On Jan 17th, 2008 a sting operation in Vancouver, BC thwarted a ring of credit card counterfeiters living the life of luxury entirely funded with other people’s credit. The goods hauled away by police filled several 3 ton moving trucks and values were estimated between $70 000 and $100 000 dollars. The perpetrators had used stolen and manufactured identities to finance everything from high end cameras, televisions, and jewelery to automobiles and a multi-million dollar home. Accounts seized were valued at over $10 million dollars.

Credit card fraud is a multi-billion dollar crime in North America. It is becoming an increasingly popular form of identity theft because of advances in printing technologies and it can be done anonymously with little or no risk of prosecution even if it is discovered. Often card numbers are used to make purchases over the phone or internet, but sometimes advanced schemers may create an actual copy of your credit card complete with magnetic stripe, signature, and security features.

Scam artists have dozens of ways of gathering your information. It may be as simple as convincing an employee at a restaurant, or gas station to copy down credit card numbers throughout the day, or as advanced as planting a bug on point of sale equipment, or even unplugging and replacing a card reader right off the checkout table in a retail outlet. Skimming is the most common and fastest way schemers collect credit card data. The individual carries a small box the size of a pager or cell phone. In the past you had to make a skimmer yourself, however now they can be purchased various places online. By swiping your card the device pulls all data required for counterfeiting right off the card, which can be later downloaded to a computer. Often the data is sent overseas to factories that produce high quality fraudulent cards by the thousands. Cards are then sent out to crime rings throughout the world.

Some of the standard security features found on most types of cards include embossing, micro printing, and printing only visible under black light or ultraviolet light. As technology improves, so does the need for increased security features. Some cards now contain a microchip inside of them which is almost impossible to replicate. Countries that have implemented this system have seen a reduction of this type of credit card fraud reduced by as much as 80%. Some countries also require a PIN number be entered at the time of credit card processing as well. It is the responsibility of store managers to implement procedures to protect customer’s information.

Credit card providers, such as Visa and MasterCard have security procedures and protocols businesses must abide by in order to safeguard both the merchant account and the individual. If you do notice someone has skimmed your card during a transaction call the provider and put a hold on the account. Make a mental note of the individual’s physical description, such as height, weight, hair or eye color, skin tone, and what clothing they are wearing. Immediately report the suspicious individual to law enforcement.

For more information on echeck processing, high risk merchant accounts and online credit card processing. please visit www.stradafee.com!

Having trouble managing the plethora of financial accounts you’ve acquired over the years? Tired of sorting through check books and online accounts to figure out which bills you’ve paid and which ones are about to be late? These days it is not uncommon for individuals to be faced with 20 to 30, or even more separate accounts to keep track of. Even with online access to all your bank accounts, credit cards, investment accounts, cell phone, cable, utility bills, mortgage, and auto loans it becomes a task can eat up hours of your time. With everything spread out it can be maddening to wrap your brain around your financial position. Unless you are Warren Buffet, this is where online aggregator accounts can save you the aggravation.

Account aggregation is an accounting method of showing many different types of accounts in one place. Logging into one system can give you a bird’s eye view of your financial situation. These systems utilize “screen scraping” to compile data from each of your accounts and will display them on one page for you to review.

Various types of account aggregation solutions are available. With client based systems you download an application that runs from your computer. This type is more secure because all the financial data is stored on your computer. Server based systems store the data on web servers. While less secure you can access the data from anywhere in the world. Some companies offer a hybrid solution. Mobile systems download the data to a portable USB drive you can plug into a computer anywhere you go. Just don’t lose it!

Some people are concerned about possible security risks of these systems, however it may not be as great as one might suspect. Most financial institutions have rigid procedures in place for transferring money out of an account. In the rare circumstance someone is successful in initiating this type of transaction; in most cases it will not take place instantaneously. With regular use of your account aggregator you will most likely notice it before it is processed and be able to cancel it. The reality is that there is more risk handing your credit card to a dishonest store employee than someone accessing your aggregated accounts. The greater risk is to your privacy rather than financial damage.

While account aggregators still need to be setup and managed as well it is far less difficult than dealing with each account on its own. For small businesses that rely heavily on credit card processing there are professional services through internet merchant account providers that can custom tailor a plan that best meets your specific needs.

For more information on echeck processing, high risk merchant accounts and online credit card processing. please visit www.stradafee.com!

