Information provided by Verizon’s Data Breach Investigations Reports, abbreviated DBIR, have shown that nearly one quarter of all data breaches were from retail and restaurants, the next biggest business sector after financial institutions.

The DBIR is a yearly analysis of the world’s security trends that relies upon the cooperation of numerous organizations. This is the program’s sixth year, and nearly 20 organizations, such as incident-reporting agencies, law enforcement bodies, research institutes and private security companies, have provided their collected data on such breaches.

The analysis showed that, in 2012, there were more than 620 confirmed breaches with an estimated 47,000 security incidents. Of these breaches, over 150 were from the food service and retail industries.

Paul Black, who manages Principal Investigative Response for Asia Regional, says, “organized crime is attracted to the food service, retail and finance sectors because all of them use credit card terminals.”

Mr. Black pointed out that many of these terminals are found in public locations and are on a public network. Someone could  both virtually and physically install software designed to harvest credit card info as it comes.

The analysis also found a relationship between motives, the industry and the tactics used to garner credit card data. Naturally, money was the motivator for most of the physical intrusions, which involved skimmers placed in POS devices, gas pumps and ATM machines. Mr. Black went on to state that most organized crime is motivated by money and that the tactics used are not often very advanced, but they usually make focused and carefully measured attacks.

He also said that protecting against such attacks will require more than addressing technological issues. A long-term solution involving user education and process re-engineering is needed. Furthermore, PCI security compliance is a good way for retailers to protect themselves from physical data breaches. However, Mr. Black added that organizations must also bring their compliance up to date as technology grows and develops.

“People who are PCI compliant are typically safe,” he said. “However, the way the system is attacked is dependent on the various motivations for doing so. You can’t just mark a box. It needs to be a constant process.”

ISOs should recognize, control and mitigate the risks associated with credit card processing; this demands the knowledge of rules, regulations, and guidelines of card companies and regulatory bodies. The knowledge of in-house risk as well as the importance of accountability allows ISOs to provide merchant accounts to companies of all varieties and sizes, even in high-risk environments. Online companies are typically exposed to higher degrees of risk, which is why the importance of laying out risk-limiting guidelines and monitoring performance is paramount.

Those responsible for risk management should identify and mitigate merchant risk by researching and assessing the quality of a merchant’s products and services. Based on the evaluated risk, the merchant may be required to retain a reserve with the processing financial institution. The risk division strictly monitors activity on a daily, weekly, and monthly basis, being keenly aware of merchants’ sales numbers and critiquing the monetary status of high-selling merchants. All risk evaluations are for the purpose of preventing loss.

When merchants sign up for online transaction processing, they are accepted based on the trustworthiness of the company and its practices, an assessment of the services and products sold by the merchant, and an analysis of the merchant’s fulfillment activity. High-risk accounts are assessed based on an analysis of the site, relevant records, reserve status, personal assurance by principals, and promises made by relevant bodies.

Every online merchant is placed into one of 3 liability categories: low, moderate, or high risk.

High Risk Merchants

Merchants classified as “high-risk” supply services and products in real-time or before the card payment is processed and certified. Alternatively, services and products are supplied inside a range of time from when the card payment is processed and certified.

Some merchants, classified as high-risk, frequently conduct transactions without the presence of a card. Instances include direct advertising, mail or telephone order, and online merchants. Others require up-front payment or pre-authorized sales before products or services are delivered.

High-risk clients are liable to produce a large amount of chargebacks. They are accepted depending on their financial robustness and product quality.

Due to the fact that high-risk clients may create charge-backs, those responsible for underwriting at the online processing company may ask for alternatives to lessen their risk. The alternatives are relevant elements that affect the overall risk assessment, like fraud risk, future delivery risk, chargeback risk, credit risk, and monthly discount rate. The underwriters also assess the anticipated exposure of each client.

Medium Risk Merchants

“Medium-risk” clients are similar to high-risk clients in that they finish the transaction by supplying products and services before or in real-time with the authorization and processing of the card sale or, alternatively, when the transaction is completed for upcoming deliveries.

Nonetheless, medium-risk clients typically have a moderate proportion of charge-back rates and sales credits. They hold less risk than the previous classification, and the underwriters may ask for alternatives to lessen their risk, such as additional guarantors, a security deposit, or rolling reserve.

