Credit Card Processing: 5 Credit Card Scams That Victimize Merchants

by Trisha Echols

    Merchants thrive on credit card payments. It’s the bread-and- butter of their existence. Honest customers who purchase goods with genuine credit cards make merchants happy. Sadly, there are also unscrupulous people out there ruin merchants’ business by using a number of bogus credit cards. These dishonest customers resort to all kinds of frauds.

    Consider this harrowing but true incident:

    John sells talking wrist-watches through his online store. One day, he received two orders from a customer named Paul DeMitt in Memphis, using a free mail account. The order logged in the IP address of the PC that this customer at the time he made the order. Since John always double-checks orders, he went to WhoIs to find out the ip address of the customer. The results showed that it belonged to a dial up network— in Nigeria. Still harboring suspicions, John called up the card issuing company and verified the credit card number given by Mr. DeMitt. It turned out that the credit card was did not belong to this customer. So John didn’t process the order. He learned later on that several merchants had already been outwittingly victimized by this same customer ! Had John processed the order, he too might have incurred losses.

    While having credit card processing service helps, merchants still need to be vigilant at all times. Below are some of the credit card scams :

 

1. STOLEN CARDS

   A legitimate card holder loses her credit card. Somebody found it and then started using it to buy goods. When the huge bills arrive, the real card holder refutes the charges. The merchant is then charged with costly chargeback fees plus the total purchase amount. He ends up losing his good and his money.

   To prevent individuals from using stolent cards, merchants should use AVS service. If not, he can discreetly question the customer. The merchant can turn down the transaction if he discovers anything amiss.

2. SKIMMING

   A genuine card holder enters the restaurant for some meals and hands over his credit card to the waitress. Unknown to the the customer and to the restaurant owner, the waiter has a handy device where he can discreetly swipe the card and capture its contents. This waiter can then sell the information to unscrupulous credit card gangs or make a bogus card for himself using the captured data. The waiter can now use the bogus card to make expensive card transaction. As expected, the bills goes to the real card holder who will refute the many transactions. The merchant is left with huge business loss with this credit card scam.

3. FAKE CREDIT CARDS

   Some enterprising individuals can make credit card forgeries look so real you can not tell the difference with just a cursory glance. Credit card processing service prevents this type of scam from hurting your business. However, you as a merchant is advised to be vigilant at all times and verify the card authenticity.

4. TRIANGULATION

   Involves unscrupulous individual usually with fake merchant’s site that could victimize you– a legitimate merchant. This is how it works:

   A legitimate cardholder named Jill stumbles on a merchant’s website selling goods at very, very low price. She makes the orders and gives her credit card number. The merchant website owner delivers the goods to Jill, and instructs her to pay not by credit card but by cash through money couriers. Jill obliges. Without her knowing it, this unscrupulous website owner uses her credit card numbers to purchase items in the Internet.( He could be purchasing items from legitimate merchants like you!) He then resells it at an outrageous low price. When Jill receives her credit card bills, she would find several unauthorized purchases. She then contests the charges and wins. That leaves legitimate merchants like you with nothing but huge losses. To protect yourself against this fraud, use the address verification service (AVS).

5. CREDIT CARD NUMBER GENERATORS

   There are some software that could generate credit card numbers. Dishonest customers then use these numbers to make card purchase transactions over the Internet. As a merchant, you can usually defend yourself against this scam by having credit card processing service. Also, ask for the CVV2 or the 3-digit security code of the credit card in conjunction with AVS. If still in doubt, contact the credit card issuing company and verify the account. You can always catch the credit card scam 100% this way.

 

( 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 is also a business consultant for many credit card processing companies, including www.creditcardprocessingexperts.com. She does lectures on strategic business practices and also writes for various magazines on business matters.)

 

Credit Card Processing : 10 Effective Merchant Websites’ Marketing Strategies

by Trisha Echols

All merchants want a successful online store. In their definition, a successful merchant website means it ranks high among various search engines, gets hundreds of visitor’s visits a day, and receives numerous purchase orders online. However, this rosy condition does not just happen to any merchant website. It takes planning, preparation, hard work, and back-breaking marketing blitz to achieve this state of profitability.

