by Brendon Degner | Jun 22, 2022 | Merchant Services, resources, small business
Recently, the use of virtual credit cards (VCCs) has become a popular means of paying for goods and services online. VCCs are temporary credit card numbers that allow a consumer to complete a transaction online without providing their real account number. This can add an extra layer of security to purchases involving credit cards.
How Do You Get a Virtual Credit Card?
VCCs are provided as a service by certain banks and credit card companies. If your card provider offers this feature, you can request a virtual credit card through the company’s online portal or associated mobile app. Capital One’s Eno, for example, is an online virtual assistant that generates random credit card numbers for members.
Once you submit your request, you will be issued a temporary credit card number, expiration date, and security number. Transactions using VCCs will show up on your bank statement as if you had used your regular card number.
How Do VCCs Keep You Secure?
Many virtual credit cards are designed to be used only once. This means that, as soon as a payment is complete, the credit card number is no longer valid. In such cases a shopper need not worry about a data breach, since their credit card number can no longer be used by anyone.
In other cases, a virtual credit card may have a longer expiration date. In the event of a security issue, you can simply cancel the virtual card instead of having to close the entire account and wait for a brand new card to be issued.
Some virtual credit cards also allow you to set spending limits, which can protect you from fraud and also help you budget for certain vendors.
Cons of Virtual Credit Cards
Like most forms of payment, VCCs are not without their drawbacks. The main issues arise when a physical card is needed to verify a transaction. For example, many hotels require you to present the card with which you booked a room online. If you used a VCC, that number will not match and could cause issues with confirming your reservation.
You may also run into issues with returning goods to a merchant. Although VCCs are becoming much more commonplace, many stores still need a credit card in order to provide you with a refund. If you do not have a matching physical card for them to swipe, you may be forced to settle for store credit instead of a refund.
Keep in mind, also, that virtual credit cards can still be subject to cyber threats. If your VCC is not designed for single use, the number can be stolen and used to make fraudulent transactions. If you have more than one VCC, it will be extra work to monitor all your card numbers for unauthorized purchases.
Keep Your Business Secure
Accepting credit cards is essential in staying competitive as a business. Finding a merchant services provider that is within your budget and keeps your customer information secure is one of the most important steps you can take to grow your business.
If you need help finding the right way to accept credit card payments, contact Summit Payments Co. We can match you with the right provider and help you negotiate the most reasonable fees available.
by Brendon Degner | May 16, 2022 | Merchant Services, small business
The ability to accept electronic payments, especially credit and debit cards, is essential for most contemporary businesses. These payments are convenient and secure, and allow both the company and customer to keep instant track of financing through online maintenance. They also cost the business owner. While they are almost always worth it, many businesses may wonder if they are paying too much for merchant services.
Merchant services provide the means to transmit financial data from the customer’s bank to merchant bank; they may also provide the necessary point of sale equipment. They charge various fees in exchange for these services.
The fees assessed by merchant service providers can vary widely from business to business, even amongst direct competitors. It is a good idea to review your statements to determine whether or not you are being overcharged. You can make a fairly quick assessment by asking yourself a few questions.
How to Know If Your Credit Card Fees Are Too High
1. Were You Signed Under an Introductory Rate?
Low introductory rates for many merchant services providers can be quite attractive. You can try a merchant services provider at a low rate for a certain period of time, after which you will be locked into a contract at a much higher rate. You might be told you can cancel any time before the contract date kicks in. So what is the risk?
The trouble is that most business owners are busy. While these offers may be genuine, the model is counting on individuals to forget to cancel their service before the contract kicks in. It is not dissimilar from certain internet service providers or online streaming services offering you a “free trial.”
If you were initially signed to a low introductory rate offer and continued your plan through that provider, you will want to review your statement with a licensed broker to ensure your fees are competitive for your type of business.
2. Are You PCI Compliant?
The Payment Card Industry (PCI) requires that businesses using merchant services remain compliant with certain standards of security. If a business is found non-compliant, they are charged a monthly fee until compliance is achieved.
Your credit card processor should work with you to help you become PCI compliant to eliminate these fees. If months have gone by and you have received no assistance in this matter, it is time to look for a new provider.
