Merchant Account Blog & Credit Card Processing Blog

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Facebook To Begin Testing Of Ecommerce Platform !!!

Rumors began last year about Facebook jumping into the online payment arena. With PayPal being the first kid on the block and then Google Checkout moving into the neighborhood a couple of years ago, one must ask is this market getting saturated ??? We’ll Facebook has a reported 150 Million users who login daily and are very comfortable with Facebook. Tapping into this following may be very easy for the company. They may have winner here, with the right ecommerce product.

Seems the company has oficially announced a “Beta Test” of their payment platform. According to Nick O’Neil, the company has begun accepting applications from merchants wanting to participate in the beta test. If you wish to be part of the test, you can email jmorgenstern@facebook.com for an application. Facebook should be annoucing more detail’s in the comming months.

Facebook could have the next great alternative to a traditional credit card merchant account.

Stay Tuned !!!!

DIGG THIS STORY !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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

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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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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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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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Understanding Your Merchant Account Responsibities !!!!

If you are shopping for a new merchant account, you need to understand what you are getting into. Many times business owners are in a rush to set-up credit card processing for their business, they overlook the fact that they are entering into a contract that has many responsibilities and rules to abide by.

Many times merchants will find out the hard way, by being fined or getting their merchant account shut down. In some instances, merchants are “TMF’d” which means they lose their privilege to accept credit cards in the future. It surely make more sense to understand your responsibilities and model your business to conform with the rules set-forth by Visa and Mastercard.

Accepting Credit Cards - A Privilege:

Understand that being accepted to accept credit cards is a privilege, not your right !!!! Should you take this lightly, you could find yourself losing this privilege, permanently. That’s right, permanently !!!! You could personally be banned from ever accepting credit cards, for any business endeavor in the future. 

Unhappy Customers Can Destroy You:

An unhappy customer can create havoc on your business. Credit card holder’s have the right to call their credit card company and dispute a transaction on their credit card. These disputes have the potential of becoming a “Chargeback” to your business. A chargeback is simply a reversal of the charge, from your bank account, back to the customers card. These reversals come with very stiff fines to the business owner and could get your account terminated. Here some key points to avoiding chargebacks.

• Offer A Superior Product Or Service
• Quickly Resolve Customer Service Issues
• 100% Unconditional Return Policy
• Toll Free Customer Support
• Maintain Signatures + Shipping Records

Exceeding Volume Limit’s:

Every merchant account agreement has an “Average Monthly Volume” amount for Visa & Matercard. During your approval process, this amount is underwritten by the processor and is usually based on the credit scores of the merchant. If you are approved for that amount, you must process within the limit.

Should the limit become an issue, you must call in to ask that it be re-evaluated by the underwriting department. If your credit scores are too low, you may not get an increase.

If you simply ignore this limit, at some point your account will be shut-off.

Exceeding Ticket Limit’s:

Every merchant account agreement has an “Average Ticket” amount for Visa & Mastercard. Again, during the approval process, this amount is underwritten based on your credit scores. From an underwriting stand point, the higher the ticket, the higher the risk. If your account is approved for a certain ticket amount, you must process within that limit. Occasional “High Tickets” should be disclosed on the application, prior to underwriting. Contacting your “Risk Department”, prior to running high tickets is advised.

If you simply ignore this limit, your account could be terminated.

Honor All Cards:

Every merchant account agreement has a “Honor All Cards” Claus. This means as a Visa / Mastercard Merchant, you are bound to honor every credit card transaction presented to your business. That tiny sign at your local diner that states, “$10 Credit Card Minimum” is in direct violation of the terms of the merchant account agreement.

You cannot charge a “Surcharge” on credit card transactions either, this would also be in violation of the merchant agreemnet, as well.

Reserve Account:At any time, at the sole discretion of the bank, the bank has the right to place funds on hold in a non-interest barring reserve account. Reserve account is to protect the bank from future losses due to fines, chargebacks, ect that may come through your merchant account. Hold time-frame will be determined by the bank and is usually for long enough time period to cover future customer chargebacks.

In Conclusion:

As you can see, “Your Privilege” to accept Visa & Mastercard comes with many duties and responsibilities. Failure to comply, could prove to be very costly and cause your account to get “Terminated” and potentially lose your credit card processing privilege in future business endeavours. Play it safe, understand the rules and play by them.

If you have any questions, please feel free to give me a call.

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

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Saving Money On Your Merchant Account Fee’s !!!!!!!!!!

Saving money on your merchant account & credit card processing fee’s has never been more simple. We have put together a program to save you hundreds, if not thousands of dollars in fees, depending on your current monthly volume. Perfect solution for any business owner looking to cut cost’s.

INTERCHANGE PLUS PRICING - Start Saving Today !!!!!