Low Risk Merchants

Merchants classified as “low-risk” finish sales by supplying the products and services before or in real-time with the sale’s authorization and processing. Low-risk clients typically have a low proportion of sales credits and lower rates of charge-back. Elements associated with low-risk clients are typically favorable and receive positive consideration in the approval process.

ISO’s should also assess the level of exposure and risk, which depend upon the client’s history and activity. Risk is assessed based on how long the client has been in business, credit trustworthiness, and the length of processing history provided. The underwriting team at the online payment company also looks at business owners’ places of residence and credit ratings. They weigh-out business owners’ personal insolvency and also perform criminal background checks.

Underwriters assess a client’s product or service quality. Reviews on the client’s business dealings are another part of the assessment, and they include the anticipated monthly processing volumes or the refund and chargeback history. That data helps underwriters become familiar with the client’s business model. It’s how the online payment company can identify the suitable payment method to boost a client’s volume.

Now comes the analysis of the client’s maximum exposure, which underwriting teams calculate depending upon the anticipated monthly processing amount and the product or service variety. It’s crucial to study how services and products are delivered; additionally, seasonality should also be taken into account.

Creating alliances with e-commerce companies is vital. This is why the risk assessment includes analyzing the possible exposure to the online payment company and the mutual benefit of the two businesses. The anticipated exposure is found based upon the evaluated risks and maximum exposure. Depending on the results of this sample risk assessment, a decision is made as to whether or not to offer payment processing services to the applying company.

Banks are seemingly always in search of new ways to generate revenues and line their pockets with the hard-earned cash of their customers. Though ATM fees are certainly nothing new, their recent increases have been the subject of much debate as of late. According to the latest Government Accountability Office (GAO) investigation report, over the past five years, American consumers have been paying higher ATM fees than any other time in history.

With over 420,000 ATM’s located in the continental U.S., Hawaii, and Alaska, the report sheds considerable light into the fees charged by banks and the government’s continued fight for regulation in order to protect the American consumers from unscrupulous banking practices, which have been widely held responsible for crippling the nation’s economy.

American consumers can be charged two separate types of fees whenever they use an ATM, according to the GAO report. Firstly, ATM owners and operators are compensated via a surcharge fee that is paid to them directly for each ATM transaction. The report also shows that larger financial institutions are far more likely to have higher surcharge fees than smaller banks and local credit unions.

Although the majority of ATM usage takes place at banks and credit unions, there are thousands of independent owner operators that have ATM’s at bars, convenience stores, and other locations. Consumers using an ATM that is not owned by their financial institution are charged the second type of fee called a “foreign fee.” Interestingly, interchange fees already compensate these financial institutions for the transactions, and yet, the financial institution still charges their customers. Similar to surcharge fees, the GAO findings concluded that these” foreign fees” have increased in the past five years as well. Not surprisingly, the large financial institutions were also found to be more likely to charge their customers these “foreign fees” and their fees are typically higher than credit unions and small banks.

The report clearly shows that financial institutions are making it more and more expensive for consumers to access their own money. Sometimes consumers cannot help but pay the $5 to $10 it may take to access their money from an ATM, especially those living in rural areas. According to GAO member Sen. Tom Harkin, “These fees are outrageous, are anti-consumer, and they need to be reigned in.”

According to Sen. Charles Schumer, consumers are finding access to physical branches increasingly difficult, and thus, are becoming reliant on ATM’s. He went on to state, “I’m disappointed that banks are adding insult to injury by charging – and often double-charging – consumers just for accessing their hard-earned money. Banks need to stop nickel-and-diming consumers, and relieve this growing burden on middle-class families.”

The GAO findings also shed light on the rising use of ATM’s. In the past 15 years, the number of ATM’s has more than doubled. A number of Congressmen believe that with so many consumers relying on these ATM’s for their banking needs, it is clear that the fees should be fairer.

Senator upon Senator seems to be outraged at the increasingly exorbitant ATM fees being assessed by large banking institutions. It seems the ATM fee increases outlined by the GAO are an attempt by the financial institutions to compensate for less loan originations and a recent government crackdown on unscrupulous banking practices. It would not be surprising to see added regulation in the near future that will finally put an end to these increasingly disturbing banking practices.

