5 Credit Card Fallacies Answered

by Trisha Echols

      Majority of consumers have their own credit cards. Students, housewives, merchants, executives, and practically every sector and industry in the society possess personal credit cards. It’s the craze today and the numbers are rising. And most business accept credit cards. It’s the most convenientP way to transact business. However, a good number of people doesn’t like credit cards, nor would they accept credit card transactions. These concerns stem from the many fallacies that continue to spread like wildfire. These ugly rumors and half-truths cause strongn resistance against the use of credit cards.

      It’s high time we examine these credit card fallacies and set the record straight.

 

1. CARD HOLDER ARE LIABLE FOR STOLEN CARD’S UNAUTHORIZED TRANSACTIONS

   Suppose you somebody stole your credit card. Then that somebody used your card to make several costly purchases. As the owner of the card, you are liable for those transactions and have to pay for those purchases.

   The truth: NO. Some card companies only charge a $50 to the owner of the card for any purchases done through a stolen credit card regardless of the amount. Even then, card-issuing companies will waive this amount if you report the loss promptly.

2. YOU CAN GET A CREDIT CARD ONLY IF YOU HAVE A GOOD CREDIT HISTORY

   This implies that people excellent credit rating can get a credit card while those who fall short can not get one.

   The real score: NOT TRUE. Anyone of legal age can get a credit card regardless of their credit rating. The only slight difference is that people having good credit rating enjoy lower interest in their credit cards compared to those with poor credit history. The fact remains that anyone can apply and get a credit card that suit his/her financial condition.

3. YOU CAN ONLY GET ONE CREDIT CARD IN YOUR LIFETIME

   Let’s have a clear understanding of this fallacy. It states that if you already have a Visa, you can no longer apply or get additional credit cards. You are limited to only card in your entire lifetime.

   The truth. NO. This is simply not true. You can get unlimited number of any type of credit cards as long as you can maintain good payment scheme for all of them. You can apply for, get and accept credit cards that suit your fancy. Just be sure that you exercise good financial responsibility.

4. SHREDDING YOUR CREDIT CARD WILL DELETE YOUR DELINQUENT RECORD HISTORY

   For example, you are past behind in your credit card payments. Dumping your credit card into a shredder will immediately delete your delinquent record. You can then make a fresh start.

   The truth: Absolutely false. Shredding, burning, or chopping your credit cards will never delete whatever credit payment history you incurred. Your credit history with credit card will remain on records regardless of whether you shred, burn, or chop your card.

5. A HIGH CREDIT LIMIT SPEAKS ILL OF YOUR REPUTATION

   A card holder who has been granted a high credit limit only shows her wanton and obsessive shopping personality. It speaks ill of her reputation.

   The truth: This is a complete absurdity. If you are granted a high credit limit, it shows that the card holder can be trusted. It shows responsibility; you can pay and likewise accept credit card payments. Having a high credit limit is also an indication that your finances are in order.

   (Trisha Echols currently is a long-time financial consultant with established consultancy offices in Amsterdam, Halifax, Malaysia and other key cities. Her clients belong to the top 500 companies in England and in the United States. Miss Echols serves as business consultant for several credit card processing companies, including www.acceptcardsnow.biz. She does lectures on strategic business practices and also writes for various magazines on business matters.)

5 Things To Do Before You Accept Credit Cards

by Trisha Echols

    So you are starting up a business. And you decided to accept card payments.. This is laudable move and a step in the right direction. After all, almost all business establishments nowadays rely heavily on credit card purchases. It will significantly increase your customer base and at the same time boost up sales. You can’t possibly go wrong with these craze on plastic money.

    However, you can’t just accept credit cards because you want to. Let’s illustrate this point. Suppose a new customer walks into your newly opened store, makes a purchase and pays with a credit card. What would you do with it? You have no credit card processing service to begin with, much less a card reader machine for swiping purposes ! In other words, there are crucial steps that you need to complete before you can accept credit cards.

    5Here are some of them.

 

1. OPEN UP A MERCHANT ACCOUNT

   This is the first step of the many series of things you have to accomplish before you can accept credit cards payments. You can get a merchant account from your local bank. Or, in some cases, from your business federations. In this way, funds from your customers’ credit cards will be deposited to your merchant account.