3. Do You Own Your Payment Terminal?
Many merchant services providers offer the option to lease a payment terminal. Payment terminals are electronic devices that allow a customer to swipe, insert, or tap a credit card and enter secure information, like a PIN.
Depending on your business needs, you may wind up spending thousands of dollars just on your terminals. It can, therefore, be tempting to lease your devices to save on a monthly basis.
Keep in mind, however, that you will be paying interest rates on rented devices. The final amount you pay will be significantly higher than if you’d bought your terminals outright. If you can afford it, pay up front for your terminal devices.
4. Do You Qualify for Lower Rates?
If you are generally pleased with your merchant services provider but are unsure if your fees are competitive, ask what you can do to qualify for a lower rate for certain types of transactions. Card-Not-Present transactions, for example, are often subject to a higher processing fee due to increased risk of fraud. Providing additional details for each of these kinds of payments, such as customer address, is often enough to qualify for a reduced rate.
Get Help Reviewing Merchant Services Rates
As part of its services, Summit Payments will perform a thorough review of your merchant services statements. We will look for any discrepancies, compare competitor rates, and look for common instances where businesses are overcharged. We will also advise you on steps to becoming PCI compliant and enhancing overall cybersecurity. Call our office to schedule your consultation and start saving today.
by Brendon Degner | Apr 6, 2022 | Education, small business
Merchant Services vs. Credit Card Processing
While the terms “merchant services” and “credit card processing” are often considered synonyms, they are not actually the same thing. Both concern the processing of payments for your business, but the capabilities and support available for each is quite different.
What Is a Credit Card Processor?
A credit card processor is also called a payment processor. The primary role of a payment processor is to route data from a credit or debit card to a merchant’s bank account.
A payment processor is often paired with a point of sale (POS) system to facilitate payments. The POS is the physical or digital place where a transaction occurs (e.g. where the credit card is swiped), and the processor is a component of the POS system that routes the information from the card.
In some cases, the payment processing company will provide POS equipment, customer support, and assist with things like PCI compliance. Generally speaking, however, credit card processors are limited to simply moving data from one place to another.
What is Merchant Services?
Merchant services takes the credit card processing system a step further by adding a human element that focuses on helping you cut costs, remain compliant, and stay secure. A good merchant services company offers several direct benefits to your business:
1. Merchant Services Is Your Personal Payment Expert
A good merchant services provider will be well-versed in anything related to a business accepting payments. From the best POS systems to security compliance, you will have someone you can contact to help you navigate the complexities of electronic payments.
Having someone you know you can count on to handle the entire payment process not only alleviates stress, it frees up valuable time. You can focus on actually running your business and let merchant services worry about the headache of accepting payments.
2. Merchant Services Know the System
As a business owner, you are probably always looking for ways to cut overhead costs. Merchant services can help you save money by negotiating better rates and minimizing fees. Your provider will also be aware of common “hidden charges” associated with payment processing and try to eliminate or reduce these charges. This rate and fee reduction can result in significant savings for your business.
3. Merchant Services Keep You Secure
One of the most important aspects of payment processing is keeping client information secure. You must obtain a certification stating you are compliant in this respect. If you do not have a certification or your certification lapses, you are subject to fines ranging from $5000 to $500,000.
This may sound scary, but a merchant services provider can demystify the certification process and ensure you adhere to regulations. They will know what you need to do to maintain compliance based on the types of transactions you accept each month.
Additionally and very importantly, a merchant services provider will be informed of the latest trends in cybercrime. This is an ever-growing threat and there are literally hundreds of ways data can be stolen. Your provider will teach you what to watch out for to avoid a security breach.
Finding a Good Merchant Services Provider
Finding the right merchant services provider can seem daunting. There are many, many companies to choose from, all with varying costs and capabilities. The best place to start when selecting a provider is by going to a qualified broker. He or she can suggest the merchant services provider that suits your individual needs.
If you are in need of merchant services but aren’t sure where to start, give Summit Payments a call. We have years of experience in the payment processing industry and love finding ways to save you money. Contact us to schedule a consultation today.
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