EMV allows for a chip technology that has the added benefit of reducing stolen payment card data. The distinguishing feature of EMV is a secure chip that is imbedded in the plastic payment card. Once a card’s data is compromised a counterfeit card would be unusable without the presence of that card’s unique components. This makes the account data hard to steal or compromise and making merchant’s systems safer and more secure.

EMV is an acronym for Europay, Mastercard, Visa and is an international standard for the inside operation of an incorporated circuit cards that are also known as chip cards or IC cards. These cards are a combined venture between Visa, Mastercard and Europay to reduce card fraud and to allow a global payment infrastructure. In 2002, Mastercard purchased Europay, followed by Japan Credit Bureau (JCB) joining the EMV in 2004 and shortly thereafter American Express in 2009.

The Purpose of EMV Technology

EMV was created to address the card fraud related to magnetic stripe cards. The largest advantage to using the EMV chip is the reduction of card fraud as a result of counterfeit, lost and stolen cards.  EMV also allows for interoperability with any EMV compatible payment device accepted across the world, as well as supporting better cardholder verification and performing secure online payment transactions.

The Requirements for EMV Adoption

Merchants and acquirers will be responsible for costs associated with either upgrading or replacing their POS devices. The smaller merchants should take the lead from their current acquirer or processor. Since more data is sent to the acquirer and processor than the current magnetic stripe transaction, merchants will also need to work with their acquirer or processor to accommodate the transaction messaging.

Fraud –preventing advantages of EMV have allowed the liability of fraud to shift and allow for the potential elimination of the necessary, yet costly, yearly PCI DSS assessments and validations associated with using the magnetic stripe card. This elimination will offset the costs associated with the upgrade or replacement of new POS terminals.

The US Adoption of EMV

One of the largest hindrances to EMV adoption in the United States has been the costs associated with the replacement of cards and the POS terminals. The current EMV adoption around the world (Canada, Latin America, Caribbean, Asia Pacific, Africa and the Middle East, Europe Zone 1 and 2) is currently 62% of terminals and 29% of cards.  Presently the U.S. financial institutions have reported issuing over one million Visa branded, chip enabled cards at the end of 2011, which is around 10% of all Visa branded cards in the U.S.

Visa’s Key Dates of Adoption

April 1, 2013 – Acquirers and processors will be required to support merchant acceptance of chip transactions.

October 1, 2015 – Liability shifts to the party that is the cause of a contact chip transaction not occurring will be liable for the card present counterfeit fraud loss (Does not pertain to automated fuel dispensers).

October 1, 2017 – Liability shifts to the automated fuel dispenser party that is the cause of a contact chip transaction not occurring will be liable for the card present counterfeit fraud loss.

MasterCard Key Dates of Adoption

April 1, 2013 – Acquirers and sub-processors will be required to support merchant acceptance of chip transactions. Cross border Maestro ATM liability shifts to non-EMV ATMs

October 1, 2013 – Account Data Compromise (ADC) takes effect (50%). ADC will represent that if a merchant’s data is breached and depending on whether the merchant has a EMV POS device in place will offer a shift in the liability

October 1, 2015 –100% ADC relief takes effect if the merchant is processing at least 95% of MasterCard transactions on EMV devices. Liability shifts to the party that is the cause of a contact chip transaction not occurring will be liable for the card present counterfeit fraud loss (Does not pertain to automated fuel dispensers).

October 1, 2017 – Liability shifts to the automated fuel dispenser party that is the cause of a contact chip transaction not occurring will be liable for the card present counterfeit fraud loss.

The migration of the U.S. EMV chip based payment standard path has begun with the advent of a single global payment standard for fraud protection, secure payment transactions and worldwide acceptance.

Before credit card payments took over the marketplace, paper checks were the typical method of payment to merchants. This has changed, however, as bank-issued cards are now the standard method of payment. What caused this change? In part, it was a shift in the balancing act issuing banks played with Interchange fees. As a result, Interchange now drives market formation and growth.

What are Interchange Fees?

Interchange fees are payments made by the merchant’s bank (acquiring) to the cardholder’s bank (issuing) for handling the credit or debit card transaction and converting the card charges to cash deposits into the merchants’ accounts. They include cost factors such as credit and fraud risk along with profit and billing services.