Here are some proven website marketing stragegies:

 

1. GET CREDIT CARD PROCESSING SERVICE

   This is a must, and should be on the top of your priorities as a merchant. Your customers will not be able to make online credit card payments unless your site has credit card processing service.

2. WORD-OF-MOUTH

   A proven marketing strategy, advertising by word of mouth increases potential customers’ visits to your site. You can do this by personally inviting your neighbors, friends, relatives, colleagues, classmates, and other acquiantances .When your site performs well, your word-of-mouth contacts will in turn spread the word to their friends and relatives, thereby increasing visitors to your site.

   People will visit your site if :

   a.) You sell hot quality products at competitive prices and deliver promptly

   b.) You have a reliable product return policy.

   c.) If you deal on services, you make sure you always strive for customer’s satisfaction

3. SUBMIT YOUR SITE TO FREE LISTING DIRECTORY

   In these days, there are still a number of online directories that accepts fee listing services. Grab this opportunity and submit your site to these directories. It does not cost you a cent.

4. DISPATCH PRESS RELEASES TO YOUR LOCAL MEDIA

   Write a good press release about your website. If you don’t know how, hire a copy writer to make one for you. Afterwards, you can send these press releases to your local newspapers, magazines, radio and television stations.

5. DISPLAY POSTERS

   Design a colorful and compelling poster about your website and hang them on strategic places like public parks, children’s playgrounds, and other allowable locations.

6. COMMERCIAL DIRECTORY SUBMISSION SITES

   Submit your site to paid directory services like Yahoo, Lycos, and other commercial submission sites. For a nominal fee, your site gets greater visibility.

7. SWAP LINKS

   You can discuss with other site owners to swap links with you, for free. You display their links to your website and in turn, they display yours in their sites. It’s a classic “ you-scratch-my-back-and-I’ll-scratch-yours” tactic many website owners would readily agree.

    

8. USE SUBMISSION SOFTWARE

   There are commercial submission software which automates the process of submitting your sites to directory listing. Search for it and choose one that fits your needs and your budget.

9. BLOG IT

   Use blogging as a way to promote your site. If you don’t know how, you can ask your friend to do the writing for you. Blogging is very effective in getting people to visit your site. Be sure to provide backlinks to other blogs so that other bloggers will display links to your site.

10. PROVIDE FRESH CONTENT EVERYDAY

    Aside from merchant products, try to provide readable content articles to your site. If your site is about dresses, write articles on how to choose the right outfit for the right occasion. Or you can talk about the dress personalities. You get the drift.

 

Just don’t forget, though. It is necessary that as the owner of a merchant website that sells products through the Internet, you must subscribe to credit card processing service. This is important. After all, no amount of marketing strategies could take the place of a merchant site fully configured to accept online payments.

( 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 is a 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.)

 

Credit Card Processing: 3 Types of Credit Card Terminal Receipt Printers

by Trisha Echols

    If you have a store location and subscribe to credit card processing services, you need credit card receipt printers. These machines can give your customer the necessary paper print-outs of their transactions. You also keep a copy of the receipts to win against any card transaction disputes. Thus, it is imperative that you equip your business with these credit card receipt printers.
Credit card receipt printers come in various types. There are dot matrix printers, thermal printers, and ink-jet printers. Your choice will largely depend on your budget and the printing features you need.

DOT MATRIX PRINTERS

Pros:

1. Readily available

   Dot matrix printers can be found in most malls, department stores, and in some slected electronic shops. These printers have models that use two colors, and some have even built in cutter.

2. Low-Cost

   These dot matrix printers are very affordable. If you are on a tight budget, then this is the way to go.

3. Durable and heavy duty

   Dot matrix printers are built to last for years so you get your money’s worth in the long run. They can withstand heavy workloads at all times.

   CONS

1. Somewhat bulky. Many store owners complain about the size of dot matrix receipt printers.

2. Noise. When used, dot matrix receipt printers emit some noises that some individuals find cumbersome and irritating.

THERMAL RECEIPT PRINTERS

Cons:

1. Sleek, ergonomic design. Contemporary equipment for your credit card processing needs.

2. Operates faster than dot matrix. Hence, it can finish up the printing job in less time when compared to dot matrix counterpart.

