FAQs

You’ve got questions, we’ve got answers.   Payline answers your most common questions.  Check out the categories and click the “+” to the left to see the answer.

Myth. I’m a small merchant who only takes a handful of cards, so I don’t need PCI.

Fact. This is a common misunderstanding with the standard, that small merchants handling only one or a few credit cards a year are exempt from compliance. If you are a merchant and are set up to take credit cards by any mechanism – then you need to be complaint.

Myth. PCI only applies to e-commerce companies.

Fact. No, PCI applies to every company that stores, processes or transmits cardholder information. In fact anyone who takes card present transactions that involve POS devices are typically more at risk than e-commerce solutions. Quite often these types of transactions involve storage of track data (which is forbidden under PCI). Compromise of this type of data may bring heavy fines and requests for compensation from the banks involved.

Myth. You only have to be PCI compliant with the majority of criteria.

Fact. The pass mark for PCI is 100%, so if you fail even one of the criteria, you are not PCI compliant. The standard is not meant to be something to strive for; it is essentially a floor, a basis for further security measures. Failing to achieve even one of the requirements, is failing to meet a basic standard for handling cardholder information. All companies that routinely handle this type of data should be aiming to exceed the standard. It’s just good business.

Myth. I only need to protect my credit card data, not ATM debit card related data.

Fact. Incorrect – both are required. Many debit cards are dual-purpose ‘signature debit’, which can be used on debit and credit card networks. As such, they are covered under PCI and must be protected in the same way as credit cards.

Myth. I can wait until my business grows.

Fact. Incorrect – the PCI standard applies to all sizes of business and waiting could be costly. Should you be compromised and not be PCI compliant, the fines and the compensation requirements by the banks (it typically costs between $50 and $90 to replace one card) could be substantial.

Myth. I can just answer ‘yes’ to all the criteria on the Self-Assessment Questionnaire.

Fact. The Self-Assessment Questionnaire (SAQ) is a mechanism for getting the information about the level of your compliance to your merchant bank. The standard applies at all times. Just saying yes to the questions puts you at great risk. If a compromise took place and it was obvious that you were not and have never been PCI compliant, the matter would be taken very seriously. You would be risking your whole business by answering ‘yes’ to the questions, when there is no factual basis for the answers.

Myth. I can wait until my bank asks me to be PCI compliant.

Fact. The dates for merchants to be PCI compliant are long gone. You are responsible for making sure you are in compliance. Waiting until the bank asks you could be very costly indeed.

Myth. I didn’t sign anything saying I would be compliant; so, I don’t need to be.

Fact.  The PCI standard forms part of the operating regulations that are the rules under which merchants are allowed to operate merchant accounts. The regulations signed when you open an account at the bank state that the VISA regulations have to be adhered to. Even if you have been in business for decades, PCI still applies if you store, process or transmit credit cards.

Myth. As a merchant, I’m entitled to store any data.

Fact. Many merchants believe that they own the customer and have a right to store all the data about that customer in order to help their business. Not only is this incorrect regarding PCI, it may also be a violation of State and Federal legislation regarding privacy. The PCI regulations specifically forbid storing of any of the following:

  1. Unencrypted credit card number
  2. CVV or CVV2
  3. Pin blocks
  4. PIN numbers
  5. Track 1 or 2 data

Any of the above found in databases, log files, audit trails, backup’s etc. can result in serious consequences for the merchant, especially if a compromise has taken place.

Myth. One vendor and product will make us compliant.

Fact. Many vendors offer an array of software and services for PCI compliance. No single vendor or product, however, fully addresses all 12 requirements of PCI DSS. When marketing focuses on one product’s capabilities and excludes positioning these with other requirements of PCI DSS, the resulting perception of a ‘silver bullet’ might lead some to believe that the point product provides ‘compliance’, when it’s really implementing just one or a few pieces of the standard. The PCI Security Standards Council urges merchants and processors to avoid focusing on point products for PCI security and compliance. Instead of relying on a single product or vendor, you should implement a holistic security strategy that focuses on the ‘big picture’ related to the intent of PCI DSS requirements.

Myth. Outsourcing card processing makes us compliant.

Fact. Outsourcing simplifies payment card processing but does not provide automatic compliance. Don’t forget to address policies and procedures for cardholder transactions and data processing. Your business must protect cardholder data when you receive it, and process charge backs and refunds. You must also ensure that providers’ applications and card payment terminals comply with respective PCI standards and do not store sensitive cardholder data. You should request a certificate of compliance annually from providers.

Myth. PCI compliance is an IT project.

Fact. The IT staff implements technical and operational aspects of PCI-related systems, but compliance to the payment brand’s programs is much more than a ‘project’ with a beginning and end – it’s an ongoing process of assessment, remediation and reporting. PCI compliance is a business issue that is best addressed by a multi-disciplinary team. The risks of compromise are financial and reputational, so they affect the whole organization. Be sure your business addresses policies and procedures as they apply to the entire card payment acceptance and processing workflow.

Myth. PCI will make us secure.

Fact. Successful completion of a system scan or assessment for PCI is but a snapshot in time. Security exploits are non-stop and get stronger every day, which is why PCI compliance efforts must be a continuous process of assessment and remediation to ensure safety of cardholder data.

Myth. PCI is unreasonable; it requires too much.

Fact. Most aspects of the PCI DSS are already a common best practice for security. The standard also permits the option using compensating controls to meet some requirements. The standard provides significant detail, which benefits merchants and processors by not leaving them to wonder, ‘Where do I go from here? “]’ This scope and flexibility leads some to view PCI DSS as an effective standard for securing all sensitive information.

Myth. PCI requires us to hire a Qualified Security Assessor (QSA).

Fact. Because most large merchants have complex IT environments, many hire a QSA to glean their specialized value for on-site security assessments required by PCI DSS. The QSA also makes it easier to develop and get approval for a compensating control. However, PCI DSS provides the option of doing an internal assessment with an officer sign-off if your acquirer and/or merchant bank agrees. Mid-sized and smaller merchants may use the Self-Assessment Questionnaire (SAQ) found on the PCI SSC Website to assess themselves.

Myth. PCI makes us store cardholder data.

Fact. Both PCI DSS and the payment card brands strongly discourage storage of cardholder data by merchants and processors. There is no need, nor is it allowed, to store data from the magnetic stripe on the back of a payment card. If merchants or processors have a business reason to store front-card information, such as name and account number, PCI DSS requires this data to be encrypted or made otherwise unreadable.

Myth. PCI is too hard.

Fact. Understanding and implementing the 12 requirements of PCI DSS can seem daunting, especially for merchants without security or a large IT department. However, PCI DSS mostly calls for good, basic security. Even if there was no requirement for PCI compliance, the best practices for security contained in the standard are steps that every business would want to take anyways to protect sensitive data and continuity of operations. There are many products and services available to help meet the requirements for security – and PCI compliance.
When people say PCI is too hard, many really mean to say compliance is not cheap. The business risks and ultimate costs of non-compliance, however, can vastly exceed implementing PCI DSS – such as fines, legal fees, decreases in stock equity, and especially lost business. Implementing PCI DSS should be part of a sound, basic enterprise security strategy, which requires making this activity part of your ongoing business plan and budget.

What is PCI?

The Payment Card Industry Data Security Standard (PCI DSS) is a set of requirements designed to ensure that ALL companies that process, store or transmit credit card information maintain a secure environment. Essentially any merchant that has a Merchant ID (MID).
The Payment Card Industry Security Standards Council (PCI SSC) was launched on September 7, 2006 to manage the ongoing evolution of the Payment Card Industry (PCI) security standards with focus on improving payment account security throughout the transaction process. The PCI DSS is administered and managed by the PCI SSC (www.pcisecuritystandards.org), an independent body that was created by the major payment card brands (Visa, MasterCard, American Express, Discover and JCB.).
It is important to note, the payment brands and acquirers are responsible for enforcing compliance, not the PCI council.
A copy of the PCI DSS is available here.

To whom does PCI apply?

PCI applies to ALL organizations or merchants, regardless of size or number of transactions, that accepts, transmits or stores any cardholder data. Said another way, if any customer of that organization ever pays the merchant directly using a credit card or debit card, then the PCI DSS requirements apply.

Where can I find the PCI Data Security Standards (PCI DSS)?

The Standard can be found on the PCI SSC’s Website:
https://www.pcisecuritystandards.org/security_standards/pci_dss.shtml

What are the PCI compliance deadlines?

All merchant that stores, processes or transmits cardholder data must be compliant now. However, as a Level 4 merchant, you will have to refer to your merchant bank for their specific validation requirements and deadlines. All deadline enforcement will come from your merchant bank. You may also find more information on Visa’s Website:
http://usa.visa.com/download/merchants/payment_application_security_mandates.pdf.

What are the PCI compliance ‘levels’ and how are they determined?

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, Visa acquirers 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, acquirers will continue to consider the DBA’s individual transaction volume to determine the validation level.
Merchant levels as defined by Visa:
Description
1
Any merchant — regardless of acceptance channel — processing over 6M 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 1M to 6M Visa transactions per year.
3
Any merchant processing 20,000 to 1M 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 1M Visa transactions per year.

* Any merchant that has suffered a hack that resulted in an account data compromise may be escalated to a higher validation level.
Source: http://usa.visa.com/merchants/risk_management/cisp_merchants.html

What does a small-to-mid sized business (Level 4 merchant) have to do?

To satisfy the requirements of PCI, a merchant must complete the following steps:

  • Identify your Validation Type as defined by PCI DSS – see below . This is used to determine which Self Assessment Questionnaire is appropriate for your business.

  • Complete the Self-Assessment Questionnaire according to the instructions in the Self- Assessment Questionnaire Instructions and Guidelines.
  • Complete and obtain evidence of a passing vulnerability scan with a PCI SSC Approved Scanning Vendor (ASV). Note scanning does not apply to all merchants. It is required for Validation Type 4 and 5 – those merchants with external facing IP addresses. Basically if you electronically store cardholder information or if your processing systems have any internet connectivity, a quarterly scan by an approved scanning vendor is required.
  • Complete the relevant Attestation of Compliance in its entirety (located in the SAQ tool).
  • Submit the SAQ, evidence of a passing scan (if applicable), and the Attestation of Compliance, along with any other requested documentation, to your acquirer.
  • I’m a small merchant with very few card transactions; do I need to be compliant with PCI DSS? “]

All merchants, small or large, need to be PCI compliant. The payment brands have collectively adopted PCI DSS as the requirement for organizations that process, store or transmit payment cardholder data.

If I only accept credit cards over the phone, does PCI still apply to me?

Yes. All business that store, process or transmit payment cardholder data must be PCI Compliant.

Do organizations using third-party processors have to be PCI compliant?

Yes. Merely using a third-party company does not exclude a company from PCI compliance. It may cut down on their risk exposure and consequently reduce the effort to validate compliance. However, it does not mean they can ignore PCI.

My business has multiple locations, is each location required to validate PCI?

If your business locations process under the same Tax ID, then typically you are only required to validate once annually for all locations. And, submit quarterly passing network scans by an PCI SSC Approved Scanning Vendor (ASV), if applicable.

Are debit card transactions in scope for PCI?

In-scope cards include any debit, credit, and pre-paid cards branded with one of the five card association/brand logos that participate in thePCI SSC – American Express, Discover, JCB, MasterCard, and Visa International.

Am I PCI compliant if I have an SSL certificate?

No. SSL certificates do not secure a Web server from malicious attacks or intrusions. High assurance SSL certificates provide the first tier of customer security and reassurance such as the below, but there are other steps to achieve PCI Compliance. See Question “What does a small-to-medium sized business (Level 4 merchant) have to do in order to satisfy the PCI requirements? “]”

  • A secure connection between the customer’s browser and the web server
  • Validation that the Website operators are a legitimate, legally accountable organization

What are the penalties for noncompliance?

The payment brands may, at their discretion, fine an acquiring bank $5,000 to $100,000 per month for PCI compliance violations. The banks will most likely pass this fine on downstream till it eventually hits the merchant. Furthermore, the bank will also most likely either terminate your relationship or increase transaction fees. Penalties are not openly discussed nor widely publicized, but they can catastrophic to a small business.
It is important to be familiar with your merchant account agreement, which should outline your exposure.

What is defined as ‘cardholder data’?

Cardholder data is any personally identifiable data associated with a cardholder. This could be an account number, expiration date, name, address, social security number, etc. All personally identifiable information associated with the cardholder that is stored, processed, or transmitted is also considered cardholder data.

What is the definition of ‘merchant’?

For the purposes of the PCI DSS, a merchant is defined as any entity that accepts payment cards bearing the logos of any of the five members of PCI SSC (American Express, Discover, JCB, MasterCard or Visa) as payment for goods and/or services. Note that a merchant that accepts payment cards as payment for goods and/or services can also be a service provider, if the services sold result in storing, processing, or transmitting cardholder data on behalf of other merchants or service providers. For example, an ISP is a merchant that accepts payment cards for monthly billing, but also is a service provider if it hosts merchants as customers.

Source: PCI SSC

What constitutes a Service Provider?

Any company that stores, processes, or transmits cardholder data on behalf of another entity is defined to be a Service Provider by the Payment Card Industry (PCI) guidelines.

What constitutes a payment application?

What constitutes a payment application as it relates to PCI Compliance? “] The term payment application has a very broad meaning in PCI. A payment application is anything that stores, processes, or transmits card data electronically. This means that anything from a Point of Sale System (e.g., Verifone swipe terminals, ALOHA terminals, etc.) in a restaurant to a Website e-commerce shopping cart (e.g., CreLoaded, osCommerce, etc) are all classified as payment applications. Therefore any piece of software that has been designed to touch credit card data is considered a payment application.

What is a payment gateway?

Payment Gateways connect a merchant to the bank or processor that is acting as the front-end connection to the Card Brands. They are called gateways because they take many inputs from a variety of different applications and route those inputs to the appropriate bank or processor. Gateways communicate with the bank or processor using dial-up connections, Web-based connections or privately held leased lines.

How is IP-based POS environment defined?

The point of sale (POS) environment refers to a transaction that takes place at a merchant location (i.e. retail store, restaurant, hotel, gas station, convenience store, etc.). An Internet protocol (IP) -based POS is when transactions are stored, processed, or transmitted on IP-based systems or systems communicating via TCP/IP.

What is PA-DSS and PABP?

PA-DSS refers to Payment Application Data Security Standard maintained by the PCI Security Standards Council. PABP is Visa’s Payment Application Best Practices, which is now referred to as PA-DSS. Visa started the program and it is being transitioned to the PCI Security Standards Council (PCI SSC).
To address the critical issue of payment application security, in 2005 Visa created the Payment Application Best Practices (PABP) requirements to ensure vendors provide products which support merchants’ efforts to maintain PCI DSS compliance and eliminate the storage of sensitive cardholder data. See www.visa.com/pabp for more information.
The Payment Card Industry Security Standards Council (PCI SSC) will maintain the PA-DSS and administer a program to validate payment applications’ compliance against this standard. The PCI SSC now publishes and maintains a list of PA-DSS validated applications. Seehttps://www.pcisecuritystandards.org/security_standards/pa_dss.shtml for more information.
VISA MANDATE PHASE DEADLINE

  1. New PCI Level 4 merchants (including new locations of existing relationships) may not use vulnerable payment application versions – those that store prohibited cardholder data. January 1, 2008
  2. New PCI Level 4 merchants using third-party payment software must be either PCI DSS-compliant or use PA-DSS validated compliant payment applications. October 1, 2008
  3. ALL PCI Level 4 merchants (new and existing) using third-party software must use validated applications. July 1, 2010

Can the full credit card number be printed on the consumer’s copy of the receipt?

PCI DSS requirement 3.3 states “Mask PAN when displayed (the first six and last four digits are the maximum number of digits to be displayed).” While the requirement does not prohibit printing of the full card number or expiry date on receipts (either the merchant copy or the consumer copy), please note that PCI DSS does not override any other laws that legislate what can be printed on receipts (such as the U.S. Fair and Accurate Credit Transactions Act (FACTA) or any other applicable laws). See the italicized note under PCI DSS requirement 3.3 “Note: This requirement does not apply to employees and other parties with a specific need to see the full PAN, nor does the requirement supersede stricter requirements in place for displays of cardholder data (for example, for point of sale (POS) receipts).” Any paper receipts stored by merchants must adhere to the PCI DSS, especially requirement 9 regarding physical security.

Do I need vulnerability scanning to validate compliance?

If you electronically store cardholder data post authorization or if your processing systems have any internet connectivity, a quarterly scan by a PCI SSC Approved Scanning Vendor (ASV) is required.

What is a network security scan?

A network security scan involves an automated tool that checks a merchant or service provider’s systems for vulnerabilities. The tool will conduct a non-intrusive scan to remotely review networks and Web applications based on the external-facing Internet protocol (IP) addresses provided by the merchant or service provider. The scan will identify vulnerabilities in operating systems, services, and devices that could be used by hackers to target the company’s private network. As provided by an Approved Scanning Vendors (ASV’s) such as ControlScan the tool will not require the merchant or service provider to install any software on their systems, and no denial-of-service attacks will be performed.
Note, typically only merchants with external facing IP address are required to have passing quarterly scans to validate PCI compliance. This is usually merchants completing the SAQ C or D version.

How often do I have to scan?

Every 90 days/once per quarter you are required to submit a passing scan. Merchants and service providers should submit compliance documentation (successful scan reports) according to the timetable determined by their acquirer. Scans must be conducted by a PCI SSC Approved Scanning Vendor (ASV). ControlScan is a PCI Approved Scanning Vendor.

What if a merchant refuses to cooperate?

PCI is not, in itself, a law. The standard was created by the major card brands such as Visa, MasterCard, Discover, AMEX, and JCB. At their acquirers/service providers discretion, merchants that do not comply with PCI DSS may be subject to fines, card replacement costs, costly forensic audits, brand damage, etc., should a breach event occur.
For a little upfront effort and cost to comply with PCI, you greatly help reduce your risk from facing these extremely unpleasant and costly consequences.

If I’m running a business from my home, am I a serious target for hackers?

Yes, home users are arguably the most vulnerable simply because they are usually not well protected. Adopting a ‘path of least resistance’ model, intruders will often zero-in on home users – often exploiting their ‘always on’ broadband connections and typical home use programs such as chat, Internet games and P2P files sharing applications. ControlScan’s scanning service allows home users and network administrators alike to identify and fix any security vulnerabilities on their desktop or laptop computers.

What should I do if I’m compromised?

We recommend following the procedures outlined in Visa’s” What to Do If Compromised
Visa Fraud Control and Investigations Procedures” document. Link below.
http://usa.visa.com/download/merchants/cisp_what_to_do_if_compromised.pdf

Do states have laws that requiring data breach notifications to the affected parties?

Absolutely. California is the catalyst for reporting data breaches to affected parties. The state implemented breach notification law in 2003 and there are now over 38 states that have similar laws in place. See www.privacyrights.org for more detail on state laws.

What is Payline Giving?

Payline Giving is a unique revenue sharing opportunity developed by Payline Data to help non-profits  (charities, schools, foundations, etc.) in their fundraising efforts.  This program offers deserving organizations the ability to generate contributions from their business patrons at no cost to the organization and no additional cost to the business.   All donations come out of the revenue generated by using Payline Data services and contributions are made on behalf of Your business.

 

How does Payline Giving work?

Non-Profit organizations registered in the Payline Giving program receive 10% of the monthly revenue from each business account supporting their cause.  This is normally paid on a quarterly, recurring basis for all referred business accounts that select to use Payline Data’s business services.  It is truly redefining the way America Gives Back and supporting deserving organizations in achieving their missions.

The donations are made in the business name for each account.  Payline takes care of the donation calculation, issues payment and tracks it all.  We also file for the donation tax incentives.

It is the simplest way your business will ever be able to give back, all at no additional cost!   Does it sound too good to be true?  It’s not and we are for real.  Check out www.PaylineGiving.org or any of our testimonial sections for proof this is a real and powerful system.

 

Is there an activation, application or other fees/charges to participate?

No.  There is no application fee or additional fees to participate in the program.

 

Will my rates/fees increase?

No. Participating in Payline Giving often means that your costs will go down.  The worst case is that they will stay exactly the same as your existing rates.  The program was created to redefine the way America gives back and connect your business to your community without increasing your costs.

 

Do I have to change my merchant service provider?

Yes, unless you are already using Payline Data.

Payline Data will provide you a rate comparison, show you what your typical monthly donation would look like (based on past statements) and get you setup and activated quickly.  We guarantee to save you money with our Best Price Promise as well.

Changing processors is required to ensure your funds are tracked, handled and reported properly and efficiently.

 

Do I have to buy new equipment/software to participate in Payline Giving?

Almost always, No.  Services provided by Payline are compatible with the majority of terminals and Point of Sale (POS) systems in use today. In the vast majority of cases you will be able to use your existing equipment. However, in the rare event that your terminal or POS is not currently supported, many times we can work directly with the manufacturer of your equipment to integrate their systems with ours. In the event that we cannot support your system and the manufacture is unwilling to integrate with our systems, you will have the option to get a new terminal and/or POS system from Payline (often free) or through a third party equipment provider of your choice.

