MERCHANT ACCOUNT ANALYSIS

THE IMPORTANCE OF MERCHANT STATEMENT ANALYSIS IN BUSINESS

noreply@blogger.com (Chris DuPont) — Tue, 24 Jan 2023 14:22:00 +0000

Businesses often rely on a variety of vendors and suppliers to provide the materials and services needed to run their operations. However, it's important to keep track of these expenses and ensure that you are being charged correctly. One way to do this is through merchant statement analysis.

Merchant statement analysis is the process of reviewing and analyzing the statements provided by your vendors and suppliers. This allows you to identify any errors or discrepancies in the charges, such as duplicate charges or incorrect pricing. By regularly having your statements reviewed, you can ensure that you are only being charged for the goods and services that you have actually received.

The best help with merchant statement analysis is from us: Merchant Statement Analysis. Its our very name! This service quickly and easily reviews and analyzes merchant credit card statements. It can save time and reduce errors, leading to more accurate and reliable financial information.

A merchant statement analysis service offers a variety of features to help businesses with merchant statement analysis. It gives users information about their customer statements and the data to identify any errors or discrepancies. Finally, our findings are quite easy to read.

One of the major advantages of using merchant statement analysis service is the ability to save time. By streamlining the statement review process, it can help businesses focus on other important tasks, such as sales and customer retention. It can also help businesses identify hidden cost savings opportunities by identifying areas where expenses can be reduced.

Another advantage of merchant statement analysis is that it can help improve the accuracy of financial information. By providing detailed information about vendor and supplier expenses, it can help ensure that all necessary expenses are accounted for. This can help reduce the chances of inaccuracies in financial reporting, which can be damaging to the reputation and financial health of your business.

So the next time you are scratching your head over a merchant processing statement, send it our way. You will love the results!

DON'T GET OVERCHARGED FOR CREDIT CARD PROCESSING FEES!

noreply@blogger.com (Chris DuPont) — Mon, 23 Jan 2023 18:47:00 +0000

Hey there! So, accepting credit cards is pretty much a necessity for any business these days, right? But, the cost of credit card processing can add up quickly. From merchant account fees to chargeback fees, it can be tough to keep track of what you're paying and why. In this article, we're going to break down the costs of credit card processing and give you some tips on how to avoid overpaying.

First, there's merchant account fees. This is the fee you pay to the company that sets up your merchant account, which is the account you use to accept credit card payments. Merchant account fees can vary widely, and they can include monthly fees, annual fees, and application fees. It's important to shop around and compare merchant account fees from different providers to make sure you're not overpaying.

Next, there's interchange fees. These are the fees that are charged by the credit card issuer, such as Visa or Mastercard, for each transaction. These fees are set by the credit card issuer and are not negotiable. They typically range from 1.5% to 3% of the total transaction amount. While you can't negotiate these fees, you can take steps to lower them, such as by encouraging customers to use debit cards, which have lower interchange rates. It is important to note that "padding" the Interchange is a common practice. It's a good idea to have an expert look at it.

Then, there's processing fees. These are the fees that are charged by the credit card processor, such as Square or PayPal. These fees can include transaction fees, statement fees, and gateway fees. They can also vary widely depending on the processor, so it's important to shop around and compare processing fees from different providers.

Finally, there's chargeback fees. A chargeback occurs when a customer disputes a charge on their credit card statement and requests a refund. Chargebacks can be costly for businesses, as they can result in not only the loss of the original transaction amount, but also additional fees from the credit card issuer. To avoid chargebacks, it's important to provide excellent customer service and to clearly communicate any policies, such as refund policies, to customers.

So, that's a quick overview of the costs of credit card processing. To sum it up, the key to avoiding overpaying is to shop around for the best merchant account and processing fees, encourage customers to use debit cards, implement a fraud prevention program, provide excellent customer service, use a payment gateway that supports multiple forms of payment, and utilize a merchant statement analysis service.

Tips for Lowering Your Credit Card Processing Costs

Shop around for the best merchant account and processing fees.
Encourage customers to use debit cards, which have lower interchange fees.
Implement a fraud prevention program to reduce chargebacks.
Provide excellent customer service to reduce the likelihood of chargebacks.
Use a payment gateway that supports multiple forms of payment, such as credit cards, debit cards, and e-checks.
Utilize a merchant statement analysis service to ensure you are getting the best deal.

WHAT WILL REDUCED VISA INTERCHANGE RATES LOOK LIKE

noreply@blogger.com (Chris DuPont) — Sun, 20 Mar 2022 21:20:00 +0000

Visa claims that many business owners will experience reduced interchange rates in April 2022. https://usa.visa.com/support/merchant/library/visa-merchant-business-news-digest.html

The claim is that more than 90% of American businesses interchange rates will be reduced by 10%. These changes will take effect April 2022. We will soon find out how this is implemented. Will other card associations follow suit? It has been since before the pandemic that MasterCard or Discover have done anything significant. As soon as we know you will know.

UPDATE May 16, 2022

Ok so the new rates are out! Visa did indeed revise rates for merchants processing less than $250k per year on Visa card volume. This reduced category is called Visa Small Merchant. However, Visa did increase their Non Qualifying consumer and business cards. Business owners will definitely want to process in a the right way to avoid getting hit with that charge on the sale!