3. With built in auto cutter or tear bars.

4. Less mechanical glitch than dox matrix types

Pros:

1. Cost – thermal receipt printers cost more than its dot matrix counterpart.

2. Uses a specialized heat sensitive type of paper. You should stack a good supply of heat-sensitive paper for this kind of equipment.

 

INK-JET PRINTERS

Cons

1. The latest breakthrough in receipt printing technology.

2. Fast operation and clear output.

3. State-of-the-art technology and design

Pros

1. Come with a hefty tag price

2. requires regular maintenance check-ups

    If you are on a tight budget, you may want to consider buying second hand card receipt printers. These reconditioned equipment can give you value for your money. Their price come within easy reach, and you can easily buy a replacement in case one printer bogs down.
You can find quality refurbished card receipt printers at second hand electronic shops, at bargain centers, and at some selected stores. You can also find them at eBay and other online auction sites. Just be prepared to do some searching.

   On the other hand, buy brand new credit card receipt printers if you can afford it. You will encounter less operational hassles and mechanical glitches with brand new machines than refurbished equipment.

   It is also worth noting that experts suggest you should try to buy credit card terminals at the start of your credit card processing service. It could cost you money but you could gain significant savings ( and save yourself a lot of headaches!) in the long run.

( 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. She does lectures on strategic business practices and also writes for various magazines on business matters.)

 

Credit Card Processing: 4 Ways To Fight Back Against Chargebacks and Dishonest Customers

by Trisha Echols

    Mary Rose, who owns a toy store and an online shop, subscribed to credit card processing service so that she could accept credit card payments. For her, it was the best decision she ever made for her business. In just two weeks after getting the service, her sales went up by 20%.

    But to her dismay, she also incurred a number of chargebacks. One customer disputed the credit card charge on the ground that he did not receive the delivery. Another claimed that the toys she ordered few days ago arrived in bad condition. There were also customers who said that they were dissatisfied with the product.

    Of course,these claims were false. Mary Rose insist only in dealing with the highest product quality. And she also contracted a legitimate and responsible delivery courier. Her chargebacks occurred not because of any negligence on her part.

    She was just victimized by dishonest customers who like getting items without paying for them.

    To minimize chargebacks, experts gives the following advice:

 

1. USE ADDRESS VERIFICATION SERVICE ( AVS)

   Always activate AVS on each order. Basically, this means that you, as the merchant, should ensure that the billing address of the credit card holder should match with his delivery address. It’s that simple. You will get a good chance of reducing fraudulent if you always use Address Verification Service.

2. ASK FOR CARD SECURITY CODE

   Also called CVV, this is basically the first three digit security codes found on most credit cards. Only legitimate credit cards have security codes; fake ones don’t. You lessen the chances of a chargebacks if you always ask for the CVV.

3. GET DELIVERY SIGNATURES

   Instruct your courier to get delivery signatures from customers. The shipping company should not deliver the product to a particular address if the customer will not sign the delivery receipt.

   Even with these stringent security measures in place, there are still dishonest customers who will file chargebacks against you.

   Here’s some proven strategy to deal with them:

 

A.) FOR THOSE WHO CLAIM THAT THEY DID NOT RECEIVE THE ITEMS THEY ORDER

This is very easy. Just furnish a copy of delivery signature, date of delivery, positive AVS identification, and receipts of the transaction. With all these proofs, the ruling will be guaranteed in your favor.

 

B.) FOR THOSE WHO CLAIM THAT THE GOODS ARRIVED IN POOR CONDITION

Furnish copies of the usual transaction-related receipts. Also furnish a copy of your return policy or refund where it clearly states that customers will get their refund on condition that they return the product in within a designated period upon receipt of delivery. Some customers claim that the goods arrive in bad condition yet they continue to keep the product. You should never tolerate this type of flagrant dishonesty. If they fail to return the product , then it implies they are happy with it.