 

Can I review my donation totals?

Of course! And your customers can too!! You will receive a hard copy quarterly donation report for your business which details out your total donation for the past quarter for you to display in your business.   You can also sign up online to view your reports digitally and connect with the nonprofits we support to see the great work your commitment has enabled them to accomplish.

 

How do I start participating today?

Sign up to use Payline Data services today!

Send a copy of your most recent merchant services statement to Payline Data at 800-660-0318 or submitting your application online at www.paylinedata.com – make sure to black out any sensitive information (like bank account numbers).  A representative from Payline will contact you within 1 – 2 business days of receiving your statement to discuss your account, provide you a comparison with monthly donation estimate and answer any questions you might have.

 

What products/services are offered by Payline Data to merchants?

Payline Data provides merchant credit/debit card processing for store front and e-commerce businesses, advance payment technologies, competitive pricing and world-class customer service that will make the businesses sales process simpler, faster, smarter and more efficient.

 

How can I promote that I am donating through Payline Giving?

You will receive a plaque from Payline indicating that you have chosen to donate to your cause.   You can also log into our web-based account at any time to monitor your donations and even receive information, emails and updates from your nonprofit, even their facebook and twitter information.

 

How much can my business expect to donate through Payline Giving?

We will contribute a portion (minimum of 10%) of the revenue from your account using Payline Data to the nonprofit of your choice.

To give you a basis for comparison, the average individual normally contributes on average $1,800 over a 5 year period.   An average size business participating in Payline Giving program will contribute $4,800 over the same time period.

Please note that actual results will vary for each organization.

 

What type of business can participate in the program?

Any business that accepts credit cards or checks as a form of payment for their products/services can participate.  In fact, every business that Payline services participates in the Payline Giving program whether they want to or not.  It is just a part of what we do to make the world a better place.

 

When and how often does the nonprofit I support receive contributions?

The nonprofit organization that you choose will receive contributions on a quarterly basis.   Payline receives its revenue payments monthly but we combine our donation payments into quarterly distributions in order to make the process more efficient.  We require about two weeks to process the accounting; therefore, your organization will receive the donation check approximately 30 days after the close of each quarter.

 

How long does the program last?

The nonprofit organization will continue to receive contributions for as long as your company chooses to use Payline services.

 

Why should my business participate?

The real question is why wouldn’t you want to participate?  Giving back makes a difference in the world.

Whether you have a cause you support or not, Payline Giving was implemented to take something common and make it Remarkable!   Your business can reduce operating costs and improve the level of service you receive, all while also supporting your favorite nonprofit organization – at no additional expense.

 

I received my new equipment but how can I determine the key functions?

If you are missing an “overlay” for your terminal’s keypad, contact your Processor or a Payline Data customer service representative to send you a copy.

When will i receive confirmation and shipment information for an online order?

Once an online order has been placed, a confirmation email with an order number will be sent to the email address provided. All online orders are then designated to a sales representative who will contact you within 24 hours. Before we can ship your order, our representative needs to speak with you directly to avoid potential complications such as:

1) Compatibility issues between many products and processors. We need to verify that the equipment ordered will operate properly within your processing environment.

2) To confirm that all contact and shipping information is correct.

3) To ensure that your request includes all items needed for processing.

How do I program my credit card equipment/software?

FOR NEW ACCOUNTS:  If you need to purchase new processing equipment, contact your sales representative to place your order. If you have existing processing equipment, one of our technicians will contact you within 2 business days after your account has been approved to conduct the reprogram. If you have ordered a payment gateway or software product, the programming information will be emailed to you within 24-48 business hours from the time of your merchant account approval.

FOR EXISTING MERCHANTS:  If you have recently purchased new equipment from Payline Data, the equipment should already be programmed for ready-use. If you already have processing equipment, simply contact Technical Support so they can guide you through the reprogramming over the phone. If you have recently set up a new payment gateway or software product through another vendor, contact Customer Service to get the necessary programming information for proper installation.

 

How can I get a FREE terminal?

Want to participate in the Payline FREE Terminal Program?

Switch or sign up today for a New Payline Data merchant account and you can receive a new state of the art terminal for FREE.

Unlike many free terminal programs, Payline Data offers:

  • A brand new, top-of-the-line, credit card terminal
  • No contract or cancellation fees **
  • No hidden fees or charges
  • Great rates on your merchant account

To get started, call the number above. Your Merchant Warehouse representative will provide you with a complete schedule of fees along with your application.

 

**Single terminal program only.  Multiple free terminal programs may have cancellation fees.

 

What is Payline’s Cash Advance Program?

If your business could benefit from a rapid infusion of cash, and who couldn’t, Merchant Warehouse has the solution for you!

Here’s How It Works:

Simply let us know how much cash you would like to be advanced. We then review your request based on your average credit card processing volume. Once you are approved, you simply sign the paperwork and the cash is sent to you within days!

It’s THAT simple!

After you have your funds, we simply deduct a predetermined percentage from your daily Visa® and MasterCard® receipts until the agreed amount is paid back.

Why a Cash Advance?

  • Much faster access to cash than the hassle of a loan
  • No personal guarantee required
  • No fees or penalty for extended payback period
  • Much more liberal policies than any bank product
  • No hidden costs or fees
  • No collateral necessary

Are you ready to get the cash you need to grow your business? Simply call us at the number above to get started.

 

What check processing services does Payline provide?

Are you looking to accept checks, but don’t want to assume the high risks that go along? Payline Data offers our merchants the ability to set up a check processing account which allows them to authorize a check within seconds without the need for specialized equipment.

For our current credit card processing customers who add this service, if a properly conforming check is returned by the bank, Payline Data will reimburse your business for the amount up to $1500, dependent upon your plan.

Another benefit of our check processing service is that it allows you to accept checks without having to purchase of any specialized equipment. You can run the check verification directly though your credit card terminal or even over the phone or Internet.

Payline Data offers some of the highest approval rates in the check processing industry, and allows your business to accept checks from the United States, and Canada.

To learn more about check verification, or any of the merchant services we offer, simply call the number above.

 

What is ControlScan PCI Compliance?

In an effort to help our merchants validate compliance with the PCI data security standards (PCI DSS), we have joined forces with ControlScan, a full-service PCI DSS compliance and security solutions provider for small to mid-sized merchants.

Since smaller businesses seldom have the IT or financial resources to focus on system, network, and data security, ControlScan offers their expertise and personalized technical assistance with security vulnerability remediation and resolution, as needed.

With ControlScan, our merchants will be given a streamlined and affordable solution to easily and efficiently achieve PCI DSS compliance and protect their business and customers’ cardholder information against data theft.

Achieve compliance in 3 easy steps: (Example)

 

What is NFC (Near Field Contactless) Payments and how do they work?

Near Field Contactless (NFC) payments are the wave of the future with most new consumer credit cards and many new mobile phones coming equipment to make contactless payments.   As such, contactless payment terminals have become the present and future of credit card transactions.  Also known as “tap and pay,” contactless payment provides benefits to retailers and consumers alike, particularly in the areas of speed and convenience.

Contactless payments are simply transactions that do not require physical connection between your customers’ credit card and the terminal. Smart chip technology, otherwise known as RFID, is supported by a secure controller, internal memory, and a small built-in antenna that transmits information to a reader through radio frequency.

The primary advantages of a contactless payment reader over traditional swipe cards are speed and convenience. Consumers can just tap the contactless payment terminal, eliminating the need for a transfer of hands with a credit card and a receipt signature. In turn, check-out lines become shorter as transaction times become faster.

Contactless payments are best suited for quick-service retailers, such as convenience stores, fast-food restaurants, movie theaters, pharmacy / drug stores, and gas stations and for those whose average ticket is $25 or less.

Retailers with major POS terminal providers can easily upgrade their existing system with a plug-and-play contactless payment device.

 

Do I need software or a terminal?

Deciding on whether you want to use a credit card terminal or some form of payment processing software to handle card transactions should is usually fairly straightforward. The answer generally depends on the physical environment in which you will be accepting the charges.

Most simply put, the decision usually boils down to whether or not you will have easy access to a computer when you need to charge cards and what kind of transactions systems you already have in place.

If a computer is readily available payment processing software often provides numerous benefits over traditional credit card terminals. Most users love the reporting features available to them and find it helpful to go back and look up a previous transaction. Payment processing software is also usually less expensive and more user friendly than most new credit card terminals.

There are logical reasons why many businesses may be better off with a terminal however. To start with, many businesses already have invested in some sort of cash register or POS system. While some of these can be integrated with payment processing software, many can not. In these cases, it is usually simpler to use a credit card machine rather than cluttering your valuable counter space.

Another circumstance when a terminal may be preferable is when your computer may not always be on or may be in an inconvenient location. If you need to take payments in real-time and can’t be inconvenienced with accessing your PC, then you may be better off with a credit card terminal.

 

Does my business need a wireless credit card terminal?

Is your business suffering because you’re unable to accept credit cards while on the road? Or worse, are you losing sales to declined credit cards processed off-location, without the customer or card present? If so, your business may need a wireless credit card terminal.

For mobile businesses (i.e. Transportation and Towing services, Contractors, Delivery services, Direct Sales, Trade Show and Flea Market merchants, etc.), a wireless credit card terminal enhances business mobility and efficiency, simplifies the billing and payment process, and increases sales and revenue.

Wireless terminals allow mobile merchants to:

Accept payments from anyone, anywhere, anytime:

  • Wireless terminals offer mobile businesses a solution for accepting credit card payments in real time and on-location.
  • With connections to multiple cell phone networks, wireless coverage is provided throughout the country.
  • To enable continued operation in low-coverage areas, wireless terminals have a “Store and Forward” security feature that provides an offline capture of transactions.

Enjoy efficiency and convenience:

  • Wireless terminals deliver a rapid check-out process, with verified transactions received in 2-3 seconds.
  • Wireless terminals are compact, and easy to deploy and use.

Reduce the risk of financial losses:

  • By accepting payments real-time, you can avoid losing sales from declined credit cards processed off-site.
  • By accepting credit cards on-site, you can reduce the risk of carrying large sums of cash or receiving bad checks.

Operate with low processing costs:

  • Wireless processing is an affordable solution for mobile merchants; since swiping a credit card with the customer present involves less risk, processing costs are lower compared to manually key-entering card information at a later time.

Wireless credit card terminals offer mobile merchants a simple and dependable payment solution from a handy device. So take advantage of the many benefits and capabilities supplied by a wireless credit card terminal, and start processing mobile credit card transactions today!

 

How do I select Credit Card Equipment right for me?

With so many different types of credit card equipment on the market these days, choosing the correct type for your business can be a confusing task. In order to help guide you towards the correct choices, here are some questions you should ask yourself when shopping for credit card equipment.

Will customers be using their credit or debit cards at my physical business location or will I be collecting the card information through another means?

  • If you will be swiping cards directly from your customers, your best option for credit card equipment is probably some sort of credit card terminal and printer combination. If you will not be swiping the cards manually, many merchants will want credit card equipment that is more suited to their specific needs. Software packages are available if there is a PC at the business location or a standard terminal and credit card printer may work just fine.

Is a contactless payment solution the right choice for my business?

  • Merchants who have “quick service” retail operations, and whose average ticket is $25 or less, may benefit from Contactless Payment credit card equipment. The “tap and pay” technology has proven to be most valuable for convenience stores, fast food restaurants, pharmacies, movie theaters and other merchants who rely on faster transaction times and shorter wait times for customers. Merchants can also upgrade their existing credit card equipment to a contactless payment reader without disrupting their operations.

Is there a phone line or broadband internet access available at the business location?

  • Most businesses have at least one phone line at their business location and, these days, most have some sort of “always on” internet connection. For these businesses, there are many choices for credit card equipment. Most credit card equipment can share a phone line with a fax, or even the main phone if calls are infrequent and some of the newer terminals can utilize broadband internet for even faster transactions. If no phone or intent is available, such as at a trade-show or for delivery companies, etc, merchants should consider either a battery powered credit card terminal or wireless credit card machines that work over the cell phone networks.

Will you be accepting PIN-based debit card transactions?

  • For those merchants that think they will be accepting debit cards they should consider adding credit card equipment like a PIN Pad to give their customers additional payment options. As described in this article about debit card processing, accepting PIN based transactions may save you money and add value to your customer’s experience.

How many merchant accounts will you need for your business?

  • For almost all businesses the answer is one. There are examples however where multiple merchant accounts are either desirable or a necessity. These merchants will want a piece of credit card equipment that can handle more than one merchant account. There are inexpensive terminals which handle two accounts and more robust units which can handle up to 99. A qualified merchant account sales person should be able to recommend the correct credit card equipment for your specific situation.

Which terminal brands should I consider?

  • Since most of the major credit card equipment manufacturers are producing high quality and feature rich products these days, you really can’t go wrong whatever brand you choose. That said, some of the processors may work better with a particular brand of credit card equipment and some newer pieces of equipment are not certified at every processor immediately upon their release. Again, this is a situation where it is best to let your merchant account sales representative guide you as to the best options given your particular processor and needs.

 

How do I choose an Online Payment Gateway right for me?

While many online payment gateway options are feature rich you still want to spend some time comparing them. This article explains how to go about determining the best online payment gateway option for your business.

Some may prove better in different environments and the reasons can sometimes be quite technical. Take the time to read up on the specs and compatibilities of the different online payment gateway packages. If there is any confusion, or you aren’t certain what might be the best product for you, be sure to call and ask your salesperson questions. Any experienced sales person should be able to fit you with the correct product and describe the pros and cons.

If you already have an ecommerce website and a shopping cart, simply mention this to your sales person when you call. Most off-the-shelf shopping cart packages are compatible with all major online payment gateway products. If your company has built its own shopping cart and database systems you may want to consider having your technical person review the documentation for the gateway you choose.

Payline offers our own industry leading solution but we also carry all of the major online payment gateways on the market today. You can browse through all of them in our section for payment gateways.

 

How do I choose a software to process my credit cards?

More and more merchants are taking advantage of the powerful credit card processing software products available to them. These are systems for virtually any type of processing environment from retail stores to websites.

All have their advantages, but selecting the right credit card processing software for your business is very important. Before making a decision merchants should ask themselves a few questions:

Will you be accepting credit cards over the Internet?

  • If so, merchants should lean towards using an online payment gateway in conjunction with their shopping cart. Payment gateways are a type of credit card processing software which is hosted by a third party on a server outside of your business. Your shopping cart, or other payment software, communicates with the payment gateway via the internet and it manages the actual transactions. Merchant Warehouse sells several payment gateways including: Authorize.net, VeriSign, and LinkPoint. We also offer our own product, MerchantWare Payment Gateway, which has all the features, flexibility and compatibility standard to these products.

How many credit card transactions will you need to handle at any one time?

  • For most merchants the answer is usually only one, but some merchants who have more than one user or customer running transactions at the same time will need a more robust credit card processing software solution. If there are multiple internal users and they are on a network you can use PC Charge Pro. If the users are not on a network, then a merchant can use a virtual terminal such as the one offered by of Authorize.Net. This virtual terminal will allow users to log in using their web browsers and charge cards from anywhere they have Internet access. Transaction information is centrally located and can be accessed from anywhere.

Will you be charging the same customer’s cards on a regular basis?

  • Merchants whose customers are frequently reordering or those who bill their customers on a monthly basis may wish to use credit card processing software that stores credit card information and can charge customers at specified intervals. PC Charge Pro has this feature built in and makes it easy to manage charging customers.

 

What are the benefits of a Merchant Account?

With cash less commonly carried, and checks gradually becoming obsolete, credit and debit cards have completely revolutionized the industry, becoming the most common forms of payment. The majority of merchants world-wide are now accepting these cards because of the benefits of a merchant account, and to maintain your business’ competitive edge, you should accept plastic too.

After all, you could be missing out on more than just sales….

By accepting credit cards, you get all the Benefits of a Merchant Account:

  • Boost sales and improve customer satisfaction by allowing customers to choose their preferred form of payment.
  • Increase your average sale because the customer doesn’t need to have the cash on them.
  • Speed up the check-out process with efficiency and convenience.
  • Protect yourself from potential losses caused by bad checks.
  • Avoid the risk and inconvenience of having large sums of cash.
  • Accept payments from virtually anyone, anywhere.

By providing alternative payment options to cash and checks, a merchant account can be extremely advantageous for any business. Although some merchants tend to hesitate in signing up for a merchant account due to cost factors, the loss in sales and profits may be far more costly. The fact is, besides all the other benefits of a merchant account, people tend to spend more money when paying with a credit or debit card than when paying with cash. By accepting these payments, your increased revenue will compensate for more than just merchant account costs. So, to make your business more successful, take advantage of the benefits of a merchant account, and accept credit cards today!

 

What makes merchant account types different?

In the payment processing industry, every merchant is classified into a specific “merchant account type” category, based on how they collect card information and conduct transactions. To learn which category your business is classified under, we have defined the characteristics of each merchant account type in this article.

There are two main merchant account type categories, “Swiped” and “Keyed,” which reflect the basic methods used to capture card information. Within these main categories are sub-categories, broken down according to the business environment and processing technique.

“Swiped” or, “Card Present” merchants directly interact with their customers face-to-face and capture card information by physically swiping cards through a terminal or point-of-sale system. The sub-categories within this group include:

  • Retail Merchants: “Retail” merchants typically conduct business in a storefront or office where they interact with their customers face-to-face and physically swipe cards through a terminal or Point-of-Sale system.
  • Restaurant Merchants: “Restaurant” merchants require the ability to add tips to their charges (Note: Restaurants that do not process tips are still considered “Retail” merchants in this industry). Using a special tip function, they authorize a customer’s card for a certain sale amount and then settle that authorization with an adjusted price to include the tip amount.
  • Wireless/Mobile Merchants: “Wireless” or “Mobile” merchants need to accept and authorize cards wherever they are located, which is usually on the road. Using a portable wireless terminal, these merchants process on-site, real-time transactions at their customers’ locations.
  • Lodging Merchants: “Lodging” merchants (e.g. Hotels, Motels, and Bed & Breakfasts) authorize a customer’s card for a specific sale amount and, depending on the customer’s length of stay, will adjust and settle out that authorization a day or more later to include additional fees such as taxes, etc.

“Keyed or, “Card-Not-Present” merchants indirectly collect their customers’ card information, and, depending on the business environment and technology used, can process transactions in various ways. The sub-categories within this group include:

  • Keyed Face-to-Face Merchants: “Keyed Face-to-Face” merchants eventually meet their customers in person to deliver the product or provide the service, but they don’t actually collect card information with the customer or card present. Generally, they take orders over the telephone, via fax, mail, email, or the Internet, and then manually key-enter card information into a terminal, software, payment gateway, or other point-of-sale system.
  • Mail Order/Telephone Order (“M.O.T.O.”) Merchants: “M.O.T.O.” merchants rarely, if ever, meet their customers face-to-face. Instead, these merchants collect orders and card information over the telephone, by mail, fax, or via the Internet, and manually key-enter transactions through a terminal, software, payment gateway, or point-of-sale system. Then, once payment for an order is confirmed, the product is shipped for future delivery.
  • Internet or E-Commerce Merchants: “Internet” or, “E-Commerce” merchants conduct all business through a website, so all card information is collected and transactions are processed online, in real-time, using a payment gateway that’s built into their website’s shopping cart. So, once the order/sale is confirmed, the card is charged instantly and the product is shipped for future delivery. (Note: This merchant type does not apply to businesses that only market on the Internet, but do not immediately process payments via their website, upon order confirmation.)

 

What makes Payline Different?

Unfortunately, merchant account providers are not always 100% straight about the service they will be providing to potential merchants. This article provides an overview on what to look at before you commit to a merchant account.

You could sign up for a merchant account, with what appears to be a very low rate, but end up stuck in a messy contract riddled with inflated fees, timed rate increases or extremely high rates for different types of transactions.  If a low rate is all you look for, you could find yourself paying a lot more in the long run.  In addition, the service commitments a company provides can prove just as important as rates and fees. If you have questions or problems with your merchant account and can’t get any assistance, the last thing you’ll be thinking about is your rates. Just think what it would cost you to lose the ability to process charges for a few days!

Payline Data not only offers great rates and service for credit card processing services, we also give our customers a new way to Give Back with Payline Giving.  Whether you’re a small business or a large enterprise, you can expect:

Giving Back on YOUR Behalf

Payline has created a simple way for business owners to consistently give to charitable causes without any cost to their businesses.  We provide a way for business owners to give more strategically by integrating their philanthropic goals into their business planning.

For example, a business owner can choose Payline to provide merchant processing services to accept credit cards at their business. Payline then gives 10% of fees each month to the business owner’s charity of choice at no additional cost to the business.

Find out more at www.paylinegiving.org

24/7 Toll Free Customer Service

At Merchant Warehouse, we have invested in dedicated departments for both account service and equipment support. These in-house teams will do whatever it takes to keep you up and running with as little down time as possible.