MasterCard and Discover adjusted their rates on some categories resulting in some higher fees for certain merchants.

One big surprise is what American Express did by implementing an additional $.02 network fee for their Opt Blue program. They also increased assessments to .165%. Interesting move.

VISA TO IMPLIMENT PREVIOUSLY POSTPONED INTERCHANGE UPDATES - APRIL 2021

noreply@blogger.com (Chris DuPont) — Fri, 05 Mar 2021 11:06:00 +0000

Visa has announced they will implement previously postponed interchange rates in April 2021.

You can read the announcement here at:

U.S. Credit Interchange Update REGIONS: US 12 November 2020

https://usa.visa.com/support/merchant/library/visa-merchant-business-news-digest.html

FIND THE LATEST MERCHANT CREDIT PROCESSING INTERCHANGE RATES HERE

noreply@blogger.com (Chris DuPont) — Tue, 18 Aug 2020 11:18:00 +0000

LATEST OFFICIAL INTERCHANGE RATES

Here is where you will find the latest interchange reimbursement rates that are available to the public.

Merchant Statement Analysis is here to help you with your statement quote needs. Just click the Welcome MSA logo to the right of this page to visit our website and get more help.

WELLS FARGO PASS-THROUGH FEES

WELLS FARGO PAYMENT NETWORK QUALIFICATION MATRIX

MERCHANTS HAVE MORE CREDIT CARD PROCESSING FEES THAN EVER!

noreply@blogger.com (Chris DuPont) — Tue, 28 Mar 2017 23:44:00 +0000

In the last few years, I have personally seen merchant accounts incur more and more monthly fees that have never existed before. For example:

MONTHLY ASSOCIATION FEES (RETAIL)

$0.83 NYCE
$0.75 PULSE
$1.00 STAR
$0.75 JEANIE
$0.67 ACCEL
$1.25 MC annual
$1.25 MC location
$2.00 Visa FANF
$8.50 TOTAL

This is like an additional monthly statement fee. The PIN Debit annual fees are broken out as monthly but represent a $55 annual fee. Keep in mind this is in addition to other fees that are also going up constantly.

Discount Fees
Transaction Fees
Interchange and Association Fees
PCI Compliance
PCI Non-Compliance
Breach Protection
Monthly Statement
Online Reporting

Therefore no one should be surprised that everyone is paying more than ever to accept plastic. And dont be surprised that one rarely sees these fees listed in agreements. Maybe its in the fine print 20 pages in. My question is what has changed from a business standpoint to warrant these constant increases? Is there any added value to these fees? I don't believe so. In fact if everyone is encouraged to be compliant with EMV technology, then we should see the cost of accepting cards go down since we are told that EMV is the best level of fraud protection yet. Don't hold your breath.

Announcement! Beware of Merchant Service Interchange Fee Padding

noreply@blogger.com (Chris DuPont) — Thu, 29 Sep 2016 15:38:00 +0000

It has been observed that in recent months some merchant service providers are adding additional charges to their hard costs and passing these onto the merchant. This is known as "padding".

This is why Merchant Statement Analysis is providing a key merchant rate analysis service which reveals these practices and helps businesses save money.

Merchant Statement Analysis - The Green Sheet :: Company Profile

noreply@blogger.com (Chris DuPont) — Tue, 12 Apr 2016 04:46:00 +0000

IF YOU ARE LOOKING FOR MERCHANT STATEMENT ANALYSIS FROM THIS QUOTED ARTICLE YOU HAVE FOUND US. Visit http://www.merchant-statement-analysis.com for details.

Article originally appeared in The Green Sheet Issue 130101
Merchant Statement Analysis - The Green Sheet :: Company Profile

Better approach to statement analysis

Many ISOs spend an inordinate amount of time performing merchant statement analyses on behalf of their merchant level salespeople (MLSs). After facing this challenge firsthand, ISO sales and recruiting veteran Chris DuPont decided to build a company that would allow ISOs to outsource this function.

He founded Merchant Statement Analysis in 2009 to reduce this ongoing burden for midsize ISOs cost effectively, with accuracy and speed.

"Some ISOs have programs in place," said DuPont, who now serves as a Merchant Account Analyst for MSA. "Their relationship managers or their recruiters will do these statement proposals for their agents, but it's not a priority with some companies. It's something they get to when they have time. That's what I noticed with the ISO I worked with, and I'm sure it's a common problem."

DuPont also observed that not everyone has the requisite skill-set to become an expert on interchange fees and reading statements, nor is training an overnight process. Recent shifts in pricing models make ongoing education essential.

With the protracted learning curve involved, any turnover in relationship managers within an ISO organization can lead to delays in processing statements or increase the potential for errors, he noted.

How it works

DuPont said becoming an MSA client is a simple process that begins with an initial phone consultation to assess an ISO's specific needs. Areas addressed include types of pricing to be included in each statement analysis, number of statements to generate each month, and color schemes and logos to be integrated into the client's customized design template. Once the basic parameters and client template have been established, MSA is ready to begin processing statements.