2. GET A CREDIT CARD PROCESSING SERVICE

   For those who are new to ecommerce, a credit card processing service allows you to accept credit cards payments. You get this service from credit card processing companies. Sometimes, these companies are known as “ processors.” They act as a third party in the credit card transaction process between you‰ and the card holder. They make sure the customer has enough funds to pay for the credit card transactions, withdraw the amount from the customer’s bank and deposit the money into your account.

3. INSTALL CARD READER EQUIPMENT IN YOUR ESTABLISHMENT

   When a customer hands you his/ her credit card, you need to swipe it into a machine called card reader or scanner. This device “reads” the information, encrypts it, and then send the data to a processing center. This machine also captures additional card information about the customer.

4. LEARN THE NECESSARY PROCEDURE PERTAINING TO CARD PROCESSING

   Upon signing a contract with your preferred processor, they will immediately train you or your staff regard the use mechanics of credit card processing. This involves learning how to properly swipe the cards into the machine to get card information, storing card data in your computers, and securing such sensitive records.

5. LEARN TO SPOT FRAUDULENT CREDIT CARDS

   Don’t be naive and assume that your customers will always present you genuine credit cards. A few of them will try to sneak in fake credit cards. While your credit card processing service protects you, to a certain extent, against fraudulent credit cards, it remains your sole responsibility to spot and detect these fakes. You stand to lose money if you cannot distinguish a genuine credit card from a fraudulent one.

   Now, that’s about it. Accomplish these things and you are ready to accept ½ card payments in your online store.

   (Trisha Echols currently is a long-time financial consultant with established consultancy offices in Amsterdam, Halifax, Malaysia and other key cities. Her clients belong to the top 500 companies in England and in the United States. Miss Echols serves as business consultant for several credit card processing companies, including www.acceptcardsnow.biz. She does lectures on strategic business practices and also writes for various magazines on business matters.)

Credit Card Processing: Risk Factors Facing Online Merchants

by Trisha Echols

If you are a merchant with an online store, you expect to get some profits for your efforts. After you all, you invest time and money for such endeavors. But then, there are risks involve in such undertaking. Identifying the risk factors could help you plan ways to deal with these risks. And mind you, it’s a no brainer job. All you need is commitment and the desire to succeed.

So where would you begin your risk-management program? The obvious, of course. And that means, your product. It should come as your first priority. You should ensure for the highest degree of quality in any product that you sell online. Do not settle for anything less.

You should also take a look at your chain of suppliers. As much as possible, deal with local sources because it’s easy this way and does not involve additional freight costs.

And speaking of freight, you should pick a cargo carrier that stable enough and have adequate storage facilities. It’s possible that merchandise leave your warehouse in good condition but when it reaches the recipient, it’s in shambles. Your delivery company could have fouled up the goods along the way.

Other sources of risks come from your marketing strategies. You may have a quality product, but without proper marketing strategies, you would not make a sale. For in the first place, people would not know your product exists without letting them know about it through effective marketing campaigns.

Then comes your payment gateway. Ensure that it is secure, configurable, and can be easily integrated in your website. Otherwise, your online customers can not complete the purchase transactions in your website.

Lastly, be very choosy with your credit card processing service providers. Don’t settle for just any processor. Choose a reputable processor with a good track record in the industry. The wrong kind of credit card processing company can bleed you dry. It can make or break your business. So very careful on this one.

Now that you know these risk factors, you can now implement the corresponding strategies to succeed in ecommerce business.

(Trisha Echols currently is a long-time financial consultant with established consultancy offices in Amsterdam, Halifax, Malaysia and other key cities. Her clients belong to the top 500 companies in England and in the United States. Miss Echols serves as business consultant to several credit card processing company, including www.creditcardprocessingexperts.com. She does lectures on strategic business practices and also writes for various magazines on business matters.)

5 Extra Credit Card Processing Charges Merchants Can Avoid

by Trisha Echols

     If you are a merchant and currently subscribe to credit card processing service, you might have experienced paying extra charges in your processor’s fees. For example, if you signed up for an expected $150 total monthly processing fee, you would be surprise when you end up paying $200 or more. It’s not because your processor suddenly raised their fees. It’s simply because, without your realizing it, you incurred penalties or extra charges.

    But here’s the good news. You can avoid incurring those additional fees. Knowing your merchant agreement and sticking with its terms eliminates a lot of these surcharges.

     Here are some of the extra credit card processing penalty charges you can avoid.

