There is money available if your bank credit line is used up

Hi,

Lately I have been doing advance funding using credit card future sales. I have now found three sources that I feel comfortable with and feel are the best. Each one has it’s own specialty that I can match my clients up with. While you often can qualify for more money as a rule of thumb figure that you can receive an advance equal to your average one month volume of MC/Visa sales. In other words if you do about $25,000 monthly MC/Visa you can receive in a few days funding of $25,000.00.

I want all of my merchants to use utmost caution when borrowing money. Make sure you have exhausted your conventional sources first because the rates are higher for cc advance funding. The rates will vary according to your credit. However it can make sense for the right situation. I just had a merchant use the funding to buy almost new equipment for a fraction of what it is worth. He will be able to turn a nice profit on his purchase. In this situation it makes sense.

For more info go to http://paymentconsulting.net/adv_funding.html


Bill Hoidas
District Sales Manager
Larger B2B/MOTO/Internet Accounts
Product Development Manager
Matrix Payment Systems
(847) 381-3482 office
(847) 381-4289 fax
http://paymentconsulting.net
John 3:16 For God so loved the world, that he gave his only begotten
Son, that whosoever believeth in him should not perish, but have
everlasting life.

American Express is now charging you for your monthly statement-how to get it rebated

Hi,

Amex has never charged a monthly fee before for it’s regular accounts. It’s been officially 7 months now but they didn’t actually start until 3 months ago. This charge came to the best of my knowledge unannounced.

They are now charging $4.50 per month per merchant account.

To get it removed you should call 800-528-5200 /key in your merchant account # and than keep pressing “0” to wade through the multiple voice prompts.

Tell the rep that you weren’t aware of this new charge and do not need paper statements. They will enroll you for their website and to also receive your statement by email. Make sure you find out how many months you have been charged and have them rebate the charges.

You can also enroll on their website below but you won’t than get to ask to have the $4.50 monthly fees you’ve already been charged rebated.
https://home.americanexpress.com/homepage/merchant_cm.shtml

Bill


Bill Hoidas
District Sales Manager
Larger B2B/MOTO/Internet Accounts
Product Development Manager
Matrix Payment Systems
(847) 381-3482 office
(847) 381-4289 fax
http://paymentconsulting.net
John 3:16 For God so loved the world, that he gave his only begotten
Son, that whosoever believeth in him should not perish, but have
everlasting life.

great flow chart showing what really happens with a chargeback

Hi,

This is the best single thing I’ve ever seen that shows what happens when a cardholder (justifiably or not) calls their bank to do a chargeback. Contrary to popular opinion your processor doesn’t give up without a fight and does (or should) check for validity and to see if you’ve already issued a credit.

However if they can’t automatically reject it the ball’s in your court and you must fill out an answer and include all possible documentation. It’s just a sad fact of life that a cardholder can often get their bank to roll over and issue an unfair chargeback.

If your response does not succeed and the sum is large enough I do work with a consulting firm that specializes in chargebacks and can also recommend attorneys that specialize in cc law. As you can see the card holder and card issuing bank can be pushed to arbitration and whoever loses can be liable for all arbitration fees.


Bill Hoidas
District Sales Manager
Larger B2B/MOTO/Internet Accounts
Product Development Manager
Matrix Payment Systems
(847) 381-3482 office
(847) 381-4289 fax
http://paymentconsulting.net
John 3:16 For God so loved the world, that he gave his only begotten
Son, that whosoever believeth in him should not perish, but have
everlasting life.

CB_RetrvlProcessFlowChart.pdf
38K View as HTML Download

foreign payment processing including credit cards, eChecks, ACH, etc. now possible

Hi,

I have been fortunate to establish a relationship with the finest company involved in the international markets.Global Collect http://www.globalcollectusa.com/

They take all of the hassle out of setting up foreign processing and all at very reasonable rates.

Global Collect is the only global payment processing provider that provides both credit card and alternative payment processing in over 50 local currencies, and 120 countries worldwide. Their Web Collect Platform is the broadest global payment network available through a single technical and financial interface.

Let me know your level of interest

keeping up with PCI dealines for 2008-January, July & October including PABP for programmers/software vendors

Hi,

Below please find a PCI security theft update. Please note PABP for programmers & mandates for January (that would be now!), July and October.