"They start sending statements, email or fax, and I start turning them around via email," DuPont said. Creating a PDF file, MSA will either complete the statement analysis in a single interaction or revise the pricing once an ISO has reviewed it. "Maybe I send it back with an interchange 30 basis points, and they think they need 15," he said. "Or, 'Can you do it 12 cents instead of 10 cents?' So we do that, and we shoot that back real quickly."

ISOs receive several itemized breakout pages with each statement analysis, including a side-by-side comparison of fees charged by the merchant's current provider and the ISO's proposed quotes, a detailed agent profit analysis and a savings analysis.

DuPont noted that the depth of analysis provided in the profit analysis depends upon the level of data ISOs share with MSA. At minimum, the profit analysis will reflect "100 percent over cost," he said.

"If they have a BIN [bank identification number] sponsorship fee or a per item fee, the basic ones that reveal the profitability of the account, and they provide that to me, I can get real close to what they can expect to make on that account each month," DuPont stated. "As far as I know, nobody is doing that in the industry. And it's fully customizable in the sense that when they get the quote back, it represents their company. I'm behind the scenes."

That formula appears to be working well for MSA client Dustin Wilkins, a partner with MLS Direct Network of Eastern Alabama.

"The presentation end of his quotes or analyses are very professional looking and wildly accurate," Wilkins said. "He reacts quickly to pricing changes in order to maximize our profit or to reduce our profit if we feel like we need more from the merchant."

Wilkins is especially appreciative that MSA doesn't produce cookie-cutter responses. "I can call and say, 'I need you to project about twice the volume, because they're new,'" Wilkins said. "Or, 'Could you just run the analysis for me and then let me decide how much room we have in it?'"

That said, turnaround time for MSA clients is generally less than 12 hours, DuPont said. Wilkins noted that MSA's turnaround time for his business has been more expeditious than expressed.

"For example, I sent him five statements to run an analysis yesterday at 6:00 p.m. Central Time and I had them in my in-box at 11:00 p.m. Central," he said. "The average turnaround time has been about three hours."

Gaining ISO support

Another reason MSA's services appeals to ISOs involves basic math. According to DuPont, the average midsize ISO retains from five to 10 relationship managers, each producing on average five statement analyses per day, which can easily absorb up to three hours per manager per day.

"Resources are precious," DuPont said. "If they have a real small team, they can't afford to have their team shut down to do statement quotes. They need to have their team calling and getting agents calling. They can spend their time more wisely building their business and leaving these calculations up to us, the experts."

MLS Direct's Wilkins agreed, noting that, "If you're an ISO trying to grow, the absolute biggest thing you're looking for is more time to either recruit reps or go out and look for business on your own.

In my case, it is rep recruitment and rep support. Historically, I had to do the analysis, the cost comparison breakdown, on my own. I don't know what the exact percentage was, but it had to take up to 30 percent of my time, and it was constant."

Wilkins stated that as a result of the time saved using MSA's service, he has managed to more than double the number of agents selling MLS Direct's merchant services, which has translated into expansion of his merchant base. "If I'm saving 30 percent of my time, my business is growing 30 percent faster," Wilkins said. "It's almost a direct tradeoff."

In addition to freeing up time for ISOs to grow their merchant portfolios, MSA's service also permits ISOs to focus on other equally important merchant-based account activities.

"Let's say I don't want to grow my business, but I want to use that 30 percent extra time to go out and touch base with my current clients in order to slow my attrition down," Wilkins said. "It's the same thing. You're still going to make your money back."

DuPont said the ideal MSA candidate is a small team or midsize ISO that averages between 60 to 70 applications per month. "They're not going to be sending me every statement for every business they acquire," he said, noting that most ISOs this size sign up for MSA's 25 quote per month prepayment program, with the balance of statements handled either by the ISO or its MLSs.

A final, yet critical piece to the puzzle is MSA's strict adherence to confidentiality for the purpose of protecting its ISO clients. "The one thing that they'll get with our company is a nondisclosure agreement," DuPont said.

"We only use the statements for the purpose of their proposals. It goes into their folder, and that's where it stays. The ISOs that have worked with us know our integrity."

Wilkins summed up his experience working with MSA as "big company results with individual attention." For ISOs interested in reducing the in-house costs associated with merchant statement analysis functions, MSA offers three pricing tiers.

The most basic plan offers a single quote per month rate, the standard plan provides up to 25 statement analyses per month, and the top tier offers a negotiable bulk plan for larger ISO clients.

EMV (Chip and PIN) Technology and Understanding Merchant Fees

noreply@blogger.com (Chris DuPont) — Tue, 17 Nov 2015 15:33:00 +0000

I just found this article that really shows the initial impact of EMV implementation at retail stores. Business owners will be need help with how to read their merchant statement. They will no doubt be looking over it closely in the coming months to understand how these changes will affect their rates and fees.

This article also highlights that fact that ISOs and banks need to understand and explain interchange fees in a manner that the merchant can grasp as various fees are not simply matter of changing terminals or providing better card security.

