Bankcard Processing Intl.

Fed Sets Debit Fee Cap At 21 Cents – Or More

admin — Fri, 05 Aug 2011 01:44:16 +0000

WASHINGTON — The Federal Reserve Board on Wednesday suggested raising the debit interchange fee cap to 21 cents per transaction but gave banks leeway to charge even more if they meet certain fraud prevention standards.
In a draft final rule the Fed is expected to approve this afternoon, the agency’s staff suggested setting the cap at 21 cents to account for issuers’ costs of completing a transaction but proposed a separate rule that would allow banks to charge an additional 1 cent per transaction if they meet certain standards established by the central bank.
In addition, the Fed said it would allow banks to charge a 5 basis point “ad valorem” charge to account for fraud costs.
For example, for a $38 debit transaction, a bank can charge 21 cents plus 1 cent for fraud prevention, if qualified. Additionally, under the rule, they could charge 5 basis points of the amount of the transaction, in this case 1.9 cents. The total debit transaction in this scenario would be 24 cents.
In the end, the Fed appeared willing to allow more flexibility than expected, with most estimates suggesting the central bank would set a hard cap of 20 cents.
Although banks would prefer to avoid any interchange fee limit, the final rule is a partial victory for them. Banks had been arguing since December that the proposed 12-cent cap was too low and did not adequately take into account the costs involved. In its final rule, the Fed clearly agreed.
Banks also received extra time to comply with the rule, which under Dodd-Frank was supposed to go into effect on July 21. Instead, banks will have to comply with the new limits on Oct. 1.
The central bank has been under pressure by banks, credit unions and others to elevate its cap under a provision introduced by Sen. Richard Durbin in the Dodd-Frank Act. The agency received more than 11,000 comments prompting the Fed to ask for more time by Congress to evaluate all of the letters before crafting a final rule ahead of the July 21 effective date.
The 9 cent increase is significant, but still falls short of the industry’s average of 44 cents per transaction.
The Fed decided to raise the fee cap largely because it included costs other than those covered in its initial proposal. In the rule, the Fed said the 21-cent base cap accounts for: network connectivity costs, costs of hardware, software and labor, and transaction monitoring costs. It also addressed another industry point by allowing banks to charge 5 basis points to account for fraud losses.

How To Get Started With Your Merchant Services Account

admin — Wed, 06 Apr 2011 20:47:38 +0000

You’ve started your business. You have a business plan and your goals are set. Your office space has been secured and you’ve hired an assistant. You’re ready to begin selling your product. But wait! There’s something missing. You need a way to accept payments. In today’s market, “plastic” is the accepted (and most common) form of payment. But where do you begin? That’s where merchant services comes in.

Merchant services is a type of bank account allowing your business to accept payments either by debit card or credit card. It serves as an “agreement” between your business, a merchant bank and a payment processor for the acceptance of credit card or debit card transactions. Some earlier methods for accepting payments were credit card slips sent to a merchant processing bank by mail or by automated response unit (ARU) via telephone. Some of these systems are still in use today but have been mostly replaced by electronic devices.

These days, a business must be able to accept payment by debit or credit card. To get started, you will need a stand-alone, electronic credit card terminal. This terminal will allow you to “swipe” or enter credit card information via a keypad. Some terminals will also accept gift cards and will verify checks. The most popular credit card terminals consist of a modem, keypad, printer, magnetic stripe reader, power supply and a memory card.

If your business includes on-line sales, you will need a payment gateway. This is a service that will authorize payments for your on-line clients. A payment gateway is pretty much the same as the point-of-sale terminals found in most retail stores. You’ll also need a merchant account provider. This is a separate company from the payment gateway. A gateway has a virtual terminal that will allow a merchant to sign in securely and key in credit card numbers. They also will offer a shopping cart which connects to the gateway from the merchant’s website.

That’s merchant services in a nutshell. There are many services to choose from, and each service may offer different options. You decide what is best for your business at this moment in time. If you are a new business, you may choose a service with the least amount of options. However, if you are already a large business and you are looking to improve the way you accept payments, check the various services available and see which will benefit you the most.

