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Telephone credit card processing | Is it right for your business

Posted by Alex Neir on Tue, March 27, 2012 @ 02:09 PM
Telephone Credit Card Processing

Accepting credit card payments is a proven way to increase sales and grow your business. However, it may seem like there is a lot of equipment you need in order to accept credit card payments from your customers. This not always the case as all you need is a telephone.

A telephone credit card processing account allows your business the convenience of accepting credit cards and all you need is a telephone. Once the account is set up you will be given a voice authorization phone number to call when you need to accept a credit card payment. When calling all you need to do is provide the credit card number, expiration date, billing zip code and the three digit code on the back of the card. Once that information is provided you will be given an authorization code that the credit card has been accepted. That’s it. A simple solution to accepting credit cards without the need for expensive equipment.

Another benefit about setting up a telephone credit card processing account is that you can expand the account as your business grows. You can add processing through a smart phone which gives your business the ability to capture customer signatures at the sale. You can also add a virtual terminal which gives your business access to a terminal at the office for instances when your customers call in to order products or service.

There are many conveniences to adding a telephone credit card processing account and very little expense. By making it easier for your customers pay, you are expanding your reach and are creating the infrastructure necessary to grow your company.

Tags: Mail and Telephone Order, MOTO Account, Telephone Credit Card Processing

Getting started with a merchant account – 5 Steps

Posted by Alex Neir on Mon, April 18, 2011 @ 07:34 AM
Start
Getting started with a merchant account – 5 Steps

This guide is intended to help your business understand merchant services and arm you with the information you need to make an informed decision on setting up a merchant account.

  1. Step 1 – What is a merchant account?
  2. Step 2 – What kinds of merchant accounts are available?
  3. Step 3 – How long does it take to set up a merchant account?
  4. Step 4 – What do I need to know when setting up an account?
  5. Step 5 – Who should I use to set up the account?

What is a merchant account? Starting with the basics, a merchant account enables your business with the ability to accept credit cards payment for provided goods and services sold. It is important to understand three fundamental principles:

  1. A merchant account is underwritten by a financial institution so expect to provide financial documentation pertaining to your business.
  2. A merchant account allows your business to accept payments via credit card.
  3. A merchant account is treated like a line of credit. Money received from your customers is deposited immediately into your account, however that money be charged back for up to 18 month from the original sale. This creates a line-of-credit in the eyes of the funding bank.

What kinds of merchant accounts are available? There are many different merchant accounts that are offered depending on how your business intends on accepting credit cards. The 4 major account categories are:

  1. A retail merchant account
  2. A Mail Order, Telephone order (MOTO) merchant account
  3. a internet merchant account
  4. A Point of Sale (POS) merchant account

How long does it take to set up a merchant account? A merchant account can be set up in as little as 24 hours or as long as 2 weeks. It depends on a few factors.

  1. Type of business
  2. Industry of the business
  3. Requested account volume
  4. Business Financials

What do I need to know when setting up an account? It is beneficial to understand all the rates and fees associated with the account, how they are charged and what they mean. It is also beneficial to understand that a lot of the charges associated with the account are negotiable.

Who should I use to set up the account? There are many options when selecting a provider.  Be sure to weigh the benefits and cost associated with each to make  the most informed decision for your business.

Tags: What is a Merchant Account, Credit Card Processing Account, MOTO Account, Credit Card Processing Fees, Point of sale credit card processing

Why are rates higher for Internet, Mail and Telephone order charges?

Posted by Alex Neir on Fri, February 11, 2011 @ 02:54 PM
Internet Mail and Telephone Order

Why are merchant account rates higher for Internet, Mail and Telephone Order transactions?

 The rates charged for credit card transactions vary based on the perceived risk associated with the transaction. The transaction is perceived to be more risky when there is less control over who is initiating the transaction. Transaction risk has been established by the credit card associations (Visa, Master Card, Discover, etc) and can be grouped into three categories:

  1. Card present, person present transactions
  2. Keyed transactions
  3. International and corporate card transactions

Card present, person present transactions, also known as swiped transactions, represent the lowest risk. The risk is lower because the merchant has more control over the customer initiating the transaction. The merchant can check the customer’s identification to make sure it matches the credit card being used. This greatly reduces the probability that the transaction is fraudulent.  

Now, the rates for internet, mail order and telephone orders fall into our second category, keyed transactions. When a credit card transaction is completed via the internet, mail or telephone the order must be keyed into the credit card terminal by the business. The credit card is not present at the time of the transaction and therefore the identity of the customer placing the order can not be verified. Due to the fact that there is less control over the customer, the perceived risk is higher and therefore the rate is higher.

The last category, international and corporate cards represents the highest perceived risk. This is due to the fact that international cards are unable to be address verified leading to higher fraud and corporate cards have multiple authorized users also leading to higher instances of fraud.

If you would like help opening a merchant account please contact our friendly staff at (800)917-8026 and we can get you set up quickly and easily.

Tags: Merchant Account, Internet, Mail and Telephone Order, MOTO Account