Besides our top notch internal team, our network of service providers has over 900 customer service representatives ready to assist you with your merchant account at any time.

Real-Time Account Access

Many merchants want more access to their accounts than just getting a statement once a month. Our merchants can get online merchant account data, including transaction summaries and batch detail reports, meaning no more waiting for statements to balance your books!

No Down Time

A state-of-the-art-network ensures your credit card processing transactions go through when you need them to.

Peace of Mind

Our expertise and personal service allow you to run your business without worrying about your merchant account or your credit card processing services. Most importantly, since we don’t require contracts and don’t charge any termination fees, you can trust that we will constantly do anything we can to keep you satisfied.

Your satisfaction is our top priority. We’ll give you an honest review of competitive quotes or offers — whether you choose us or not!

 

 

What should I consider when searching for a Merchant Account provider?

There are several factors to look at as well as traps to avoid when choosing the best merchant account for your business. This article should help guide you in making the best choice for your business when choosing a merchant account.

Suspiciously Low Rates

  • Make sure the rate you’ve been quoted is for the type of transactions you’ll be processing. For example, many mail order merchants have mistakenly signed up for a retail merchant account with low rates and found themselves getting charged much higher fees because they were not swiping their customers’ cards.
  • Ask whether the rate you’ve been quoted is an introductory rate. Some processors automatically raise your rates after an initial period, resulting in unexpected credit card processing costs down the line.

Average Ticket and Monthly Volume

  • Every processor will ask you to estimate your average sale and monthly credit card volume. This, in part, allows the processing company to determine the level of risk they are taking by extending you a merchant account. If you estimate far too low, you may run into trouble, as you are now a higher risk than the processor initially estimated. On the other hand, if you guess far too high, you may be required to file some extra paperwork and provide significantly more business or personal credit-related materials. Talk it over with your account representative; he or she should have plenty of experience estimating volumes and average tickets.

Understanding Fees

  • When you first get a quote for merchant accounts, some fees may seem a bit confusing. Take the time to go through your application and ask questions about the fees you don’t understand. Taking the time to go through the fees may prevent unpleasant surprises when you get your first merchant statement. Remember, a quote is not the same as a statement of fees. Many quotes do not list all possible fees, so make sure to do your homework and get the statement of fees.

Contracts & Cancellation Fees

  • Before you even set up a merchant account, ask for details on how you would go about canceling. Is there a termination fee or time commitment? Some processors may have contracts for their merchant accounts that automatically renew if you don’t give written notice more than a month before your contract expires. Also, beware of claims such as “even though you have a fee in your contract, we never charge it.”
  • Not all processors require a contract, so unless there are some special circumstances, it is usually best to go with a company that is flexible and doesn’t require you to make a long-term commitment. Think of it this way: if you can cancel your merchant account at any time, a good company will work hard to keep you a satisfied customer.

Customer Support

  • Many companies use the same employees for sales, account service, and technical support, or worse, don’t even have an internal support staff. A company that has dedicated departments for each will be able to offer you expert help, whether you have questions about your statement, or need to get your terminal back up and running in a hurry.
  • A processor that offers 24 hour support will be there whenever you need them, meaning you won’t be at the mercy of someone else’s business hours. 24 hour support is also a good indicator of the company’s commitment to its customers beyond the application process.

 

What are Payline’s Merchant Account Rates?

This is a question our sales team hears throughout the day. So why doesn’t Payline just post our rates for merchant accounts on our website so that customers can compare pricing? The answer is a bit more complex than you may expect.

Simply stated, if you shop for a merchant account by focusing only on rates, you will end up paying too much.

For many merchants, the merchant account rates can amount to only a small portion of their overall cost. If you only consider merchant account rates, you are excluding a long list of potentially costly factors such as credit card equipment, start-up or termination fees, annual fees, contracts, monthly minimums, statement fees and many other expensive pitfalls.

Contrary to what some companies would like you think when they boldly advertise seemingly low rates, there is no “standard” rate for merchant accounts for pricing comparison. Visa® and MasterCard® each have over 100 different merchant account rate categories based on the type of card, environment in which it is accepted and whether or not all the cardholder information is collected properly and accurately. These categories are then consolidated by each processor into groupings with averaged rates called “qualified,” “mid-qualified” and “non-qualified.” The less “qualified” the transaction, the more you are charged.

So, the next time you are looking for a merchant account, remember to avoid the, “What are your rates?” question. Instead, try to focus on the overall expected cost of processing and factor in all potential fees. If a company guarantees to have the lowest rates, ask to see it in writing. If they have the guarantee in writing, you will quickly realize that these low merchant account rates only apply to a very small fraction of your credit card transactions.

Hopefully, it is now easy to understand why we do not post rates for merchant account on our website, as advertising them can become confusing and potentially deceptive.

Payline Data guarantees to have the lowest overall costs of processing and we put it in writing with our Best Price Promise. You can count on our professional staff to educate you on all your options and advise you on how to get the best possible rates for your specific business situation.

 

What is a Merchant Account?

Merchant accounts provide businesses with the ability to accept credit card and debit cards for purchases. There are several different aspects to a merchant account, which we will describe below.

A Merchant Account Entails:

  • Processing Services: To set up a merchant account, a business owner, or “merchant” must apply through a merchant service provider (MSP) such as Payline Data. Approval of a merchant account depends on factors which include, but are not limited to:
    • Applicant and/or Personal Guarantor’s Credit Score
    • Business Type (Goods or Services Sold)
    • Card Acceptance Method (Merchant Type)
    • Monthly Volume & Average Sales Ticket
    • Business’ Financial Condition & Bank Account Type
    • Business Longevity
    • Return/Refund Policies
  • Processing Rates & Fees: There are various fees associated with having a merchant account. These could vary, depending on the type and company providing the service, but all merchant accounts have 2 main costs:
    • Discount Rates: With most merchant service providers, every processed sale is classified into 1 of 3 qualification levels (Qualified, Mid-Qualified, & Non-Qualified), and is charged a discounted percentage rate associated with that qualification. Each sale’s level and rate is determined by the type of card used, and/or how it is accepted and processed.
    • Transaction or Authorization Fee: This fee is charged for each electronic authorization request and transaction made, including all approved and declined sales, returns, voids, and batch settlements.
  • Processing Capability Systems: To process credit card payments, processing equipment or software is required to capture card information, make authorization requests, and close sales. Depending on business needs, equipment options include:
    • Terminals: Wireless, Contactless, Stand-Alone and Terminal/Printer Combination units
    • PC Software: Stand-alone or integrated into other business systems
    • Internet Gateway Solutions: Virtual Terminal or eCommerce versions

To maintain customer satisfaction and increase sales and revenue, it is becoming essential for businesses to have merchant accounts and accept credit card payments. Fewer and fewer customers carry cash, checks involve significant risk, and sending your customers running to the ATM machine could lose you valuable business. For both your business’ and customers’ benefit, contact us today to set up your merchant account.

What can I expect to find on my Monthly Statement?

Merchant account statements can sometimes be confusing, especially for new merchants. Generally, questions and concerns pertain to the charging of monthly fees and the timing of account statements, so we hope that this article will help to explain some of these confusing aspects.

As with any credit card processing company, merchant accounts typically becomes active within one business day of the account approval date. Once your merchant account is live, you are able to process credit card transactions and are also responsible for any fees assessed starting on that date. Therefore, any monthly fees will be charged, in full, for every month the account is open, regardless of your processing volume.

Monthly fees are posted to your bank account generally within the first week of the month following your merchant account activation, and continue each month that your account remains live. A statement reflecting the charges for your previous month’s processing activity is then issued and should follow mid-month. If you do not receive your processing statement by the third week of the following month, you should contact customer service to confirm that we have the correct mailing address as specified on your merchant application.

Please contact a customer service representative if you have any questions or concerns about your monthly merchant account fees or credit card processing statement.

 

 

What are 5 ways I can save on my Merchant Account?

Although accepting credit card payments may seem like a costly business expense, it certainly doesn’t have to be. Following are five ways you can save money on your merchant account, and avoid frustrating traps.

1) Never Focus Exclusively on Percentage “Discount” Rates. Companies who quote extremely low rates are usually trying to distract you from additional fees they charge that can have you paying much more in the long run.

· Thoroughly assess each quote and consider the many other cost factors, because getting the lowest rates doesn’t necessarily mean that you’re getting the best deal.

2) Look to Save on Processing Equipment. Most equipment can function with any processor, so there are plenty of product and pricing options to choose from.

· Shop around to find the most suitable solution for your budget and processing needs.

· Never lease. Leasing is extremely costly, and involves long-term agreements.

3) Don’t Sign a Contract. Signing a contract commits you to staying with a processor regardless of your level of satisfaction with them.

· Contracts allow processors to increase your rates at any time.

· With contracts, some processors feel that they can neglect to provide the service you demand.

· Cancelling in the midst of your term means paying a steep termination fee.

4) Avoid Termination Fees… Some companies may not focus on developing a long-term relationship with you and instead, rely on a Termination Fee to keep you from leaving.

· To some processors, a Termination Fee may be more profitable than providing the service necessary to keep merchants satisfied for years. They may actually prefer that you cancel so they can collect the huge fee.

…and Reprogramming Fees. Many processors use scare tactics, to convince you to purchase or lease their equipment. They threaten that if you buy equipment elsewhere, they “need” to charge a reprogramming fee.

· Truth is, most reprogramming procedures are simple and inexpensive, regardless of where equipment is purchased.

5) Ensure You Have the Right Type of Merchant Account for Your Business. There are different types of merchant accounts based on the way credit card transactions are accepted. It is always cheaper to have the right merchant account type for your business.

· Always work with a firm that can explain the differences between the different merchant account types and that teaches you to process credit card payments the best way for your business.

Merchants should always look for the best overall pricing, while not neglecting the service they deserve. By referring to these 5 guidelines when shopping for a merchant account, you can find a merchant service provider who will give you everything your business is looking for.

 

How does Retail Credit Card Processing work?

If you own a business with a store front or do business face to face by some other means then accepting credit cards is a must.  Payline can help you find the solution to fit your needs whether you have a store, restaurant, kiosk or food truck.  We understand that you need a solution customized for your needs to helps save time and money.

How Retail Credit Card Processing Works

  1. The merchant slides the customer’s card through the credit card terminal or POS system and enters the sale amount. The terminal then connects to Payline’s processor for authorization.
  2. The processor passes that information onto the bank that issued the credit card where the bank checks to see if the card is valid and see if the charge amount is available on the card.
  3. The issuing bank sends back an approval number or a decline message to Payline’s processor.
  4. The information is passed back to the credit card terminal which prints a receipt for the customer to sign if the card is approved. It takes approximately 12-15 seconds to complete steps 1-4 on a credit card machine using a phone line. The newer internet enabled machines can cut this time to just a few seconds.
  5. At the end of the day the merchant must “settle” or “batch out” their terminal which will begin the final process of the transaction. In most cases Payline can automatically settle the transactions at a specified time each day. Once the settlement process is initiated the funds are transferred from the card issuing bank and are electronically deposits them into the merchant’s checking account. It typically takes no more than two business days from the time of the original transaction for the funds to reach the merchant’s checking account.

Tips for Retail Credit Card Processing

Retail credit card processing is the most straight-forward of all merchant account scenarios. Follow the tips below and you’ll be sure to avoid any of the possible pitfalls of setting up a retail credit card processing account.

  • Give yourself enough time. Most retail processing accounts can be set up in a day or two, but it does sometimes take longer. It’s a good idea to start thinking about setting up a merchant account a few weeks before you plan on using it.
  • Use credit card processing experts for your retail credit card processing needs. Banks, superstores and other companies who sell, but do not specialize in, merchant accounts, can never be as competitive and up-to-date with the current trends and technologies as specialists like Payline Data.
  • Understand all of your fees. When you get a quote for a retail credit card processing some fees may seem a foreign to you. Take the time to go through your application and be certain to ask questions about anything you don’t understand. A good credit card processing company will patiently and competently answer all your questions.
  • Give some thought to your average ticket and projected monthly credit card volume. Every retail credit card processing company should ask you to estimate your average sale and monthly processing volume in order to get you the most appropriate account. If you estimate too low or too high you may find yourself with hassles down the road. Most good sales reps will have plenty of experience helping to estimate volumes and average tickets.
  • A contract or cancellation fee will almost always come back to bite you. As a retail business owner you should find it fairly easy to get a retail credit card processing account. It is no coincidence that companies who require these types of deals are often the ones who provide the most unreliable service.  Beware of sales people that claim that “even though you have a fee in your contract, we never charge it.”

 

How does Wireless Credit Card Processing work?

For years the payment options for mobile merchants were limited to either cash or check. Today, wireless credit card machines have given mobile merchants access to the same credit card authorization networks as retail businesses.

This new technology has allowed the benefits of security and additional sales to merchants who previously had to handle cash or take the risk of accepting checks. As a bonus, wireless credit card processing is typically faster than traditional landline processing. And, since wireless terminals work off of the reliable Verizon and AT&T/Cingular networks, merchants can process secure transactions virtually anywhere in the country.

Payline Data has a complete line of solutions for mobile merchants or any businesses which wants the added flexibility and opportunity wireless credit card processing offers. Whether you own a small pizza delivery shop or a large concert vending service, we have a wireless credit card processing and merchant account solution for your business.

How Wireless Credit Card Processing Works

  1. The merchant slides the customer’s card through the wireless credit card terminal and enters the sale amount. Using a technology similar to a cell phone, the terminal connects to a radio tower and sends the credit card information and amount of the purchase.
  2. The transaction information is routed to Merchant Warehouse’s processor.
  3. The processor passes that information onto the bank that issued the credit card (issuing bank). The issuing bank checks to see if the card is valid and if the amount requested is available on the card and sets aside the amount of the purchase for the merchant.
  4. The issuing bank sends back an approval number or a decline message to the processor.
  5. The information is then passed back to the mobile credit card machine. It takes approximately 8-12 seconds to complete the transaction depending on the coverage available and network traffic.
  6. At the end of the day the merchant may manually “settle” their terminal which will begin the final process of the transaction. Once the settlement process is initiated the funds are transferred from the card issuing bank and deposited into the merchant’s checking account within two business days from the time of the original transaction.

Wireless Credit Card Processing Tips

Follow the tips in this article and you’ll be sure to avoid any of the possible pitfalls of setting up a wireless credit card processing account.

Tips on setting up your Wireless Merchant Account

  • Check your wireless coverage network, and then check it again! There are several different networks for wireless credit card processing. Coverage for wireless terminals can vary widely between networks and some are even being phased out. Ask your sales rep or account manager to tell you on what network their recommended hardware solution will work and then check coverage maps.
  • Give yourself a little extra time. While it’s true that most wireless credit card processing accounts can be set up within a day or two, it does sometimes take a bit longer. A good wireless credit card processing tip is to start thinking about setting up your wireless merchant account at least a few weeks before you plan on using it.
  • Wireless credit card processing typically has a few different fees than traditional merchant account. Understand all of your wireless processing fees and make sure everything is disclosed. Be thorough examining the application and ask questions about fees you don’t understand. Taking the time to go through the fees may save you an unpleasant surprise when you get your first merchant statement.
  • Inform your salesperson if you are a seasonal business. Many wireless credit card processing merchants are only in business for a few months out of the year. If this applies to you, make sure your salesperson is aware. Doing so will help avoid problems which can arise if your account has been inactive and suddenly reactivates when you re-open for business.

 

Visa and MasterCard Rules and Regulations

As a merchant accepting MasterCard® and Visa®, there are basic card acceptance rules that you must follow. By adhering to these rules, you can increase customer satisfaction and ensure that you do not run into compliance issues, which may put your continued ability to accept credit cards at risk. The following are some of the rules outlined in the Visa and MasterCard manuals:

Card Logos & Acceptance: You must display the appropriate card logos for any card types that you accept and advise your customers of their payment options. You must honor all categories of cards (credit, debit, rewards etc.) within each card type that you accept.

Dollar Minimums and Maximums: You may not impose a minimum or maximum amount for any transactions. If you do not accept a customer charge, which is below a certain amount that you specify, the customer can notify Visa and/or MasterCard, who will take the appropriate steps to see that you understand and adhere to the card acceptance rules and regulations.

Surcharges: All credit card transactions must be treated like any other transactions. You may not impose any surcharge on a transaction because your customer is using a credit card. However, you may offer a discount to your customers for paying in cash provided the offer is clearly disclosed to your customers and the cash price is a discount from the standard price charged for any other type of payment.

Laundering: You may only process transactions for your own business. Processing transactions for a business that does not have a valid merchant agreement is called laundering and is considered a form of fraud.

To learn more about the rules and regulations of accepting Visa and MasterCard cards, please contact us or see the Visa and MasterCard guides available through the Visa and MasterCard websites.

 

Open Source Shopping Cart Solutions

Payline offers our own customized APS Gateway which features its own customizable shopping cart features.  We also provide leading API for integration with a variety of payment gateway software for many popular open source shopping carts.

A payment gateway like Authorize.net, Linkpoint, or PayFlow Pro is necessary for any serious e-commerce business. With a payment gateway, your online business can accept credit cards securely and hassle free through your website.  Listed below are the supported free open source e-commerce software that can accept credit cards through the payment gateways we provide.

  • Magento:
    Magento is yet another new package in the open source shopping cart software industry. Magento is also gaining ground in the industry by offering a host of integrated features in its software package. Authorize.net and PayFlow Pro is included with free LinkPoint add-ons.
  • CRE Loaded:
    CRE Loaded offers the first free, open source software package with full PCI DSS compliance. The package is fully scalable to your needs. It comes with intergrated Authorize.net and Linkpoint payment gateways.
  • OpenCart:
    Is a feature rich, easy to use, and search engine friendly online shopping cart system. It has add-on modules for Authorize.net as well as Linkpoint.
  • OpenFreeWay:
    Another robust open source shopping cart platform, OpenFreeWay also offers the choice to sell services, subscriptions, as well as products right out of the box. As an added benifit, OpenFreeWay now also includes extensions to intergrate directly with Joomla! a popular open source content management system. Authorize.net is fully integrated.
  • Zen Cart:
    Zen Cart is popular open source online web store management system. Since it is based off the same code as osCommerce, you can expect the same level of functionality, but with more built in features. Zen Cart includes support for payment gateways such as Authroize.net, LinkPoint, and PayFlow.

Shopping Cart Extensions for existing content management systems:

  • VirtueMart:
    VirtueMart is a free e-commerce add-on module for the popular open source content management system, Joomla! Although it exists as an add-on, its functionality is diverse with free and unlimited community support. VirtueMart offers built in payment gateway functionality for Authorize.net as well as free community sponsored add-ons for LinkPoint.
  • osCMax:
    osCMax is the premier add-on module for a widely used open software content management system, Drupal. osCMax includes integrated Authorize.net and LinkPoint for payment gateway.
  • WP e-Commerce:
    WP e-Commerce is the leading shopping cart plug-in for a Wordpress, a popular blogging CMS platform. Authorize.net is integrated in this system.

 

How is Online Debit Card processing different?

Not all debit card transactions are the same! For those merchants able to use a PINPad along with a credit card terminal, online debit card processing can offer a big savings. The difference between “online” and “offline” debit card transactions is that “online” requires the merchant to input their 4 digit PIN number and have their card swiped while “offline” functions exactly the same as any credit card transaction.

So why is does online debit card processing have such potential savings? Consider the bank’s perspective. When a customer presents their card for payment and then enters a PIN number manually, the chances of fraud are extremely small. Because if this, the costs for pin based, transactions, or online debit card processing, can be much lower.

When conducting pin based transactions, merchants are charged a flat fee for each order instead of a percentage rate (discount rate) plus transaction a fee. Assuming a merchant takes 100 debit cards over the course of a month (about 3 per day) and averages $85 per sale, a conservative cost analysis shows that a merchant could save over $100 a month, or $1,200 a year.

 

How does Online Credit Card processing work?

If you own an Internet store or a retail e-commerce website, you will need online credit card processing.  With the help of an online merchant account and credit card payment gateway, you can give your customers the option to purchase goods with the click of the mouse, at any time, day or night.

Payline Data can provide you with an online merchant account and the ability to do online credit card processing, no matter how small or how large of a website you have.

How Online Credit Card Processing Works

  1. The online customer finds the merchant’s website and adds products to their shopping cart. When they are ready to check out, they enter their billing information.
  2. If the merchant does not have a secure page, the customer can be transferred to a secure payment gateway. If the merchant does have a secure site, then the information will be “passed” to the payment gateway without the customer ever leaving the merchant’s site.
  3. Once the billing information has made it to the payment gateway, it is then transmitted to the processor.
  4. The processor passes the information from the online payment gateway onto the bank that issued the credit card, which verifies that the card is valid and that the amount requested is available on the card.
  5. The bank sets aside the purchase amount for the merchant, then sends back an approval number or a decline message to the processor.
  6. Within 3-15 seconds, the information in steps 2-6 is passed back to the gateway.
  7. The gateway passes the approval code back to the merchant’s site or, if the merchant does not have a secure site, gives the customer their approval information. At this point, the merchant can also choose to have the payment gateway email the customer a payment receipt.
  8. Final payment is secured and is deposited in the internet merchant’s account. It typically takes two business days from the time of the original transaction for the funds to reach the merchant’s checking account.