Choosing a merchant services company can be confusing and time consuming, but it doesn’t have to be. Check to see if a contract is required. Are there cancellation fees? Are there application fees? Does the company offer quick deposits of funds and guaranteed personal service? Do they offer free terminal programs? Are the processors PCI compliant? Last but not least, what kind of warranty is offered on the equipment? These are all questions that you need to consider.

Your merchant services company should make your life easier and improve your business relationships with your customers. Make sure you can talk to a real person in real time. If the only way to contact your service is by email, you will not be a satisfied customer. This will reflect to your customers as well.

Finally, ask questions. A superb merchant services company has nothing to hide. They are there to serve you!

HYPERCOM T7PLUS

admin — Wed, 06 Apr 2011 18:49:16 +0000

The Hypercom T7Plus is one of the most popular credit card terminals ever made. The T7 Plus is both compact and highly advanced. BPI offers the Hypercom T7Plus at the Guaranteed Lowest Price anywhere.
The Hypercom T7 Plus is designed for merchants requiring a small countertop POS terminal. The terminal delivers a set of powerful features in an attractive, compact design. The Hypercom T7Plus is capable of accepting all magnetic stripe cards and provides fast transaction authorizations.

HIGHLIGHTS

Completely eliminates paper jams with revolutionary SureLoad printer
Prints receipts in half the time of previous generation printers
Supports longer paper rolls for fewer paper changes
T7 Plus offers low overall cost of ownership thanks to its high reliability

SPECIFICATIONS
Memory – 512K
Display – 2 lines x 20 characters test display, standard 4 lines x 20 characters (text display optional); back-lit LCD
Printer – SureLoad™: Clamshell design with drop-in paper loading, thermal technology
Paper roll – 57 mm wide, 80 mm diameter
Keypad – 35 keys, water-resistant; 3 soft keys optional; Options: 59 keys with QWERTY Keyboard
Card Reader – Tracks 1 and 2 simultaneous; Options: Track 3
Communications – LAN, RS422, RS232, RS485, 2 wire or 4 wire
Auxiliary Ports – PIN Pad, RS422/RS485; Options: RS232
Modem – 1200, 300 bps, V22, V21 synchronous (SDLC) & asynchronous; 2400bps, V.22BIS optional
Reliability – Key Life: 500,000 Keystrokes (Calculated); Card Reader: 400,000 Reads (Calculated); Printer: 900,000 lines MCBF
ESD Resistance – 12,000V
Memory/Clock Back-up – Lithium Battery (5 years)
Physical – H: 2.5 in; W: 5.18 in; D: 10 in (301 mm); Weight:1.5 lbs
Environmental Operating Temperature – 0°-45°C/32°-115°F
Operating Humidity – 15% to 85%, non-condensing
Power – AC 85-250 V, 50/60 Hz; DC 24 V DC, 1A

8 Reasons Why To Accept

admin — Mon, 04 Apr 2011 03:20:30 +0000

More Sales
Studies have shown that having a merchant account may increase sales by as much as 50% or more. Many direct marketing businesses produce 90 to 100% of their sales by credit card.
Bigger sales
The average credit card user spends 2.5 times as much as cash buyers.
Cash Flow
When clients pay you with credit cards or ATM cards, you’ll receive your money faster than if you had to wait for them to send a check or money order.
Impulse Buyers
With credit cards, buyers feel more freedom to make unplanned purchases.
Enhanced Credibility
The ability to accept credit card payments gives you valuable credibility in the eyes of prospective and current clients.
Higher Profit Margins
Credit card customers are typically less conscious of price differences than buyers that pay by check or cash.
Competitive Edge
Credit card and ATM card users tend to seek out businesses that accept credit card and ATM card payments over those that do not.
Internet Strategy
It is clear that credit cards are the predominant and safest method of moving currency over the internet. Accept them or lose customers.

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admin — Wed, 16 Mar 2011 11:35:12 +0000

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admin — Sat, 12 Mar 2011 17:13:13 +0000

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