Interchange fees are set by the card networks and have a complex pricing structure based on criteria such as card brands, regions, type of credit or debit card, type of merchant, size of merchant and type of transaction.

Why is Interchange Necessary?

Interchange was began as a way to reimburse the cardholders’ bank for any loss resulting from the debt repayment period for the cardholder, and still today Visa refers to interchange as “interchange reimbursement fees” for that reason.  Visa states “the primary role of interchange is to create the right balance of incentives between a cardholders’ financial institutions – which promote and issue Visa cards to consumers – and a merchants’ financial institutions – which enroll and process  Visa transactions for merchants.”

Interchange was originally established and is continually monitored and adjusted in a manner that balances the value and economics among merchants, issuing and acquiring financial institutions and the cardholders.

What does Interchange do Specifically for Merchants and Cardholders?

Interchange benefits the merchant by increasing sales through speed, reliability and efficiency while guaranteeing payment as well as making online and phone sales seamless, greater risk management and customer loyalty.

Besides ensuring benefits for merchants, cardholders also enjoy advantages such as convenience, security, fraud protection, reliability and earned rewards from airline miles to cash back.

How has Interchange Changed over the Years?

At its inception in 1971, Interchange was one set rate, however the card networks began to “incentive pricing” of Interchange fees to encourage merchant to adopt more electronic card capture. In 2005, with more merchants accepting cards new Interchange fee schedules were announced. The card networks manage Interchange rates as a delicate balancing act – if Interchange is too costly, there is no value to merchants in accepting cards – if it is too low, it is not worth the risk for banks to issue cards.

What is the Future of Interchange?

Interchange Trends:

As the credit card processing landscape changes, Interchange rates are monitored and adjusted to stay abreast of the trends. Competition among new and alternative card issuing companies will drive Interchange. Along with new and developing technology, there is a large amount of competition over market share among different card companies. Banks will issue the type of card that gives them the most profit, and this largely rests on the Interchange rate.

Another trend to be cognizant of is the ever present legal and settlement costs associated with staying on top of new governance and rules which may cause increasing Interchange to rise. An important trend to watch are the compliance mandates (Payment Card Industry Data Security Standard (PCI DSS), Patriot Act and Homeland Security). These compliance and banking payment mandates serve as an infrastructure of protection but add costs for the card-issuing companies and therefore will further increase Interchange.

Pricing:

• Volume and transaction size.
• Standard Industrial Classification (SIC) codes.
• Registration requisites in order for merchants to receive reduced fees.
• Compliance requisites in order for merchants to receive reduced fees.

Interchange fees, as the single largest component of merchants’ discount rate pricing, play a enormous role in the marketplace. It is fair to say that without Interchange, payment systems as we know them today would not exist. Merchants, cardholders, card-issuing banks and credit card companies would all be wise to keep their fingers on the pulse of Interchange trends.

The adoption of EMV in the United States is coming and it will affect the whole industry. Therefore, all participants will need to receive the needed information so they can understand how they will be affected by chip enabled payment cards.

EMV Adoption For Financial Institutions

Card issuers will need to think about what the implementation of smart card technology will require from them and evaluate the options they have to issue credit and debit cards that are chip enabled to their customers. Some of the top considerations for financial institutions are the education of cardholders about the use of new cards, whether to issue contact only or contactless cards, and which applications can be stored on the chip and updating the chip after it is issued.

Another consideration for financial institutions is the cost of the new cards, which can vary between $2 and $4, as opposed to a regular magstripe card which only costs around $0.15. While the difference in cost may seem considerable, financial institutions will need to see that the costs of issuing chip-based cards will be offset after some time by a reduction in the number of fraudulent transactions.

With the introduction of EMV, banks can expect to see a better potential to reduce card-present fraud. While fraud was always a concern among banks, revenue coming in as a result of card interchange made up for the losses. Now that the Durbin regulations have caused a reduction of interchange revenues, banks must find new ways to reduce their losses associated with fraud.

Card fraud liability is being changed also. Visa has recently announced dates by which all merchants will need to accept smart chip cards, otherwise their acquirers will be responsible for fraudulent transactions that occur at the point of sale. Due to these changes in policy, banks and merchants have strong incentives not to get left behind as smart cards are being deployed.

EMV Adoption For Merchants

All merchants, no matter whether they own just one location or are found all over the country, will need to make certain decisions. Currently, many merchants are getting the information they need and making plans as EMV is being adopted.

