Merchant Account Blog & Credit Card Processing Blog

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Amazon.com Blows Away Wall Street - Shares Soar !!!

Ecommerce Giant Amazon.com Inc (AMZN), blew away Wall Street this morning with an “Monster” 4th Quarter Report. Company reported higher than expected numbers before the bell this morning. Shares soaring with share prices running up +17 % at the market open.

Company reported a 4th Quarter increase in revenew of +18 %. Company saw an assume increase in international sales, which finished the quarter with an astonishing 31% rise in international orders, putting them over-the-top for the quarter.

Company guidance was very strong going forward in 2009 and they were very optimistic for the current first quarter of 2009.

Good News For Ecommerce Merchants

News presents a large confidence boost for merchants selling products online. In this current economic downturn, many online sellers are very concerned about the future and this is “Great News” as we go forward into the spring of 2009. Ecommerce merchant account and credit card processing customers should take a deep breathe, savor this news, and hope that consumer confidence has bottomed and we’re on the road to recovery in the United States.

We remain optimistic !!!

MARK SANDS
1st National Processing
http://www.usa-merchantaccount.com
1-866 828-8683

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Credit Ratings & Merchant Account Approval

People sometimes do not understand why their credit rating is a factor that underwriters look at when approving a new merchant account application. Many times credit card processors will “Decline” a merchant soley based on their credit score.

Why The Credit Factor Is Important

Business owners must realize that appling for a merchant account, is like appling for a credit line. The projected “Monthly Volume” stated on a new merchant account application, is the amount of “Risk” the merchant’s processor is willing to accept. If you are asking for $20,000 in Monthly Volume and your credit scores are “Very Poor”, you may be declined an approval on your merchant account.

Understanding The Risk - In Credit Card Processing

Understanding the “Risk” in credit card processing should be understood by every new merchant. Accepting credit cards is not like accepting cash, as every cardholder has the right to call their credit card company and potentially get a charge “Reversed” in a “Chargeback”.

The risk for the bank is that the merchant may not have those “Reversed Funds” immediately available to complete the chargeback process. In this case, the merchant bank must cover the chargeback and then come after the merchant for the “Money Owed”.

This is why the financial responsibility is so important !!!!!!!

In closing every merchant application is on a case-by-case basis, with many other factors that are considered. If you have “Poor Credit” and need help in getting a merchant account, please give me a call to discuss your options.

MARK SANDS
1st National Processing
http://www.usa-merchantaccount.com
1-866 828-8683

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American Express Confirms Trend In Spending

American Express reported their Q4 Earnings last Monday, confirming downward trend in consumer spending and decrease in credit card spending, repoted last week in the blog. Amex reported that their overall cardholder spending declined 10%, year over year. The 4th Quater was the worst with a 15% decline in average cardholder spending, in the last quarter of their fiscal year.

STABLE MERCHANT ACCOUNT RATES:

Company reports that merchant account rates for American Express remain stable, with the average merchant paying 2.53% in discount rates. Company did not mention any plans to increase the discount rates paid by business owners, who accept American Express.

American Express stock ( AXP ), was up sharply the past 2 days, approx 14% since the news.

MARK SANDS
1st National Processing
http://www.usa-merchantaccount.com
1-866 828-8683

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Heartland Payment Systems Inc Data Breach

More information has surfaced on the cardholder data breach that occurred at the Princeton NJ’s credit card processor, “Heartland Payments Systems, Inc”. President and Chief Financial Officer, Robert Baldwin, stated “As deeply regretful as we are, it is important to note that in most of the cases the information would be card number and expiration date only,” and that “The majority of the data breached did not have names or other personally identifiable information available to the bad guys. So there’s nothing our merchants need to worry about.”

Seems that only customer card numbers and expiration dates were compromised and that no personal information, such as names, addresses, social security numbers, were compromised in the theft. Still no information on any damages to cardholders have been released.