Tips on Setting Up Your Online Merchant Account

  • While it’s true that most online merchant accounts can be set up in a few days, it does sometimes take longer. A good online merchant account tip is to start thinking about setting up your account a few weeks before you plan on using it. You will have plenty of other challenges in those last few days before you open for business.

  • Use credit card processing experts for your online credit card processing needs. Since internet and online credit card processing is relatively new, you should make sure you get the best advice, software and costs available. Most banks, superstores and other companies who do not specialize in merchant accounts can never be as up-to-date with the current trends as specialists like Merchant Warehouse.
  • Online credit card processing may have a few different fees than a retail merchant account. Understand all of your online processing fees and make sure everything is fully outlined. Be thorough reviewing the application and be certain to ask questions about anything you don’t understand. Taking the time to go through everything thoroughly may save you from surprises when you get your statement.
  • Make sure you are quoted for online credit card processing and not a retail account. Many merchants may find that they are initially quoted, and mistakenly sign-up for, a retail account. If you have a retail account, you will get hit with much higher fees than you would have if you had set your account up properly. Most online credit card processing accounts will have a rate well over 2%. If you are quoted a rate below this number, it is likely that you have been misquoted.
  • Choose a leading payment gateway to handle your online credit card processing transaction. While some newer gateway companies have excellent products, nothing beats the reliability and the ease of integration that the more established gateway companies have. If you follow this tip, you know you are getting a product that works from a provider with a proven record.

 

 

What is MOTO Credit Card Processing?

If you run a mail order business and/or take credit card payments over the telephone, you are participating in, what we call in the industry, MOTO Credit Card Processing. (MOTO = Mail Order Telephone Order). Essentially, this means that you collect credit cards in an environment where the customer and credit card are not physically present at the time of purchase. Another term used for this is card not present credit card processing.

New MOTO credit card processing options are available with a wide range of card processing equipment and software.  Payline Data has many business consultants that can help you get the processing solution that’s just right for your business.

How MOTO Credit Card Processing works.

  1. The customer calls or mails in an order to the merchant and provides their credit card information.  The merchant enters the card information and sale amount it into a credit card terminal, Online Payment Gateway or PC Software.
  2. The processing system connects to Merchant Warehouse’s processor for authorization.
  3. The processor passes the sale information on to the bank that issued the credit card which checks to see that the card is valid and if the amount requested is available on the account.
  4. The issuing bank (bank that issued card to customer) sends an approval number or a decline message back to the processor.
  5. The information is passed back to the processing system which gives the merchant the approval number and allows them to print a receipt for their records.  It takes less than 15 seconds to complete steps 2-5 on a traditional terminal or just a few seconds with a terminal or software connected to the internet.
  6. The merchant must “settle” their processing sales on a daily basis which begins the final process in the transactions.   This is known as a batch settlement.  The sales proceeds are then transferred from the card issuing bank and are electronically deposits into the merchant’s checking account. It typically takes two business days from the time of the original transaction for the funds to reach the merchant’s checking account.

MOTO Credit Card Processing Tips

Follow the tips in this article and you’ll be sure to avoid any of the possible pitfalls of setting up a MOTO credit card processing account.

  • Most MOTO credit card processing accounts can be set up in a few days but is still a good tip to start thinking about setting up your account a few weeks before you plan on using it. The last thing you want to be worried about in the days before you open for business is whether or not your merchant account will be ready.
  • Your local bank or other business whose primary focus is something besides credit card processing may not be the best option. While most merchants like the idea of doing business with their local bank or may initially be attracted to deceptive deals posed by wholesale chains, they often do not realize that these companies have little experience setting up MOTO merchant accounts. It is generally good advice to go directly to a company who specializes in MOTO Credit Card Processing like Merchant Warehouse. This will usually save you both time and money, and ensure that you have the best equipment and service for your particular needs.
  • When you get a quote for MOTO credit card processing, make certain you understand all of your rates and fees. Take the time to go through your application and ask questions about fees you don’t understand. Taking the time to go through the fees may save you an unpleasant surprise when you get your first merchant statement. If a fee or particular field on the application is blank, make sure to ask about it and, if possible, have the blank filled in with a zero or “none.”
  • Double check to make certain that the rate you are quoted is for MOTO credit card processing. Many merchants have mistakenly signed up for a retail account, with seemingly low rates, only to found themselves getting charged much higher fees than necessary. A good litmus test to check if you are being quoted an incorrect rate is to look at the “qualified rate.” Most retail businesses pay less than 2% per transaction for cards they can swipe through a terminal. If your rates are below 2%, it is likely that you have been quoted for a retail account.

 

 

What are “Interchange” and “Assessments” Fees?

The most important thing to note about Interchange and Assessments is that they are NON-NEGOTIABLE.  They are set by Visa MasterCard and the Issuing Banks (bank that issued card to customer) and are the same for every business no matter what processor/merchant account provider they choose to use.

“Interchange” rate is a percentage  of the volume for each credit card transaction. (78% of total processing cost)

Composed of a flat rate for each transaction plus a percentage of the transaction amount example: $0.10/per transaction +1.75% of transaction volume Interchange is the largest chunk of your processing cost. 

Interchange pricing is complex, because each card and transaction type has a unique cost, creating an assortment of over 150 Interchange rate categories.  These rates will be the same no matter what processor company you use as they are determined by Visa/MC and the issuing bank based on four key items:

  1. Brand and type of card the customer uses (Credit, Debit, Rewards, Corporate, etc.)
  2. Type of business you run (Retail, Restarant, Gas Station, Hotel, e-Commerce, etc.)
  3. Type of transaction that was made (swiped vs keyed vs online, etc.)
  4. Information collected with transaction for verifications (address verification, tax amount, etc.

“Assessment” fee is a flat transaction fee added to each transaction. Fees associated with Visa/MasterCard (4% of total processing cost)

Simply put, these are fees that Visa & MasterCard charge for using their networks.  These fees are almost 20 times less than Interchange (Visa & Mastercard: 0.11%).  Mastercard has an additional assessment called Network and Brand Usage Fee (NABU) which is 0.0185% per transaction. Visa has an additional assessment fee which is called Acquirer Processing Fee (APF) which is 0.0195% per transaction.

Set by Visa/MasterCard and non-negotiable.

 

Simply put, there are two basic fees that collectively, make up the vast majority of the cost of a merchant account (approximately 82% on average).  In the credit card processing industry, these costs are referred to as “Interchange and Assessments,” and they are charged by bank card networks like Visa® and MasterCard® every time a merchant accepts one of their cards for purchases.

To lessen any confusion, merchant account providers typically compile all similar Interchange categories and bundle them into a few groupings such as qualified, mid-qualified and non-qualified.  However, this is just one way merchant accounts can be priced. Some merchant account providers quote an “Interchange Plus” structure, which combines the actual cost of the transaction based on the Interchange category into which it falls, the applicable Assessment Fee, plus an additional specified value on top of each.

In the end, the bulk of a merchant’s credit card processing expenses and the root of all merchant account pricing structures derive from the combination of the Interchange and Assessment fees, regardless of the pricing structure.

 

How can I avoid Downgrades (surcharges, mid/non qualified rates)?

A downgrade simply means that you are being charged a rate increase because the type of card your customer is using has a higher processing cost or because a transaction was processed incorrectly by you, the merchant.

Whether you are currently accepting credit cards, or plan on doing so, it is important to know how to save money by avoiding downgrades whenever possible.  You can’t always prevent downgrades from happening, but this section will show you what you can do to keep your transaction costs as low as possible.

As an example, for a Retail or “Swiped” Account where the customer is handing over their card for processing, a transaction will get the Qualified Discount Rate (lowest rate possible) only if the card is swiped, the cardholder is present, and the card is a standard consumer credit card. If any of these criteria are changed, the account will “downgrade” to either the “Mid” or “Non” qualified level. These levels are each associated with a greater cost of processing.

Here is a more detailed description of what can be done to avoid many downgrades, and also what happens if certain criteria are not met.

Retail/Card Swiped Accounts

Qualified Rate

The Qualified Discount Rate is charged when all of the following occur:

  • Standard consumer credit card is used
  • Card is swiped accurately and data properly obtained
  • The customer’s signature is captured
  • The transaction is “Batched” or “Settled” within 24 hours

Mid-Qualified

The Partial/Mid Qualified rate will be applied when any of the following occur:

  • The card info is manually entered, or “keyed” & all AVS info is entered
  • The consumer uses a Rewards card
  • Transactions are not settled/batched within 24 hours

Non-Qualified

If any of the following situations occur, a Non-Qualified rate will be applied to the transaction.

  • Card is manually entered with no AVS info entered
  • The consumer uses a Corporate, Government or International card
  • Authorization code is manually keyed in to your processing terminal.
  • Transactions are not settled/batched within 48 hours

Keyed “MOTO” or Internet Accounts

For these types of accounts, the merchant manually enters credit card information into a credit card terminal or software after the order is placed or is collected through an online payment gateway.

Qualified Rate

The Qualified Discount Rate is charged when all of the following occur:

  • Standard consumer credit cards are used
  • All required Credit Card information is entered including AVS (address verification) for VISA® transactions.
  • The transactions are “Batched” or “Settled” within 24 hours
  • The order/invoice Number entered

Mid-Qualified

For MOTO/Internet Accounts, rates usually fall directly to Non-Qualified, not mid-qualify, but these are the possible reasons why a merchant may be charged a Mid-Qualified Rate

  • AVS information is not entered
  • Transaction/Batch is not settled within 24 hours
  • Card is a Rewards or Business card

Non-Qualified

If any of the following situations occur, a Non-Qualified rate will be applied to the transaction.

  • Any of the required card or transaction information is not entered
  • The consumer uses a Corporate, Government or International card
  • Authorization code is manually keyed in to your processing terminal.
  • Transactions are not settled/batched within 48 hours

As you can see, there are many factors involved in determining which rates are assessed to your transactions. Follow the tips above, and you will keep your processing rates as low as possible. A Merchant Warehouse representative is always available to answer any questions or concerns you may have.

What is Debit Card processing?

Debit Card Processing is very similar to Credit Card processing but their are several key differences.   While most merchants know they should accept debit cards, it is not always easy to understand how to take full advantage of debit card processing.   Merchants can do debit card processing in one of the following two ways:

Offline Debit Card Processing
The most common way to accept debit cards is an “offline debit transaction.” In this type of sale the merchant accepts a debit card the same way in which they would accept a normal credit card. The card is swiped through the terminal and the customer signs the receipt.  As far as the merchant is concerned, there is no difference in the way a credit card or an off-line debit card is processed.  The one thing merchants must remember is that the debit card must have a VISA® or MasterCard® logo on it.  Cards that do not bear the Visa or MasterCard logo can not be processed off-line and will not be approved.

Online Debit Card Processing
A potentially cheaper and more secure, method for accepting debit cards at the point-of-sale is called an “on-line debit transaction.” In this type of sale the card must be swiped through the terminal and external or internal PIN Pad is used to enter the merchant’s four digit PIN. The terminal will pass the encrypted number to the bank for verification. The merchant will then be paid for the transaction in the same manner and time frame that they would be paid on a credit card sale. The cost of this type of transaction is potentially lower due to the way in which the merchant is charged by the processing companies. Rather than paying a flat fee and a discount rate, or percentage of the transaction, as with a credit card or offline debit transaction, there is only a slightly higher flat fee.

 

What is a Chargeback?

The definition of a Chargeback is when a cardholder disputes a charge posted to their credit card account.   This is most common when someone checks their bill and sees something they don’t recognize and calls the number on the back of their card or the issuing bank (where they go the card) to dispute the charge.  Chargebacks can occur for various reasons, such as when a purchase was not authorized by the cardholder (fraud), or when goods or services are not provided as expected.

You should be able to avoid the vast majority of chargebacks by providing good customer service and ensuring that your products and/or services are advertised, and delivered, as promised.  The biggest cause of chargebacks are using a third party merchant account such as PayPal or similar service since the name of the charge comes up as PayPal instead of the business name.

For those chargebacks related to fraud, there are simple steps every business can take to help avoid any problems. It is up to every merchant account holder to be diligent in accepting charges, and to educate their staff about the precautions to take.

In environments where the business is accepting and swiping cards at the time of the transaction, there are several simple steps which can be taken:

  • Always compare the signature on the receipt with the signature on the back of the card.
  • Always examine the card to ensure it is not altered or suspicious looking.
  • Request identification such as a license or some other picture ID.

In situations where the business is taking credit card without the customer present (over the phone or Internet, for example), the chance of fraud-based chargebacks is much greater. It is very important for these businesses to put systems in place to help determine legitimate charge activity.

  • If appropriate, call customers to confirm their order if the billing and shipping or contact addresses do not match.
  • Ask for the code number on the back of the card (or front with American Express®) to confirm that the card is in the customer’s possession.
  • If you receive questionable orders, call to confirm the order with the cardholder.

If you have reason to believe that a card is fraudulent or otherwise questionable, always call the card issuing company for a voice authorization.

 

How does the Credit Card Authorizations Process work?

Ever wonder how credit card authorization really works? Where does the credit card information go once you enter it into a credit card terminal or POS?

When a credit card is swiped and a credit card authorization process is initiated:

  1. Information is securely sent directly to a credit card processor.
  2. The information is transmitted to the card-issuing bank (Bank that issued the credit/debit card to customer) through a bankcard association, where the transaction is either approved or declined.
  3. Bankcard association transmits the approval or decline back to the terminal or POS device.

During the credit card authorization process, a card may decline if it is expired or has insufficient funds. The transaction may also be declined if the card has been reported missing or if there has been suspicious activity on it. To further protect your business, banks now require credit card authorization for all paper-based transactions.

In order to process credit cards and initiate a credit card authorization, a business must sign apply for, and receive, a merchant account.  Once a merchant account is set up, credit card authorization may take place through the use of an equipment terminal/POS.

 

What are the benefits of Gift Cards?

Paper, or Plastic? These days, consumers prefer plastic. So fulfill your customer’s demand, and replace those old-fashioned, paper gift certificates with plastic gift cards today!

Already throughout the retail industry, merchants are issuing their customers gift cards, and to keep your business competitive, you should do the same.

Gift card services can be beneficial for you and your customers….

Merchant Benefits:

  • Enhance sales and revenue. By offering customers more options and incentives to remain loyal to your business, sales will automatically increase.
  • Earn interest from each gift card, from the point of purchase to the time of use.
  • Encourage, build, and maintain customer loyalty. To redeem the card value, customers will revisit your store and, quite possibly, purchase more.
  • “Slippage.” Unlike gift certificates, cash is not reimbursed to customers who do not redeem their full gift card value. Estimates state that approximately 10-15% of gift card balances are never used.
  • Avoid theft and fraud damages. Gift cards require activation to be used and contain other security features to help minimize the risk of theft and fraud.

Customer Benefits:

  • Save your customers valuable time. With this easy gift solution, customers know the recipient will get something they like.
  • Let customers give the gift of convenience. Gift cards offer flexibility because they can be used at any time, at any participating location, and toward any store purchase.
  • Give customers the control. Customers can easily control spending with a pre-paid, “stored value” card.

General Gift Card Information:

  • Gift cards hold, or “store” a pre-paid value that can be used for purchases.
  • Gift cards can be customized to fit the branding and image of the merchant.
  • Magnetic stripe gift cards are processed as secure, electronic payments through most existing Point of Sale systems and credit card terminals.
  • Merchants can select from various program options to better suit their objectives.
  • Gift cards can hold value until the balances are redeemed or have expired, or they can be “re-loadable.”
  • As further incentive to customer loyalty, predetermined rewards can be given back to customers.

With approximately 65% of Americans having purchased or received a gift card in the past year, trends show that gift cards have practically replaced gift certificates. Not only do they supply easy earnings for merchants, but they offer invaluable convenience for customers. So start expanding your business, and upgrade or add a gift card program.

 

 

Why should my business accept Credit Cards?

Statistics have shown that the rate of credit card usage for purchases has skyrocketed from under fifty percent in 2003 to over eighty percent (80%) in 2010.  Credit cards are no longer being reserved for emergencies, or given to teenagers when they head off to college.   Today, credit cards are being used for the everyday purchases, both small and large alike.  And with so many people turning to the internet to shop for goods and services, and even to pay their bills, you would be doing yourself a great disadvantage if you chose not to accept credit cards.  When you accept major credit cards through Payline, you are offering a very secure and convenient method of paying to your customers, which will keep them coming back, time and time again.  Customers may go to one of your competitors if you don’t accept credit cards.

To accept credit cards, what you need is a merchant account.  Payline Data does just that.  We give businesses the ability to accept credit cards as well as debit cards, smart cards, and electronic benefits transfer (EBT) by providing them with merchant accounts.

You can apply online today by clicking on the “GET STARTED.” tab.   Once you submit the form, we will assign your very own qualified business consultants to help develop a solution package customized for your business to save you money and time.  He or she will ask a few questions about your business, and answer any concerns you might have.   You can then submit your application to accept credit cards for approval. Merchants are typically notified of approval or decline and set up within 3-5 business days.

Once the submitted merchant account is approved, your assigned Payline representative will contact you immediately. Any credit card equipment ordered will be directly shipped to your business site so that you may immediately begin to accept credit cards.

 

How does Retail Credit Card Processing work?

If you own a business with a store front or do business face to face by some other means then accepting credit cards is a must.  Payline can help you find the solution to fit your needs whether you have a store, restaurant, kiosk or food truck.  We understand that you need a solution customized for your needs to helps save time and money.

How Retail Credit Card Processing Works

  1. The merchant slides the customer’s card through the credit card terminal or POS system and enters the sale amount. The terminal then connects to Payline’s processor for authorization.
  2. The processor passes that information onto the bank that issued the credit card where the bank checks to see if the card is valid and see if the charge amount is available on the card.
  3. The issuing bank sends back an approval number or a decline message to Payline’s processor.
  4. The information is passed back to the credit card terminal which prints a receipt for the customer to sign if the card is approved. It takes approximately 12-15 seconds to complete steps 1-4 on a credit card machine using a phone line. The newer internet enabled machines can cut this time to just a few seconds.
  5. At the end of the day the merchant must “settle” or “batch out” their terminal which will begin the final process of the transaction. In most cases Payline can automatically settle the transactions at a specified time each day. Once the settlement process is initiated the funds are transferred from the card issuing bank and are electronically deposits them into the merchant’s checking account. It typically takes no more than two business days from the time of the original transaction for the funds to reach the merchant’s checking account.

Tips for Retail Credit Card Processing

Retail credit card processing is the most straight-forward of all merchant account scenarios. Follow the tips below and you’ll be sure to avoid any of the possible pitfalls of setting up a retail credit card processing account.

  • Give yourself enough time. Most retail processing accounts can be set up in a day or two, but it does sometimes take longer. It’s a good idea to start thinking about setting up a merchant account a few weeks before you plan on using it.
  • Use credit card processing experts for your retail credit card processing needs. Banks, superstores and other companies who sell, but do not specialize in, merchant accounts, can never be as competitive and up-to-date with the current trends and technologies as specialists like Payline Data.
  • Understand all of your fees. When you get a quote for a retail credit card processing some fees may seem a foreign to you. Take the time to go through your application and be certain to ask questions about anything you don’t understand. A good credit card processing company will patiently and competently answer all your questions.
  • Give some thought to your average ticket and projected monthly credit card volume. Every retail credit card processing company should ask you to estimate your average sale and monthly processing volume in order to get you the most appropriate account. If you estimate too low or too high you may find yourself with hassles down the road. Most good sales reps will have plenty of experience helping to estimate volumes and average tickets.
  • A contract or cancellation fee will almost always come back to bite you. As a retail business owner you should find it fairly easy to get a retail credit card processing account. It is no coincidence that companies who require these types of deals are often the ones who provide the most unreliable service.  Beware of sales people that claim that “even though you have a fee in your contract, we never charge it.”

 

How does Wireless Credit Card Processing work?

For years the payment options for mobile merchants were limited to either cash or check. Today, wireless credit card machines have given mobile merchants access to the same credit card authorization networks as retail businesses.

This new technology has allowed the benefits of security and additional sales to merchants who previously had to handle cash or take the risk of accepting checks. As a bonus, wireless credit card processing is typically faster than traditional landline processing. And, since wireless terminals work off of the reliable Verizon and AT&T/Cingular networks, merchants can process secure transactions virtually anywhere in the country.

Payline Data has a complete line of solutions for mobile merchants or any businesses which wants the added flexibility and opportunity wireless credit card processing offers. Whether you own a small pizza delivery shop or a large concert vending service, we have a wireless credit card processing and merchant account solution for your business.