1. RIGHT MERCHANT TYPE

   If you are a retail merchant , ensure that you sign up the contract with the right merchant type. Read the contract and find the word Retail Merchant. This gives you lower processing fees. You see, Mail Order/Telephone Order ( MOTO) and online merchants have higher fees. If you are retail and, without examining your contract, you are quoted as online merchant, then you could be paying extra fees.

2. ANTICIPATE MONTHLY SALES VOLUME

   Let’s say you engage in effective marketing strategies that increases your sales. While you are happy for the added revenues, your process is not. Any significant increase in your sales volume is considered a risk and be meted out with corresponding fine or penalty charges. You can usually avoid paying additional fees for this when you inform your processor in advance about your marketing plans and the expected increase in your sales volume. Otherwise, you would end up paying additional charges. In extreme cases, your processor could freeze or even terminate your account altogether.

3. SETTLEMENT PERIOD

   You should batch or settle all your credit card transactions within 24 hours or at the close of day. Failure to do so can lead to penalties. The longer you complete batching process, the stiffer will be the penalty surcharges. You can set the computer program to batch in automatic mode. Or send you periodic reminders so you can always do the batching process on time.

4. PROCESS ALLOWABLE CARDS

   If your processing agreement permits you to process only Visa and MasterCard, then by all means, stick to this agreement. Don’t attempt to process any other cards not stipulated on your contract. If you do, you will surely incur stiff penalties.

5. GET ALL THE CARD INFORMATION FOR PROPER PROCESSING

   Some cards provide 3-digit security code. This, among other security features, will enable merchant to determine the authenticity of the credit card. When you fail to get this 3-digit, it could lead to pay penalty fees. Visa and MasterCard use AVS or Address Verification Service where the billing address should match the delivery address of a cardholder. If you will not use this service, MasterCard or Visa can levy you with additional processing charges.

   Credit card processing benefits merchants. It dramatically increase sales volumes to your existing business. But if you are not familiar with your merchant agreement, processing could lead to excess merchant fees and other unnecessary surcharges. Consequently, it can result to diminished profits. To avoid paying these extra fees, you should know the terms of your credit card processing agreement and then stick with it.

   (Trisha Echols currently is a long-time financial consultant with established consultancy offices in Amsterdam, Halifax, Malaysia and other key cities. Her clients belong to the top 500 companies in England and in the United States. Miss Echols serves as business consultant to a selected credit card processing companies, among them www.creditcardprocessingexperts.com.She does lectures on strategic business practices and also writes for various magazines on business matters.)

Credit Card Processing: What You Should Know About Payment Card Industry Data Security Standard

by Trisha Echols

    Ecommerce is a profitable business. It facilitates the ease and convenience of shopping. And it benefits both merchants and customers. Merchants’ online stores earn money even while they sleep. Customers, on the other hand, can now shop leisurely in the comforts of their home. No wonder that ecommerce is fast gaining popularity!

    However, there are securities issues that need to be addressed with online transactions. Sensitive customers information passes through the Internet on every online transactions and it needs to be secured from any prying individuals who might jeopardize the process. This vulnerability prompted the major credit card-issuing companies—among them MasterCard, Visa, Discover, American Express, and many others– to meet together and reached a consensus on online card transactions security issues. They come up with what is now known as Payment Card Industry Data Security Standard or PCIDSS. This is a set of security requirements or demands directed to merchants in order to protect their customers.

    Here’s the summary of PCIDSS:

 

1. INSTALL FIREWALL

   Merchants MUST establish a firewall on computers to protect credit card information. This means that they should not attempt to process any card transactions unless their servers have installed a dependable firewall program. Failure to do so can lead to security risks.

2. COME UP WITH A STRONG SYSTEM PASSWORD

   When merchants install operating programs on their computers, software vendors usually supply default passwords in them. Some computer owners no longer take the time to change this password. In ecommerce, such action could pose as security risk. Therefore, the card industry strongly suggests that merchants should not use the default but instead change it immediately with a strong password.

3. USE ENCRYPTION

   If the merchant has linked computers, PCIDSS demands that strong encryption system be used when sending card information data across network. This is one way of protecting customers’ data from falling into the wrong hands.

4. GUARD AGAINST SOFTWARE VIRUS ATTACKS

   Merchants should always install and maintain a good anti-virus attack on their computers. In addition, they should always download the latest updates to their chose antivirus programs. Regular virus scanning schedule of computers should strictly be implemented.