Selecting point of sale, or POS, equipment is a critical decision for any small business owner. This is the gateway of financial interaction between your business and its customers. POS equipment is the hardware and software that handles customer transactions and communicates them with merchant account providers if needed. Without them it is impossible to process debit and credit transactions. In today’s marketplace where fewer people than ever carry cash, it is an essential tool for any growing business. These systems include barcode scanners, pin pad entry points, signature stylus, credit card readers or swipers, keyboards, computers, printers, touch screen displays, fingerprint ID’s, and cash registers. A software component that manages user interface and hardware integration is another major factor in the equation.

Choosing specific point of sale components is not as simple as it sounds. A thorough evaluation of you business structure is essential to developing a custom tailored POS system that can carry your business forward. A wireless system is great for mobile vendors or restaurants, while emphasis on customer display may make smoother transactions in a retail outlet. Like the automobile industry, most POS equipment is sold through resellers rather than then manufacturers. Expect to pay between $2000 and $8000 for a high quality custom system fully with a service agreement. While used systems may be less expensive, you may have to install and service the system yourself. Software costs could easily overrun any savings benefits of a used system. Price should not be a major concern in your decision making process. A substandard setup means decreased efficiency, which could cost your business thousands per day in lost revenue. A malfunction at peak hours could run cashier lines out the door, some customers never to return.

POS equipment is divided into two major categories: Hospitality and Retail. Retail systems are less complex as most transactions are done instantaneously. These systems may integrate peripherals such as weigh scales and pole displays to keep the customer informed as items are scanned. Other features could include security features, such as fingerprint ID’s for cashiers. Smooth interface and speedy communication with merchant services is the goal of these systems. Management and organization is the emphasis in the Hospitality sector. In a restaurant setting these systems need to be able to relay orders to a kitchen or bar, manage open accounts as new items are ordered, and track server table responsibilities.

Spend some time analyzing service agreements. Will you receive regular software updates at no additional charges? Will you have to pay for hardware upgrades as your business grows? What is the reputation of the proposing vendor? You need to know if they are going to take care of you when you need it the most.

For more information on echeck processing, high risk merchant accounts and online credit card processing. please visit www.stradafee.com!

We’re going to get back to the definition later, but for now, let’s concentrate on how credit card processing can help you, the merchant. Most importantly, the ability to process credit cards is hopefully something you’re doing now, but maybe you’re unsure if you’re getting the best deal or have had issues with your current processor, bank or merchant service provider. Some of you don’t take credit cards at all; for whatever reasons they’re not good enough and you’re losing business every day that you do not. And finally, some of you had one, lost it or gave it up and realize that it is again necessary, but want to do it properly and through the proper channels. All of these circumstances my readers may be in can be answered easily; you should be dealing with a merchant service provider. The simple answer is that merchant service providers can tailor programs and services specifically to your credit card processing needs.

Whether you take cards in person and swipe them through a terminal or you receive card information via the internet or telephone, you’re looking at a minimum three day process to receive your money. At the end of the first day you’re going to close your batch of sales and submit them (this is done automatically). On the second day, probably before you wake up, the file you sent settles with the bank. By the end of day two, that settlement file is delivered to the bank. At the beginning if day three, your account is funded. This is a basic funding flow, if you process checks online as well that is a separate file and can take longer. As every business and industry has its own set of needs; merchant service providers are a great way of selecting extra services that can enhance your userability and ease of daily fund processing and tracking. Some of these services include ACH check processing, help obtaining a credit card terminal, online reporting tools, virtual terminal for card-not-present transactions, gateway for your internet business, fraud scrubbing for your internet transactions, third-party verification services, and multi-currency processing.

3 Different Credit Card Pricing Methods

There are three pricing methods that you should be aware of, so you know which one may be the best fit for you.

The first is Pass Through, which gives the merchant a choice of per item, per auth, or per basis points. It also has an interchange rate plus per item, dues as well as assessment all passed through to the merchant. There is a monthly fee for this method.

The second is the Tiered method which is for both per item and standard bumps. A 2-tier (for both credit cards and check cards), it has two rates, Qual and Non-Qual; and 3-Tier (for both credit cards and check cards), has three rates, Qual, Mid-Qual, and Non-Qual.

Lastly Bill back, which gives the merchant a choice of a blended per item fee. Merchants that choose this method get a Targeted Discount Rate (2 target rates, one for credit, one for check card) and downgraded transactions are charged by bill back.