Read the article here:

http://www.nytimes.com/2015/11/17/business/chip-credit-cards-give-retailers-another-grievance-against-banks.html?partner=msft_msn

Merchant Account Price Auditing Equals Merchant Retention

noreply@blogger.com (Chris DuPont) — Wed, 12 Jun 2013 18:46:00 +0000

“How do I know this is really what you’re going to charge me?” This common objection reveals an industry problem: the merchant doesn't fully trust the sales person. If questions persist, they may soon move on to another company, wooed by promises of better rates.

Enter Merchant Statement Analysis’ newest service: Merchant Auditing! The concept is simple and effective. The merchant’s current rates and fees are compared with those promised on their original application. The merchant can then see that your company is providing the rates promised, is honest, and transparent.

The benefits are well worth the low price point per merchant. Merchant retention is probably the most immediate result, as happy merchants stay put. In addition, the Auditing service can be up-sold, equaling more revenue to ISOs. This powerful sales tool is exactly what you have been looking for.

If you are looking for the next best thing contact MSA. www.merchant-statement-analysis.com

Get Merchant Account Fee and Pricing Secrets Revealed

noreply@blogger.com (Chris DuPont) — Wed, 23 Jan 2013 20:55:00 +0000

Would you like to know some of the leading merchant account fee and pricing secrets? Then get your free copy today. Visit Merchant Statement Analysis and simply use the contact form to get your copy.

Reduce Your Transaction Integrity Fees

noreply@blogger.com (Chris DuPont) — Wed, 23 Jan 2013 19:02:00 +0000

As I am working through statements from day to day, I started to notice that some restaurant locations were paying very steep discount charges. What I discovered was those same businesses were also being assessed a high number of TIFs (Transaction Integrity Fees).

Just what does this fee mean and how does can it impact your business? Starting in April 2012, Visa introduced this new $.10 for each debit card that does not qualify for the CPS (Custom Payment Service) interchange rate.

You might be wondering how a debit transaction does not qualify? After all, you are simply swiping the customers credit card, right? Well there are several possibilities.

Transactions are not settled (batched) within 2 days
AVS (Address Verification) is not requested for key-entered sales
Internet sales do not include order number of customer service number
Hotels are not providing all the requested data

Therefore, depending on your business practice, you could be assessed a TIF fee. Additionally, those sales will also downgrade to the EIRF or Standard interchange category, meaning you will be paying a higher percentage rate for those sales. What can you do to reduce your merchant account fees. It’s simple.

Make sure you batch out every day. All merchant account providers should be able to program a feature into your terminal that will auto batch each day after you close shop.
Make sure to enter AVS information accurately for each card you manually enter
If you run an online business, make sure to get the customer order or service number for each sale.
If you run a hotel, get everything required.

By following these suggestions, you can qualify more sales for the best rates and more money in your pocket.

Read the new Green Sheet review on Merchant Statement Analysis:

Merchant Statement Analysis Recognized As a Premier Credit Card Statement Service

noreply@blogger.com (Chris DuPont) — Wed, 19 Sep 2012 22:15:00 +0000

As you know Merchant Statement Analysis is always eager to expand our merchant credit card processing statement services. We are excited to inform our readers that we were mentioned today in the publication entitled Payments Source. You can read all about it here:

http://www.paymentssource.com/news/Merchants-Get-Help-Deciphering-Statements-3011908-1.html?CMP=OTC-RSS

Significant Changes In Merchant Account Fees Require Merchant Statement Quotes!

noreply@blogger.com (Chris DuPont) — Fri, 09 Mar 2012 17:06:00 +0000

It can be a daunting task to read and understand a merchant statement. Both Visa and MasterCard are coming out with some pretty significant changes this year – no doubt in response to the Durban Amendment’s impact on the industry. This will cause even more frustration on providing a merchant statement quote to your merchant customers.

I like this quote from www.paymentssource.com, “ISOs also have to perform complex analysis and decide quickly whether to mark up the fee to cover the costs it will bring, teach employees the fine points of the new approach, and possibly hire additional help-desk workers to prepare for an expected avalanche of phone calls from merchants questioning or complaining about the fee, he contends.”

Are you ready?

First let’s talk about VISA’s changes:

1. The Network Acquirer Processing Fee (APF), although still $0.0195 per authorization on credit transactions, will be reduced to $0.0155 per authorization on VISA branded debit cards.

2. VISA debit card and VISA prepaid card purchase transactions that fail or do not request CPS qualification will be charged an addition Transaction Integrity Fee of $0.10 per transaction. Debit and key entered transactions without address verification will be the most commonly hit. By the way, this is in no way related to Interchange and Assessment fees.

3. VISA will also be charging a new Fixed Acquirer Network Fee (FANF) April 1, 2012. This is no doubt the most concerning fee of the bunch. In fact, the ETA is begging VISA to postpone the fee as merchant account providers simply are not yet ready to determine how this fee will be “properly” passed on to merchants. This new fee amount will be determined by a merchant’s taxpayer ID basis (TIN). VISA will determine the rate for each taxpayer ID based on channel and MCC, with quarterly collection starting with July 2012 for the previous calendar quarter. This will be assessed on a per location rate basis for all merchants with taxpayer ID, Fast Food Restaurants being the exception. It will cost an additional $2 per location for small merchants all the way up to $65 per location for massive chain stores! To top it off, higher-volume and card-not present retailers will pay even more per location.