5. LIMIT EMPLOYEES ‘ ACCESS TO COMPUTERS

   A merchant’s computers contain sensitive customer’s credit card information. Hence, it should be restricted to a few selected employees. By assigning unique computer access ID to your employees, you will be able to track and maintain security access control.

6. MONITOR AND TEST COMPUTER’S VULNERABILITIES

   From time to time, test the computers for any vulnerability. Perform virus scanning, encryption test, and spyware check, and other pc security tests on a regular basis.

7. DRAW UP AND IMPLEMENT INFORMATION SECURITY

   Basically, card-issuing companies encourages merchants to implement security protocol to secure their computer data. This includes investing in uninterrupted power supply equipments, storing their pc in a secure place.

   The card-issuing companies like Visa, MasterCard, American Express, and many others want merchants and customers alike to utilize the full benefits of ecommerce. This can be achieved when merchants fully comply with the Payment Card Industry Data Security Standards protocol or PCIDSS.

   (Trisha Echols currently is a long-time financial consultant with established consultancy offices in Amsterdam, Halifax, Malaysia and other key cities. Her clients belong to the top 500 companies in England and in the United States. Miss Echols serves as business consultant for several credit card processing companies, including www.creditcardprocessingexperts.com. She does lectures on strategic business practices and also writes for various magazines on business matters.)

6 Ways to Speed Up Your Credit Card Processing Transactions

by Trisha Echols

   You are a merchant and you subscribe to credit card processing service. For a time, things turn out fine for your business. Then after several months, you monitor a glitch in your card processing. Your customers complain that it takes a long time to complete transactions in your establishments as compared to other stores.

   This means your customers are losing valuable time. And as we all know, customers prefer to transact business quickly. Any unnecessary delay in the transaction time could render negative impact on your sales. If your business experiences slow processing time, it’s time to implement some changes.

    Here are some effective ways to speed up your credit card processing transaction.

 

1. OPTIMIZE YOUR WEBSITE DESIGN

   For merchants with online shop, make sure that you optimize to the max your web design. Fancy graphics and cool animations get points in the aesthetic category, but they tend to slow down web loading times. They are a no-no for serious online business. As much as possible, minimize graphics in your website. Remove any unnecessary animation. Your customers should be able to access and browse your website without going through agonizing wait. If you are a tech newbie, consult a web designer on how to fully optimize your website.

2. CHOOSE A DOMINANTLY STABLE HOSTING COMPANY

   Again, this applies to merchants with online shops. You should settle for a good and stable hosting company and get the largest bandwidth requirements you can afford. While it’s true that good hosting companies and large bandwidth requirements cost extra dollars, you could easily recoup them all in terms of sales volume and total customer satisfaction. Nothing irritates potential customer than trying to browse a certain online store and get the message “Server malfunction. Please try again later.” Or the dreaded message “ Could not be accessed. Bandwidth exceeded.”

3. GET BROADBAND CONNECTION

   Still stuck in the old, antiquated dial-up Internet connection? Do yourself and your business a favor. Get broad band connectivity. This will significantly increase your processing speed.

4. GET THE LATEST CARD TERMINAL

   Card readers and terminal equipment get obsolete in a year or two. Second hand or old card terminals hamper processing speed. Examine your card terminal and find out if they are obsolete. If they are, then consider getting the latest card terminal. It could come with some costs but the overall impact could greatly benefit your business. Be sure to discuss this matter with your credit card processing provider.

5. CHOOSE POS SYSTEMS WITH BUILT-IN CARD PROCESSING

   There are POS terminals that have integrated card-processing capabilities in them. Inquire about it from your payment gateway service provider or card processing company. This integrated functions greatly speed up processing transactions.

6. GET CREDIT CARD PROCESSING SERVICE FROM A REPUTABLE COMPANY

   This is the most critical aspect of processing service. As you maybe aware by now, there are many credit card processing companies vying for your business out there. Unfortunately, not all of them could be give the same quality service that creditcardprocessingexperts.com could provide. Choosing a card processing provider with mediocre performance seriously affect your business transaction speed. If you need fast, efficient, and dependable card processing service, get it from a reputable company.

   ( Trisha Echols currently is a long-time financial consultant with established consultancy offices in Amsterdam, Halifax, Malaysia and other key cities. Her clients belong to the top 500 companies in England and in the United States. Miss Echols serves as business consultant for a number of credit card processing service provider, among them www.creditcardprocessingexperts.com. She does lectures on strategic business practices and also writes for various magazines on business matters.)