How Wireless Credit Card Processing Works

  1. The merchant slides the customer’s card through the wireless credit card terminal and enters the sale amount. Using a technology similar to a cell phone, the terminal connects to a radio tower and sends the credit card information and amount of the purchase.
  2. The transaction information is routed to Merchant Warehouse’s processor.
  3. The processor passes that information onto the bank that issued the credit card (issuing bank). The issuing bank checks to see if the card is valid and if the amount requested is available on the card and sets aside the amount of the purchase for the merchant.
  4. The issuing bank sends back an approval number or a decline message to the processor.
  5. The information is then passed back to the mobile credit card machine. It takes approximately 8-12 seconds to complete the transaction depending on the coverage available and network traffic.
  6. At the end of the day the merchant may manually “settle” their terminal which will begin the final process of the transaction. Once the settlement process is initiated the funds are transferred from the card issuing bank and deposited into the merchant’s checking account within two business days from the time of the original transaction.

Wireless Credit Card Processing Tips

Follow the tips in this article and you’ll be sure to avoid any of the possible pitfalls of setting up a wireless credit card processing account.

Tips on setting up your Wireless Merchant Account

  • Check your wireless coverage network, and then check it again! There are several different networks for wireless credit card processing. Coverage for wireless terminals can vary widely between networks and some are even being phased out. Ask your sales rep or account manager to tell you on what network their recommended hardware solution will work and then check coverage maps.
  • Give yourself a little extra time. While it’s true that most wireless credit card processing accounts can be set up within a day or two, it does sometimes take a bit longer. A good wireless credit card processing tip is to start thinking about setting up your wireless merchant account at least a few weeks before you plan on using it.
  • Wireless credit card processing typically has a few different fees than traditional merchant account. Understand all of your wireless processing fees and make sure everything is disclosed. Be thorough examining the application and ask questions about fees you don’t understand. Taking the time to go through the fees may save you an unpleasant surprise when you get your first merchant statement.
  • Inform your salesperson if you are a seasonal business. Many wireless credit card processing merchants are only in business for a few months out of the year. If this applies to you, make sure your salesperson is aware. Doing so will help avoid problems which can arise if your account has been inactive and suddenly reactivates when you re-open for business.

 

Visa and MasterCard Rules and Regulations

As a merchant accepting MasterCard® and Visa®, there are basic card acceptance rules that you must follow. By adhering to these rules, you can increase customer satisfaction and ensure that you do not run into compliance issues, which may put your continued ability to accept credit cards at risk. The following are some of the rules outlined in the Visa and MasterCard manuals:

Card Logos & Acceptance: You must display the appropriate card logos for any card types that you accept and advise your customers of their payment options. You must honor all categories of cards (credit, debit, rewards etc.) within each card type that you accept.

Dollar Minimums and Maximums: You may not impose a minimum or maximum amount for any transactions. If you do not accept a customer charge, which is below a certain amount that you specify, the customer can notify Visa and/or MasterCard, who will take the appropriate steps to see that you understand and adhere to the card acceptance rules and regulations.

Surcharges: All credit card transactions must be treated like any other transactions. You may not impose any surcharge on a transaction because your customer is using a credit card. However, you may offer a discount to your customers for paying in cash provided the offer is clearly disclosed to your customers and the cash price is a discount from the standard price charged for any other type of payment.

Laundering: You may only process transactions for your own business. Processing transactions for a business that does not have a valid merchant agreement is called laundering and is considered a form of fraud.

To learn more about the rules and regulations of accepting Visa and MasterCard cards, please contact us or see the Visa and MasterCard guides available through the Visa and MasterCard websites.

 

Open Source Shopping Cart Solutions

Payline offers our own customized APS Gateway which features its own customizable shopping cart features.  We also provide leading API for integration with a variety of payment gateway software for many popular open source shopping carts.

A payment gateway like Authorize.net, Linkpoint, or PayFlow Pro is necessary for any serious e-commerce business. With a payment gateway, your online business can accept credit cards securely and hassle free through your website.  Listed below are the supported free open source e-commerce software that can accept credit cards through the payment gateways we provide.

  • Magento:
    Magento is yet another new package in the open source shopping cart software industry. Magento is also gaining ground in the industry by offering a host of integrated features in its software package. Authorize.net and PayFlow Pro is included with free LinkPoint add-ons.
  • CRE Loaded:
    CRE Loaded offers the first free, open source software package with full PCI DSS compliance. The package is fully scalable to your needs. It comes with intergrated Authorize.net and Linkpoint payment gateways.
  • OpenCart:
    Is a feature rich, easy to use, and search engine friendly online shopping cart system. It has add-on modules for Authorize.net as well as Linkpoint.
  • OpenFreeWay:
    Another robust open source shopping cart platform, OpenFreeWay also offers the choice to sell services, subscriptions, as well as products right out of the box. As an added benifit, OpenFreeWay now also includes extensions to intergrate directly with Joomla! a popular open source content management system. Authorize.net is fully integrated.
  • Zen Cart:
    Zen Cart is popular open source online web store management system. Since it is based off the same code as osCommerce, you can expect the same level of functionality, but with more built in features. Zen Cart includes support for payment gateways such as Authroize.net, LinkPoint, and PayFlow.

Shopping Cart Extensions for existing content management systems:

  • VirtueMart:
    VirtueMart is a free e-commerce add-on module for the popular open source content management system, Joomla! Although it exists as an add-on, its functionality is diverse with free and unlimited community support. VirtueMart offers built in payment gateway functionality for Authorize.net as well as free community sponsored add-ons for LinkPoint.
  • osCMax:
    osCMax is the premier add-on module for a widely used open software content management system, Drupal. osCMax includes integrated Authorize.net and LinkPoint for payment gateway.
  • WP e-Commerce:
    WP e-Commerce is the leading shopping cart plug-in for a Wordpress, a popular blogging CMS platform. Authorize.net is integrated in this system.

 

How is Online Debit Card processing different?

Not all debit card transactions are the same! For those merchants able to use a PINPad along with a credit card terminal, online debit card processing can offer a big savings. The difference between “online” and “offline” debit card transactions is that “online” requires the merchant to input their 4 digit PIN number and have their card swiped while “offline” functions exactly the same as any credit card transaction.

So why is does online debit card processing have such potential savings? Consider the bank’s perspective. When a customer presents their card for payment and then enters a PIN number manually, the chances of fraud are extremely small. Because if this, the costs for pin based, transactions, or online debit card processing, can be much lower.

When conducting pin based transactions, merchants are charged a flat fee for each order instead of a percentage rate (discount rate) plus transaction a fee. Assuming a merchant takes 100 debit cards over the course of a month (about 3 per day) and averages $85 per sale, a conservative cost analysis shows that a merchant could save over $100 a month, or $1,200 a year.

 

How does Online Credit Card processing work?

If you own an Internet store or a retail e-commerce website, you will need online credit card processing.  With the help of an online merchant account and credit card payment gateway, you can give your customers the option to purchase goods with the click of the mouse, at any time, day or night.

Payline Data can provide you with an online merchant account and the ability to do online credit card processing, no matter how small or how large of a website you have.

How Online Credit Card Processing Works

  1. The online customer finds the merchant’s website and adds products to their shopping cart. When they are ready to check out, they enter their billing information.
  2. If the merchant does not have a secure page, the customer can be transferred to a secure payment gateway. If the merchant does have a secure site, then the information will be “passed” to the payment gateway without the customer ever leaving the merchant’s site.
  3. Once the billing information has made it to the payment gateway, it is then transmitted to the processor.
  4. The processor passes the information from the online payment gateway onto the bank that issued the credit card, which verifies that the card is valid and that the amount requested is available on the card.
  5. The bank sets aside the purchase amount for the merchant, then sends back an approval number or a decline message to the processor.
  6. Within 3-15 seconds, the information in steps 2-6 is passed back to the gateway.
  7. The gateway passes the approval code back to the merchant’s site or, if the merchant does not have a secure site, gives the customer their approval information. At this point, the merchant can also choose to have the payment gateway email the customer a payment receipt.
  8. Final payment is secured and is deposited in the internet merchant’s account. It typically takes two business days from the time of the original transaction for the funds to reach the merchant’s checking account.

Tips on Setting Up Your Online Merchant Account

  • While it’s true that most online merchant accounts can be set up in a few days, it does sometimes take longer. A good online merchant account tip is to start thinking about setting up your account a few weeks before you plan on using it. You will have plenty of other challenges in those last few days before you open for business.

  • Use credit card processing experts for your online credit card processing needs. Since internet and online credit card processing is relatively new, you should make sure you get the best advice, software and costs available. Most banks, superstores and other companies who do not specialize in merchant accounts can never be as up-to-date with the current trends as specialists like Merchant Warehouse.
  • Online credit card processing may have a few different fees than a retail merchant account. Understand all of your online processing fees and make sure everything is fully outlined. Be thorough reviewing the application and be certain to ask questions about anything you don’t understand. Taking the time to go through everything thoroughly may save you from surprises when you get your statement.
  • Make sure you are quoted for online credit card processing and not a retail account. Many merchants may find that they are initially quoted, and mistakenly sign-up for, a retail account. If you have a retail account, you will get hit with much higher fees than you would have if you had set your account up properly. Most online credit card processing accounts will have a rate well over 2%. If you are quoted a rate below this number, it is likely that you have been misquoted.
  • Choose a leading payment gateway to handle your online credit card processing transaction. While some newer gateway companies have excellent products, nothing beats the reliability and the ease of integration that the more established gateway companies have. If you follow this tip, you know you are getting a product that works from a provider with a proven record.

 

 

What is MOTO Credit Card Processing?

If you run a mail order business and/or take credit card payments over the telephone, you are participating in, what we call in the industry, MOTO Credit Card Processing. (MOTO = Mail Order Telephone Order). Essentially, this means that you collect credit cards in an environment where the customer and credit card are not physically present at the time of purchase. Another term used for this is card not present credit card processing.

New MOTO credit card processing options are available with a wide range of card processing equipment and software.  Payline Data has many business consultants that can help you get the processing solution that’s just right for your business.

How MOTO Credit Card Processing works.

  1. The customer calls or mails in an order to the merchant and provides their credit card information.  The merchant enters the card information and sale amount it into a credit card terminal, Online Payment Gateway or PC Software.
  2. The processing system connects to Merchant Warehouse’s processor for authorization.
  3. The processor passes the sale information on to the bank that issued the credit card which checks to see that the card is valid and if the amount requested is available on the account.
  4. The issuing bank (bank that issued card to customer) sends an approval number or a decline message back to the processor.
  5. The information is passed back to the processing system which gives the merchant the approval number and allows them to print a receipt for their records.  It takes less than 15 seconds to complete steps 2-5 on a traditional terminal or just a few seconds with a terminal or software connected to the internet.
  6. The merchant must “settle” their processing sales on a daily basis which begins the final process in the transactions.   This is known as a batch settlement.  The sales proceeds are then transferred from the card issuing bank and are electronically deposits into the merchant’s checking account. It typically takes two business days from the time of the original transaction for the funds to reach the merchant’s checking account.

MOTO Credit Card Processing Tips

Follow the tips in this article and you’ll be sure to avoid any of the possible pitfalls of setting up a MOTO credit card processing account.

  • Most MOTO credit card processing accounts can be set up in a few days but is still a good tip to start thinking about setting up your account a few weeks before you plan on using it. The last thing you want to be worried about in the days before you open for business is whether or not your merchant account will be ready.
  • Your local bank or other business whose primary focus is something besides credit card processing may not be the best option. While most merchants like the idea of doing business with their local bank or may initially be attracted to deceptive deals posed by wholesale chains, they often do not realize that these companies have little experience setting up MOTO merchant accounts. It is generally good advice to go directly to a company who specializes in MOTO Credit Card Processing like Merchant Warehouse. This will usually save you both time and money, and ensure that you have the best equipment and service for your particular needs.
  • When you get a quote for MOTO credit card processing, make certain you understand all of your rates and fees. Take the time to go through your application and ask questions about fees you don’t understand. Taking the time to go through the fees may save you an unpleasant surprise when you get your first merchant statement. If a fee or particular field on the application is blank, make sure to ask about it and, if possible, have the blank filled in with a zero or “none.”
  • Double check to make certain that the rate you are quoted is for MOTO credit card processing. Many merchants have mistakenly signed up for a retail account, with seemingly low rates, only to found themselves getting charged much higher fees than necessary. A good litmus test to check if you are being quoted an incorrect rate is to look at the “qualified rate.” Most retail businesses pay less than 2% per transaction for cards they can swipe through a terminal. If your rates are below 2%, it is likely that you have been quoted for a retail account.

 

 

What are “Interchange” and “Assessments” Fees?

The most important thing to note about Interchange and Assessments is that they are NON-NEGOTIABLE.  They are set by Visa MasterCard and the Issuing Banks (bank that issued card to customer) and are the same for every business no matter what processor/merchant account provider they choose to use.

“Interchange” rate is a percentage  of the volume for each credit card transaction. (78% of total processing cost)

Composed of a flat rate for each transaction plus a percentage of the transaction amount example: $0.10/per transaction +1.75% of transaction volume Interchange is the largest chunk of your processing cost. 

Interchange pricing is complex, because each card and transaction type has a unique cost, creating an assortment of over 150 Interchange rate categories.  These rates will be the same no matter what processor company you use as they are determined by Visa/MC and the issuing bank based on four key items:

  1. Brand and type of card the customer uses (Credit, Debit, Rewards, Corporate, etc.)
  2. Type of business you run (Retail, Restarant, Gas Station, Hotel, e-Commerce, etc.)
  3. Type of transaction that was made (swiped vs keyed vs online, etc.)
  4. Information collected with transaction for verifications (address verification, tax amount, etc.

“Assessment” fee is a flat transaction fee added to each transaction. Fees associated with Visa/MasterCard (4% of total processing cost)

Simply put, these are fees that Visa & MasterCard charge for using their networks.  These fees are almost 20 times less than Interchange (Visa & Mastercard: 0.11%).  Mastercard has an additional assessment called Network and Brand Usage Fee (NABU) which is 0.0185% per transaction. Visa has an additional assessment fee which is called Acquirer Processing Fee (APF) which is 0.0195% per transaction.

Set by Visa/MasterCard and non-negotiable.

 

Simply put, there are two basic fees that collectively, make up the vast majority of the cost of a merchant account (approximately 82% on average).  In the credit card processing industry, these costs are referred to as “Interchange and Assessments,” and they are charged by bank card networks like Visa® and MasterCard® every time a merchant accepts one of their cards for purchases.

To lessen any confusion, merchant account providers typically compile all similar Interchange categories and bundle them into a few groupings such as qualified, mid-qualified and non-qualified.  However, this is just one way merchant accounts can be priced. Some merchant account providers quote an “Interchange Plus” structure, which combines the actual cost of the transaction based on the Interchange category into which it falls, the applicable Assessment Fee, plus an additional specified value on top of each.

In the end, the bulk of a merchant’s credit card processing expenses and the root of all merchant account pricing structures derive from the combination of the Interchange and Assessment fees, regardless of the pricing structure.

 

How can I avoid Downgrades (surcharges, mid/non qualified rates)?

A downgrade simply means that you are being charged a rate increase because the type of card your customer is using has a higher processing cost or because a transaction was processed incorrectly by you, the merchant.

Whether you are currently accepting credit cards, or plan on doing so, it is important to know how to save money by avoiding downgrades whenever possible.  You can’t always prevent downgrades from happening, but this section will show you what you can do to keep your transaction costs as low as possible.

As an example, for a Retail or “Swiped” Account where the customer is handing over their card for processing, a transaction will get the Qualified Discount Rate (lowest rate possible) only if the card is swiped, the cardholder is present, and the card is a standard consumer credit card. If any of these criteria are changed, the account will “downgrade” to either the “Mid” or “Non” qualified level. These levels are each associated with a greater cost of processing.

Here is a more detailed description of what can be done to avoid many downgrades, and also what happens if certain criteria are not met.

Retail/Card Swiped Accounts

Qualified Rate

The Qualified Discount Rate is charged when all of the following occur:

  • Standard consumer credit card is used
  • Card is swiped accurately and data properly obtained
  • The customer’s signature is captured
  • The transaction is “Batched” or “Settled” within 24 hours

Mid-Qualified

The Partial/Mid Qualified rate will be applied when any of the following occur:

  • The card info is manually entered, or “keyed” & all AVS info is entered
  • The consumer uses a Rewards card
  • Transactions are not settled/batched within 24 hours

Non-Qualified

If any of the following situations occur, a Non-Qualified rate will be applied to the transaction.

  • Card is manually entered with no AVS info entered
  • The consumer uses a Corporate, Government or International card
  • Authorization code is manually keyed in to your processing terminal.
  • Transactions are not settled/batched within 48 hours

Keyed “MOTO” or Internet Accounts

For these types of accounts, the merchant manually enters credit card information into a credit card terminal or software after the order is placed or is collected through an online payment gateway.

Qualified Rate

The Qualified Discount Rate is charged when all of the following occur:

  • Standard consumer credit cards are used
  • All required Credit Card information is entered including AVS (address verification) for VISA® transactions.
  • The transactions are “Batched” or “Settled” within 24 hours
  • The order/invoice Number entered

Mid-Qualified

For MOTO/Internet Accounts, rates usually fall directly to Non-Qualified, not mid-qualify, but these are the possible reasons why a merchant may be charged a Mid-Qualified Rate

  • AVS information is not entered
  • Transaction/Batch is not settled within 24 hours
  • Card is a Rewards or Business card

Non-Qualified

If any of the following situations occur, a Non-Qualified rate will be applied to the transaction.

  • Any of the required card or transaction information is not entered
  • The consumer uses a Corporate, Government or International card
  • Authorization code is manually keyed in to your processing terminal.
  • Transactions are not settled/batched within 48 hours

As you can see, there are many factors involved in determining which rates are assessed to your transactions. Follow the tips above, and you will keep your processing rates as low as possible. A Merchant Warehouse representative is always available to answer any questions or concerns you may have.

What is Debit Card processing?

Debit Card Processing is very similar to Credit Card processing but their are several key differences.   While most merchants know they should accept debit cards, it is not always easy to understand how to take full advantage of debit card processing.   Merchants can do debit card processing in one of the following two ways:

Offline Debit Card Processing
The most common way to accept debit cards is an “offline debit transaction.” In this type of sale the merchant accepts a debit card the same way in which they would accept a normal credit card. The card is swiped through the terminal and the customer signs the receipt.  As far as the merchant is concerned, there is no difference in the way a credit card or an off-line debit card is processed.  The one thing merchants must remember is that the debit card must have a VISA® or MasterCard® logo on it.  Cards that do not bear the Visa or MasterCard logo can not be processed off-line and will not be approved.

Online Debit Card Processing
A potentially cheaper and more secure, method for accepting debit cards at the point-of-sale is called an “on-line debit transaction.” In this type of sale the card must be swiped through the terminal and external or internal PIN Pad is used to enter the merchant’s four digit PIN. The terminal will pass the encrypted number to the bank for verification. The merchant will then be paid for the transaction in the same manner and time frame that they would be paid on a credit card sale. The cost of this type of transaction is potentially lower due to the way in which the merchant is charged by the processing companies. Rather than paying a flat fee and a discount rate, or percentage of the transaction, as with a credit card or offline debit transaction, there is only a slightly higher flat fee.

 

What is a Chargeback?

The definition of a Chargeback is when a cardholder disputes a charge posted to their credit card account.   This is most common when someone checks their bill and sees something they don’t recognize and calls the number on the back of their card or the issuing bank (where they go the card) to dispute the charge.  Chargebacks can occur for various reasons, such as when a purchase was not authorized by the cardholder (fraud), or when goods or services are not provided as expected.

You should be able to avoid the vast majority of chargebacks by providing good customer service and ensuring that your products and/or services are advertised, and delivered, as promised.  The biggest cause of chargebacks are using a third party merchant account such as PayPal or similar service since the name of the charge comes up as PayPal instead of the business name.

For those chargebacks related to fraud, there are simple steps every business can take to help avoid any problems. It is up to every merchant account holder to be diligent in accepting charges, and to educate their staff about the precautions to take.

In environments where the business is accepting and swiping cards at the time of the transaction, there are several simple steps which can be taken:

  • Always compare the signature on the receipt with the signature on the back of the card.
  • Always examine the card to ensure it is not altered or suspicious looking.
  • Request identification such as a license or some other picture ID.

In situations where the business is taking credit card without the customer present (over the phone or Internet, for example), the chance of fraud-based chargebacks is much greater. It is very important for these businesses to put systems in place to help determine legitimate charge activity.

  • If appropriate, call customers to confirm their order if the billing and shipping or contact addresses do not match.
  • Ask for the code number on the back of the card (or front with American Express®) to confirm that the card is in the customer’s possession.
  • If you receive questionable orders, call to confirm the order with the cardholder.

If you have reason to believe that a card is fraudulent or otherwise questionable, always call the card issuing company for a voice authorization.

 

How does the Credit Card Authorizations Process work?

Ever wonder how credit card authorization really works? Where does the credit card information go once you enter it into a credit card terminal or POS?

