There has been some confusion about the so-called “discount” that Apple Inc. negotiated with card issuers that makes Apple Pay transactions correspond with the lower card-present (CP) rate, rather than the higher card-not-present (CNP) rate.
It is confusing. A Sept. 16, 2014, Mercator Advisory Group blog post might clarify matters a bit. In the blog, Mercator analyst Nikhil Joseph wrote that credible reports suggest Apple “seems to have negotiated with card issuers for discounts worth 15–25 basis points on each Apple Pay transaction in exchange for the reduced fraud levels ensured by Touch ID.”
Joseph went on to say that a Bank Innovation report claimed that the “networks have agreed to process all in-store Apple Pay transactions initiated via near field communication technology on the new iPhone 6 at ‘card-present’ rates. In-app purchases made through Apple Pay, however, will continue to be processed at ‘card-not-present’ rates. This is despite the fact that from a technical perspective, very little that is different is happening in either case.”
But it is clear that CP versus CNP can add up to a lot of money. “Stripe, a popular payment gateway services provider that has announced support for Apple Pay, currently charges merchants/developers 2.9 percent and 30 cents for each successful transaction it processes,” Joseph wrote. “Card-present rates for in-store credit card transactions, on the other hand, cost merchants about 2.10 percent and 10 cents per transaction a difference of more than 80 basis points. For a hypothetical merchant that does business worth $10 million annually through a mobile app with an average ticket size of $50, this difference in payment taxonomy could mean as much as $120,000 in lost profits for the year.”
The old man needed some ammo for his home protection gun, so he went to the gun shop to buy some stuff.
When he got ready to pay for his purchases of gun powder and bullets,
the cashier said, “Strip down, facing me.”
Making a mental note to complain to the National Rifle Association
about gun control wackos, he did as she had instructed. When the
hysterical shrieking and alarms finally subsided, he found out that she
was referring to how he should place his credit card in the scanner.
He has been asked to shop elsewhere in the future.
First Data has learned of a widespread phishing attack telling recipients that their merchant ID has been locked. The phishing attacks have been by email as described below as well as through unsolicited telephone calls.
Unsolicited email containing errors, such as misspellings, should always raise a red flag, especially if combined with a call to action, such as calling a toll-free number or clicking on a link. If your merchants receive an email similar to the one below, immediately have them delete it from their inbox and deleted items folder. Please tell them to not open any attachments on the email. No further action is required on their part.
If you called a toll-free number in response to an unsolicited email or phone call and gave your merchant ID, please have them contact the merchant services number on their statement so that First Data can help monitor their account for fraudulent activity.
First Data is constantly monitoring for these types of emails and phone calls. We are working with law enforcement officials to take down these phishing sites and to pursue these criminals. If you receive emails or unsolicited phone calls in the future that you suspect are phishing, please let us know right away.
Below is a copy of the current phishing email message. Note the indicators in red that show this is a phishing scam.
From: FirstData [mailto:email@example.com]
Sent: Monday, February 10, 2014 9:58 AM
We regret to inform you that your merchant account has been locked. ← no specific account number provided
To continue using our services please call our tool free number XXXXXXXXX and update your information. ← misspelling and no specific merchant services listed
Please be ready with your Merchant ID and Terminal ID number. ← no description of process to unlock account
As you know in the last few years some card issuing banks have begun rejecting legitimate chargeback replies even though merchants are filling the replies out in great detail proving the original charge is legitimate and the chargeback complaint should be removed and decided in favor of the merchant (you). It has gotten so bad that on some of the chargebacks a 5 year old child could see that the cardholder is simply trying to steal merchandise and/or services from the merchant (you!).
Since MC/Visa/Discover/Amex remain sitting on their hands about this growing problem it’s time for us to fight back any way we can!
Starting immediately I am advising all merchants to put the below wording in your replies to chargebacks. I wouldn’t put it in a retrieval request as that is usually a sign that the card issuer is honest and any decent reply from the merchant will satisfy the inquiry. Put it right at the top of your reply-don’t be shy. And don’t worry about being “nice!” The card issuers aren’t being nice to you so until we can get the government to force MC/Visa/Discover/Amex to rewrite their unfair antiquated chargeback policies and procedures let’s do everything we can.