Visa, PCI council make security move

By Michael Petitti
TrustWave

Editor’s Note: A version of this article originally appeared in the December 2007 issue of Trusted News, a TrustWave publication.

B e prepared. Two major announcements made in recent months will send merchants scrambling to their payment application vendors and merchant level salesperson (MLS) for guidance and clarity.

Visa Inc. and the Visa’s Payment Application Best Practices (PABP), it’s likely that a great number of these compromises would not have occurred.

Visa created PABP to prevent payment card compromises by guiding software vendors in developing payment applications that support a merchant’s compliance with the PCI Data Security Standard (DSS). The PCI SSC and Visa detail plans to unify a payment application security standard and begin enforcing the use of adherent applications.

Total takeover

The PCI SSC took over management of PABP in November, and renamed it the Payment Application Data Security Standard (PA DSS). New standards are expected to be released by the first quarter 2008. (For more information, see “Farewell PABP, hello PA DSS,” The Green Sheet, Nov. 26, 2007, issue 07:11:02 )

While the PA DSS is based on the PABP and remain similar, feedback received from various stakeholders may alter the PA DSS slightly. While these differences will impact software developers, merchants will not likely be affected.

Merchants will not need to look into the detailed requirements of the PA DSS or comply with it per se – applications developed for internal use only must still comply with the PCI DSS. Merchants only need to ensure that the payment applications they use are certified as PA DSS compliant. (For a list of validated, PABP-adherent payment applications, visit http://usa.visa.com/download/merchants/validated_payment_applications.pdf )

Once the transition is complete, the PCI SSC will maintain the list of validated applications. MLSs should ensure that the payment applications they offer are on this list. If not, MLSs should consider removing the offering from their portfolio of products.

As with the PCI DSS, the council will maintain its position as governing body of the PA DSS. Enforcement will continue to fall under the authority of the individual card brands.

While the transfer of the PABP standard to the PCI council will increase awareness of payment card security and increase adoption of secure payment applications, Visa’s recent announcement will probably have a more immediate effect on your merchant customers.

Calendar of events

In October, Visa set forth a plan to mandate merchants’ use of PABP-adherent (now PA DSS-adherent) applications. The plan entails a number of deadlines set by Visa to eradicate the use of vulnerable payment applications and payment applications that do not adhere to the PA DSS.

While the deadlines for the program are set for acquirers, VisaNet processors and agents because these organizations stand above merchants in the payment card acceptance process, the deadlines also apply to merchants.

Following are the specific mandates and deadlines Visa established:

* Jan. 1, 2008 – Merchants cannot use payment applications identified by Visa as vulnerable. For a list of these vulnerable payment applications, contact your acquirer.
* July 1, 2008 – VisaNet processors and agents cannot grant access to their network to new payment applications that are not PA DSS certified.
* Oct. 1, 2008 – Newly boarded level 3 or 4 merchants must prove their PCI compliance or use PA DSS-adherent payment applications.
* Oct. 1, 2009 – Payment applications identified by Visa as vulnerable will be decommissioned from the Visa network.
* July 1, 2010 – Merchants must use PA DSS-adherent applications to accept Visa transactions.

Field of queries

It’s likely that a number of current customers or potential customers will have questions about the new requirements.

Here are talking points to remember during these discussions:

* The PA DSS does not supplant the PCI DSS.
* The PA DSS supplements the PCI DSS.
* The card brands will continue to require that merchants continue to comply with the PCI DSS.
* Visa is the only card brand thus far that will require the use of PA DSS-compliant payment applications, but other card brands are likely to follow.


Bill Hoidas
District Sales Manager
Larger B2B/MOTO/Internet Accounts
Product Development Manager
Matrix Payment Systems
(847) 381-3482 office
(847) 381-4289 fax
http://paymentconsulting.net
John 3:16 For God so loved the world, that he gave his only begotten
Son, that whosoever believeth in him should not perish, but have
everlasting life.

recent regulation by FACTA (Fair and Accurate Credit Transactions Act)

Most merchants already know that FACTA says credit and debit card receipts may not include more than the last five digits of the card number. But now they have mandated thatt the card’s expiration date may not be printed on the cardholder’s receipt.However, the effective date of this provision is a long way off, and there are a couple of loopholes:

bullet This section does not apply to receipts for which the sole means of recording a credit or debt card number is by handwriting or by an imprint or copy of the card.
bullet For machines in use before January 1, 2005, the merchant has three (3) years to comply.
bullet For machines in use after January 1, 2005, the merchant has one (1) year to comply.

