How does a business re-bill a customer’s credit card after a purchase has been made? Doesn’t storing the customer’s credit card information open up potential liability for a business if that information is breached? These are very common questions related to payment processing with credit cards.
A credit card re-bill is common for businesses that have repeat customers or recurring billing options. It is often an added convenience to offer customers the ability to retrieve their credit card information rather than re-entering it.
For a business to store customer credit card information there are strict Payment Card Industry Data Security Standards (PCI-DDS) that must be adhered to. Credit card information is a primary target for identity thieves and as a result has come under stiffer protection regulations. Designing a properly protected and compliant credit card storage system can be an expensive and cumbersome undertaking.
So how can my business store customer credit card information cheaply and securely?
The simple answer – outsource the storage. By letting a third party store the customer’s credit card information the business gains all benefits of card information retrieval with zero liability. Outsourcing credit card data storage is a simple, fast, cheap and headache free option that is offered by a number of providers as part of their gateway services. A few of the companies offering this service include The Maxx Payment Gateway, Network Merchants and Authorize.Net.
How does it work?
Customer credit card information is stored off-site on secure computer servers managed by the company offering the service. Each individual customer’s information is accessible via an online interface or your businesses website (cloud service). A unique key is used to access the customer information and retrieve the credit card details for re-bill purposes. This functionality is typically pre-built and offered as a plugin to the overall virtual terminal or payment gateway service. Since the sensitive data is stored off-site with secure encryption used for retrieval, PCI compliance is maintained and your businesses liability is minimized.
Proper storage of sensitive information entrusted to your business is an important responsibility. Please contact our knowledgeable staff for more information about a credit card re-bill solution for your business. (800)917-8026
Does your business run QuickBooks? Are you interested in offering credit cards as a form of payment for invoices you generate from your QuickBooks account?
Integrating a credit card payment solution into the QuickBooks environment is exactly what we have done. Our QuickBooks plug-in installs directly into QuickBooks Enterprise, QuickBooks Pro and QuickBooks Premier software applications.
The power of the plug-in is to directly apply credit card payments to invoices that are created within your QuickBooks edition. Credit card payments can be applied to new invoices, open invoices and can even be split on a single invoice with ease and convenience.
All credit card information is securely stored off site in our PCI-DDS compliant facilities. At no time is any customer credit card information stored on your computer or business servers. The application supports card present swiped transactions as well as card not present keyed transactions.
Installation is a snap and the functionality is easy to use as is mimics the QuickBooks workflow. For more information on this revolutionary product please call our friendly staff at (800)917-8026 and request a demo.
Affordable Credit Card Processing | We have you covered
Are you looking for an affordable credit card processor? More often than not affordable and credit card processing don’t seem to fit well together. This is partially due to the fixed cost imposed on merchants to accept credit cards called the interchange rate. The second cost factor is the additional rates and fees imposed by your processor.
Now the term affordable is subjective. What is affordable for some may be expensive for others so let’s begin with a base line of affordability. When auditing a merchant account it is important to calculate the effective rate for your processing. The effective rate is calculated by dividing your monthly processing fees by the total volume processed. This number should be below 3.0% for low risk retail merchants.
So, that being said, anything above 3.0% becomes more expensive than it should be and therefor more unaffordable.
The beauty of the effective rate calculation is the fact that it is a retrospective look at all the rates and fees your business is charged. Lots of providers offer seemingly incredible deals on processing rates only to hit you with exaggerated ancillary fees to make up the difference.
So if you truly want an affordable credit card processing solution, stop negotiating the individual rates and get commitment from your processor that your effective rate be 3.0% or less. Then you know you are getting the most affordable merchant account possible.
Let Maxx Merchants review your processing and we’ll guarantee your effective rate is 3.0% or below* while also providing the best in class customer service and support.
*Certain restrictions apply
Your merchant account is live and now you are attempting to reconcile the deposits made by your processor. In theory the deposited amount should match the amount on the settlement or batch report generated by your processing equipment or gateway. Anyone who has worked on reconciling the deposits knows that is seldom the case.
More often than not the settlement report that is run at the end of the day has absolutely no similarity to a deposit made into your bank account, ever! This can be overwhelmingly frustrating.
Why is it so difficult to reconcile?The top 4 reasons are listed and addressed in detail below:
- All the issuers settle at different times
- PIN Debit and other cards settle separately
- Your settlement time plays a role
- Pricing also plays a role
Issuers settle at different times
The term issuers refers to the various associations of Visa, Master Card, Discover, American Express, etc. It has been a long standing issue that each, with the exception of Visa and Master Card, settle at different times. So if your business accepts all the above mentioned cards, deposits can vary from 24, 36 and 48 hours after the settlement or batch is run. Often times Discover and AMEX take longer to settle. So, for example, a deposit amount can contain settlements from the previous days batch (Visa and Master Card) in combination with the day before settlement for Discover and American Express.
PIN Debit and other cards settle separately
Adding additional complication is the fact that multiple card types (Diners cards, fleet cards, gasoline cards,etc) as well as PIN Debit use alternate networks to process and settle payment amounts. These additional networks also settle at different times. So the more cards types your accept the harder your bankcard deposit reconciliation is going to be.
Your settlement time plays a role
Your settlement time or batch time is the time you tell your processing equipment to issue a collection request for all the payments that have been authorized for the day. This can be a manual process or an automated process depending on your equipment and setup. Depending on when this process is run there can be additional complications added to the reconciliation process. For example, if you batch out your equipment before the end of your business day, you are effectively postponing payment collection for transactions that are completed after the batch is processed. This means that each days transactions are split into multiple deposits.
Pricing also plays a role
Certain pricing structures call for daily or monthly discount. With daily discount pricing the processing fees are deducted from the daily settlement or batched total. For merchants that have daily discount pricing, the deposited amount will never match the settlement or batch report as the deposited amount has fees deducted from it. Monthly discount does not operate like that as the fees are deducted separately from the deposited totals.
Would you like help tuning these variables in a effort to make your bankcard deposit reconciliation process easier?