Credit Card Processing: 7 Sources of Chargebacks And How to Deal With Them

by Trisha Echols

    You are a start-up online merchant. You hired good programmers to come up with an excellent web design for your online store. Then you fill your online shop with quality, top-of-the-line, highly marketable products. The sales increase every week. Your financial ledger show you are doing fine. But when you check your merchant accounts, you discover a number of costly debits. Upon examination, you came to know that those debits result from chargebacks.

    What is a chargeback? Basically, a chargeback occurs when a customer disputes a credit card transaction.

    Too often, each chargeback carries a stiff penalty fee against the merchant. They take away significant portion of your profit. And if left to accumulate, these chargebacks will result to the termination of your merchant account.

    Business experts and various financial advisers urge merchants to implement strategies to prevent chargebacks. Below are the sources of chargebacks ( including their respective Visa/Mastercard error codes) and how to deal with each of them.

 

1. INCORRECT ACCOUNT NUMBER (36)

   Usually occurs at processing terminals, particularly with the MOTO– Mail Order/ Telephone Order type of business. The merchant made a mistake in keying in the proper digits into the terminal.

   To deal with this kind of chargeback: Initiate the transfer of the particular amount back to the customer’s account. Then make another receipt and contact the customer to discuss remedial measures agreeable to both parties.

2. DUPLICATE PROCESSING (82)

   The merchant charges the customer’s credit card twice for the same exact transaction.

   To deal with this kind of chargeback: Issue a corresponding refund to the customer.

3. CUSTOMER CLAIMS SERVICES NOT PERFORMED (30)

   Let’s take up this one using a simple illustration. For example, you, as a merchant, promised to do some painting jobs for the customer’s house. You agreed on the contract price, the completion date, and billed the customer’s credit card. In this instance, the customer will claim that you never did any painting jobs for his house. Hence, the chargeback.

   To deal with this kind of chargeback: Send copies of invoices or receipts to show proof that you indeed performed the aforementioned services.

4. MERCHANDISE/SERVICE NOT AS DESCRIBED (53)

   To illustrate this chargeback, let us suppose that , the customer shopped for green apples in your website. He expected that you would deliver him green apples. But as it turned out, he claimed you delivered him oranges. Hence, the chargeback.

   To deal with this issue : You should show as proof your return policy and then insist that the customer should return the merchandise before making a refund.

5. DEFECTIVE MERCHANDISE ( 56)

   This one is very easy. Let’s imagine that a customer ordered some porcelain pots from your store. Upon delivery, she discovers that most of the pots have blatant cracks on them. So she initiates the chargebacks.

   To deal with this chargeback: Same as above. Show your return policy and have the customer return the merchandise. Then issue the customer the necessary refund.

6. CUSTOMER CLAIMS MERCHANDISE NOT RECEIVED (90)

   Too often, this chargeback complaint comes from dishonest customers. Just provide the bank with the necessary receipt of deliveries.

7. FRAUDENT CARD-NOT-PRESENT TRANSACTIONS ( 61)

   To illustrate this one, let us suppose that a customer complains that you charge his credit card for two dozen pizza pies he did not order nor authorized. ( Of course, the fact remains that his family have already gobbled up those two dozen pizza pies!)

   To deal with this one: Show authorization approval and proof of delivery receipts countersigned by the customer.

   ( Trisha Echols currently is a long-time financial consultant with established consultancy offices in Amsterdam, Halifax, Malaysia and other key cities. Her clients belong to the top 500 companies in England and in the United States. Miss Echols serves as business consultant for a number of credit card processing service providers, including wwww.creditcardprocessingexperts.com. She does lectures on strategic business practices and also writes for various magazines on business matters.)

 

5 Types of Companies That Offer Credit Card Processing Service

by Trisha Echols

    There are a number of circumstances where you need to apply for a credit card processing service. To begin with , you have a thriving retail business and your customers clamor for a more flexible payment options. Instead of cash, they want to pay using their credit cards. In another instance, you own a merchant website and you need credit card processing service to allow online shoppers to purchase via their credit cards. Lastly, you are a mobile merchant. You business takes you in far away places. It would be very risky if you carry huge amount of cash payments with you. In this case, you can opt for credit card processing service by carrying handy, wireless mobile card terminals where your customers can simply swipe their cards.

