing." Many an unfortunate small businessperson has naively signed off on a low discount rate proposal, not realizing the catch (there's always a catch, isn't there?) is that the program is "Gross/Gross" and the unsuspecting merchant is being overcharged hundreds or thousands of dollars annually in processing fees.

NET PROCESSING is an option available on some, but not all, processing networks. The concept is simple: When a merchant makes a sale, the processor charges the merchant the applicable discount fee on the sale amount. If the merchant has to refund the sale at a later date, the processor refunds the discount fees paid by the merchant. A premium discount rate is paid for Net Processing, but under the right circumstances it can add big dollars to the merchant bottom line. Not all merchants will qualify for Net Processing, nor will all merchants benefit from it.

DAILY VS. MONTHLY DISCOUNTING How processing fees are paid by the merchant , not just what the rate is, is also an important consideration affecting overall processing expense.

Most processing programs utilize Daily Discounting computation method. This means when a merchant submits a daily batch of business to the processor, processing fees are deducted from the amount paid to the merchant immediately, that very day. There is no 'float', the merchant pays his fees immediately by having the amount owed deducted from his daily business at once..

Optional Monthly Discounting means that processing fees are calculated and charged to the merchant only one time at the end of the merchant statement cycle, not on a daily basis. The merchant has full use of his money the entire month; he pays his processing fees one time at the end of the processing period.

The distinction between DAILY and MONTHLY DISCOUNTING affects overall processing costs in many important ways:

Merchants with Monthly Discounting enjoy cash flow advantages. By having use of their own cash longer, they have the cash on hand to take advantage of early payment discounts that many vendors offer. They also have use of their own money for normal operating expenses instead of having to borrow from, and pay interest on, lines of credit.

Monthly Discounting generally means lower accounting costs. Most small businessmen use a CPA or bookeeper who generally charges by the hour. Monthly discounting only requires one simple calculation by the accountant, which takes far less billable time than the 25-30 indiviidual day-by-day calculations necessitated by Daily Discounting. On an annual basis, this can add up to a significant cost savings.

INTERCHANGE INTERPRETATION In our previous article referred to above, we discussed Interchange rules that result in many (if not most) of a typical merchant's transactions being downgraded to a higher discount rate. These mandatory Interchange surcharges apply to the wholesale processing cost' charged by Visa USA and Mastercard Worldwide to the processor who in turn re-sells them to the merchant.. They do NOT necessarily mandate what type and amount of surcharge the processor resells to the merchant (although common sense dictates that when the processor is charged a higher wholesale price, he must in turn re-sell at a higher price to avoid operating at a loss). Processors are free to establish their own re-selling policies and pricing, which varies widely from provider to provider.

What this means to the merchant

Different processors may 'classify' the same transaction differently. One processor may consider a transaction as "qualified" and charge the merchant the lowest qualified rate, while another processor may define the very same transaction as 'Mid-Qualified" and charge the merchant a Mid-Qual surcharge even though either Visa or MC wholesales that transaction to the processor at the lower Qualified Interchange rate. The processor simply pockets the additional profit margin. That's how processors are able to get away with offering competitive-looking loss-leader teaser rates--they merely recoup the margin and then some by a variety of means such as this one.

Processors are free to establish their own profit margins and mark-ups as they see fit, which opens the door for a lot of 'game playing' with rates and numbers. In other words, just because Visa USA mandates a 15% surcharge on a particular unqualified transaction for whatever reason, lets say for processing a foreign card, the processor can use the unqualified 'excuse' to mark up their charge to the merchant however much more over 15% they want with no limit. By this means, unscrupulous processors are able to easily pad their margins in hidden areas while making the merchant think he's getting a 'deal' by quoting a low loss-leader rate in some rate Interchange category that they know in advance the merchant will rarely if ever encounter in the normal course of business, and making up the difference and more in the padded hidden area.

CONCLUSION: Selecting a credit card processing program on the basis of "who's offering the lowest rate" is is a numbers game the merchant will lose every time. Merchants mistakenly assume that 'low rate' translates into 'low cost' when in reality often the opposite is true: the lowest rate plan is usually the most expensive! Indeed, frequently a program with a HIGHER discount rate ends up costing the merchant less due to the way the percentages are derived and calculated. There's a LOT more to selecting a processing plan than just "what's the rate?".

• Heartland Payment Systems Credit Card Processing Review
• Merchant Services Online: Deciding Between Direct Site and Hosted Payment Processing
• iPhone Credit Card Processing for Tradesmen

Tips to avoid these pitfalls:

First and foremost, merchants need to educate themselves. Or, consult a trusted professional who understands how merchant credit card processing works. Merchants who approach the task of evaluating credit card processing programs based only on which has the lowest rates and nothing else are the most vulnerable to processing tricks and scams..

Get sample statements from prospective processors to get an idea of their processing policies. They'll tell the full story on processing policies for the processor in question.

Get merchant referrals and call them. If the processor in question is in the habit of playing games, the merchants you talk to will be more than happy to let you know. If the processor refuses to provide references, that's should tell you something as well.

Get it in writing! If you want Net Processing or Monthly Discounting, don't assume and don't take the salesperson's word for it. If it isn't on paper, it isn't so.

Barry Godofsky operates Automated Merchant Solutions, Inc., a Florida based Independent Sales Office (ISO) representing several of the largest credit card processing Acquirer institutions in the nation. Please email questions on this article to the author at amspcs@juno.com To apply for a merchant account online, please visit http://www.merchantservices-help.com/apply-now.html Please view our previous article "Rate Reduction Strategies That Work" at http://ezinearticles.com/?Credit-Card-Processing-For-Business-Rate-Reduction-Strategies-That-Work&id=809275

By: EzineArticles.com/expert/Barry_Godofsky

Article Source: EzineArticles.com