In the past, this program has been reserved for High Volume Chains, such as Wal-Mart or McDonalds. We have opened the flood gates for any business size to profit from the savings. For those of you who are not familiar with the term “Interchange”, interchange is the cost passed on by Visa & Mastercard which accounts for the majority of your transaction cost’s. Interchange consists of several hundred catagorys which any transaction could fall under. Here and links to the most recent Interchange Schedule’s for Visa and Mastercard, as you will see this is quite complicated.

To simplify matters, most merchant account’s are on a “Tiered System”, consisting of Qualified, Non-Qualified, and maybe Mid-Qualified rate. These tier’s cover any downgrades by Visa or Mastercard in which certain transactions may fall. This simplifies “Interchange”, but alway’s cost’s more in credit card processing fee’s to a merchant on the Tiered System.

BOTTOM LINE - SAVING MONEY LIKE THE BIG BOY’S !!!!!!

We are now offering “Interchange Plus Pricing” to merchants of any size. Previously reserved for large corporations, this pricing schedule will saving you money on your credit card processing fee’s and is available to any merchant account, regardless of size.

Call us immediately for a cost analysis and began saving like the big boy’s.

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AMAZON.COM REPORTS RECORD SALES !!!!

Ecommerce merchants should be thrilled to know that Amazon.com reported “Record Breaking Sales” this holiday season. Company reported it’s “Best Ever” holiday season and posted ground breaking gross sales for 2008.

Company’s Christmas Sales peaked on December 15th 2008 with over 6.3 Million Items sold that day. The company also broke volume records that day selling 79.9 items every second, that day.

Similar numbers are expected for for other online retailers & ecommerce merchants this holiday season.

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

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Merchant accounts processing with 1st National Processing can put there fears aside with becomming PCI Compliant with the complicated standards recently set-forth by Visa & Mastercard. We have simplified the process, making it quite simple for our merchants who process with us.

First, we have painless online survey which will walk you through each step of completing your Self Assessment Questionaire, required for PCI Compliance. Once the “SAQ” is completed, you will receive an email if you need to perform a “Quarterly PCI Scan” of your website or network. You will then receive instructions by mail for performing any required PCI Scans.

Lastly, if you are required to perform PCI Scans the cost is included in our Annual PCI Compliance Fee of only $30.00. This minimal fee is cheap when compared to other processors, who charge $79-$99 and expect you to become PCI Compliant on your own.

If you are looking for more information on PCI Compliance, here’s a great 10 Minute Video that will educate you on the subject.

1st National Processing Customers can begin the PCI Compliance Process by clicking here.

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

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Merchant Account Rates - Credit Card Processing Rates

Merchant account rates and fees can vary from processor to processor. Unerstanding rates are key to finding the best overall merchant account rate for your business. We will look at each variable when searching for the best credit card processing rates.

Swiped Credit Card Rates: Credit card transactions which are “Swiped” through a credit card machine are usually fall around 1.69% - 1.79% depending on the processor. These levels usually bundel both Signatute Debt Transactions and Credit Card Transactions branded with either Visa or Mastercard Logos.

Keyed Credit Card Rates: Transactions where the customers card is not present and the card number is “Keyed” into credit card processing software or ecommerce merchant account where the customer manually inputs credit card information, the rate usually falls around 2.39% - 2.49% keyed.

Mid Qualified Rates: These rates are assessments by Visa & Mastercard and will vary by processors. Usually this tier is for Rewards Cards, branded either Visa or Mastercard.

Non-Quailified Rates: Again, these are assessments by Visa & Mastercard and do vary bt processor. This tier is for International Cards, Business Cards, Corporate Cards, Government Cards, and any keyed transaction that is un-qualified or lacks AVS Fraud Controls. Discount rate tier regulations.

Pin-Based Debt Transactions: These retail transactions require a Pin Number Authorization and usually price at $0.35 + 0.75% of the dollar amount. A PCI-Compliant pin-pad is required and is not
available for phone-order or ecommerce transactions.

Split Signature Debt / Credit Card Rates:  These rates are split into two catagories, seperating Signature Debit and Credit Card transactions. Usually priced at 1.39% Signature Debit and 1.89% Credit Card. Be careful here, as if your business accepts mostly credit cards, you will pay more.

Transaction Fee: Transaction fee’s cover the transmission cost and usually price between $0.20 and $0.30 depending on your processor and transaction processing methood. May include end-of-day batching of the day’s transactions for payment to your account.

Statement Fee: Each month you receive a monthly merchant account statement of transactions forr the previous month and usually prices between $10-$12 per month.

Minimum Fee: This fee is charged to Low-Volume Business doing less than $25 Month in discount rates fees. Often used to off-set free equipment placements to low-volume businesses.

Annual Fee: Merchant’s are usually charged a annual fee on the aniversry of their account. Fee will vary and can usually be waived.

Chargeback Fee: Customer disputes that result in a Chargeback are charged between $25-$35 per instance. Chargeback Prevention is needed as your merchant account can be “Closed” for excessive chargebacks.

Application Fee: This fee has pretty much disappeared, industry-wide.

If you are looking to SAVE MONEY on your credit card processing, please give me a call imediately.

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

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