In closing, this article doesn’t even come close to actually defining credit card processing, it would be like defining business, because it changes as fast as its customers do. You, the merchant have many choices when it comes to who and how your credit card customers’ money reaches your bank account. Spend the time to contact a merchant service provider to see what services are right for you.

For more information on echeck processing, high risk merchant accounts and online credit card processing. please visit www.stradafee.com!

Even though a merchant account is considered one of the most valuable processing assets a business owner can have, many businesses spend a small amount of time actually dissecting and learning about merchant accounts. Through hidden costs and overcharging, merchant account providers can easily manipulate small business owners into processing situations that are much worse than they need to be. Merchant providers like these depend on the fact that business owners don’t want to take the time to learn about merchant accounts themselves and would rather just have it set up and be done with it. The thing is, merchant accounts not really very complicated, and within even a few hours most people will find themselves in a much better place to make a decision on the right merchant account provider.

Though merchant accounts are considered to be an insignificant part of doing business to some, they actually impact every single transaction that is made through a credit card. Even though credit card processing may seem boring or complicated, and it may seem that there are so many other things that are more important, merchant accounts are foundational components to a successful business. The only time credit card processing usually gets some attention is when it is not working properly or the charges seem to be outrageous, and by setting up the right merchant account to begin with, these problems can be vastly diminished.

The first step is to do some research and shop around. Even taking a few hours to search the web for various pricings and charges will help you make a much better decision. In the case of a new business, it is wise to spend time researching weeks prior to an actual need for credit card processing. This will prevent yourself from being rushed into a decision that you will regret. Internet merchant account research should include topics like the different types of merchant accounts, the fees associated, common problems, initial costs, and actual rates.

When it comes time to choose, be sure you pay attention to the actual transaction charge rates. It is surprising how many customers will actually sign a merchant contract without ever seeing their rates. Even if you have already discussed the rates with a sales representative, make sure they are correctly noted in the application. Also, if the rate looks a little too amazing, make sure you read the fine print. Be on the look out for other hidden fees or charges, because as most things, if it seems too good, it probably is.

The most important part of the process is to take your time. By rushing an application you only leave yourself open to make a mistake that might cost you thousands in fees and transaction percentages. This is something your business will have for a long time, and in order for things to run smoothly and at a minimal cost, a good merchant account is extremely important.

For more information on echeck processing, high risk merchant accounts and online credit card processing. please visit www.stradafee.com!

One of the few intimidating factors of online business is security. Some business owners are timid to launch into the online retail world for fear of fraud or identity theft for themselves or their customers. That is why it is important to choose an internet merchant account provider that uses SSL encryption to protect your information as well as your clients identity and payment information. With SSL encryption, you can rest assured that your business transactions are secure and protected.

Secure Sockets Layer, or SSL is basically a way to transfer data with military grade security. This extremely popular and proven method is utilized by every browser and web server, as well as virtually every transaction website of any significance. SSL is basically a form of encryption that disguises the information transferred on the Internet. Anyone can tell that a page uses SSL encryption by looking at the prefix of the url. Those web pages with encryption will usually start with the letters “https”. When information is encrypted, it is basically written in a form of code that is extremely difficult to break without the encryption key.

Web browsers, such as Internet Explorer Firefox, utilize SSL by having digital certificates that serve as their SSL identities. These certificates are used to create public encryption keys that are sent by the browser after the initial authentication of a transaction. The website’s server then decrypts the key and another set of keys is created for simultaneous negotiations that may follow. Once the keys are generated, the transmissions or transfers begin through a secure tunnel, which is also extremely secure.

This kind of protection is extremely important for any online merchandiser, service provider, or any business that deals with private information of any kind. Not only for the protection of clients, but also for building the right kind of trust for clients to feel comfortable in making online transactions. SSL should also be considered extremely valuable to those involved in industries where fraud is quite common. Industries that people are already suspicious about need to offer some sort of security guarantee in order for customers or patrons to feel comfortable doing business with them through the web.

Secure encryption like SSL adds protection for you and your customers as well as providing legitimacy and trustworthiness amongst your clientele. Take the time to make sure your merchant account provider, or payment gateway uses the proper encryption so that you are not left vulnerable to fraud or responsible for someone else who is.

For more information on echeck processing, high risk merchant accounts and online credit card processing. please visit www.stradafee.com!