This will simplify your security requirements for preventing credit card identity theft

If you process through regular telephone lines you at least have to fill out a simple questionnaire every year. If you use an IP connection you need to follow the below requirements. The questionnaire is at https://www.pcisecuritystandards.org/tech/supporting_documents.htm

There is a lot of confusion about the ever changing PCI security compliance requirements. Much of it is posturing by the credit card associations to a public concerned about identity theft. The truth is the card associations are putting the onus on merchants. They are doing that with the below requirements which if you don’t do and you are singled out MC/Visa will fine you through your processing bank to make sure they have someone who will roll over and pay the fine. The bank who has a hammer over your head because you are processing through them will than turn around and collect the entire fine through you. If you try and change processors to avoid paying the entire fine they will put you on the MATCH list and you won’t be allowed to open a merchant processing account anywhere in the USA. Suffice it to say that you don’t want to be the next merchant in the news for having your customers credit card info compromised. Read the below. Many of you will fall into the Level 4 category so the requirements aren’t too bad. This is directly from Visa’s website to assure accurate information.

(direct link)
http://usa.visa.com/merchants/risk_management/cisp_merchants.html

Merchants

Merchants

Compliance validation details for merchants

Acquirers are responsible for ensuring that all of their merchants comply with the PCI Data Security Standard (DSS) requirements; however, merchant compliance validation has been prioritized based on the volume of transactions, the potential risk, and exposure introduced into the payment system.

PCI Compliance Acceleration Program

Visa developed the PCI Compliance Acceleration Program to provide financial incentives and establish enforcement provisions for acquirers to ensure their merchants validate PCI DSS compliance. In accordance with the PCI Compliance Acceleration Program, acquirers must additionally ensure that all Level 1 and 2 merchants validate that prohibited data is not retained by submitting a completed Prohibited Data Retention Attestation form OR Confirmation of Report Accuracy form to their acquirer.

The Merchant PCI DSS Compliance Update highlights compliance progress for level 1, 2 and 3 merchants.

Merchant levels defined

All merchants will fall into one of the four merchant levels based on Visa transaction volume over a 12-month period. Transaction volume is based on the aggregate number of Visa transactions (inclusive of credit, debit and prepaid) from a merchant Doing Business As (“DBA”). In cases where a merchant corporation has more than one DBA, members must consider the aggregate volume of transactions stored, processed or transmitted by the corporate entity to determine the validation level. If data is not aggregated, such that the corporate entity does not store, process or transmit cardholder data on behalf of multiple DBAs, members will continue to consider the DBA’s individual transaction volume to determine the validation level. Merchant levels are defined as:

Merchant Level* Description
1 Any merchant-regardless of acceptance channel-processing over 6,000,000 Visa transactions per year.
Any merchant that Visa, at its sole discretion, determines should meet the Level 1 merchant requirements to minimize risk to the Visa system.
2 Any merchant-regardless of acceptance channel-processing 1,000,000 to 6,000,000 Visa transactions per year.
3 Any merchant processing 20,000 to 1,000,000 Visa e-commerce transactions per year.
4 Any merchant processing fewer than 20,000 Visa e-commerce transactions per year, and all other merchants-regardless of acceptance channel-processing up to 1,000,000 Visa transactions per year.

* New merchant level definitions effective of July 18, 2006.

** Any merchant that has suffered a hack that resulted in an account data compromise may be escalated to a higher validation level.

Compliance validation basics

In addition to adhering to the PCI Data Security Standard, compliance validation is required for Level 1, Level 2, and Level 3 merchants, and may be required for Level 4 merchants.

Level Validation Action Validated By Due Date
1
  • Annual On-site PCI Data Security Assessment
  • and
  • Quarterly Network Scan
  • Qualified Security Assessor or Internal Audit if signed by Officer of the company
  • Approved Scanning Vendor
9/30/04

New level 1 merchants have up to one year from identification to validate.