    Now, it’s time for you to look for companies that offer credit card processing service. And in this regard,there are a few business institutions that offer this service:

 

1. LOCAL BANKS

   Surely you maintain a savings or a checking account with a local bank. You might not be aware of it but these banks offer various customer services, among them credit card processing service. You can discuss your processing needs with them and chances are, they will accommodate your request. However, they implement stringent rules before giving you a merchant account. They will have to examine your type of business, your capital outlay, your business history, your projected sales, etc… It is very difficult to acquire a merchant account with a local bank, but they are you best source of prompt, dependable service.

2. FINANCIAL SERVICE PROVIDERS

   While most card issuing companies do not usually offer credit card processing, some do. They are Discover and American Express cards. These two card companies offer credit card processing for merchants. You can visit their homepage and inquire about these services. In the future, other major card issuing companies like Visa and Mastercard may join the fray and follow suit.

3. TRADE ASSOCIATIONS

   In some cases, your local business groups and trade associations offer credit card processing service, especially to merchants whose merchant accounts applications have been repeatedly turned down by the big players in the industry.

4. THIRD-PARTY PROCESSING COMPANIES

   They can be considered as the backbone of credit card processing business. They handle the authorization, reporting, settlement and billing aspect of credit card processing service. Even merchant banks oftentimes subcontract the credit processing services in behalf of the banks’ business clients. These third party processing companies deal with the nitty-gritty job of credit card processing.

5. INDEPENDENT SALES ORGANIZATIONS

   These independent sales organizations are not really credit card processing service providers. At most, they can be considered as a go-between or brokers between third-party processing companies and merchants. As such, they charge stiffer fees. Most of their clients are merchants whose applications for credit card processing service had been turned down by big time processors.

   Credit card processing is a growing business. There could still be many types of companies that offer card processing service, but for the moment, merchants have to contend with the five as listed above.
   ( Trisha Echols currently is a long-time financial consultant with established consultancy offices in Amsterdam, Halifax, Malaysia and other key cities. Her clients belong to the top 500 companies in England and in the United States. Miss Echols serves as business consultant for a number of credit card processing service providers, including www.creditcardprocessingexperts.com. She does lectures on strategic business practices and also writes for various magazines on business matters.)

6 Factors That Can Cost Extra Credit Card Processing Expenses

by Trisha Echols

 

    If you think that credit card processors alone dictate the amount of your processing fees , you are wrong. Almost 75% of the fees and charges depends on you and your business. Yes, you heard it right. It is you and your business that largely determines your fees. There are things which you have full control that can give you a higher or lower processing charges.

    Listed below are some factors which can cost you extra credit card processing charges:

 

1. YOUR CREDIT RATING

   If you have a high credit rating, chances are that you will get some pretty competitive credit card processing deals. On the other hand, poor credit rating does the opposite. It jacks up your fees and charges. Worse, it can even be the deciding factor for processors to turn down your processing application. So if you have a low credit rating, it’s a good idea to fix it up first. . Pay your debts. Settle your unpaid balances. Strive to gain a high credit rating so you can negotiate for low credit card processing charges for your business.

2. NATURE OF BUSINESS

   What you sell have a direct impact on your fees. If you sell books, garments, computers, etc… , you will have lower credit card processing fees. But if your business is about adult entertainment, gambling or any other high risk endeavors, you will incur a higher processing charges.

3. BUSINESS YEARS

   If your have been established for a long time, then you will get a competitive pricing from your processor.This is because your business has already established itself and hence it is considered stable. Those who are new or just starting in the market incur a different and a much higher charges.

4. YOUR MONTHLY SALES VOLUME

   Your expected gross receipts for a month will affect your credit card processing fees. The higher your sales volume, the lower will be the processing charges you pay. Low monthly sales volume gets stiffer processing fees. The good news is, you can still negotiate for a lower amount if you get the right type of credit card processing service from your processor. Contact your prospective processor if you want to learn more about this topic.

5. NUMBER OF CHARGEBACKS

   Merchants get chargebacks from time to time. As you might have read from other articles, a chargeback occurs when a customer disputes your charges on his/her credit card. A few chargebacks will not hurt you, especially if you can positively show proofs and validity of these credit card charge disputes and gain a ruling in your favor. On the other hand, credit card processing companies collect chargeback fees for each chargeback incident against your favor. Too many chargebacks can cost you money. Your processor can even terminate your credit card processing service if you incur a lot of chargebacks for a given period.

