Jodi Goddard In Business Services, Finance, Merchant, Payment Processing Industry

How Do You Pay?

How Do You Pay?

There are countless ways the generations differentiate themselves from one another. Of course, we have the entertaining spats between Millennials and the Boomers, but there are also differences in cultural values, politics, and attitudes towards education to bring a few to the surface; however, one of the overlooked but interesting aspects is money management. Who knew payment method preference would play such a significant role in behaviors.

Roughly 3 out of 10 adults don’t use paper money at all — and 76 percent carry less than $50 at any given moment.

Cash took an expedited exit from our typical method of payment due to the pandemic. As a result, contactless payments became a real-life necessity. Paper money is excellent because it is convenient and saves time instead of waiting for transactions to be approved. But, on the flip side, you’re losing change in the couch cushions and the laundry, paying ATM fees, and then my dreaded chore, actually physically going into a branch to make a deposit.

It’s no surprise that shoppers love and gravitate towards other payment methods. Therefore, it is interesting to look at how each generation changes the norm in some shape or form.

When it comes to financing, boomers and millennials love to duke it out. Platinum is more on the side of what we can learn from their habits and preferences. So who’s side are you on?

How seniors like to pay

The retired community uses all methods of payments, but they are the largest group to go for American Express (Amex) and paper checks. Amex has a big draw to high-income earners with an appeal of prestige, with a downside of limited acceptance, especially compared to other card brands.

68% of people over the age of 65 prefer snail mail VS email. The same thing applies here, checks VS electronic payment forms (what they’re used to and change is hard). So they are opting for something that works and they trust. The downside is this adds the cost of ordering checks, stationery, lost in the mail situations, and the increasing cost of a stamp.

Generation X: Late 1970s-Mid 1980s

These kids grew up in an economic environment geared toward specialization in education and a high drive to become professionals. As a result, Gen X was willing to invest in themselves with college degrees while having a more conservative financial budgeting than the Baby Boomers.

The Generation X crowd gravitates towards credit cards, making sense since they came of age during the golden years of the credit card boom. They were the driving force behind the “swipe-and-sign” culture of the 1970s and 1980s.

Many from this same group sometimes find the “dip-and-PIN” culture of EMV chip cards a bit confusing, making the allure of credit cards easier to understand. However, the longer credit histories are a significant benefit for them, especially those in the higher income bracket who can use a line of credit to keep up with their expensive buying habits.

Millennials or Generation Y: Late 1980s-Mid 1990s

Millennials follow suit with a hybrid of Gen X and Boomers’ money management styles. They see that Gen X grew up with well-paying jobs almost impossible to obtain without a college degree and fear education debt. But, on the other hand, they are like the Baby Boomers where they are willing to spend money to live in comfort. This created a more positive view of debt in this generation with the popularity of same-day / payday loans and other relatively commonplace loans.

Why the Habits?

It is fascinating to see some differences in preferred payment methods and fun to see where the trends take us. Being a product of our environment applies to money management as well. If you consider it, it’s not just traits of an age group culture but also how the economic and historical climates shaped their views.

Technology that advances every day combined with the rapid changes in the economy significantly impacts how each generation views money and what they prefer for payment methods. Those born in the 1980s and early 1990s have the most flexibility in their payment preferences. They grew up with credit cards and checks — but are young enough to understand the draw towards digital eCommerce methods like PayPal, mobile payments, and online shopping.

One surprising trend is how the Millennials age group leans more towards prepaid cards (LINK PREPAID VS BLOG). It may seem like a hassle to refill the card, but most Millennials lack the credit history to qualify for traditional forms of electronic payments.

Generation Z: Mid-1990s-Early 2000s

Generation Z is still in the early stages of its members entering the market, so their profile doesn’t have much data. However, it’s following a mixture of Gen Z’s stress about debt and college tuition. This generation also went through their family and friends in the recession of 2008, which has them watching their financials to avoid overspending and going into debt.

On the flip side, they are the generations willing to spend more on goods and services. They view debt in a very negative way but also have a love for consumable goods. Coming as a surprise to no one, the younger generation gravitates towards electronic payment forms like mobile wallets, NFC, and eCommerce. They grew up in the digital age and expect technology to continue to improve speed, personalized experiences, and loyalty rewards programs.