Wording to insert in Chargeback reply
|By reviewing the following information in my reply you can see that this is a frivolous chargeback and if allowed to be continued by you is an obvious violation of Federal Regulations E and Z!
|Card issuing banks are not allowed to encourage and condone“friendly fraud”. Your cardholder received our merchandise in a timely manner, used it and is now trying to do a chargeback basically committing felony theft on us the merchant. If this chargeback is not dismissed by you it will be immediately reported mentioning your bank to the proper authorities including The Federal Reserve and Attorney General in your state.Please find relevant links below to this matter.
TSYS chargeback guidelines
Report banks for frivolous chargebacks which is a violation of Federal Regulation E and Z
More complaint info at
This why I love the http://www.natb.org/! They screen their exhibitors to include only vendors that benefit their members.
The real facts about “Square” for mobile phones! Don’t let anyway talk you into using Square. Credit card info isn’t properly encrypted so if someone suffers identity theft you could be out thousands of dollars. They are not used to high volume transaction or daily volume so will quickly freeze your account and you’ll have to wait 6 months for your money.
Here’s the real deal regarding “The Square” mobile credit card acceptance. They are an aggregator so be prepared to wait for your funds and no customer service and zero help with chargebacks!
If you are thinking about using them or already are do the following:
-ask Square to come speak with you in person. Of course, Square does not have an outside sales force, so no rep will show up. This demonstrates a strong difference between a standard merchant account, where you have a dedicated account representative, and Square.
-call Square right now and ask them about your last transaction just to see when it will hit your account! What? They don’t have a 24/7 customer service phone number? With a regular merchant account you get live domestic 24/7 customer support.
Remember Square is built from venture capital and at the moment faces imaginary gains and real losses. There are doubts that Square can adapt to the upcoming Europay/MasterCard/Visa mandate. The new criteria for processing physical cards will force Square to launch newer, more expensive hardware that they have admitted will be difficult or cumbersome to integrate with their mobile app that is not tied to an actual merchant account.
Here is a much better option (attached) using eProcessing’s ePNMobile. You can setup an account for only $49 that comes with a free card reader and also it’s a regular payment gateway so you can login from any computer or tablet and do keyed or swiped transactions that way also.
Also see http://paymentspulse.com/wp-content/uploads/2012/11/TSG-Square-Infographic.pdf
And View ePNMobile
If you are a ticketbroker going to Vegas in July this is a MUST attend event for you as unlike similar venues NATB gives you vendors, speakers and exhibitors based on quality and benefits. Other shows limit vendors, speakers and exhibitors to the ones paying the organizers referral fees on any business acquired. Very limiting and Atychiphobic https://www.worldticketconference.com/attendee-registration.html
Time to figure out if you’re a sissy. If you are really serious about improving your body to beyond ultimate you must get this program from my friend Hugo. I am in the 5th month of the predecessor program to MI40-Xtreme HMAX I love HMAX. I have lost 15lb, 4″ on my waist, bodyfat is down 4% and everyone is commenting on my arms & legs and my blood pressure and pulse are down considerably. Hugo and his wife Cecile Bayeul Rivera are class all the way stressing honesty and no hype.
Nothing better than a protein shake after a brutal MI-40 workout! By the way, the University tested MI40-Xtreme system is finally out! Check out the details here on how you can get MI40-Xtreme and over $1000 in muscle building/fat loss e-books/videos! >>> http://bit.ly/mi-40x-wed-mail
Hugo Rivera Best Selling Fitness Author
Nothing better than a protein shake after a brutal MI-40 workout!
By the way, the University tested MI40-Xtreme system is finally out! Check out the details here on how you can get MI40-Xtreme and over $1000 in muscle building/fat loss e-books/videos! Go Here for More Info http://archive.aweber.com/hugo-newsletter/EAti9/h/60_More_Muscle_Growth_With.htm