2
  • Annual PCI Self-Assessment Questionnaire
  • and
  • Quarterly Network Scan
  • Merchant
  • Approved Scanning Vendor
New level 2 merchants:
9/30/2007
3
  • Annual PCI Self-Assessment Questionnaire
  • and
  • Quarterly Network Scan
  • Merchant
  • Approved Scanning Vendor
6/30/05
4*
  • Annual PCI Self-Assessment Questionnaire
  • and
  • Quarterly Network Scan (if applicable)
  • Merchant
  • Approved Scanning Vendor
Validation requirements and dates are determined by the merchant’s acquirer

*The PCI DDS requires that all merchants perform external network scanning to achieve compliance. Acquirers may require submission of scan reports and/or questionnaires by level 4 merchants.

Validation procedures and documentation

Acquirers must ensure that their merchants validate at the appropriate level and obtain the required compliance validation documentation from their merchants. Acquirers must submit monthly status reports to Visa and all compliance validation documentation must be made available to Visa upon request. Acquirers and merchants should also verify the compliance reporting requirements of other payment card brands which may require proof of compliance validation.

Compliance validation takes place at the merchant’s expense, as follows:

  • Level 1 Merchants
    The Annual On-Site PCI Data Security Assessment must be completed for Level 1 merchants according to the PCI Security Audit Procedures document. This document is also to be used as the template for the Report on Compliance.

    Level 1 merchants should engage a Qualified Security Assessor to complete the Report on Compliance and provide the report to their acquirer. Alternatively, acquirers may elect to accept the Report on Compliance from a level 1 merchant, provided that a letter signed by a merchant officer accompanies the report. Level 1 merchants must also submit the Confirmation of Report Accuracy form completed by their assessor to their acquirers.

    Acquirers must submit the Confirmation of Report Accuracy form and a letter accepting the merchant’s full compliance validation to Visa upon receipt and acceptance of the merchant’s validation documentation.

    Download the PCI Security Audit Procedures.

    Download the merchant Confirmation of Report Accuracy.

  • Level 2/Level 3 Merchants
    The Annual PCI Self-Assessment Questionnaire must be completed by Level 2 and 3 merchants. Level 4 merchants may be required to complete the PCI Self-Assessment Questionnaire as specified by their acquirer.

    Download the PCI Self-Assessment Questionnaire.

Level 1/Level 2/Level 3 Merchants
The Quarterly Network Security Scan is an automated tool that checks systems for vulnerabilities. It conducts a non-intrusive scan to remotely review networks and Web applications based in the externally-facing Internet Protocol (IP) address provided by the merchant. Acquirers are responsible for ensuring that the quarterly network security scans required of their levels 1, 2, and 3 merchants are performed by an Approved Scanning Vendor. The Quarterly Network Security Scan is applicable to merchants with externally-facing IP addresses as specified by their acquirer. Quarterly Network Security Scans are not required of merchants that do not have externally-facing IP addresses.

Download the PCI Security Scanning Procedures.

For more information

To learn more about the CISP, contact Visa via email at AskVisaUSA@Visa.com.


Bill Hoidas
District Sales Manager
Larger B2B/MOTO/Internet Accounts
Product Development Manager
Matrix Payment Systems
(847) 381-3482 office
(847) 381-4289 fax
http://paymentconsulting.net
John 3:16 For God so loved the world, that he gave his only begotten
Son, that whosoever believeth in him should not perish, but have
everlasting life.

paper checks are decreasing while use of electronic checks is growing

Fewer checks, faster process

By Patti Murphy
The Takoma Group

A new report out of London shows check usage is declining rapidly in the United Kingdom. The report, prepared by APACS, the U.K. payments association, reveals that check writing in that country fell 8% during 2006. Over the past 10 years, APACS reports, check writing by individuals in the U.K. has been cut in half.

The Federal Reserve is slated to release results from its latest payments research later this fall. I’m betting that data will show check usage declining by about the same percentage. That may not seem like much, perhaps, until you consider that the vast majority of checks written in America today are cleared electronically.

They aren’t electronic payments, but by using electronic clearing channels, it’s now possible to clear a check in a day. It’s not electronic funds transfer, but it’s darn close. And it pretty much guarantees that checks will be changing hands in the United States for many more years to come.