 

1. FOR THOSE PERSISTENT FRAUDULENT CHARGEBACKS

   There are occasions when a dishonest costumer keeps the item and still initiates a chargebacks. You show valid proof of transactions but the bank rules against your favor. You feel disappointed but don’t give up. You can still recoup your losses and get your money back.

   Here’s how:

   a. Send a demand letter with an accompanying receipt directly to the customer.

   b.Your demand letter should state that the customer had fraudulently initiated a costly chargeback which result to losses in your part. In addition, notify the customer that they have 30 days to pay you the full amount. After that, include a clause which states that you will place their delinquent accounts to collection agency which, in turn, will report to credit rating bureaus. The delinquent account will give these fraudulent customers a dismal credit rating. A negative credit rating will adversely affect the customers’ credit card financial transactions in the future.

   c. Most customers will immediately send you a full payment by check.

   d. In rare instance that a fraudulent customer still refuse to pay, just relax and bid your time. Sooner or later, that customer will be compelled to settle his account with you.

    A word of caution, though. Be sure you determine fraudulent chargebacks against honest ones. If you discover the error to be on your part, then go out of your way and do your best to appease the affected customer. Give him additional freebies, if need be. Treat her to a spa, to free dinner, or her family to a theme park vacation.

    In this age of cut-throat competition, this is the only way to earn the patronage and respect from your customers.

   ( 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. She serves as business consultant for several legitimate credit card processing companies, including www.creditcardprocessingexperts.com.She does lectures on strategic business practices and also writes for various magazines on business matters.)

 

Ways To Avoid Fraudulent Credit Card Processing Companies

by Trisha Echols

     You have a thriving business and, in order to expand your customer base, you seriously consider credit card processing service. So you start making some searches for providers. Your friends might endorse a company or two. But remember, there are legitimate credit card processing firms out there as well as fraudulent ones. These frauds are generally considered “ scammers”.

    Basically, they fall into two categories.

    Full-time scammers refer to those credit card processing companies which maintain websites that display outrageously low rates. They demand some deposit amount upfront. Interestingly, they require only a short online subscription form to fill up. Many gullible first-time merchants fall for this kind of trap. After signing up and sending out payments, these fraudulent credit card processing company websites could no longer be accessed or completely abandoned. Their email addressess suddenly become deactivated. And if they have any Instant Messaging account, these too, are closed.

    On the other hand, part time scammers refer to those credit card processing companies that conceal some of the fees. Merchants who fall into this scam will only be surprised to see additional fees in their monthly bills. By then, it would be too late. If a merchant chooses to cancel the service, he will be charged with excessively high cancellation fees.

    You will only lose your hard-earned money with these type of scammers. Your best recourse is to avoid them.

    Here are the ways you can avoid these fraudulent credit card processing companies:

 

1. EXAMINE THEIR WEBSITE ADDRESS

   Scammers often resort to free web hosting of their sites. In this way, they could immediately close their site in a moment’s notice. If the credit card processing company’s web address is hosted on a free hosting site, then there’s a good chance that it could be a scam. Legitimate companies have their own commercial domain. Try checking with your Better Business Bureau. If you want, you can post your queries regarding a particular website or company through online forums or message boards. You could learn a lot in this way.

2. READ THE CONTRACT WELL

   Take time to examine the contract before signing up for credit card processing service. Read the fine print, especially the fees and charges. Request for a full disclosure of all attendant fees. If the sales people refuse to divulge them under the clause of “ confidentiality”, then go out and find another one. Chances, that company is trying to conceal some fees from you. On the other hand, if the company give you all the fees, don’t take it all hook, line and sinker. Double-check the data with the proper government agency. Better still, go to another credit card processing company with the so called “ list of fees” and compare the pricing hierarchy.

3. ASK FOR CLIENTS’ LIST AS REFERENCE

   Try to get a credit card processing company’s list of clients and then contact a number of them. Be very discreet about it, though. Just tell these clients that you are planning to subscribe to a credit card processing service and you would like to ask for performance feedbacks. If you receive good comments, the company is good. But if you hear only complaints from these clients, then you better be off with another one.