It will be the merchant’s responsibility to upgrade or replace their POS devices so they can accept smart cards. While the smaller merchants will usually go with solutions recommended by their acquirer, larger businesses will need to do their research so they can make an informed decision.

One crucial decision for merchants is whether they will deploy POS devices capable of a contactless connection. As contactless payments grow in popularity, merchants have an interest in taking advantage of this new technology so they don’t get left behind their competitors. A new EMV terminal’s costs will vary considerably depending on its functionality, quality, features, and the support provided. Many manufacturers of EMV-enabled equipment are making it easier for their products to be upgraded in the future without requiring a complete replacement.

Merchants will be responsible for working together with their acquirers and payment processors to figure out how the transaction messaging will work when it comes to EMV-based payments. It is necessary to know that during an EMV-compliant transaction, a larger amount of data is sent than during a transaction where only a magstripe was used.

As EMV is deployed, procedures at the POS will change. Some consumers may be unfamiliar with how chip-based payment cards, phones and fobs work and will require instructions on how to properly insert their cards or tap them over the device. Employees will need to be properly trained, so they can handle questions and concerns from customers, as well as explain the security benefits of EMV-based payments.

Merchants can see many positive benefits from EMV-enabled terminals, especially when it comes to contactless or mobile payments. They have the potential to speed up checkout time and make credit card processing more convenient to customers. Some new POS devices can send business offers to mobile phones, which can help increase customer loyalty.

The Impact of EMV Adoption For Consumers

For consumers, the change to smart cards will affect the way they make payments at a POS. They will require instructions on how to use their cards in the new terminals, either by inserting the card and entering their PIN, or tapping their card against the contactless reader. Merchants and banks will need to promote contactless payments as few consumers use them today.

According to a report made by Discover, less than 5 percent of consumers who have contactless cards actually use them for a contactless transaction. One highly positive aspect of the change for consumers is that as EMV becomes more commonplace elsewhere in the world, they will be able to use their cards in other countries without concerns of payment rejection. As all EMV-based equipment around the world follows the same standards, the chances of technical incompatibilities are significantly reduced.

In Conclusion

EMV adoption is happening as Visa currently has set their first EMV adoption deadline for April 2013 and the next to follow October 2015. MasterCard has also set an April 2013 EMV compliance deadline for all US ATMs. The need to increase security during transactions and to minimize fraud is there, which has caused some of the big players in the payment industry to put out incentives so that financial institutions, merchants and acquirers migrate to EMV soon.

On January 27, 2013, a settlement between retail merchants and credit card networks took effect. This settlement allows retailers to charge customers a “checkout fee” when they use a credit card at the register. Ten states, however, objecting to the fees, have already passed laws making them illegal. An additional 13 states have similar bills up for consideration, and more states are expected to follow.

The settlement is the result of a 2005 suit filed by retailers against credit card companies. Credit card companies charge retailers an “interchange” or “swipe fee” for the privilege of accepting cards in stores. This swipe fee usually amounts to 1 to 4 percent of the cost of the item being purchased. Previous contracts between credit card networks and retailers forbid retailers from passing this cost on to the consumer in the form of a fee. As a result of the lawsuit, however, retailers are now permitted to vary items’ prices based on payment method, so long as they disclose any fees to shoppers.

California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas, however, have already approved legislation banning checkout fees. In addition, Hawaii, Illinois, Kentucky, Maryland, Missouri, New Jersey, Pennsylvania, Rhode Island, South Carolina, Utah, Vermont, Washington and Tennessee have similar legislation under consideration. If these bills pass, almost half of all states in the country will have made checkout fees illegal.

New Jersey Assemblyman Vincent Prieto (D-Secaucus), who introduced a bill banning checkout fees in his home state, said, “The amount of the surcharge may seem minuscule on paper, but in the family budget 1.5 to 3 percent could add up to a shorter grocery list or less to spend on gas.”

Opponents of checkout fee bans, however, believe that time and effort is being squandered on these bills. “It’s a waste of the legislative process,” said Mallory Duncan, senior vice president of the National Retail Federation. Instead, she argues, state legislatures should introduce higher levels of competition into the marketplace by prohibiting price fixing of swipe fees.