4. CorpCard Level 3 rates will increase 15 basis points, and Corporate Card Electronic with Data rates will go up 10 basis points.

Now for the MasterCard changes:

1. MasterCard will be competing (???) With Visa to collect both a new annual Acquirer Licensing Fee and new Type III Third Party Processor (TPP) beginning July 2012. The full 2011 year volume will be the basis for the 2012 fees. Since only half of 2012 is covered (July to December) the 2012 fees will be 50% of the total calculated fees. Are you confused yet?

2. MasterCard is also starting a new Regulated debit small ticket debit and credit Interchange programs April 2012. This change is to help MasterCard better track small ticket transaction volumes, but the same Regulated debit rates will apply.

Finally, here are Discover’s changes:

Discover is the most modest of the bunch, only increasing its assessment fee by .005% at this time.

These are just a few of the many upcoming changes this year. Make sure to keep up to date and inform your merchants that these are widespread changes. Merchant Statement Analysis can help you to decipher all of these new fees and help your business to prosper. Click the logo towards the upper right of my blog for more details.

REFERENCE
http://www.paymentssource.com/news/eta_visa_acquir_fixed_fee_postpone_cohen_moneris-3009918-1.html?CMP=OTC-RSS

How Would You Rate Your Merchant Account?

noreply@blogger.com (Chris DuPont) — Tue, 04 Jan 2011 16:26:00 +0000

How is your business doing? That is a relevant question these days. Many business owners are in a deep freeze when it comes to switching payment processors. Business is just too uncertain and it seems better to stay put where it seems safe. No doubt you wish you could find the ultimate merchant account provider, lower your rates and fees, and feel confident that you will be taken care of. Everything would be just perfect. The merchant statement would be clear and accurate, the customer service department helpful and friendly, and all questions and concerns would be answered promptly. Many people have yet to see that. What can you do in the meantime? Study up to make the best decision for the future.

I now have an ebook that will take the edge off and help you to find what you are looking for. Simply visit the link and send us an email to get your free copy today. GET EBOOK: Merchant Account Secrets Revealed

What is the Best Merchant Account?

noreply@blogger.com (Chris DuPont) — Fri, 30 Oct 2009 23:39:00 +0000

This question has puzzled many for a long time. In view of the last few years and the struggling economy, I believe this question is more relevant than ever. This year has had record bank failures! And this news is not good for our industry. There is increased pressure on merchant service organizations and their agents to perform well and take care of their merchant's like never before. So when selecting a merchant account provider, what should you look for?

You will likely agree that honesty and forthrightness is at the top. Is the company you are considering willing to disclose all fees including PCI compliance fees, cancellation fees, downgrade fees, and the more recent NABU and APF fees and so forth? Does the company you choose keep informed as well as keep merchants well informed of rate increases or entirely new fee structures? This is important since most businesses owners only think of their discount rate. With each passing year, I have seen more fees added to the merchant statement that must leave many dumbfounded. After all, you were told you would get the lowest rates, best service, etc. The next thing you know, Visa and MasterCard have added new fees that must be passed on to you. And this keeps happening! This again emphazises my point: the company you choose must keep up-to-date and inform you of these fee increases well ahead of time.

Unfortunately, many sales agents are not aware of these increases right away themselves. Are you shocked by this? You shouldn't be. They haven't been pressured to do so since most business owners only care about the discount rate. If I as an agent starts talking to you about PCI, NABU, what your Non-qualified surcharge is, would you give me the time of day? Perhaps not. After all, you are very busy. Many will just stick to finding out what their discount rate is. Therefore, merchant account providers continue to advertise a very low rate to catch the business owner’s attention.

Are you aware that if you sign up for the company with the lowest rate, that you may actually pay higher fees than the competition? This is due to the fact that the account providers can set the majority of your transactions to downgrade and they will not qualify for your lowest rate. So be careful. Get the facts first. Have someone do a statement analysis for you and show you where your money is really going. Next, find a company and an agent that is honest and forthright and knows what they are talking about. Furthermore, they will keep up to date with the latest trends and fee increases before you get charged. If you do this, you can be sure that you have the best merchant account.

What is the Best ISO & Agent Program?

noreply@blogger.com (Chris DuPont) — Fri, 30 Oct 2009 23:38:00 +0000

Amazing Upfront Bonuses! Awesome Residuals for Life! Free Leads! No doubt you have seen these ads all over! Just look at The Green Sheet forum and you will see these ads for sure. Yes we've heard it all before. So what is the best agent ISO program these days?

Well as far as bonuses and residuals are concerned, it really is about the money. You don't want to work for free do you? And the feeling of making a sale and knowing you will get paid the next day, week, or two weeks makes you feel good. When your residuals climb higher and higher, you feel great!

Now let me ask you this: "How do you feel when you talk to the ISO or processor you work with?' Do you feel that you are getting the support you need? Do you get help with pricing quotes, equipment, your merchant's risk issues, continued training. Does your merchant account provider honor the rates and service fees you write on the application; or do they eventually try to bleed your merchant little by little? Do they make mistakes that affect your merchant deeply?