4. MAKE IT A POINT TO VISIT THE COMPANY’S OFFICE

   Scammers usually hold office at nondescript buildings or locations. This would make it very easy for them to abandon the office after you give them your payments. On the other hand, legitimate credit card processing companies have decent, well-equipped offices at posh locations or financial districts. But don’t jump up at any credit card processing company with a posh office. Try to ask around, though. Inquire how long the company had been in business, their staff, and their financial stability. The Better Business Bureau will be too happy to give you these needed information.

5. TRUST YOUR INSTINCT

   Consider your first impression about a prospective credit card processing company. Your gut feeling or intuition can play a major part in the decision process. If you suddenly harbor uneasy feeling about a prospective company, chances are that it is up to no good. Better do some additional research on it. Look for a company that makes you feel comfortable and satisfied.

( 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. She does lectures on strategic business practices and also writes for various magazines on business matters.Miss Echols serves as business consultant for several credit card processing companies, including www.creditcardprocessingexperts.com)

Credit Card Processing: Should You Buy or Rent Credit Card Equipment?

by Trisha Echols

You decide to get a credit card processing for your business. For days, you compare different credit card processing companies and finally selected the one that best fit your needs. After signing the contract, the personnel asks you, “ Will you be buying or leasing credit card equipment?”

Before you could answer, he goes on with his sales pitch, “ Leasing costs a minimal amount of only $25 a month. If you buy , it could cost you an outright purchase price of $700. I suggest you just rent to reduce financial burden. “

With this sweet talk, most merchants would then opt to for a lease agreement of credit card equipment. After all, the figure sounds so easy and affordable. But is it, really?

Let’s examine the facts:

First, credit card equipment does not cost $700. That price quote is simply absurd. Conduct a bit of research among top credit card equipment dealers. Call them by phone and inquire. It’s price ranges only from $180 – $350. With a little mental calculation, a lease contract of $25 for an average of three years would cost roughly $1100. That’s thrice the amount if you buy the equipment! And the sad part is, you do not own the equipment after your credit processing contract expires. You still have to return back the equipment to the company.

Then here’s the additional double whammy: the credit card processing company will continue charging you for the equipment lease in the event that your business dips down to bankruptcy. In most instances, you continue paying rent for the equipment you no longer use long after the contract expires.

To sweeten the bitter pill, sales people will tell you that leasing is tax deductible. True. But so does any business equipment purchase. Bottom line, you lose a lot with a lease contract.

Now what if you decide to purchase the credit card equipment? It’s a good decision, mind you. You spare yourself from a lot of worries and headaches. While it could cost you some hard-earned bucks, you get to own the equipment. In other words, it’s yours to keep.

 

Here’s the pros and cons of renting the credit card processing equipment.

PROS

1. You pay a only a nominal monthly fee of $25. This works fine for the cash-strapped merchants.

2. You enjoy a free, 24/7 maintenance service.

3. When one equipment breaks down, your processor will immediately replace it with a functional unit.

   CONS

4. The total accumulated rent cost would be several times over than its purchase price.

5. After paying the rent for months, you do not get to own it. You have to return the equipment after your credit card processing service expires.

6. You can not just cancel the rent anytime if you decide to buy your own equipment. You are bound to pay for the rent through the duration of the contract regardless of whether you use the equipment or not.

Benefits of purchasing the equipment:

1. You get to own the unit. It’s yours to keep.

2. You make significant savings in the long run.

3. You are free to switch to other credit card processing company any time without hassle.

4. No monthly fees to worry.

5. You get to choose the best credit card equipment for your business.

Anyway you look at it, you gain a lot when you buy credit card processing equipment.

 

 

( 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. She also serves as business consultant for several high-performance companies, including www.creditcardprocessingexperts.com. She does lectures on strategic business practices and also writes for various magazines on business matters).