Baby Boomers: 1946-1964

Baby Boomers were born and raised when the economy was strong. As a result, their parents were wealthier than previous generations, most likely due to the Great Depression. The habits that they followed to cut expenses were passed on to the Boomers. This allowed them to have more financial freedom and have excellent living standards while having suitable employment without a college degree.

What do you think? Agree or Disagree? Let us know in the comments.

How Do You Pay?

Jodi Goddard In Business Services, Finance, Merchant, Payment Processing Industry

Does Your Age Match Your Money Habits?

Does Your Age Match Your Money Habits?

Since each generation had its habits and processes, it would be good to consider implementing some of their traits to improve your situation.

The Greatest Generation: Thrift Money Habits

So does your age match this generation? Suppose you were born between 1902-1924; the odds are that one of your money habits is that you are thrifty. Living through hard times and deprivation, people had to be extra cautious of their spending, ensuring checkbooks were always balanced and upcycling. Those of this “Greatest Generation” would repair anything they can before opting to buy new.
There are always ways to cut back on expenses and spending habits. How often are you hitting up the drive-thru for a $9 cup of coffee? That adds up quickly! That extra cash would serve you better saved for a rainy day; knowing a cushion to fall back on provides an immense sense of security.

Baby Boomers: Plan for Retirement Money Habits

So is your age match the Boomers? They are/were putting more into retirement than younger generations, but they will be/ were prepared for their elderly years. 80% of boomers contribute to their retirement plans and investments. Saving for retirement should be at the forefront of your financial planning. The younger you start, the more time you have to build up your retirement funds before retiring.

Generation X: Do Your Research Money Habits

Gen X gets the most credit for being informed about retirement and financial planning. This is because they like to do their research and have control of their retirement and investment decisions. Props to Gen x for being informed. Make it a habit to understand the terms and conditions of your accounts. Understanding the ins and outs of financial planning helped them reach their goals, why would we NOT want to have that for ourselves.

Millennials: Choose Debit Over Credit Money Habits

Millennials tend to shy away from credit card debt compared to the previous generations (ahem, looking at you boomers). A recent study showed that just 1 out of 3 millennials own a credit card. Millennials are wary of debt but they also understand the importance of good credit. (LINK CREDIT BLOG). Using a credit card is the best way to start your credit report, so remember to watch spending habits, look out for hidden fees, and pay the balance off monthly to jump-start your credit.

Platinum Payments offers all payment methods and can help you decide what fits you, your business, and your customers.

Talk options with a representative by calling 866-921-2982

So Does Your Age Match Your Money Habits?

If you like this blog please check out the others here.

Jodi Goddard In Compliance, Merchant, Payment Processing Industry, Technology & Equipment

Password Spraying Attacks

Once upon a time, in 2019, a multinational software company took a huge hit to their security. The hackers took business documents from a shared drive by accessing their IT infrastructure by a password spraying attack, a process to expose weak passwords. According to the Data Breach Investigations Report, over 80 percent of hacking-related breaches involved either stolen (or lost) credentials or brute-force attacks.

There is no way to prevent a spraying attack but you can detect or even stop them.

Hackers security passwords spraying

What Is a Password Spraying Attack?

Typically brute force hackers will target single accounts by testing multiple passwords. Cybersecurity allows for security protocols to detect suspicious activity and locks the account. Password spraying is the flip side to that where they are using a basic password against multiple user accounts. Trying a single password on many accounts before attempting another password on the same account is a workaround for normal lockout protocols, which allows the hacker to try more passwords. For that reason, password spraying attacks are frequently successful.

Any hacker who targets a large number of usernames and works with a large enough stash of common passwords is bound to be able to compromise some accounts. In addition, hackers will target users who use a single sign-on (SSO) authentication in hopes of gaining access to credentials that will give them access to multiple systems. Once an account has been accessed in an attack, the victim typically loses temporary or complete loss of sensitive information. On a business level, that would mean disrupted operations, revenue loss, and the risk no one will trust you again after a reputation hit.

How to Detect a Password Spraying Attack

Even though countermeasures may not automatically detect a password spraying attack, one indication is a high number of authentication attempts, especially failed attempts due to incorrect passwords. Typically an attack would lead to a spike in login attempts. Hackers use automated tools to attempt thousands of logins within a short time, typically coming from a single IP address or device.