I know, I know. The money is great! I can't argue that. Roll around in it. But would you feel great if you made all the money in the world but had a nagging feeling that your customers were just not that happy with the service they were getting? Of course not. you would do something about it.

So here is what I recommend:

Start asking the right questions. Get everything the processor or ISO tells you in writing. This is so important that I cannot under emphasize it. Get it in writing! This way if people forget (and they do), you and your merchant will be protected. Read the merchant agreement carefully before you sell it. Make sure that you understand how your merchants are priced and billed. And make sure that the company you work with is interested in helping your merchant to be happy as well. Find a company that goes out of its way to communicate to you and the merchant.

Yes enjoy the money, but make sure that the service is there as well and you will have the best ISO agent program for sure. Your merchants will praise you and thank you for looking out for them as well.

How to Succeed as a Merchant Account Provider in Just 30 Days

noreply@blogger.com (Chris DuPont) — Thu, 08 Oct 2009 16:08:00 +0000

We all know it. Competition is fierce! Many business owners are likely tired of hearing that we have the lowest rates, or we can provide better support, or even a free terminal. In fact, many are not bashful telling us the last time they spoke to someone about a merchant account. So what can you do as a MLS or ISO to differentiate yourself from the rest?

Before I answer that question, let's examine the merchant's viewpoint for a moment. The merchant is either happy with the company they are processing with or they are unhappy. I don't think there is anyone who is on middle ground in this matter.   If they are a happy customer, you can talk to them all day long and they are not going to make a decision to switch.   But what about the others? Why are merchants unhappy with their processing service? Because someone over-promised and under-delivered. Here is the key.

Do not tell the customer something they want to hear just to make the sale. In the end, they will find out otherwise and you will lose credibility. Eventually they will switch to another company. I am hardly the first person to write about this. This is nothing new, is it?   But have you ever been in a situation where the processor or bank you are working with, failed to tell you something important about the merchant's fees, risk management, or other issue and you had no idea about it? The next thing you know, your merchant is calling all upset and blaming you about something on their monthly statement. They are not happy and its your fault. Wait a minute! You told the merchant that they would get good rates, service, equipment and everything. Why are they unhappy?

Because they were not informed about details connected with their merchant account. Details that you need to communicate to them. The fine print on a merchant account applicaiton is the most important part. We tend to write the discount rate in LARGE print. We make the free equipment pictures BIG. However, we make the cancellation fees small and the PCI fee is rarely mentioned. Or once they begin processing for a few months to a year, they are charged some new Visa or Mastercard fee that wasn't even mentioned as part of their contract.   MLSs and ISOs need to stop doing this.   We need to inform the merchants well in advance. Keeping your word is important!

So how can you be successful in just 30 days? Well it takes only 30 days to create a new habit. Why not make honesty and forthrightness your habit?   Go out of your way to tell the merchants about the fine print. It may be a difficult adjustment at first, and the competition will no doubt mislead the merchant into thinking that what you are telling them is not true. But if you adopt this habit, it will ultimately lead to your success in this industry.   And if you are working with a company that has a different habit; perhaps charging your merchants hidden fees or adding fees that you waived when you initially wrote the business; be forewarned! It might be better, to find a new company to work with that values forthrightness and respects what is written on the contract. If you do, you will be successful as your merchants stay loyal to you and inform others as to why you are different than the rest.

This is Your Brain on Merchant Services...Any Questions?

noreply@blogger.com (Chris DuPont) — Thu, 08 Oct 2009 15:59:00 +0000

I was thinking about our industry and for some reason I always get that image in my head of an egg frying in a pan. Next, I hear that all too familiar slogan: "This is your brain on drugs...any questions"

If you work in agent or merchant support with an ISO, are a customer service representative, or even an MLS on the street, I think you will agree that our brains our sizzling just like that egg! It can be difficult to keep our heads on straight with all daily issues we have to handle. Also consider all the reading we have to do. We have to keep abreast with new technologies, fee structures and procedures. We are bombarded with phone calls, emails flooding in, and issue after issue.   This can literally cause confusion and fatigue and can be quite stressful to get all the work done on time. Some have no doubt given up on getting it all done. Believe me it shows.   For those of you, like myself, who aim to please, keep your egg out of the frying pan!

The best way to do this is with time management and good organization. First, get your email inbox under control. Find a system that works for you. Something I like to do is blitz through all my unread email the first thing every day. I will flag the emails that are important but need more time to address. I will quickly respond to tthe ones that can be handled in 1 minute or less or forward emails can be handled by someone else.   After 30 minutes, all my emails have been read or flagged. Now I can work the phones or research the flagged emails stress free. As new emails appear in my inbox, I will keep them read as well. This is important to keep checking email as you never know when there is an issue that needs prompt attention and you waited 2 hours to even notice it.

There is another aspect to answering emails. Sometimes in our haste we can send an email request to another department and then totally forget about it. The other department doesn't receive it or even forgets. Time passes. Someone emails us the same request and we have no idea what they are talking about. Here is a trick that can help. Flag your sent emails with a different color and when you get a respone, check them off. If you have flagged emails in your inbox, this means they have not been answered or handled! It really is that simple.