6 Merchants’ Magic Formula for Successful Credit Card Processing

by Trisha Echols

         Congratulations ! So you finally get credit card processing service for your business. You can now accept credit card payments from customers and boost your business. But having credit card processing service is just the first step. You still have to implement yourself the needed strategies to achieve your goal. Below are some proven merchants’ formula for successful credit card processing:

1. CAREFULLY EXAMINE THE CARD

   When a customer makes purchase transactions in your store using a credit card, scrutinize the card as if your life depends on it. This sounds simple, I know. But so many chargebacks and fraudulent transactions occurred because you, as the merchant, fail to examine the card. Pay particular attention to the signatures. Make sure that the signature on the receipt matches the signature displayed at the back of the credit card. Also make sure that the billing address in the card is the same as the delivery address.

2. DO NOT SHARE YOUR MERCHANT ACCOUNT WITH YOUR BEST FRIEND

   Sharing is good among friends but it has its limits. And your merchant account is among them. Do not allow your friend, your neighbor, your coach, your fitness trainer, or even your girlfriend to process their business transactions using your account. You will be held liable for such “ breach of contract” which could lead to the closure of your merchant account.

3. AVOID ENTERING ANY TRANSACTONS USING YOUR PERSONAL CREDIT CARD IN YOUR MERCHANT ACCOUNT

   So you want to give your girlfriend a complete kitchen bundle package from your home appliances business store. Well and good. But please don’t whip out your own personal credit card to pay for those purchases. You might run into trouble with your merchant bank and terminate your account. You could try paying cash for these huge purchases. Or if you really want to practice gallantry, heed out to any uptown appliance store and purchase any item that suit your girlfriend’s fancy using your credit card.

4. POST “ REFUND POLICY” SIGNS WITHIN THE PREMISES OF YOUR STORE

   Inform your customers about your refund policy every time they transact business with you. Post similar signs within the premises of your business establishment. Refund policy prevents costly chargebacks . Write them in big bold letters. This would instill trust and confidence in your customers to buy from your stores. The more trust customers have in you, the more likely they will do repeat business with you. As a result, you reap good will and more sales revenues.

5. TAKE GOOD CARE OF YOUR CUSTOMERS

   Customers are your lifeline to business success. Pamper them by dealing only with quality goods. Attend to their issues and concerns promptly. Be honest in your dealings with them. Make them feel special. They would become your lifetime customers plus the fact that they will advertise your store and product by word of mouth. You get additional customers in the long run.

6. ADHERE TO SOUND FISCAL MANAGEMENT]

   Simply put, you should spend less than you earn. Strive to trim down your business expenses without cutting corners. Spend money wisely. Don’t go into a shopping spree with your business revenues. If you can afford it, hire an accountant to balance the books, so to speak, for you.

 

 

        Only by following these strategies can you be able to achieve successful credit card processing success.

( 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. She serves as consultant for various top-notch businesses, including www.creditcardprocessingexperts.com. She does lectures on strategic business practices and also writes for various magazines on business matters.)

 

9 Merchants’ Credit Card Processing DO’s and DONT’s

by Trisha Echols

 

           Merchants carefully scrutinize credit card processing companies before signing up the contract. They check the card processing companies’ reputation, as well as their history records. Merchants do this to make sure that they deal only with legitimate credit companies. When satisfied, they sign the contract.

          However, there are still some important things to do before and after you ink the deal with your chosen credit card processing provider. Here are some do’s and don’ts to consider :

 

 

1. DO SEARCH FOR HIDDEN FEES

   You could be looking for the proverbial needle in the haystack but with some credit card processing companies, it’s there. Look out for telltale signs like free start-up, free activation, or free equipment upon signing up. These firms surely make money from other charges. Be alert and do some comparison.

2. DON’T BE FOOLED BY THE WORD “ FREE”

   Yes, the word is very tempting. In fact, it’s almost a haven for cash-strapped merchants. But don’t be fooled by such deceptive advertising. You are going to pay for the so-called “ free service” or “ free hardware”, etc..sometime, in some way or another. Consult other credit card processing companies before anything else.

3. DO NEGOTIATE YOUR PACKAGE PLAN

   If a company offers 2.5% as their transaction fee, haggle for 1.5% or 1.8%. Most companies would gladly accommodate such requests. Don’t accept the company-dictated pricing hook, line, and sinker. The amount may be negligible at the moment but when you are processing transactions by the thousands, the figure could add up and take significant amount from your profits. Always negotiate for a better deal.