Many large retailers, such as Target, Wal-Mart, Sears and Home Depot have already announced that they have no intention of charging checkout fees. Duncan argues that most other retailers will also decline to charge these fees. “Merchants in general have no intention of surcharging,” Duncan said. “We have discussed the settlement with many of our members and other merchants,” she said, “and not a single one has said they will surcharge.”

Furthermore, national chains simply will be unable to charge checkout fees in any state. According to the terms of the settlement, checkout fees must be applied uniformly across all states. Since many states have already banned checkout fees, this would be impossible for national retailers. Individuals using American Express cards will also be exempt from any checkout fee as American Express was not party to the lawsuit.

Despite these facts, however, the settlement on checkout fees continues to be unpopular in state legislatures. With laws banning fees already in place in 10 states and similar laws expected to follow in another 13 states, it appears as if the checkout fee is dead before it even had a chance to take effect.

It goes without saying that the more money that people spend, the more money that our economy will have floating around. It does not matter if that money is cash or credit because it is all worth the same thing. The more credit that is offered to people directly correlates to the amount of money that the person is likely to spend. These higher credit allowances encourage additional spending. And based on recent report released by Visa, this money helps the economy to grow.

When people spend money, other people have to work to track the spending. This means that more people have to be employed. Those people then continue to make and spend money. This continues to snowball to the point where our economy will be thriving. Much of that is due to the use of credit cards, and that’s why many business who don’t accept credit cards are hurting. The varieties of credit cards that are on the market make it fairly effortless for anyone to get some type of credit. The interest rates for the cards will all vary based upon a number of different factors. Our society is one that wants to buy now and pay later, so credit card usage becomes an integral part of the supply and demand in economic theory. The credit card companies are supplying people with money, and the people are demanding to get the things that they want. In an odd sort of way, the use of credit cards to purchase things has a significant effect on our society.

The major drawback to this theory is the idea that the credit cards will have to be repaid by the customer. Too many people overspend on these credit cards, and this can create an individual problem for the consumer. This spending could result in a variety of different problems, but the decreasing severity of credit debt has actually encouraged more people to use credit for everyday purchases.

Another big part of this change has been the rewards that the credit card companies are offering. The companies make money each time that the card is used at a store, so they are getting paid countless amounts of dollars even if customers default on their credit card debts. These incentives have encouraged people to spend more money to get the rewards, which in turn flush more money into the economy.

Some economists believe that this trend will continue to spur the economy. The biggest possible drawback to this trend is that people will eventually run out of money and be unable to buy luxury items in the future. As long as there are items out there that people want, the consumers will find a way to get them. There is always another credit card company that will offer some good incentives and exceptional rates, so most people will never truly run out of available credit.

The economy has needed a tremendous boost for some time, and credit card usage may be just what this country needed to get back on its feet. These credit card and credit card processing companies employ many Americans each day, and the amount of jobs created by the use of credit cards helps to keep people working and spending.

ATM security is paramount to the success of your ATM business. Without it, your business can lose customers and even worse: it can lose a great deal of money. Unfortunately, there is no one-size-fits-all rule for keeping your ATM safe, but there are steps you can take to improve the overall physical security of your ATM. Experts categorize ATM’s into several different styles based on their locations. Those styles include:

Kiosk – A standalone ATM machine that can often be found inside walkable shopping centers.

ATM Room – A room built or altered for the use of ATMs and the safety of the individuals servicing the ATMs.

ATM Lobby – Usually an ATM lobby is located just outside a bank and allows access to the ATM when the bank is closed.

Freestanding ATMs – These are some of the most common ATM machines. They’re typically located in other retail shops like convenience stores and supermarkets.

Threats Your ATM Faces

Since ATMs hold cold, hard cash – usually a great deal of it at any given time – they’re often the target of theft. This is the biggest physical risk your ATM business faces. Though you might think your ATM is completely safe against any type of theft, you still may be at risk. There are several common types of ATM thefts.

ATM Service Attacks – These types of thefts take place when the ATM is being serviced. The thief will wait until the money has been accessed or will force the servicer to access it in order to make off with the money with a minimal effort. The other two common types of ATM thefts require a bit more physical effort on the part of the thief.

Basic Burglary – ATM burglary requires some skill for a robber. They must crack into the ATM machine and break into its inner safe. Sometimes, though, the thief will use explosives or accelerating chemicals.