If you have a lot of paperwork on your desk, file it away. Keep your desk clean! Maybe a simple filing system is in order. Take three filing trays and mark one "Today", mark another one "Weekly" and another one "Monthly". Then frequently check your weekly and monthly trays and move important documents to your daily tray as it becomes less full. Of course you need to work to keep that daily tray empty!   This works for me but you may have a better system that works for you.

If you are an ISO and get the same questions all day long and spend a lot of time answering them; this trick will work wonders:   Have all your customer service representatives write down the daily questions they are asked and the answers in a word or excel document. Next, have someone compile all of these to a pdf document and make it available to all your customers. If you keep it updated, you will find that you get less questions regarding those issues. This same trick will work for internal issues. Create a search-able database that can be accessed by all your employees. When a question comes up, they can simply refer to to the database for the answer. Keep that updated and new employees can quickly become experts! I compiled a database for over 4 years at the last company I worked for and you will be amazed at how many questions were answered in it!   This really saves a lot of time and makes your life easier.

So these are just a few suggestions that can help you to stay organized, reduce stress and keep your brain intact and out of the frying pan.

Why Outsource Merchant Account Statement Analysis

noreply@blogger.com (Chris DuPont) — Sat, 26 Sep 2009 12:47:00 +0000

First of all I want to say that this article is not for merchants but is for MLS and ISOs who understand what I am about to say: Merchant processing statements are a pain! Now with that out of the way, let's talk about why that is.

With credit card interchange rates constantly changing, many agents have difficulty reading and offering a merchant account quote. How much time do you think you have spent staring at merchant statements while still not being able to offer them a competitive statement quote? Is the merchant account priced as Standard tiered, Interchange-Plus, or the confusing Enhanced-Recovery pricing? How much time has been lost in the sales process during this important step!

On the other hand, perhaps you currently work with a processor who offers a free merchant statement analysis service. They want to do it, but there are more pressing tasks that must be handled. I know as I worked for a company for many years as an Recruiter and Relationship Manager and more often than not, I saw merchant statements that got lost, piled up on the desk or were handled at the very end of the day if there was time. The simple truth is that ISOs and processors have a lot of work to handle and are often understaffed. Emails must be answered and phone calls must be made. Sales is always the priority. An eight-hour day just isn't enough time to get your prospect's analysis done quickly so you can beat the competition. Another aspect to consider is that you have a moral obligation to send the business to whoever does the quote for you. In other words if ABC processor does your quote, you really should send them the business pertaining to the quote. Eventually you might begin relying on whoever gets those statement quotes the fastest regardless of the rates, fees, or service.

HOW TO GET MERCHANT ACCOUNT ANALYSIS

Did you know that you can now have someone else do the tedious work of figuring out how much a merchant is paying to accept credit cards for their business as well as what rates to offer them in order to show significant savings each month? Furthermore, you have the option to choose how much you will make! Each completed analysis is very inexpensive and can be done quickly. The best part is that you can send the business to whoever you want.

I am not talking about hiring another employee to do this. That is likely too expensive for what you actually need. What would it cost to hire an hourly employee to handle merchant account statement analysis for you? Consider the many expenses: Hourly wages, taxes, medical benefits, and training. How much better it would be to use that time to generate more leads and sale more. Maybe after you review your business needs you too will consider outsourcing this tedious work and putting it into the hands of those who have the time to do it. Maybe you won’t. But keep in mind that you now have options that will give you the advantage and continue to focus on what you really want to do - sell more!

Should You Get a Free Terminal with a Merchant Account?

noreply@blogger.com (Chris DuPont) — Mon, 14 Sep 2009 13:42:00 +0000

Less than five years ago, barely anyone even knew there was an option to get a free terminal from their merchant account service provider. You used to have purchase, rent or even worse – lease a terminal for 3-4 years and pay nearly four times as much. Now free terminals are everywhere! This may cause you to wonder if there is any reason why you shouldn’t get a new free terminal when you switch providers.

WHAT THE FREE TERMINAL PROGRAM INVOLVES

We have all heard the phrase, “Nothing is free.” That is most often the case. But some companies really do offer a free terminal placement. In other words, they let you use their terminal for as long as you process with them. But of course your merchant account requires certain fees that cannot be waived if you choose a free placement terminal. Most merchants don’t even know that they can get these fees waived. Most companies require a monthly minimum discount fee of $25.00 and even an annual fee which can range from $50-100. And finally most companies require that the monthly statement and service be set to a minimum of between $5-10 per month. So the equipment is not free after all! In this case it still is. Please keep in mind that it still is a free placement and the fees mentioned earlier are standard with every merchant account unless they are waived. Furthermore, the monthly minimum discount fee is not going to affect you if you process at least $1500 every month.

WHEN TO GET FREE EQUIPMENT AND WHEN NOT TO SO

So here is where decisions must be made. Much depends on your business needs and the size of your business. Another factor to consider is how much it costs to purchase the equipment that you are getting for free. The key is examining your business and examining the free placement program carefully.