4. DON’T LEASE EQUIPMENT

   If you don’t have enough capital outlay to purchase these card terminals or equipment, then by all mean, borrow money from friends. As much as possible, don’t lease equipment. Ever. You see, you will lose a lot if you rent equipment. Let ’s take a moment to consider an illustration. If you rent equipment, you will be paying thrice the purchase amount of the hardware in three years’ time. And the sad truth is that the credit card company still owns the equipment after all these years.

5. DO REVIEW YOUR MONTHLY STATEMENT

   Ron Higgins, a tire dealer, finally got the time to examine his credit card processing company monthly billing statement. The contract stipulated that the company charge 1.6% transaction fee. But after meticulously going over the record and checking the figures using a handy calculator, Ron Higgins found out that the company was charging him a whooping 2.4% ! He terminated the service and settled for another company that offered him a much more competitive pricing. He saved a significant amount of revenues this way.

6. DON’T LET YOUR CREDIT CARD PROCESSING EQUIPMENT BE PROGRAMMED SOLELY FOR YOUR CREDIT CARD COMPANY

   Yes. You hear it quite right. Don’t let your processing company program your purchased equipments for their exclusive use. It will prevent you from migrating your credit card processing service to other companies which might offer you a better deal. If you change provider, it will mean buying another set of equipment.

7. DO COMPLETE BATCHING TRANSACTIONS AT THE END OF THE DAY

   If you are busy, set the machine to do automatic batching within 24 hours. If you don’t, you will incur additional charges for late fees. And the longer it will take you to complete it, the higher will be your penalties.

8. DON’T GRANT SEVERAL EMPLOYEES ACCESS TO YOUR SERVER

   Anyone of them could turn against you and secretly steal your customers’ confidential credit card records. If possible, don’t let any employees have access to your computer servers. Guard the records yourself. If this is not possible, then carefully hand-pick a trusted worker to do this sensitive job.

9. DO EXAMINE THE CARDS CAREFULLY BEFORE PROCESSING THE TRANSACTION

   Particularly scrutinize the signature on the card if it matches the signature on the receipt. If in doubt, question the card holder discreetly for verification purposes. Be alert for credit card fraud.

 

 

         ( 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. She serves as business consultant for various 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 Easy Ways To Reduce Chargebacks

by Trisha Echols

    If your business accept payments through credit cards, chances are you will soon experience chargebacks.

When a customer disputes a charge on his credit card for any reason whatsoever, the amount is then “charge back” to the merchants, thus the term chargebacks. As merchants with credit card processing service know, chargebacks are costly. It can potentially harm your business. Getting more chargebacks than you can handle will result with stiff penalty fees and may constrain your bank to close your merchant account. Taking positive steps to deal with chargebacks will definitely boost your business.

Here are some tips to reduce chargebacks:

1. SELL TOP-NOTCH, QUALITY PRODUCTS

   Implement a thorough product screening and select only the products that meet the highest criteria. In the same token, avoid any poor or substandard product quality.

2. BE WARY WITH SUSPICIOUS-LOOKING CUSTOMERS

   If a customer comes to your store, casts furtive glances around, make large purchase in a hurry using a credit card and avoid your gaze, chances are that this particular customer is using a stolen credit card. Make further but discreet inquiries with him. If you feel he’s a bogus, turn down his credit card purchases.

3. FOLLOW-UP ON DELIVERIES

   Make special arrangement with your courier to brief you on product deliveries. This way, you can track down the status of the product en route to delivery. At the same time, you know what products were delivered and to whom. In addition, instruct your couriers to have customers sign for delivery receipts. You can then keep these delivery receipts as proofs against fraudulent claims of non-delivery.

4. INFORM CUSTOMERS IN ADVANCE IF YOU USE THIRD PARTY CREDIT CARD PROCESSING ACCOUNT

   If you use a third party credit card processor, like Clickbank for example, your customers will see the name Clickbank in their credit card billing statement and not your business name. Inform your customers in advance about this so they will not be surprised to see certain charges billed to them by a company that they had never transacted business. Otherwise, they would dispute the charges and you could end up with chargebacks.