Merchant’s processing with Heartland Payment Systems, Inc will be held harmless, as the breach took place on the server-side of the card processor. Small business owners with a merchant account should be sure that they are PCI Compliant to avoid any credit card processing fines from Visa or Mastercard. Here is A GOOD VIDEO to help small merchants understand their risk and responsibilities in combating credit card fraud.

Company Cites Cyber Terorrism Attack

Baldwin said Heartland executives have been in discussion with the U.S. Department of Justice and the U.S. Secret Service and were informed that this breach was committed by an international organization that has also targeted other U.S. processors and financial institutions.

“I am finding it hard to believe that we are not responding to an obvious act of cyber terrorism aimed at trying to disrupt the payment system of the United States, and it just blows me away that nobody sees it,” Martaus said. “All of these intrusions are the work of one Russian Mafia gang. And 15 other processors apparently have been attacked and no one knows about it.”

Martaus suggested, however, that federal officials do know about these attacks but they’re not telling anybody. “This should be a national emergency, and the Pentagon, the National Security Agency, everybody should be involved in this,” he said. “This could absolutely destabilize the payments industry and bring it to its knees. A cyber terrorist attack, while not meant to destabilize the government or the economy, can do just that.”

MARK SANDS
1st National Processing
http://www.usa-merchantaccount.com
1-866 828-8683

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US Banks Report Lower Credit Card Spending

The large US Banks reported lower credit card spending in Q4-2008. According to CNN Money, the large issuing banks report consumer credit card spending was down in the 4th Quarter of 2008.

• Bank Of America: Down 17.2 % in Q4, over the same quarter.
• Citi Bank: Down 15 % year-over-year.
• JP Morgan Chase: 8 % decrease, year-over-year.

In the face of the worst economic cycle in decades, the consumer is pulling in the reins on credit card spending. With consumer confidence at the lowest levels since the “Great Depression” and the uncertainty on weather the new administration can actually put us on a path to recovery, the US Consumer is sitting on the sideline, waiting for the “Miracle Of Change”, promised last fall.

MARK SANDS
1st National Processing
http://www.usa-merchantaccount.com
1-866 828-8683

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Positive 4th Quarter 2008 Results !!!!

PayPal announced positive results for the company’s 4th Quarter in 2008.  Company posted $623 million in top-line revenue, an increase of 11% year over year. Company also reported stronger transaction volume for the quarter was $15.99 billion, an increase of 14% year over year.

This is a positive for online merchants, selling products over the Internet. Ecommerce continued to look strong  over the 2008 Holiday Buying Season. We hope this trend continues, as gas prices are down over 50% from their highs. We remain optimistic for a sooner that expected recovery in the economy, but we also fear the worst is not over yet, time will tell.

Stay tuned.

MARK SANDS
1st National Processing
http://www.usa-merchantaccount.com
1-866 828-8683

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H.R. 5244 Credit Cardholders Bill Of Rights

Consumer protection legislation sponsored by Rep. Carolyn Maloney (D-NY) that would limit interest rate hikes and hidden fees on credit card accounts. This bill passes the US House of Representatives and is awaiting a vote in the US Senate. President Barack Hussein Obama stated during the campaign that would sign the legislation into law, should the bill get through the Senate.

In the face of the “Credit Crisis”, new regulation on the card issuing banks is probably unwise and unlikely. Consumer protection laws governing banks at this point in time could potentially stifle credit card lending even further, causing a deeper spiral in the recession.

Even stark opponents of the credit card industry, like US Senator Chris Dodd ( D-CT ) are unlikely to try and move this legislation to the Senate Floor anytime soon.

MARK SANDS
1st National Processing
http://www.usa-merchantaccount.com
1-866 828-8683

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Potential Largest Breach In History

Heartland announced this week that the company breached possibly over 600 Million credit card transactions, since May, 2008, as reported in the Ny Times. Seems hacker’s secretly installed a software program that captured the personal credit card numbers, of customers swiping their credit cards at merchant locations who process credit cards with Heartland.