When a credit card is swiped and a credit card authorization process is initiated:

  1. Information is securely sent directly to a credit card processor.
  2. The information is transmitted to the card-issuing bank (Bank that issued the credit/debit card to customer) through a bankcard association, where the transaction is either approved or declined.
  3. Bankcard association transmits the approval or decline back to the terminal or POS device.

During the credit card authorization process, a card may decline if it is expired or has insufficient funds. The transaction may also be declined if the card has been reported missing or if there has been suspicious activity on it. To further protect your business, banks now require credit card authorization for all paper-based transactions.

In order to process credit cards and initiate a credit card authorization, a business must sign apply for, and receive, a merchant account.  Once a merchant account is set up, credit card authorization may take place through the use of an equipment terminal/POS.

 

What are the benefits of Gift Cards?

Paper, or Plastic? These days, consumers prefer plastic. So fulfill your customer’s demand, and replace those old-fashioned, paper gift certificates with plastic gift cards today!

Already throughout the retail industry, merchants are issuing their customers gift cards, and to keep your business competitive, you should do the same.

Gift card services can be beneficial for you and your customers….

Merchant Benefits:

  • Enhance sales and revenue. By offering customers more options and incentives to remain loyal to your business, sales will automatically increase.
  • Earn interest from each gift card, from the point of purchase to the time of use.
  • Encourage, build, and maintain customer loyalty. To redeem the card value, customers will revisit your store and, quite possibly, purchase more.
  • “Slippage.” Unlike gift certificates, cash is not reimbursed to customers who do not redeem their full gift card value. Estimates state that approximately 10-15% of gift card balances are never used.
  • Avoid theft and fraud damages. Gift cards require activation to be used and contain other security features to help minimize the risk of theft and fraud.

Customer Benefits:

  • Save your customers valuable time. With this easy gift solution, customers know the recipient will get something they like.
  • Let customers give the gift of convenience. Gift cards offer flexibility because they can be used at any time, at any participating location, and toward any store purchase.
  • Give customers the control. Customers can easily control spending with a pre-paid, “stored value” card.

General Gift Card Information:

  • Gift cards hold, or “store” a pre-paid value that can be used for purchases.
  • Gift cards can be customized to fit the branding and image of the merchant.
  • Magnetic stripe gift cards are processed as secure, electronic payments through most existing Point of Sale systems and credit card terminals.
  • Merchants can select from various program options to better suit their objectives.
  • Gift cards can hold value until the balances are redeemed or have expired, or they can be “re-loadable.”
  • As further incentive to customer loyalty, predetermined rewards can be given back to customers.

With approximately 65% of Americans having purchased or received a gift card in the past year, trends show that gift cards have practically replaced gift certificates. Not only do they supply easy earnings for merchants, but they offer invaluable convenience for customers. So start expanding your business, and upgrade or add a gift card program.

 

 

Why should my business accept Credit Cards?

Statistics have shown that the rate of credit card usage for purchases has skyrocketed from under fifty percent in 2003 to over eighty percent (80%) in 2010.  Credit cards are no longer being reserved for emergencies, or given to teenagers when they head off to college.   Today, credit cards are being used for the everyday purchases, both small and large alike.  And with so many people turning to the internet to shop for goods and services, and even to pay their bills, you would be doing yourself a great disadvantage if you chose not to accept credit cards.  When you accept major credit cards through Payline, you are offering a very secure and convenient method of paying to your customers, which will keep them coming back, time and time again.  Customers may go to one of your competitors if you don’t accept credit cards.

To accept credit cards, what you need is a merchant account.  Payline Data does just that.  We give businesses the ability to accept credit cards as well as debit cards, smart cards, and electronic benefits transfer (EBT) by providing them with merchant accounts.

You can apply online today by clicking on the “GET STARTED.” tab.   Once you submit the form, we will assign your very own qualified business consultants to help develop a solution package customized for your business to save you money and time.  He or she will ask a few questions about your business, and answer any concerns you might have.   You can then submit your application to accept credit cards for approval. Merchants are typically notified of approval or decline and set up within 3-5 business days.

Once the submitted merchant account is approved, your assigned Payline representative will contact you immediately. Any credit card equipment ordered will be directly shipped to your business site so that you may immediately begin to accept credit cards.

 

How can I get a FREE terminal?

Want to participate in the Payline FREE Terminal Program?

Switch or sign up today for a New Payline Data merchant account and you can receive a new state of the art terminal for FREE.

Unlike many free terminal programs, Payline Data offers:

  • A brand new, top-of-the-line, credit card terminal
  • No contract or cancellation fees **
  • No hidden fees or charges
  • Great rates on your merchant account

To get started, call the number above. Your Merchant Warehouse representative will provide you with a complete schedule of fees along with your application.

 

**Single terminal program only.  Multiple free terminal programs may have cancellation fees.

 

What are the benefits of a Merchant Account?

With cash less commonly carried, and checks gradually becoming obsolete, credit and debit cards have completely revolutionized the industry, becoming the most common forms of payment. The majority of merchants world-wide are now accepting these cards because of the benefits of a merchant account, and to maintain your business’ competitive edge, you should accept plastic too.

After all, you could be missing out on more than just sales….

By accepting credit cards, you get all the Benefits of a Merchant Account:

  • Boost sales and improve customer satisfaction by allowing customers to choose their preferred form of payment.
  • Increase your average sale because the customer doesn’t need to have the cash on them.
  • Speed up the check-out process with efficiency and convenience.
  • Protect yourself from potential losses caused by bad checks.
  • Avoid the risk and inconvenience of having large sums of cash.
  • Accept payments from virtually anyone, anywhere.

By providing alternative payment options to cash and checks, a merchant account can be extremely advantageous for any business. Although some merchants tend to hesitate in signing up for a merchant account due to cost factors, the loss in sales and profits may be far more costly. The fact is, besides all the other benefits of a merchant account, people tend to spend more money when paying with a credit or debit card than when paying with cash. By accepting these payments, your increased revenue will compensate for more than just merchant account costs. So, to make your business more successful, take advantage of the benefits of a merchant account, and accept credit cards today!

 

What makes merchant account types different?

In the payment processing industry, every merchant is classified into a specific “merchant account type” category, based on how they collect card information and conduct transactions. To learn which category your business is classified under, we have defined the characteristics of each merchant account type in this article.

There are two main merchant account type categories, “Swiped” and “Keyed,” which reflect the basic methods used to capture card information. Within these main categories are sub-categories, broken down according to the business environment and processing technique.

“Swiped” or, “Card Present” merchants directly interact with their customers face-to-face and capture card information by physically swiping cards through a terminal or point-of-sale system. The sub-categories within this group include:

  • Retail Merchants: “Retail” merchants typically conduct business in a storefront or office where they interact with their customers face-to-face and physically swipe cards through a terminal or Point-of-Sale system.
  • Restaurant Merchants: “Restaurant” merchants require the ability to add tips to their charges (Note: Restaurants that do not process tips are still considered “Retail” merchants in this industry). Using a special tip function, they authorize a customer’s card for a certain sale amount and then settle that authorization with an adjusted price to include the tip amount.
  • Wireless/Mobile Merchants: “Wireless” or “Mobile” merchants need to accept and authorize cards wherever they are located, which is usually on the road. Using a portable wireless terminal, these merchants process on-site, real-time transactions at their customers’ locations.
  • Lodging Merchants: “Lodging” merchants (e.g. Hotels, Motels, and Bed & Breakfasts) authorize a customer’s card for a specific sale amount and, depending on the customer’s length of stay, will adjust and settle out that authorization a day or more later to include additional fees such as taxes, etc.

“Keyed or, “Card-Not-Present” merchants indirectly collect their customers’ card information, and, depending on the business environment and technology used, can process transactions in various ways. The sub-categories within this group include:

  • Keyed Face-to-Face Merchants: “Keyed Face-to-Face” merchants eventually meet their customers in person to deliver the product or provide the service, but they don’t actually collect card information with the customer or card present. Generally, they take orders over the telephone, via fax, mail, email, or the Internet, and then manually key-enter card information into a terminal, software, payment gateway, or other point-of-sale system.
  • Mail Order/Telephone Order (“M.O.T.O.”) Merchants: “M.O.T.O.” merchants rarely, if ever, meet their customers face-to-face. Instead, these merchants collect orders and card information over the telephone, by mail, fax, or via the Internet, and manually key-enter transactions through a terminal, software, payment gateway, or point-of-sale system. Then, once payment for an order is confirmed, the product is shipped for future delivery.
  • Internet or E-Commerce Merchants: “Internet” or, “E-Commerce” merchants conduct all business through a website, so all card information is collected and transactions are processed online, in real-time, using a payment gateway that’s built into their website’s shopping cart. So, once the order/sale is confirmed, the card is charged instantly and the product is shipped for future delivery. (Note: This merchant type does not apply to businesses that only market on the Internet, but do not immediately process payments via their website, upon order confirmation.)

 

What makes Payline Different?

Unfortunately, merchant account providers are not always 100% straight about the service they will be providing to potential merchants. This article provides an overview on what to look at before you commit to a merchant account.

You could sign up for a merchant account, with what appears to be a very low rate, but end up stuck in a messy contract riddled with inflated fees, timed rate increases or extremely high rates for different types of transactions.  If a low rate is all you look for, you could find yourself paying a lot more in the long run.  In addition, the service commitments a company provides can prove just as important as rates and fees. If you have questions or problems with your merchant account and can’t get any assistance, the last thing you’ll be thinking about is your rates. Just think what it would cost you to lose the ability to process charges for a few days!

Payline Data not only offers great rates and service for credit card processing services, we also give our customers a new way to Give Back with Payline Giving.  Whether you’re a small business or a large enterprise, you can expect:

Giving Back on YOUR Behalf

Payline has created a simple way for business owners to consistently give to charitable causes without any cost to their businesses.  We provide a way for business owners to give more strategically by integrating their philanthropic goals into their business planning.

For example, a business owner can choose Payline to provide merchant processing services to accept credit cards at their business. Payline then gives 10% of fees each month to the business owner’s charity of choice at no additional cost to the business.

Find out more at www.paylinegiving.org

24/7 Toll Free Customer Service

At Merchant Warehouse, we have invested in dedicated departments for both account service and equipment support. These in-house teams will do whatever it takes to keep you up and running with as little down time as possible.

Besides our top notch internal team, our network of service providers has over 900 customer service representatives ready to assist you with your merchant account at any time.

Real-Time Account Access

Many merchants want more access to their accounts than just getting a statement once a month. Our merchants can get online merchant account data, including transaction summaries and batch detail reports, meaning no more waiting for statements to balance your books!

No Down Time

A state-of-the-art-network ensures your credit card processing transactions go through when you need them to.

Peace of Mind

Our expertise and personal service allow you to run your business without worrying about your merchant account or your credit card processing services. Most importantly, since we don’t require contracts and don’t charge any termination fees, you can trust that we will constantly do anything we can to keep you satisfied.

Your satisfaction is our top priority. We’ll give you an honest review of competitive quotes or offers — whether you choose us or not!

 

 

What should I consider when searching for a Merchant Account provider?

There are several factors to look at as well as traps to avoid when choosing the best merchant account for your business. This article should help guide you in making the best choice for your business when choosing a merchant account.

Suspiciously Low Rates

  • Make sure the rate you’ve been quoted is for the type of transactions you’ll be processing. For example, many mail order merchants have mistakenly signed up for a retail merchant account with low rates and found themselves getting charged much higher fees because they were not swiping their customers’ cards.
  • Ask whether the rate you’ve been quoted is an introductory rate. Some processors automatically raise your rates after an initial period, resulting in unexpected credit card processing costs down the line.

Average Ticket and Monthly Volume

  • Every processor will ask you to estimate your average sale and monthly credit card volume. This, in part, allows the processing company to determine the level of risk they are taking by extending you a merchant account. If you estimate far too low, you may run into trouble, as you are now a higher risk than the processor initially estimated. On the other hand, if you guess far too high, you may be required to file some extra paperwork and provide significantly more business or personal credit-related materials. Talk it over with your account representative; he or she should have plenty of experience estimating volumes and average tickets.

Understanding Fees

  • When you first get a quote for merchant accounts, some fees may seem a bit confusing. Take the time to go through your application and ask questions about the fees you don’t understand. Taking the time to go through the fees may prevent unpleasant surprises when you get your first merchant statement. Remember, a quote is not the same as a statement of fees. Many quotes do not list all possible fees, so make sure to do your homework and get the statement of fees.

Contracts & Cancellation Fees

  • Before you even set up a merchant account, ask for details on how you would go about canceling. Is there a termination fee or time commitment? Some processors may have contracts for their merchant accounts that automatically renew if you don’t give written notice more than a month before your contract expires. Also, beware of claims such as “even though you have a fee in your contract, we never charge it.”
  • Not all processors require a contract, so unless there are some special circumstances, it is usually best to go with a company that is flexible and doesn’t require you to make a long-term commitment. Think of it this way: if you can cancel your merchant account at any time, a good company will work hard to keep you a satisfied customer.

Customer Support

  • Many companies use the same employees for sales, account service, and technical support, or worse, don’t even have an internal support staff. A company that has dedicated departments for each will be able to offer you expert help, whether you have questions about your statement, or need to get your terminal back up and running in a hurry.
  • A processor that offers 24 hour support will be there whenever you need them, meaning you won’t be at the mercy of someone else’s business hours. 24 hour support is also a good indicator of the company’s commitment to its customers beyond the application process.

 

What are Payline’s Merchant Account Rates?

This is a question our sales team hears throughout the day. So why doesn’t Payline just post our rates for merchant accounts on our website so that customers can compare pricing? The answer is a bit more complex than you may expect.

Simply stated, if you shop for a merchant account by focusing only on rates, you will end up paying too much.

For many merchants, the merchant account rates can amount to only a small portion of their overall cost. If you only consider merchant account rates, you are excluding a long list of potentially costly factors such as credit card equipment, start-up or termination fees, annual fees, contracts, monthly minimums, statement fees and many other expensive pitfalls.

Contrary to what some companies would like you think when they boldly advertise seemingly low rates, there is no “standard” rate for merchant accounts for pricing comparison. Visa® and MasterCard® each have over 100 different merchant account rate categories based on the type of card, environment in which it is accepted and whether or not all the cardholder information is collected properly and accurately. These categories are then consolidated by each processor into groupings with averaged rates called “qualified,” “mid-qualified” and “non-qualified.” The less “qualified” the transaction, the more you are charged.

So, the next time you are looking for a merchant account, remember to avoid the, “What are your rates?” question. Instead, try to focus on the overall expected cost of processing and factor in all potential fees. If a company guarantees to have the lowest rates, ask to see it in writing. If they have the guarantee in writing, you will quickly realize that these low merchant account rates only apply to a very small fraction of your credit card transactions.

Hopefully, it is now easy to understand why we do not post rates for merchant account on our website, as advertising them can become confusing and potentially deceptive.

Payline Data guarantees to have the lowest overall costs of processing and we put it in writing with our Best Price Promise. You can count on our professional staff to educate you on all your options and advise you on how to get the best possible rates for your specific business situation.

 

What is a Merchant Account?

Merchant accounts provide businesses with the ability to accept credit card and debit cards for purchases. There are several different aspects to a merchant account, which we will describe below.

A Merchant Account Entails:

  • Processing Services: To set up a merchant account, a business owner, or “merchant” must apply through a merchant service provider (MSP) such as Payline Data. Approval of a merchant account depends on factors which include, but are not limited to:
    • Applicant and/or Personal Guarantor’s Credit Score
    • Business Type (Goods or Services Sold)
    • Card Acceptance Method (Merchant Type)
    • Monthly Volume & Average Sales Ticket
    • Business’ Financial Condition & Bank Account Type
    • Business Longevity
    • Return/Refund Policies
  • Processing Rates & Fees: There are various fees associated with having a merchant account. These could vary, depending on the type and company providing the service, but all merchant accounts have 2 main costs:
    • Discount Rates: With most merchant service providers, every processed sale is classified into 1 of 3 qualification levels (Qualified, Mid-Qualified, & Non-Qualified), and is charged a discounted percentage rate associated with that qualification. Each sale’s level and rate is determined by the type of card used, and/or how it is accepted and processed.
    • Transaction or Authorization Fee: This fee is charged for each electronic authorization request and transaction made, including all approved and declined sales, returns, voids, and batch settlements.
  • Processing Capability Systems: To process credit card payments, processing equipment or software is required to capture card information, make authorization requests, and close sales. Depending on business needs, equipment options include:
    • Terminals: Wireless, Contactless, Stand-Alone and Terminal/Printer Combination units
    • PC Software: Stand-alone or integrated into other business systems
    • Internet Gateway Solutions: Virtual Terminal or eCommerce versions

To maintain customer satisfaction and increase sales and revenue, it is becoming essential for businesses to have merchant accounts and accept credit card payments. Fewer and fewer customers carry cash, checks involve significant risk, and sending your customers running to the ATM machine could lose you valuable business. For both your business’ and customers’ benefit, contact us today to set up your merchant account.

What can I expect to find on my Monthly Statement?

Merchant account statements can sometimes be confusing, especially for new merchants. Generally, questions and concerns pertain to the charging of monthly fees and the timing of account statements, so we hope that this article will help to explain some of these confusing aspects.

As with any credit card processing company, merchant accounts typically becomes active within one business day of the account approval date. Once your merchant account is live, you are able to process credit card transactions and are also responsible for any fees assessed starting on that date. Therefore, any monthly fees will be charged, in full, for every month the account is open, regardless of your processing volume.

Monthly fees are posted to your bank account generally within the first week of the month following your merchant account activation, and continue each month that your account remains live. A statement reflecting the charges for your previous month’s processing activity is then issued and should follow mid-month. If you do not receive your processing statement by the third week of the following month, you should contact customer service to confirm that we have the correct mailing address as specified on your merchant application.

Please contact a customer service representative if you have any questions or concerns about your monthly merchant account fees or credit card processing statement.

 

 

What are 5 ways I can save on my Merchant Account?

Although accepting credit card payments may seem like a costly business expense, it certainly doesn’t have to be. Following are five ways you can save money on your merchant account, and avoid frustrating traps.

1) Never Focus Exclusively on Percentage “Discount” Rates. Companies who quote extremely low rates are usually trying to distract you from additional fees they charge that can have you paying much more in the long run.

· Thoroughly assess each quote and consider the many other cost factors, because getting the lowest rates doesn’t necessarily mean that you’re getting the best deal.

2) Look to Save on Processing Equipment. Most equipment can function with any processor, so there are plenty of product and pricing options to choose from.

· Shop around to find the most suitable solution for your budget and processing needs.

· Never lease. Leasing is extremely costly, and involves long-term agreements.

3) Don’t Sign a Contract. Signing a contract commits you to staying with a processor regardless of your level of satisfaction with them.

· Contracts allow processors to increase your rates at any time.

· With contracts, some processors feel that they can neglect to provide the service you demand.

· Cancelling in the midst of your term means paying a steep termination fee.

4) Avoid Termination Fees… Some companies may not focus on developing a long-term relationship with you and instead, rely on a Termination Fee to keep you from leaving.

· To some processors, a Termination Fee may be more profitable than providing the service necessary to keep merchants satisfied for years. They may actually prefer that you cancel so they can collect the huge fee.

…and Reprogramming Fees. Many processors use scare tactics, to convince you to purchase or lease their equipment. They threaten that if you buy equipment elsewhere, they “need” to charge a reprogramming fee.

· Truth is, most reprogramming procedures are simple and inexpensive, regardless of where equipment is purchased.

5) Ensure You Have the Right Type of Merchant Account for Your Business. There are different types of merchant accounts based on the way credit card transactions are accepted. It is always cheaper to have the right merchant account type for your business.

· Always work with a firm that can explain the differences between the different merchant account types and that teaches you to process credit card payments the best way for your business.

Merchants should always look for the best overall pricing, while not neglecting the service they deserve. By referring to these 5 guidelines when shopping for a merchant account, you can find a merchant service provider who will give you everything your business is looking for.

 

What are “Interchange” and “Assessments” Fees?

The most important thing to note about Interchange and Assessments is that they are NON-NEGOTIABLE.  They are set by Visa MasterCard and the Issuing Banks (bank that issued card to customer) and are the same for every business no matter what processor/merchant account provider they choose to use.

“Interchange” rate is a percentage  of the volume for each credit card transaction. (78% of total processing cost)

Composed of a flat rate for each transaction plus a percentage of the transaction amount example: $0.10/per transaction +1.75% of transaction volume Interchange is the largest chunk of your processing cost. 

Interchange pricing is complex, because each card and transaction type has a unique cost, creating an assortment of over 150 Interchange rate categories.  These rates will be the same no matter what processor company you use as they are determined by Visa/MC and the issuing bank based on four key items:

  1. Brand and type of card the customer uses (Credit, Debit, Rewards, Corporate, etc.)
  2. Type of business you run (Retail, Restarant, Gas Station, Hotel, e-Commerce, etc.)
  3. Type of transaction that was made (swiped vs keyed vs online, etc.)
  4. Information collected with transaction for verifications (address verification, tax amount, etc.