5. PROVIDE CUSTOMERS WITH YOUR CALLING CARDS

   Your calling card should contain telephone numbers or email address which customers can use to contact you in case of any problem with their purchased product. Make sure you tell them that. And see to it that customers can immediately contact you– not your accountant, not your store clerk but you in case they have any complaint regarding their purchased product. In this way, you can promptly deal with it before customers will initiate chargebacks.

6. OFFER FREE AFTER-SALES SERVICE

   One enterprising businessman with credit card processing service in his establishment adopts this strategy: he hires two personnel to call on a regular basis those customers who bought appliances from his store and check the status of purchased items. If the appliance breaks down after expiration of warranty, this businessman dispatches repair men to make minor repairs for free. As a result, his customers are satisfied with him and usually do repeat business.

   His business chargeback records? Zero.

   ( 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, including www.creditcardprocessingexperts.com. Most of her clients are based in England and in the United States. She does lectures on strategic business practices and also writes for various magazines on business matters.)

5 Proven Strategies to Get The Best Credit Card Processing Deal

by Trisha Echols

 

You want to setup an online store. You have already chosen the kinds of products to sell , and procured a steady stream of suppliers. Your website will be uploaded on the Net in a few days. In order for your e-commerce store to accept credit card payments , you should get an online credit card processing service. This service will allow your site visitors to make online purchase transactions using their credit cards. In addition, credit card processing will protect your e-commerce store from fraudulent transactions.

And how do you get this service? You guess it. You get it from credit card processing companies.

There are many establishments that offer this particular service. Some give you a good package deal. Others are only out for your money and usually offers poor service. If you are a newbie, chances are that you could fall victim to unscrupulous credit card processing operators.

Here are some proven strategies to the best online credit card processing deal:

 

1. DEAL ONLY WITH A DULY LICENSED COMPANY

   Be wary with fly-by-night operators. They charge exorbitant fees and then disappear. Check with the Better Business Bureau to find out which companies are duly licensed and which are not. To be safe, deal only with a properly registered company.

2. TAKE TIME TO SHOP AROUND AND COMPARE

   Learn as much as you can from these credit card processing companies and compare them against each other with regards to service and cost. If you take your time in comparison shop, there’s a good chance you could settle with a competitive company fits your needs.

3. NEGOTIATE DIRECTLY WITH THE COMPANY’S PERSONNEL

   Do away with brokers, fixers or any individuals that serve as go-between.. These brokers will add up their commissions on your total package cost and you could end up paying a much higher fee.

4. NEGOTIATE FOR LOWER FEES

   These are the most important fees you have to pay:

   a. Setup Fee— some companies offer setup for free. Others will charge you up front. If you have done your comparison shopping, you should know by now which companies charge lower setup fees.

   b. Monthly gateway fee– this cost ranges from $15 to $50 per month. Do your best to haggle for a lower gateway fee. Well-established credit card processing companies will surely trim off their charges to a certain degree to get your patronage.

   c. Monthly statement Fee– some companies charge $10 for this service. Others will waive them off for free.

   d. Per transaction fee—there are companies that charge $0.20 to as high as $0.60 as per transaction fee. If you negotiate well, you might just get a competitive rate.

5. STRIVE FOR EXCELLENT CUSTOMER SERVICE

   Too often, this means integrity. If your online store promises to deliver the purchased goods three days after the transaction, then by all means keep your promise. The goods should arrive at the customer’s doorsteps at the expected delivery date. Moreover, make sure the goods arrive in good condition. If not, the customer can dispute it and file a claim that the items did not arrive or that if it did, it arrived in bad state. Under these condition, you will incur chargebacks. The more chargebacks you get, the stiffer will be your penalty. These are unnecessary costs you can avoid by practicing the highest form of integrity and striving for excellent service with your customers.

 

(Trisha Echols currently is a long-time financial consultant of credit card processing companies like www.creditcardprocessingexperts.com. She has 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. She does lectures on strategic business practices and also writes for various magazines on business matters.)