Information seems limited and it’s not clear, as to the extent of damages.

Heartland Payment Systems, Princeton, N.J., works with about 175,000 small merchant accounts and processes about 100 million credit card processing transactions a month.

MARK SANDS
1st National Processing
http://www.usa-merchantaccount.com
1-866 828-8683

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Understanding The High Risk Merchant Account

Certain types of businesses are deemed “High Risk” by the card associations. These business types are for one reason or another, deemed undesirable and are very hard to get approved, if not impossible is some cases. The major reason’s are usually the particular industry has a High Track Record of Chargebacks or the Legality or Morality of That Industry, may be in question.

In any case, a high risk merchant account should be explored, if you’ve been Turned Down as a high risk merchant. Many times, just becuase one credit card processor has told you that you are “High Risk”, doesn’t mean that another credit card processor would not Assume That Risk. Another source may be an off-shore solution or third-party solution. 

Merchant should consult someone who specializes in these types of accounts, before taking a “Shot Gun” approach and applying with several credit card processors. These failed attempts can be seen by the next company and are have a “Negative Impact” on getting you approved.

We May Be Able To Place: 

• Adult Sites & Products
• Auto Rental
• Bail Bonds
• Buying Clubs
• Casinos/Gaming/Sportsbook/Lotteries
• Cellular Contracts
• Check Cashing Services
• Coin Shops
• Collection Agencies
• Computer Sales “Online”
• Contractors “High Ticket”
• Detective Agencies
• Door-To-Door Sales
• Downloads Of Software
• Escort Services & Massage Parlor
• Fireworks
• Gun Shops
• Hair Restoration
• High Ticket / High Volume
• Horoscope / Fortune Tellers
• Infomercials
• Insurance Products
• Investment Opportunities
• Jewelry “High Ticket”
• Kiosk / Flea Market
• Mortgage Services
• Multi-Level Marketing MLM
• Outbound Telemarketing
• Online Pharmacy
• Pawn Shops
• Seminars
• Ticket Sales
• Time Share Sales
• Travel Industry
• Used Cars
• Water Purifiers
• Weight Loss Products

We look at each business type on a case by case basis, taking into account many different variables. Once we have found an outsourced solution, we will gather all your paperwork for underwriting and submit it for approval.

Some Potenial Requirements For Approval:

• High Risk App Fee $295 - $795  ( After Approval )
• Rates From 2.35% - 5.99%
• Possible Rolling Reserve Account
• Financial Statements May Be Required
• Supporting Statements From Principals
• Business License & Articles of Incorporation
• Marketing Material…ie Price List, Brochure, Website, Script, ect
• Site Inspection May Be Required

Feel free to call me if you need help in getting a high risk merchant account placed.

MARK SANDS
1st National Processing
http://www.usa-merchantaccount.com
1-866 828-8683

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Consumer Credit Line Cutting Has Begun !!!!!!

Starting last December, credit card companies have begun to cut credit card limits on consumer credit cards. The cut backs seem to be across the board for all consumers, as even cardholders with +700 credit ratings are feeling the pinch. In an effort to reduce their risk, credit card companies will put a strange on the average business owner, by not only cutting their credit lines, but reduce the buying power of consumers and other business owners, as well.

These actions are sure to increase the pain of the current recession, by snowballing the slowing spending on both the consumer side and the business investment side. As spending slow’s, more jobs will be cut, more mortgages in default, and more folks seeking the social safety nets of welfare.

We firmly believe that things will get worse, before they get better.

Today, we had a new President sworn in, as the 44th President of the United States. We’ve handed the reins to a social idealist, with many Anti-Capitalistic Idea’s in his heart.

Not sure if this is a time for social change, when financial growth is the crisis that will destroy the well-being of every American.

SOCIAL CHANGE ??????  FINANCIAL CRISIS ??????

God Bless America !!!!!!       DIGG THIS NOW !!!!!!

MARK SANDS
1st National Processing
http://www.usa-merchantaccount.com
1-866 828-8683

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