“Assessment” fee is a flat transaction fee added to each transaction. Fees associated with Visa/MasterCard (4% of total processing cost)

Simply put, these are fees that Visa & MasterCard charge for using their networks.  These fees are almost 20 times less than Interchange (Visa & Mastercard: 0.11%).  Mastercard has an additional assessment called Network and Brand Usage Fee (NABU) which is 0.0185% per transaction. Visa has an additional assessment fee which is called Acquirer Processing Fee (APF) which is 0.0195% per transaction.

Set by Visa/MasterCard and non-negotiable.

 

Simply put, there are two basic fees that collectively, make up the vast majority of the cost of a merchant account (approximately 82% on average).  In the credit card processing industry, these costs are referred to as “Interchange and Assessments,” and they are charged by bank card networks like Visa® and MasterCard® every time a merchant accepts one of their cards for purchases.

To lessen any confusion, merchant account providers typically compile all similar Interchange categories and bundle them into a few groupings such as qualified, mid-qualified and non-qualified.  However, this is just one way merchant accounts can be priced. Some merchant account providers quote an “Interchange Plus” structure, which combines the actual cost of the transaction based on the Interchange category into which it falls, the applicable Assessment Fee, plus an additional specified value on top of each.

In the end, the bulk of a merchant’s credit card processing expenses and the root of all merchant account pricing structures derive from the combination of the Interchange and Assessment fees, regardless of the pricing structure.

 

Why should my business accept Credit Cards?

Statistics have shown that the rate of credit card usage for purchases has skyrocketed from under fifty percent in 2003 to over eighty percent (80%) in 2010.  Credit cards are no longer being reserved for emergencies, or given to teenagers when they head off to college.   Today, credit cards are being used for the everyday purchases, both small and large alike.  And with so many people turning to the internet to shop for goods and services, and even to pay their bills, you would be doing yourself a great disadvantage if you chose not to accept credit cards.  When you accept major credit cards through Payline, you are offering a very secure and convenient method of paying to your customers, which will keep them coming back, time and time again.  Customers may go to one of your competitors if you don’t accept credit cards.

To accept credit cards, what you need is a merchant account.  Payline Data does just that.  We give businesses the ability to accept credit cards as well as debit cards, smart cards, and electronic benefits transfer (EBT) by providing them with merchant accounts.

You can apply online today by clicking on the “GET STARTED.” tab.   Once you submit the form, we will assign your very own qualified business consultants to help develop a solution package customized for your business to save you money and time.  He or she will ask a few questions about your business, and answer any concerns you might have.   You can then submit your application to accept credit cards for approval. Merchants are typically notified of approval or decline and set up within 3-5 business days.

Once the submitted merchant account is approved, your assigned Payline representative will contact you immediately. Any credit card equipment ordered will be directly shipped to your business site so that you may immediately begin to accept credit cards.

 

I received my new equipment but how can I determine the key functions?

If you are missing an “overlay” for your terminal’s keypad, contact your Processor or a Payline Data customer service representative to send you a copy.

When will i receive confirmation and shipment information for an online order?

Once an online order has been placed, a confirmation email with an order number will be sent to the email address provided. All online orders are then designated to a sales representative who will contact you within 24 hours. Before we can ship your order, our representative needs to speak with you directly to avoid potential complications such as:

1) Compatibility issues between many products and processors. We need to verify that the equipment ordered will operate properly within your processing environment.

2) To confirm that all contact and shipping information is correct.

3) To ensure that your request includes all items needed for processing.

How do I program my credit card equipment/software?

FOR NEW ACCOUNTS:  If you need to purchase new processing equipment, contact your sales representative to place your order. If you have existing processing equipment, one of our technicians will contact you within 2 business days after your account has been approved to conduct the reprogram. If you have ordered a payment gateway or software product, the programming information will be emailed to you within 24-48 business hours from the time of your merchant account approval.

FOR EXISTING MERCHANTS:  If you have recently purchased new equipment from Payline Data, the equipment should already be programmed for ready-use. If you already have processing equipment, simply contact Technical Support so they can guide you through the reprogramming over the phone. If you have recently set up a new payment gateway or software product through another vendor, contact Customer Service to get the necessary programming information for proper installation.

 

How can I get a FREE terminal?

Want to participate in the Payline FREE Terminal Program?

Switch or sign up today for a New Payline Data merchant account and you can receive a new state of the art terminal for FREE.

Unlike many free terminal programs, Payline Data offers:

  • A brand new, top-of-the-line, credit card terminal
  • No contract or cancellation fees **
  • No hidden fees or charges
  • Great rates on your merchant account

To get started, call the number above. Your Merchant Warehouse representative will provide you with a complete schedule of fees along with your application.

 

**Single terminal program only.  Multiple free terminal programs may have cancellation fees.

 

What is Payline’s Cash Advance Program?

If your business could benefit from a rapid infusion of cash, and who couldn’t, Merchant Warehouse has the solution for you!

Here’s How It Works:

Simply let us know how much cash you would like to be advanced. We then review your request based on your average credit card processing volume. Once you are approved, you simply sign the paperwork and the cash is sent to you within days!

It’s THAT simple!

After you have your funds, we simply deduct a predetermined percentage from your daily Visa® and MasterCard® receipts until the agreed amount is paid back.

Why a Cash Advance?

  • Much faster access to cash than the hassle of a loan
  • No personal guarantee required
  • No fees or penalty for extended payback period
  • Much more liberal policies than any bank product
  • No hidden costs or fees
  • No collateral necessary

Are you ready to get the cash you need to grow your business? Simply call us at the number above to get started.

 

What check processing services does Payline provide?

Are you looking to accept checks, but don’t want to assume the high risks that go along? Payline Data offers our merchants the ability to set up a check processing account which allows them to authorize a check within seconds without the need for specialized equipment.

For our current credit card processing customers who add this service, if a properly conforming check is returned by the bank, Payline Data will reimburse your business for the amount up to $1500, dependent upon your plan.

Another benefit of our check processing service is that it allows you to accept checks without having to purchase of any specialized equipment. You can run the check verification directly though your credit card terminal or even over the phone or Internet.

Payline Data offers some of the highest approval rates in the check processing industry, and allows your business to accept checks from the United States, and Canada.

To learn more about check verification, or any of the merchant services we offer, simply call the number above.

 

What is ControlScan PCI Compliance?

In an effort to help our merchants validate compliance with the PCI data security standards (PCI DSS), we have joined forces with ControlScan, a full-service PCI DSS compliance and security solutions provider for small to mid-sized merchants.

Since smaller businesses seldom have the IT or financial resources to focus on system, network, and data security, ControlScan offers their expertise and personalized technical assistance with security vulnerability remediation and resolution, as needed.

With ControlScan, our merchants will be given a streamlined and affordable solution to easily and efficiently achieve PCI DSS compliance and protect their business and customers’ cardholder information against data theft.

Achieve compliance in 3 easy steps: (Example)

 

What are the benefits of Gift Cards?

Paper, or Plastic? These days, consumers prefer plastic. So fulfill your customer’s demand, and replace those old-fashioned, paper gift certificates with plastic gift cards today!

Already throughout the retail industry, merchants are issuing their customers gift cards, and to keep your business competitive, you should do the same.

Gift card services can be beneficial for you and your customers….

Merchant Benefits:

  • Enhance sales and revenue. By offering customers more options and incentives to remain loyal to your business, sales will automatically increase.
  • Earn interest from each gift card, from the point of purchase to the time of use.
  • Encourage, build, and maintain customer loyalty. To redeem the card value, customers will revisit your store and, quite possibly, purchase more.
  • “Slippage.” Unlike gift certificates, cash is not reimbursed to customers who do not redeem their full gift card value. Estimates state that approximately 10-15% of gift card balances are never used.
  • Avoid theft and fraud damages. Gift cards require activation to be used and contain other security features to help minimize the risk of theft and fraud.

Customer Benefits:

  • Save your customers valuable time. With this easy gift solution, customers know the recipient will get something they like.
  • Let customers give the gift of convenience. Gift cards offer flexibility because they can be used at any time, at any participating location, and toward any store purchase.
  • Give customers the control. Customers can easily control spending with a pre-paid, “stored value” card.

General Gift Card Information:

  • Gift cards hold, or “store” a pre-paid value that can be used for purchases.
  • Gift cards can be customized to fit the branding and image of the merchant.
  • Magnetic stripe gift cards are processed as secure, electronic payments through most existing Point of Sale systems and credit card terminals.
  • Merchants can select from various program options to better suit their objectives.
  • Gift cards can hold value until the balances are redeemed or have expired, or they can be “re-loadable.”
  • As further incentive to customer loyalty, predetermined rewards can be given back to customers.

With approximately 65% of Americans having purchased or received a gift card in the past year, trends show that gift cards have practically replaced gift certificates. Not only do they supply easy earnings for merchants, but they offer invaluable convenience for customers. So start expanding your business, and upgrade or add a gift card program.

 

 

What is Payline Giving?

Payline Giving is a unique revenue sharing opportunity developed by Payline Data to help non-profits  (charities, schools, foundations, etc.) in their fundraising efforts.  This program offers deserving organizations the ability to generate contributions from their business patrons at no cost to the organization and no additional cost to the business.   All donations come out of the revenue generated by using Payline Data services and contributions are made on behalf of Your business.

 

How does Payline Giving work?

Non-Profit organizations registered in the Payline Giving program receive 10% of the monthly revenue from each business account supporting their cause.  This is normally paid on a quarterly, recurring basis for all referred business accounts that select to use Payline Data’s business services.  It is truly redefining the way America Gives Back and supporting deserving organizations in achieving their missions.

The donations are made in the business name for each account.  Payline takes care of the donation calculation, issues payment and tracks it all.  We also file for the donation tax incentives.

It is the simplest way your business will ever be able to give back, all at no additional cost!   Does it sound too good to be true?  It’s not and we are for real.  Check out www.PaylineGiving.org or any of our testimonial sections for proof this is a real and powerful system.

 

Is there an activation, application or other fees/charges to participate?

No.  There is no application fee or additional fees to participate in the program.

 

Will my rates/fees increase?

No. Participating in Payline Giving often means that your costs will go down.  The worst case is that they will stay exactly the same as your existing rates.  The program was created to redefine the way America gives back and connect your business to your community without increasing your costs.

 

Do I have to change my merchant service provider?

Yes, unless you are already using Payline Data.

Payline Data will provide you a rate comparison, show you what your typical monthly donation would look like (based on past statements) and get you setup and activated quickly.  We guarantee to save you money with our Best Price Promise as well.

Changing processors is required to ensure your funds are tracked, handled and reported properly and efficiently.

 

Do I have to buy new equipment/software to participate in Payline Giving?

Almost always, No.  Services provided by Payline are compatible with the majority of terminals and Point of Sale (POS) systems in use today. In the vast majority of cases you will be able to use your existing equipment. However, in the rare event that your terminal or POS is not currently supported, many times we can work directly with the manufacturer of your equipment to integrate their systems with ours. In the event that we cannot support your system and the manufacture is unwilling to integrate with our systems, you will have the option to get a new terminal and/or POS system from Payline (often free) or through a third party equipment provider of your choice.

 

Can I review my donation totals?

Of course! And your customers can too!! You will receive a hard copy quarterly donation report for your business which details out your total donation for the past quarter for you to display in your business.   You can also sign up online to view your reports digitally and connect with the nonprofits we support to see the great work your commitment has enabled them to accomplish.

 

How do I start participating today?

Sign up to use Payline Data services today!

Send a copy of your most recent merchant services statement to Payline Data at 800-660-0318 or submitting your application online at www.paylinedata.com – make sure to black out any sensitive information (like bank account numbers).  A representative from Payline will contact you within 1 – 2 business days of receiving your statement to discuss your account, provide you a comparison with monthly donation estimate and answer any questions you might have.

 

What products/services are offered by Payline Data to merchants?

Payline Data provides merchant credit/debit card processing for store front and e-commerce businesses, advance payment technologies, competitive pricing and world-class customer service that will make the businesses sales process simpler, faster, smarter and more efficient.

 

How can I promote that I am donating through Payline Giving?

You will receive a plaque from Payline indicating that you have chosen to donate to your cause.   You can also log into our web-based account at any time to monitor your donations and even receive information, emails and updates from your nonprofit, even their facebook and twitter information.

 

How much can my business expect to donate through Payline Giving?

We will contribute a portion (minimum of 10%) of the revenue from your account using Payline Data to the nonprofit of your choice.

To give you a basis for comparison, the average individual normally contributes on average $1,800 over a 5 year period.   An average size business participating in Payline Giving program will contribute $4,800 over the same time period.

Please note that actual results will vary for each organization.

 

What type of business can participate in the program?

Any business that accepts credit cards or checks as a form of payment for their products/services can participate.  In fact, every business that Payline services participates in the Payline Giving program whether they want to or not.  It is just a part of what we do to make the world a better place.

 

When and how often does the nonprofit I support receive contributions?

The nonprofit organization that you choose will receive contributions on a quarterly basis.   Payline receives its revenue payments monthly but we combine our donation payments into quarterly distributions in order to make the process more efficient.  We require about two weeks to process the accounting; therefore, your organization will receive the donation check approximately 30 days after the close of each quarter.

 

How long does the program last?

The nonprofit organization will continue to receive contributions for as long as your company chooses to use Payline services.

 

Why should my business participate?

The real question is why wouldn’t you want to participate?  Giving back makes a difference in the world.

Whether you have a cause you support or not, Payline Giving was implemented to take something common and make it Remarkable!   Your business can reduce operating costs and improve the level of service you receive, all while also supporting your favorite nonprofit organization – at no additional expense.

 

Myth. I’m a small merchant who only takes a handful of cards, so I don’t need PCI.

Fact. This is a common misunderstanding with the standard, that small merchants handling only one or a few credit cards a year are exempt from compliance. If you are a merchant and are set up to take credit cards by any mechanism – then you need to be complaint.

Myth. PCI only applies to e-commerce companies.

Fact. No, PCI applies to every company that stores, processes or transmits cardholder information. In fact anyone who takes card present transactions that involve POS devices are typically more at risk than e-commerce solutions. Quite often these types of transactions involve storage of track data (which is forbidden under PCI). Compromise of this type of data may bring heavy fines and requests for compensation from the banks involved.

Myth. You only have to be PCI compliant with the majority of criteria.

Fact. The pass mark for PCI is 100%, so if you fail even one of the criteria, you are not PCI compliant. The standard is not meant to be something to strive for; it is essentially a floor, a basis for further security measures. Failing to achieve even one of the requirements, is failing to meet a basic standard for handling cardholder information. All companies that routinely handle this type of data should be aiming to exceed the standard. It’s just good business.

Myth. I only need to protect my credit card data, not ATM debit card related data.

Fact. Incorrect – both are required. Many debit cards are dual-purpose ‘signature debit’, which can be used on debit and credit card networks. As such, they are covered under PCI and must be protected in the same way as credit cards.

Myth. I can wait until my business grows.

Fact. Incorrect – the PCI standard applies to all sizes of business and waiting could be costly. Should you be compromised and not be PCI compliant, the fines and the compensation requirements by the banks (it typically costs between $50 and $90 to replace one card) could be substantial.

Myth. I can just answer ‘yes’ to all the criteria on the Self-Assessment Questionnaire.

Fact. The Self-Assessment Questionnaire (SAQ) is a mechanism for getting the information about the level of your compliance to your merchant bank. The standard applies at all times. Just saying yes to the questions puts you at great risk. If a compromise took place and it was obvious that you were not and have never been PCI compliant, the matter would be taken very seriously. You would be risking your whole business by answering ‘yes’ to the questions, when there is no factual basis for the answers.

Myth. I can wait until my bank asks me to be PCI compliant.

Fact. The dates for merchants to be PCI compliant are long gone. You are responsible for making sure you are in compliance. Waiting until the bank asks you could be very costly indeed.

Myth. I didn’t sign anything saying I would be compliant; so, I don’t need to be.

Fact.  The PCI standard forms part of the operating regulations that are the rules under which merchants are allowed to operate merchant accounts. The regulations signed when you open an account at the bank state that the VISA regulations have to be adhered to. Even if you have been in business for decades, PCI still applies if you store, process or transmit credit cards.

Myth. As a merchant, I’m entitled to store any data.

Fact. Many merchants believe that they own the customer and have a right to store all the data about that customer in order to help their business. Not only is this incorrect regarding PCI, it may also be a violation of State and Federal legislation regarding privacy. The PCI regulations specifically forbid storing of any of the following:

  1. Unencrypted credit card number
  2. CVV or CVV2
  3. Pin blocks
  4. PIN numbers
  5. Track 1 or 2 data

Any of the above found in databases, log files, audit trails, backup’s etc. can result in serious consequences for the merchant, especially if a compromise has taken place.

Myth. One vendor and product will make us compliant.

Fact. Many vendors offer an array of software and services for PCI compliance. No single vendor or product, however, fully addresses all 12 requirements of PCI DSS. When marketing focuses on one product’s capabilities and excludes positioning these with other requirements of PCI DSS, the resulting perception of a ‘silver bullet’ might lead some to believe that the point product provides ‘compliance’, when it’s really implementing just one or a few pieces of the standard. The PCI Security Standards Council urges merchants and processors to avoid focusing on point products for PCI security and compliance. Instead of relying on a single product or vendor, you should implement a holistic security strategy that focuses on the ‘big picture’ related to the intent of PCI DSS requirements.

Myth. Outsourcing card processing makes us compliant.

Fact. Outsourcing simplifies payment card processing but does not provide automatic compliance. Don’t forget to address policies and procedures for cardholder transactions and data processing. Your business must protect cardholder data when you receive it, and process charge backs and refunds. You must also ensure that providers’ applications and card payment terminals comply with respective PCI standards and do not store sensitive cardholder data. You should request a certificate of compliance annually from providers.

Myth. PCI compliance is an IT project.

Fact. The IT staff implements technical and operational aspects of PCI-related systems, but compliance to the payment brand’s programs is much more than a ‘project’ with a beginning and end – it’s an ongoing process of assessment, remediation and reporting. PCI compliance is a business issue that is best addressed by a multi-disciplinary team. The risks of compromise are financial and reputational, so they affect the whole organization. Be sure your business addresses policies and procedures as they apply to the entire card payment acceptance and processing workflow.

Myth. PCI will make us secure.

Fact. Successful completion of a system scan or assessment for PCI is but a snapshot in time. Security exploits are non-stop and get stronger every day, which is why PCI compliance efforts must be a continuous process of assessment and remediation to ensure safety of cardholder data.

Myth. PCI is unreasonable; it requires too much.

Fact. Most aspects of the PCI DSS are already a common best practice for security. The standard also permits the option using compensating controls to meet some requirements. The standard provides significant detail, which benefits merchants and processors by not leaving them to wonder, ‘Where do I go from here? “]’ This scope and flexibility leads some to view PCI DSS as an effective standard for securing all sensitive information.

Myth. PCI requires us to hire a Qualified Security Assessor (QSA).

Fact. Because most large merchants have complex IT environments, many hire a QSA to glean their specialized value for on-site security assessments required by PCI DSS. The QSA also makes it easier to develop and get approval for a compensating control. However, PCI DSS provides the option of doing an internal assessment with an officer sign-off if your acquirer and/or merchant bank agrees. Mid-sized and smaller merchants may use the Self-Assessment Questionnaire (SAQ) found on the PCI SSC Website to assess themselves.

Myth. PCI makes us store cardholder data.

Fact. Both PCI DSS and the payment card brands strongly discourage storage of cardholder data by merchants and processors. There is no need, nor is it allowed, to store data from the magnetic stripe on the back of a payment card. If merchants or processors have a business reason to store front-card information, such as name and account number, PCI DSS requires this data to be encrypted or made otherwise unreadable.

Myth. PCI is too hard.

Fact. Understanding and implementing the 12 requirements of PCI DSS can seem daunting, especially for merchants without security or a large IT department. However, PCI DSS mostly calls for good, basic security. Even if there was no requirement for PCI compliance, the best practices for security contained in the standard are steps that every business would want to take anyways to protect sensitive data and continuity of operations. There are many products and services available to help meet the requirements for security – and PCI compliance.
When people say PCI is too hard, many really mean to say compliance is not cheap. The business risks and ultimate costs of non-compliance, however, can vastly exceed implementing PCI DSS – such as fines, legal fees, decreases in stock equity, and especially lost business. Implementing PCI DSS should be part of a sound, basic enterprise security strategy, which requires making this activity part of your ongoing business plan and budget.

What is PCI?

The Payment Card Industry Data Security Standard (PCI DSS) is a set of requirements designed to ensure that ALL companies that process, store or transmit credit card information maintain a secure environment. Essentially any merchant that has a Merchant ID (MID).
The Payment Card Industry Security Standards Council (PCI SSC) was launched on September 7, 2006 to manage the ongoing evolution of the Payment Card Industry (PCI) security standards with focus on improving payment account security throughout the transaction process. The PCI DSS is administered and managed by the PCI SSC (www.pcisecuritystandards.org), an independent body that was created by the major payment card brands (Visa, MasterCard, American Express, Discover and JCB.).
It is important to note, the payment brands and acquirers are responsible for enforcing compliance, not the PCI council.
A copy of the PCI DSS is available here.