For example, if you are selling at trade shows and need a mobile solution for your business on the weekends, then a free wireless terminal would be a real good solution if you can get one. The reason is simple: Wireless terminals cost more money. You could likely process for two years before you paid merchant account fees equaling the cost of a new wireless N8000 or Vx670. After your contract is up you could then switch providers and seek out a new wireless terminal and start all over. What if you purchased a terminal and it stopped working after one year? With free placement, you don’t have to worry. Most companies will swap it out for you although you may incur some shipping charges if you need it rushed.

You can save money by getting a lower-end free placement countertop terminal (N2085, T7Plus) with pin pad. This is especially useful since these terminals come to you programmed and ready to use out of the box. However a word of caution: If you are a smaller merchant trying to save money, you can usually buy these terminals cheap. If you can find a low cost merchant account that waives the fees mentioned earlier, you might well save up $150 in your first year. That more than covers the cost of your new terminal. Just make sure that you check the warranty and to make sure that it is PCI PED compliant. Also I would not advise purchasing POS software or gateways if you can get it for free unless you know for sure that it is the most recent version and is PCI compliant. You don’t know how many merchants are stuck with some old unsupported software that they bought only a few years ago and are now frustrated that they spent so much on it.

So how can you determine if a free placement is right for you? Simply Google the prices on the terminal you are thinking of getting as a free placement. Consider any additional monthly fees and annual fees you will incur for accepting the free terminal. If it is negligible ($10 or less extra per month), I would go for it!

Many companies throw in the free pin pad and check reader which adds additional value. They come programmed and are plug and play right out of the box. To buy all this gear outright would cost you at least $700-800 right from the beginning. You would have to process six years with free placement before you spent an equal amount of money had you purchased outright! Yes, you read it correctly. You could use free placement equipment for six years before you covered the initial cost had you purchased the equipment. How will you feel about your processing equipment after six years? Maybe by then it will be time to upgrade yet again with the latest and greatest terminals that are on the market as free placement.

What is the difference between zero day hold and next day funding?

noreply@blogger.com (Chris DuPont) — Thu, 20 Aug 2009 15:14:00 +0000

Essentially both of these terms refer to the same thing. Typically when a merchant batches out or closes out the transactions for a certain day of sales, the processing bank places those funds on hold for one or two additional days as a precaution against potentially fraudulent charges, charge backs, etc. Then the funds are released and move through the processing bank to the merchant’s bank. This means that it can take 2-3 days for the merchant to receive the money from credit card sales on a particular day.

Now consider the term Zero Day Hold. This means that the processor releases the funds right away so the merchant can receive the funds the next day or the day after depending on when they batched those funds. Please keep in mind that it takes additional time for the money to be deposited into the merchant’s bank account once the processor releases the money. (You will recall that when you deposit a personal check from a relative or someone else into your bank account, those funds are not always readily available the day you made the deposit.) The term Next Day Funding is really the same concept since the processor is funding the money the next day.

However, more and more banks are providing a true Next Day Funding solution for merchants who have their business checking account and merchant account with the same bank. When the merchant batches out a day’s sales, then the bank advances those funds right to the merchant the very next day. Since the funds are all contained in the same institution, the funds are released to the merchant almost instantly. Many merchants might feel that the best solution for their business. Something to consider though is whether the merchant account fees are going to be higher than with a third party processor (Often banks charge more). A business owner should also consider whether they really need the funds deposited that quickly into their checking account. I would dare to say that the business is teetering towards failure if a one or two day delay in receiving funds is the absolute required feature of a merchant account.

What are your thoughts? Please click comment link to answer. (You will be directed to quickly create an account with Intense Debate first and login before you can comment.)

Which processor has the lowest PCI compliance fees?

noreply@blogger.com (Chris DuPont) — Sat, 15 Aug 2009 09:38:00 +0000

This is an important question in view of the fact that PCI compliance is not optional. Visa and MasterCard are requiring that processors make sure that all card holder data is secure according to certain standards. Of course making sure all merchants under a processor are compliant is costly! Each processor is working with a third party organization to provide a compliance assessment for each merchant and issue a certificate of compliance once per year. The requirements are different depending on the type and size of the business. Some businesses will cost more to secure and others less. In order to defray the expenses, all processors are spreading these costs among all their merchants adding an additional monthly or annual fee. Some are even adding a per transaction fee to help defray the expense. So if you are a merchant who thinks that you have no annual fee and no extra monthly fees, think again. If you don’t have an annual fee you will still incur an extra charge once a year for PCI.

How much can you expect to pay? I have seen PCI fees from between $50 to $200 per year. Is it really per year? Yes. Please don’t be fooled into thinking that this is a one-time charge. Ensuring that card holder data is secure is ongoing. The people who are determined to steal card holder data do not try once and then throw in the towel. They continue to find weak spots in the system in order to make their living. As new technologies are developed, new threats will emerge that need to be secured. Additionally, it would be incorrect to assume that these PCI fees will remain constant from year to year or month to month. Even Visa and MasterCard fees typically increase two times per year. So why would this aspect be any different? It is true that no one likes PCI compliance. But we need to face the fact that it is here to stay and is part of the cost of doing business. It would be the best to make sure that a processor is truly assessing their merchants and maintaining PCI compliance. If not, the merchant would ultimately suffer much hardship in the event of security breach from their location.

What are your thoughts? Please click comment link to answer.