Direct comparisons of check usage in the United States and the U.K. don’t hold much certitude. After all, Brits wrote only 1 billion checks in 2006. Optimistic estimates place U.S. check writing at about 30 billion last year.

According to the Fed’s number crunchers, America’s love affair with the check peaked about a decade ago.

We know anecdotally that fewer checks are being written today in the United States. How many of your kids write checks? How many fewer checks do you write today compared with just a few years ago? And we know more Americans are using electronic methods of payment more than ever.

Data collected in 2005 by Dove Consulting Inc., a division of Hitachi Consulting, indicated Americans were using cards more often than cash or checks for in-store purchases by a margin of 12% (56% using cards; 44% with cash or checks).

Just four years earlier, cash and checks were more popular, accounting for 51% of in-store purchases (49% of purchases in 2001 were made using credit, debit or other payment cards), Dove said.

The U.K. seems to have had better luck weaning folks off of checks. According to the APACS survey, only 54% of adults wrote checks last year; just 47% received check payments in 2006. Checks written to retailers fell 48% between 1996 and 2006, APACS said.

“On average we now write 1.6 [checks] a month and receive just one every two months, with half of adults no longer receiving any,” APACS reported in The Way We Pay 2007.

Plenty of checks, less paper

Americans write an average eight to 10 checks a month, based on currently available data. Yet paper processing workloads have fallen drastically, because for the Fed and banks, imaging is emerging as the de facto standard for processing checks.

It’s not unusual for a paper check to be physically handled a dozen times or more during a multiday clearing process.

With imaging, checks are truncated as soon as possible after entering the collection stream, then get cleared and settled using electronic networks that mimic the land and air-based check collection process. The result is that checks can clear now as fast as some electronic payments.

“Image exchange continues to account for a larger share of check processing because it enables institutions to reduce costs and streamline operations,” said Susan Long, Senior Vice President at The Clearing House, which operates the SVPCO Image Payments Network.

And it’s not just a big-bank phenomenon. The Independent Community Bankers Association of America , a Washington-based trade association, reports that most small banks (86%) either have replaced paper check presentment with electronic clearing or are planning to do so within the next two years.

More than a third of the banks surveyed by ICBA this year (36%) are capturing check images at branch locations for centralized processing. An additional 39% expect to be imaging checks for branch-level truncation.

Fewer banks (21%) have rolled out remote deposit products to their business customers (another 45% expect to within the next two years).

In 2005, the last time ICBA queried its members about payments activities, only 4% had business customers transmitting check files instead of trundling paper checks to their local bank offices for deposit.

SVPCO is said to extend to more than 10,000 endpoints, which makes it accessible to nearly all banks (either directly or through compatible networks like the Fed’s).

In August, SVPCO saw a 250% increase in image check exchanges, compared to August 2006. All told, the network said it handled 263.8 million checks worth $454.5 billion last month.

Extrapolating, it seems fair to predict that by year-end 2007, SVPCO’s final tally will top 3 billion checks. To put this into perspective, that’s about the same number of consumer checks that were converted to electronic payments last year and processed through the automated clearinghouse (ACH) using a process known as ACH check conversion.

(In fairness to the ACH, a new check conversion format, known as back office conversion and implemented this spring, makes it easier for merchants and other businesses to embrace ACH check conversion. So, overall conversion numbers should be much higher this year.)

Checks aren’t going away; not in the United States or the U.K. “Although volumes will continue to fall, we forecast that there will still be around 840 million checks used in the U.K. in 2016,” said Sandra Quinn, Director of Communications at APACS. “If you placed these checks end-to-end, they would stretch around the world two and half times.”

At current rates, it will take much longer for check numbers in the United States to drop below a billion a year. But make no mistake about it: Check imaging is changing the nature of payments. Just ask the Fed, which has closed nearly two dozen check processing offices over the past few years.

Eventually (maybe even before 2016), the Fed expects to be processing checks through one centralized locale. At its peak, the Fed’s check workload was handled through a network of about four dozen regional processing shops.


Bill Hoidas
District Sales Manager
Larger B2B/MOTO/Internet Accounts
Product Development Manager
Matrix Payment Systems
(847) 381-3482 office
(847) 381-4289 fax
http://paymentconsulting.net
John 3:16 For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.