To whom does PCI apply?

PCI applies to ALL organizations or merchants, regardless of size or number of transactions, that accepts, transmits or stores any cardholder data. Said another way, if any customer of that organization ever pays the merchant directly using a credit card or debit card, then the PCI DSS requirements apply.

Where can I find the PCI Data Security Standards (PCI DSS)?

The Standard can be found on the PCI SSC’s Website:
https://www.pcisecuritystandards.org/security_standards/pci_dss.shtml

What are the PCI compliance deadlines?

All merchant that stores, processes or transmits cardholder data must be compliant now. However, as a Level 4 merchant, you will have to refer to your merchant bank for their specific validation requirements and deadlines. All deadline enforcement will come from your merchant bank. You may also find more information on Visa’s Website:
http://usa.visa.com/download/merchants/payment_application_security_mandates.pdf.

What are the PCI compliance ‘levels’ and how are they determined?

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, Visa acquirers 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, acquirers will continue to consider the DBA’s individual transaction volume to determine the validation level.
Merchant levels as defined by Visa:
Description
1
Any merchant — regardless of acceptance channel — processing over 6M 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 1M to 6M Visa transactions per year.
3
Any merchant processing 20,000 to 1M 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 1M Visa transactions per year.

* Any merchant that has suffered a hack that resulted in an account data compromise may be escalated to a higher validation level.
Source: http://usa.visa.com/merchants/risk_management/cisp_merchants.html

What does a small-to-mid sized business (Level 4 merchant) have to do?

To satisfy the requirements of PCI, a merchant must complete the following steps:

  • Identify your Validation Type as defined by PCI DSS – see below . This is used to determine which Self Assessment Questionnaire is appropriate for your business.

  • Complete the Self-Assessment Questionnaire according to the instructions in the Self- Assessment Questionnaire Instructions and Guidelines.
  • Complete and obtain evidence of a passing vulnerability scan with a PCI SSC Approved Scanning Vendor (ASV). Note scanning does not apply to all merchants. It is required for Validation Type 4 and 5 – those merchants with external facing IP addresses. Basically if you electronically store cardholder information or if your processing systems have any internet connectivity, a quarterly scan by an approved scanning vendor is required.
  • Complete the relevant Attestation of Compliance in its entirety (located in the SAQ tool).
  • Submit the SAQ, evidence of a passing scan (if applicable), and the Attestation of Compliance, along with any other requested documentation, to your acquirer.
  • I’m a small merchant with very few card transactions; do I need to be compliant with PCI DSS? “]

All merchants, small or large, need to be PCI compliant. The payment brands have collectively adopted PCI DSS as the requirement for organizations that process, store or transmit payment cardholder data.

If I only accept credit cards over the phone, does PCI still apply to me?

Yes. All business that store, process or transmit payment cardholder data must be PCI Compliant.

Do organizations using third-party processors have to be PCI compliant?

Yes. Merely using a third-party company does not exclude a company from PCI compliance. It may cut down on their risk exposure and consequently reduce the effort to validate compliance. However, it does not mean they can ignore PCI.

My business has multiple locations, is each location required to validate PCI?

If your business locations process under the same Tax ID, then typically you are only required to validate once annually for all locations. And, submit quarterly passing network scans by an PCI SSC Approved Scanning Vendor (ASV), if applicable.

Are debit card transactions in scope for PCI?

In-scope cards include any debit, credit, and pre-paid cards branded with one of the five card association/brand logos that participate in thePCI SSC – American Express, Discover, JCB, MasterCard, and Visa International.

Am I PCI compliant if I have an SSL certificate?

No. SSL certificates do not secure a Web server from malicious attacks or intrusions. High assurance SSL certificates provide the first tier of customer security and reassurance such as the below, but there are other steps to achieve PCI Compliance. See Question “What does a small-to-medium sized business (Level 4 merchant) have to do in order to satisfy the PCI requirements? “]”

  • A secure connection between the customer’s browser and the web server
  • Validation that the Website operators are a legitimate, legally accountable organization

What are the penalties for noncompliance?

The payment brands may, at their discretion, fine an acquiring bank $5,000 to $100,000 per month for PCI compliance violations. The banks will most likely pass this fine on downstream till it eventually hits the merchant. Furthermore, the bank will also most likely either terminate your relationship or increase transaction fees. Penalties are not openly discussed nor widely publicized, but they can catastrophic to a small business.
It is important to be familiar with your merchant account agreement, which should outline your exposure.

What is defined as ‘cardholder data’?

Cardholder data is any personally identifiable data associated with a cardholder. This could be an account number, expiration date, name, address, social security number, etc. All personally identifiable information associated with the cardholder that is stored, processed, or transmitted is also considered cardholder data.

What is the definition of ‘merchant’?

For the purposes of the PCI DSS, a merchant is defined as any entity that accepts payment cards bearing the logos of any of the five members of PCI SSC (American Express, Discover, JCB, MasterCard or Visa) as payment for goods and/or services. Note that a merchant that accepts payment cards as payment for goods and/or services can also be a service provider, if the services sold result in storing, processing, or transmitting cardholder data on behalf of other merchants or service providers. For example, an ISP is a merchant that accepts payment cards for monthly billing, but also is a service provider if it hosts merchants as customers.

Source: PCI SSC

What constitutes a Service Provider?

Any company that stores, processes, or transmits cardholder data on behalf of another entity is defined to be a Service Provider by the Payment Card Industry (PCI) guidelines.

What constitutes a payment application?

What constitutes a payment application as it relates to PCI Compliance? “] The term payment application has a very broad meaning in PCI. A payment application is anything that stores, processes, or transmits card data electronically. This means that anything from a Point of Sale System (e.g., Verifone swipe terminals, ALOHA terminals, etc.) in a restaurant to a Website e-commerce shopping cart (e.g., CreLoaded, osCommerce, etc) are all classified as payment applications. Therefore any piece of software that has been designed to touch credit card data is considered a payment application.

What is a payment gateway?

Payment Gateways connect a merchant to the bank or processor that is acting as the front-end connection to the Card Brands. They are called gateways because they take many inputs from a variety of different applications and route those inputs to the appropriate bank or processor. Gateways communicate with the bank or processor using dial-up connections, Web-based connections or privately held leased lines.

How is IP-based POS environment defined?

The point of sale (POS) environment refers to a transaction that takes place at a merchant location (i.e. retail store, restaurant, hotel, gas station, convenience store, etc.). An Internet protocol (IP) -based POS is when transactions are stored, processed, or transmitted on IP-based systems or systems communicating via TCP/IP.

What is PA-DSS and PABP?

PA-DSS refers to Payment Application Data Security Standard maintained by the PCI Security Standards Council. PABP is Visa’s Payment Application Best Practices, which is now referred to as PA-DSS. Visa started the program and it is being transitioned to the PCI Security Standards Council (PCI SSC).
To address the critical issue of payment application security, in 2005 Visa created the Payment Application Best Practices (PABP) requirements to ensure vendors provide products which support merchants’ efforts to maintain PCI DSS compliance and eliminate the storage of sensitive cardholder data. See www.visa.com/pabp for more information.
The Payment Card Industry Security Standards Council (PCI SSC) will maintain the PA-DSS and administer a program to validate payment applications’ compliance against this standard. The PCI SSC now publishes and maintains a list of PA-DSS validated applications. Seehttps://www.pcisecuritystandards.org/security_standards/pa_dss.shtml for more information.
VISA MANDATE PHASE DEADLINE

  1. New PCI Level 4 merchants (including new locations of existing relationships) may not use vulnerable payment application versions – those that store prohibited cardholder data. January 1, 2008
  2. New PCI Level 4 merchants using third-party payment software must be either PCI DSS-compliant or use PA-DSS validated compliant payment applications. October 1, 2008
  3. ALL PCI Level 4 merchants (new and existing) using third-party software must use validated applications. July 1, 2010

Can the full credit card number be printed on the consumer’s copy of the receipt?

PCI DSS requirement 3.3 states “Mask PAN when displayed (the first six and last four digits are the maximum number of digits to be displayed).” While the requirement does not prohibit printing of the full card number or expiry date on receipts (either the merchant copy or the consumer copy), please note that PCI DSS does not override any other laws that legislate what can be printed on receipts (such as the U.S. Fair and Accurate Credit Transactions Act (FACTA) or any other applicable laws). See the italicized note under PCI DSS requirement 3.3 “Note: This requirement does not apply to employees and other parties with a specific need to see the full PAN, nor does the requirement supersede stricter requirements in place for displays of cardholder data (for example, for point of sale (POS) receipts).” Any paper receipts stored by merchants must adhere to the PCI DSS, especially requirement 9 regarding physical security.

Do I need vulnerability scanning to validate compliance?

If you electronically store cardholder data post authorization or if your processing systems have any internet connectivity, a quarterly scan by a PCI SSC Approved Scanning Vendor (ASV) is required.

What is a network security scan?

A network security scan involves an automated tool that checks a merchant or service provider’s systems for vulnerabilities. The tool will conduct a non-intrusive scan to remotely review networks and Web applications based on the external-facing Internet protocol (IP) addresses provided by the merchant or service provider. The scan will identify vulnerabilities in operating systems, services, and devices that could be used by hackers to target the company’s private network. As provided by an Approved Scanning Vendors (ASV’s) such as ControlScan the tool will not require the merchant or service provider to install any software on their systems, and no denial-of-service attacks will be performed.
Note, typically only merchants with external facing IP address are required to have passing quarterly scans to validate PCI compliance. This is usually merchants completing the SAQ C or D version.

How often do I have to scan?

Every 90 days/once per quarter you are required to submit a passing scan. Merchants and service providers should submit compliance documentation (successful scan reports) according to the timetable determined by their acquirer. Scans must be conducted by a PCI SSC Approved Scanning Vendor (ASV). ControlScan is a PCI Approved Scanning Vendor.

What if a merchant refuses to cooperate?

PCI is not, in itself, a law. The standard was created by the major card brands such as Visa, MasterCard, Discover, AMEX, and JCB. At their acquirers/service providers discretion, merchants that do not comply with PCI DSS may be subject to fines, card replacement costs, costly forensic audits, brand damage, etc., should a breach event occur.
For a little upfront effort and cost to comply with PCI, you greatly help reduce your risk from facing these extremely unpleasant and costly consequences.

If I’m running a business from my home, am I a serious target for hackers?

Yes, home users are arguably the most vulnerable simply because they are usually not well protected. Adopting a ‘path of least resistance’ model, intruders will often zero-in on home users – often exploiting their ‘always on’ broadband connections and typical home use programs such as chat, Internet games and P2P files sharing applications. ControlScan’s scanning service allows home users and network administrators alike to identify and fix any security vulnerabilities on their desktop or laptop computers.

What should I do if I’m compromised?

We recommend following the procedures outlined in Visa’s” What to Do If Compromised
Visa Fraud Control and Investigations Procedures” document. Link below.
http://usa.visa.com/download/merchants/cisp_what_to_do_if_compromised.pdf

Do states have laws that requiring data breach notifications to the affected parties?

Absolutely. California is the catalyst for reporting data breaches to affected parties. The state implemented breach notification law in 2003 and there are now over 38 states that have similar laws in place. See www.privacyrights.org for more detail on state laws.

How can I get a FREE terminal?

Want to participate in the Payline FREE Terminal Program?

Switch or sign up today for a New Payline Data merchant account and you can receive a new state of the art terminal for FREE.

Unlike many free terminal programs, Payline Data offers:

  • A brand new, top-of-the-line, credit card terminal
  • No contract or cancellation fees **
  • No hidden fees or charges
  • Great rates on your merchant account

To get started, call the number above. Your Merchant Warehouse representative will provide you with a complete schedule of fees along with your application.

 

**Single terminal program only.  Multiple free terminal programs may have cancellation fees.

 

What is NFC (Near Field Contactless) Payments and how do they work?

Near Field Contactless (NFC) payments are the wave of the future with most new consumer credit cards and many new mobile phones coming equipment to make contactless payments.   As such, contactless payment terminals have become the present and future of credit card transactions.  Also known as “tap and pay,” contactless payment provides benefits to retailers and consumers alike, particularly in the areas of speed and convenience.

Contactless payments are simply transactions that do not require physical connection between your customers’ credit card and the terminal. Smart chip technology, otherwise known as RFID, is supported by a secure controller, internal memory, and a small built-in antenna that transmits information to a reader through radio frequency.

The primary advantages of a contactless payment reader over traditional swipe cards are speed and convenience. Consumers can just tap the contactless payment terminal, eliminating the need for a transfer of hands with a credit card and a receipt signature. In turn, check-out lines become shorter as transaction times become faster.

Contactless payments are best suited for quick-service retailers, such as convenience stores, fast-food restaurants, movie theaters, pharmacy / drug stores, and gas stations and for those whose average ticket is $25 or less.

Retailers with major POS terminal providers can easily upgrade their existing system with a plug-and-play contactless payment device.

 

Do I need software or a terminal?

Deciding on whether you want to use a credit card terminal or some form of payment processing software to handle card transactions should is usually fairly straightforward. The answer generally depends on the physical environment in which you will be accepting the charges.

Most simply put, the decision usually boils down to whether or not you will have easy access to a computer when you need to charge cards and what kind of transactions systems you already have in place.

If a computer is readily available payment processing software often provides numerous benefits over traditional credit card terminals. Most users love the reporting features available to them and find it helpful to go back and look up a previous transaction. Payment processing software is also usually less expensive and more user friendly than most new credit card terminals.

There are logical reasons why many businesses may be better off with a terminal however. To start with, many businesses already have invested in some sort of cash register or POS system. While some of these can be integrated with payment processing software, many can not. In these cases, it is usually simpler to use a credit card machine rather than cluttering your valuable counter space.

Another circumstance when a terminal may be preferable is when your computer may not always be on or may be in an inconvenient location. If you need to take payments in real-time and can’t be inconvenienced with accessing your PC, then you may be better off with a credit card terminal.

 

Does my business need a wireless credit card terminal?

Is your business suffering because you’re unable to accept credit cards while on the road? Or worse, are you losing sales to declined credit cards processed off-location, without the customer or card present? If so, your business may need a wireless credit card terminal.

For mobile businesses (i.e. Transportation and Towing services, Contractors, Delivery services, Direct Sales, Trade Show and Flea Market merchants, etc.), a wireless credit card terminal enhances business mobility and efficiency, simplifies the billing and payment process, and increases sales and revenue.

Wireless terminals allow mobile merchants to:

Accept payments from anyone, anywhere, anytime:

  • Wireless terminals offer mobile businesses a solution for accepting credit card payments in real time and on-location.
  • With connections to multiple cell phone networks, wireless coverage is provided throughout the country.
  • To enable continued operation in low-coverage areas, wireless terminals have a “Store and Forward” security feature that provides an offline capture of transactions.

Enjoy efficiency and convenience:

  • Wireless terminals deliver a rapid check-out process, with verified transactions received in 2-3 seconds.
  • Wireless terminals are compact, and easy to deploy and use.

Reduce the risk of financial losses:

  • By accepting payments real-time, you can avoid losing sales from declined credit cards processed off-site.
  • By accepting credit cards on-site, you can reduce the risk of carrying large sums of cash or receiving bad checks.

Operate with low processing costs:

  • Wireless processing is an affordable solution for mobile merchants; since swiping a credit card with the customer present involves less risk, processing costs are lower compared to manually key-entering card information at a later time.

Wireless credit card terminals offer mobile merchants a simple and dependable payment solution from a handy device. So take advantage of the many benefits and capabilities supplied by a wireless credit card terminal, and start processing mobile credit card transactions today!

 

How do I select Credit Card Equipment right for me?

With so many different types of credit card equipment on the market these days, choosing the correct type for your business can be a confusing task. In order to help guide you towards the correct choices, here are some questions you should ask yourself when shopping for credit card equipment.

Will customers be using their credit or debit cards at my physical business location or will I be collecting the card information through another means?

  • If you will be swiping cards directly from your customers, your best option for credit card equipment is probably some sort of credit card terminal and printer combination. If you will not be swiping the cards manually, many merchants will want credit card equipment that is more suited to their specific needs. Software packages are available if there is a PC at the business location or a standard terminal and credit card printer may work just fine.

Is a contactless payment solution the right choice for my business?

  • Merchants who have “quick service” retail operations, and whose average ticket is $25 or less, may benefit from Contactless Payment credit card equipment. The “tap and pay” technology has proven to be most valuable for convenience stores, fast food restaurants, pharmacies, movie theaters and other merchants who rely on faster transaction times and shorter wait times for customers. Merchants can also upgrade their existing credit card equipment to a contactless payment reader without disrupting their operations.

Is there a phone line or broadband internet access available at the business location?

  • Most businesses have at least one phone line at their business location and, these days, most have some sort of “always on” internet connection. For these businesses, there are many choices for credit card equipment. Most credit card equipment can share a phone line with a fax, or even the main phone if calls are infrequent and some of the newer terminals can utilize broadband internet for even faster transactions. If no phone or intent is available, such as at a trade-show or for delivery companies, etc, merchants should consider either a battery powered credit card terminal or wireless credit card machines that work over the cell phone networks.

Will you be accepting PIN-based debit card transactions?

  • For those merchants that think they will be accepting debit cards they should consider adding credit card equipment like a PIN Pad to give their customers additional payment options. As described in this article about debit card processing, accepting PIN based transactions may save you money and add value to your customer’s experience.

How many merchant accounts will you need for your business?

  • For almost all businesses the answer is one. There are examples however where multiple merchant accounts are either desirable or a necessity. These merchants will want a piece of credit card equipment that can handle more than one merchant account. There are inexpensive terminals which handle two accounts and more robust units which can handle up to 99. A qualified merchant account sales person should be able to recommend the correct credit card equipment for your specific situation.

Which terminal brands should I consider?

  • Since most of the major credit card equipment manufacturers are producing high quality and feature rich products these days, you really can’t go wrong whatever brand you choose. That said, some of the processors may work better with a particular brand of credit card equipment and some newer pieces of equipment are not certified at every processor immediately upon their release. Again, this is a situation where it is best to let your merchant account sales representative guide you as to the best options given your particular processor and needs.

 

How do I choose an Online Payment Gateway right for me?

While many online payment gateway options are feature rich you still want to spend some time comparing them. This article explains how to go about determining the best online payment gateway option for your business.

Some may prove better in different environments and the reasons can sometimes be quite technical. Take the time to read up on the specs and compatibilities of the different online payment gateway packages. If there is any confusion, or you aren’t certain what might be the best product for you, be sure to call and ask your salesperson questions. Any experienced sales person should be able to fit you with the correct product and describe the pros and cons.

If you already have an ecommerce website and a shopping cart, simply mention this to your sales person when you call. Most off-the-shelf shopping cart packages are compatible with all major online payment gateway products. If your company has built its own shopping cart and database systems you may want to consider having your technical person review the documentation for the gateway you choose.

Payline offers our own industry leading solution but we also carry all of the major online payment gateways on the market today. You can browse through all of them in our section for payment gateways.

 

How do I choose a software to process my credit cards?

More and more merchants are taking advantage of the powerful credit card processing software products available to them. These are systems for virtually any type of processing environment from retail stores to websites.

All have their advantages, but selecting the right credit card processing software for your business is very important. Before making a decision merchants should ask themselves a few questions:

Will you be accepting credit cards over the Internet?

  • If so, merchants should lean towards using an online payment gateway in conjunction with their shopping cart. Payment gateways are a type of credit card processing software which is hosted by a third party on a server outside of your business. Your shopping cart, or other payment software, communicates with the payment gateway via the internet and it manages the actual transactions. Merchant Warehouse sells several payment gateways including: Authorize.net, VeriSign, and LinkPoint. We also offer our own product, MerchantWare Payment Gateway, which has all the features, flexibility and compatibility standard to these products.

How many credit card transactions will you need to handle at any one time?

  • For most merchants the answer is usually only one, but some merchants who have more than one user or customer running transactions at the same time will need a more robust credit card processing software solution. If there are multiple internal users and they are on a network you can use PC Charge Pro. If the users are not on a network, then a merchant can use a virtual terminal such as the one offered by of Authorize.Net. This virtual terminal will allow users to log in using their web browsers and charge cards from anywhere they have Internet access. Transaction information is centrally located and can be accessed from anywhere.

Will you be charging the same customer’s cards on a regular basis?

  • Merchants whose customers are frequently reordering or those who bill their customers on a monthly basis may wish to use credit card processing software that stores credit card information and can charge customers at specified intervals. PC Charge Pro has this feature built in and makes it easy to manage charging customers.

 

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"As business owners, the solutions offered by the Payline Data team has far exceeded our expectations. Previous companies we have used for credit card processing provided very poor customer service. Switching our service to Payline was easy. When we have had questions, the customer support has been friendly and helpful. We would also recommend their credit card processing services to any other company."

- Bill Dahlheirmer - President/Owner & Becky Sievers CFO/Owner, Minuteman Press - St. Charles