6. NOT ADHERING TO CREDIT CARD PROCESSING SECURITY PROTOCOL

   You should carefully follow the security protocol for each credit card transaction. This means that, as a merchant, you should ensure that these cards are legitimate in the first place. Also, you must always implement AVS or Address Verification Service. If you authorize a card transaction without the AVS, then you would incur penalty charges for such infraction. Continued neglect could lead to a significant amount which can financially affect your business.

   There are still other ways where you will incur extra credit card processing charges. These include not batching up your transaction at a given time period, incurring downgrades, not receiving card authorization signatures, etc.. Knowing these negative factors and avoiding them could go a long way in reducing your credit card processing fees and charges.

   ( Trisha Echols currently is a long-time financial consultant with established consultancy offices in Amsterdam, Halifax, Malaysia and other key cities. Her clients belong to the top 500 companies in England and in the United States. Miss Echols serves as business consultant for a number of credit card processing companies, among them www.creditcardprocessingexperts.com. She does lectures on strategic business practices and also writes for various magazines on business matters.)

5 Credit Card Processing Mistakes And How To Avoid Them

by Trisha Echols

    Putting up a profitable merchant website requires that you subscribe to credit card processing service. It’s a must. This will allow your online customers to browse, shop, and pay using their credit cards. Without credit card processing, merchant websites will not able to handle online customers.

    However, you should exercise care in choosing your credit card processing providers. The business world is filled with bogus and fake credit card processing companies You stand to lose your business if you make mistakes in your choice of processors.

    To help you out, here are some credit card processing mistakes and how to avoid them:

 

1. FALLING FOR A N INCREDIBLY LOW PRICE TAG

   To get your attention and patronage, some credit card processing companies would lure you with incredibly low-priced deals. The offers are just too good to be true. With glib, smooth-talking sales personnel, they would sweet-talk you into signing the contract immediately. But beware. Many merchants lost their business in the first few weeks after dealing with these unscrupulous companies.

   To avoid this, you should do some background search on credit processing providers. And as we have emphasized in practically all credit card processing articles, deal with reputable processors.

2. NEW PLAYERS OR INEXPERIENCED PROVIDERS

   Ok. Let’s face it. Some companies could be reputable. However, they just started operation recently. In other words, they are complete newbies and do not have the necessary experience to help you with your merchant needs. As a result, your business will not grow as you expect it to.

   To avoid making this mistake, consult your Better Business Bureau and deal only with credit card processing companies which have long been in the market.

3. GETTING A CREDIT CARD PROCESSING SERVICE RECOMMENDED BY A FRIEND

   While we value our friends’ suggestions, sometimes their recommendation does not just fit with our business circumstances. This holds true with credit card processing service. Only trained business consultants or dependable credit card processing company can give merchants fitting advice best suited to the nature of business.

   To avoid making this mistake, graciously take your friends’ recommendation so as not to hurt his/ her feelings. But make your own research. After all, it’s your money’s that is at stake here and not your friend’s.

4. BELIEVING CREDIT CARD PROCESSING COMPANY PERSONNEL PROMISES

   Don’t sign a contract based on a verbal assurance from sales people. Too often, these are just sales talk to persuade you into signing a deal with them. You’d be put in a bad spot if you take their word hook, line, and sinker. Many business floundered because of this naivety. To avoid it, bring along your lawyer to read the fine print and deal only with what’s written on the contract.

    

5. NOT KEEPING THE CONTACT INFORMATION OF YOUR CHOSEN PROCESSOR

   So you finally settled for a particular credit card processing company. Good. You bookmarked their website and recorded their email information. But what would happen if you encounter problems and find that your processor ’s website is down? You can not ask for assistance and you have nowhere to go. You will lose important sales

   To avoid this sad scenario , always take note of telephone, fax, cellphone numbers aside from email address and Instant Messaging address. In this way, you will several fall back options for your emergency communication needs with your processor in case a glitch occurs in your credit processing protocols.

   ( Trisha Echols currently is a long-time financial consultant with established consultancy offices in Amsterdam, Halifax, Malaysia and other key cities. Her clients belong to the top 500 companies in England and in the United States. Miss Echols serves as business consultant for a number of credit card processing companies, including www.creditcardprocessingexperts.com. She does lectures on strategic business practices and also writes for various magazines on business matters.)