More Deceptive Practices to Watch Out For

If you are not aware by now from reading this blog the credit card processing industry is one of the most deceptive. Most of the time  "what you see"  is not "what you get". In this article Phil Hinke describes some more of those very deceptive practices among sales people in the industry and how they hurt merchants:

I have seen merchants deceived on the actual discount rate they received. I have seen merchants deceived on the "terms and conditions." I have even seen a “1” in the discount rate on the merchant application mysterious change to a “7” after the merchant had signed the agreement. 

Most processors will attempt to lock you into a contract because they have hidden fees they simply don't want you to know about. They also have statements that are impossible to understand because they want to keep you in the dark. Make sure to stay clear of those problems so if something does arise you can leave without penalty.

Square: Getting a Boost from Visa

The latest big news for Square is Visa coming on board as an investor. This no doubt gives the mobile credit card service a boost of credibility and warning shot to potential competitors that it is here to stay. What's in it for Visa? As Forbes explains they get  a piece of the action when it comes to really small business who normally use cash and are switching to credit cards. Square is a fantastic solution for people with a small side business that perhaps use it for small dollar amounts and use it somewhat infrequently. Square does not accept Amex nor can it deal well with larger dollar amounts on a daily or monthly basis (as explained here). It also does not work with a blackberry. For those who are serious about accepting credit cards they should be seeking a merchant service provider who can provide software and/or hardware for your smart phone but stay clear of contracts and termination fees.

Square and Intuit Face Off With Mobile Payments

Square and Intuit are facing off with their very own versions of mobile credit card technology. As mentioned previously, Square is a great solution for a vendor processing small monthly amounts and small per transaction amounts. Once you get more serious you run into issues: Process large amounts and square will hold onto your fund for 30 days. You can't accept Amex and many complain the swiper unit is easily lost. The problem with both of these solutions is the rates are far from competitive and when you process larger amounts the rate is what is most important. If you are serious about using a Mobile Merchant Service you will bes best off to find an honest credit card processor with great rates and service but beware of contracts, termination and set up fees.

Hotels and Credit Card Processing: Saving Money

Hotel News had an interesting article about saving money on your merchant account. Hotels certainly process a lot of credit cards and in different ways that can effect the rates their charged.The author, Joel Ross wants to point out that more important than the actual rate itself is being aware of downgrades and reclassification of cards which is very prevalent in the hotel industry. As he explains:

It is not what you think you are being charged it is what you are really being charged that matters. The real costs often are intentionally difficult to decipher when the monthly statement arrives. Transactions get downgraded or reclassified for a wide variety of reasons, and unless you are a real expert at analyzing the statements, you will not see it.

These are just some of the reasons to stay away from contract as companies can pull all sorts of dirty tricks and by the time you figure out what way is up you are stuck paying heavy fines. Hotels unfortunately are  sometimes limited to the processors they can use especially if they are using propitiatory software.

Twitter: Breaking Into the Merchant Service Industry?

Jack Dorsey, co-founder of Twitter is looking at the credit card processing as his next innovation. He's looking to target the mobile merchant service industry by developing a new piece of hardware called square. This hardware would connect to the jack of an iphone, balackberry or other mobile device and allow it to accept credit cards. Here is a video with Jack Dorsey discussing this new innovation:

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How To Choose a Credit Card Processor

Welcome to our new blog.

We hope to provide you with content you will find valuable and informative. The world of credit card processing can be a very confusing one. There are many things to be aware of when choosing a credit card processor and here are just a few things to watch out for:

1. Rates that are really introductory
2. Rates that apply only to debit cards no credit cards
3. Companies that have a history of misguiding customers ( you can check websites like ripoffreport.com)
4. Hidden fees and surcharges buried in pages of fine print
5. Bill Back- A practice of billing you on one statement and hide the surcharges on the next month's bill