Smash-n-Grab – The name of this type of ATM robbery is pretty self-explanatory. It’s also known as a Ram Raid, in which a burglar will smash into an ATM machine or smash through a wall to get to the ATM machine. They’ll load the loosened machine into their vehicle and retrieve the money from it later.

How to Lower Your Risk

Conduct a Risk Assessment – You should evaluate the location at which you plan to put your ATM and decide the level of risk involved. Factors that you should take into account are the safety of the people around the ATM (staff, users, general public, etc), crime history of the location, position of the ATM, method of cash replenishment and level of security of safe you plan to use.

Talk to Police – Let them know you’re planning on putting an ATM at the location you’ve chosen and ask for their help on safety tips.

Talk to Insurance Company – Insurance companies often have minimum requirements for security depending on ATM location.

Make Sure You Have a Good Safe – Some ATM providers only offer one type of preferred safe to put inside the ATM, in which case you may want to limit the amount of cash you keep on hand. A good rule of thumb is to try to get the most secure safe possible.

Have an Alarm System – Make sure your ATM is outfitted an alarm system that is monitored remotely by a security company.

Anchor Your ATM – This provides the best security against Smash-n-grab burglars. Ideally, the ATM should be anchored to a solid concrete foundation with heavy-duty bolts. If the floor is made of wood, a thick steel plate can be used.

No matter what type of business you operate, it’s safe to say you provide a valuable product or service in exchange for compensation. Being able to conveniently accept credit cards from your customers—payment processing— is one of the most important facets of running your business. In today’s technical age, that means being able to accept credit card payments, which typically requires establishing a merchant account.

What’s a Merchant Account?

To explain it simply, a retail merchant account presents merchants the capacity to swipe credit cards via a terminal. A merchant account is an account used to temporarily hold the funds captured from credit and debit card sales before they are transferred to the merchant’s business bank account.
For business owners who wish to offer quick and accessible credit card processing to the growing number of customers using credit and debit cards, having a merchant account is ideal. When it comes time to establish a merchant account in order to accept credit cards, one of the areas business owners question is why potential payment processors are concerned about the type of industry their business does.

Why Your Industry Determines Your Merchant Account Type

Since merchant account providers are entering into a legally binding financial agreement with your business, they must take precautions to protect themselves. Every time the account provider processes a credit card transaction on behalf of your business they expose themselves to the risk of losing money. This is the reason obtaining a merchant account requires a screening / application process. This is also why certain industries require certain merchant account types and why some businesses that engage in the sale of certain products and services won’t get approval for a merchant account.

High risk accounts may require a specialist processor. Some examples of categories that may be considered high risk are Debt relief / consolidation, collection agencies, online pharmacies, escort services and online gambling businesses. Businesses that process large amounts of credit transactions may also be viewed as risky by merchant service providers.

The Various Types of Merchant Accounts

Retail Merchant Account

This type of merchant account is designed for merchants who do most of their payment processing at their retail storefront. Typically around 80% of their credit card processing transactions take place in person and their customers’ credit cards are swiped through the credit card machine. If you don’t swipe at least 80% of your transactions then you may need to establish another type of merchant account.

Small Business Merchant Account

Setting up the proper small business merchant account requires doing some homework as to which payment processing provider’s solution best fits with your business. For example, some merchant account providers may require additional confirmation of your business if your small business is newly established or operated out of your home.

Mail Order / Telephone Order (MOTO) Merchant Account

A MOTO account is for a business that wants to accept credit cards by phone or mail. If you conduct more than 80% of your business through mail order or over the telephone then a MOTO account is perfect for your business.   There are different ways to set up your MOTO account, either with a mobile SwitchPay card reader, credit card machine, a software package or a virtual terminal.

Mobile Merchant Account

A mobile card reader like SwitchPay allows you to accept credit cards anywhere with your mobile merchant account. This can boost a business’ sales since accepting credit card payments no matter where your business takes you is more convenient for your customer. Imagine mobile payment processing a right on your iPhone!

Ecommerce Merchant Account

When you have a website and conduct the majority of your sales via the Internet, than an eCommerce merchant account is your best option. Switch Commerce and most merchant account providers include an electronic payment gateway as part of the package.