How to Decrease the Risk of Password Spraying Attacks

Require multi-factor authentication for all users.
Establish strong policies for resetting passwords after lockouts.
Attend regular user training to ensure all users understand the threat of password spraying and maintain secure passwords.
Set up alerts on the activity you see as suspicious, including single actions like a user gaining admin privileges or a sequence of actions within a specific timeframe.

It is crucial to delete successful attacks because even the briefest access could be detrimental. A sound cybersecurity protocol requires a broad, proactive approach that secures layered protection to block as many attacks as possible. Consider implementing some of these factors, or it may be time to do a review of everything.

Check out this post for ransomware what to watch for.

Jodi Goddard In Compliance, Payment Processing Industry, Technology & Equipment

Ransomware

What Do You Know About Ransomware?

Other than it’s terrifying and you pray it never happens to you.

In the Verizon 2020 Data Breach Investigations Report, the entire goal of a ransomware attack is “to disrupt operations badly enough and long enough that the organization will pay the ransom.” The average ransom in Q2 2020 was $178,254 — a 60% increase from Q1.

What Is Ransomware?

Ransomware is when a hacker has encrypted data, so the victim cannot access any systems or data until the ransom has been paid. Then and only then will they release the decryption key. While a business is frantically trying to figure out a ransomware attack under the threat of destruction or publication of sensitive information, their operations are also at a standstill.

The Challenge in Detecting Ransomware

It’s almost impossible to detect a ransomware attack fast enough to deter any damage. Hackers will use social engineering techniques, which help influence a person to act on something that might not be in their best interest. These techniques used will install ransomware and even military-grade encryption to jumble sensitive information. It’s a type of trick to build trust to make fraud easier.

Once a device or other endpoint is infected, the ransomware will start to reproduce itself throughout the network in 3 seconds on average. Typically the victim becomes aware of the attack once the ransomware has encrypted their data and the hacker demands payment.

How Did You Get That Infection?

Probably from something on this list.

Spam and phishing emails — Ransomware creators usually act as legitimate users to trick others into downloading something malicious. Having a strong email security system that verifies who sent messages and checks email attachments is extremely important.

Malicious websites — Some websites host malware and phish for sensitive information like login credentials. This requires user interaction like clicking on fake ads, social media links and entering their personal information in fake login fields. Reviewing the company browsing policies to enable safe browsing is a must for protection.

Infected removable drives — Flashdrives can have malware that will install automatically when it’s connected to a computer. Making sure your computer is running security cans of removable drives.

Malicious apps and plug-ins — Malware is bundled with software that is being shared from a third-party website. Make sure you know what you’re installing and only download software from official websites. It is also wise to have permission settings to block installs.

Types of Ransomware

Locker ransomware — This type of malware restricts access to the infected device.
Crypto ransomware — Considered the most dangerous type of ransomware, this malware blocks access to stored data and files. The user’s data is held while the hacker demands a ransom to give up the decryption key; however, paying doesn’t guarantee you will get the key.
Mobile ransomware — Mobile Ransome starts on a mobile device and then is passed on to a computer. In most cases, it will then show a message claiming that the device has been locked due to some illegal activity.

How to know if you may have ransomware

Unusual file system activity, like hundreds of failed file modifications (the ransomware attempting to access those files)
Increased CPU and disk activity for no apparent reason (the ransomware removing data files and encrypting data.)
Blocked access to certain files (ransomware encrypting, deleting, renaming, or relocating data)
Suspicious network communications (ransomware and the hacker’s server.)

Best Practices for Ransomware Detection

No business is immune to cybersecurity threats, but several best practices will reduce your risk of falling victim to a malware attack and enable you to spot attacks in progress.

Education + Employees

Education about what to do when coming across a suspicious email or link should also contain information about red flags to watch for malicious emails, such as:

Corporate-looking email accounts
Suspicious file attachments
Suspicious links
Monitoring your systems
Monitor for suspicious activity.

Things that can Help

Scanning system files for abnormal activity, such as. Hundreds of failed file modifications. Log all incoming and outgoing traffic. Define the baseline for normal user activity and proactively look for irregularities. Promptly investigate any unusual activity.

Create Honeypots

A honeypot is a lure for hackers which contains fake file repositories that look legitimate. When a hacker goes after a honey pot, it is easier for you to see the activity and remove the malware. The earlier the discovery, the faster you can protect your infrastructure from being compromised.

Software Solutions

Use a type of software with antivirus / anti-ransomware tools that will warn you of threats.

Check email content

Configure email settings to automatically filter incoming mail and block suspicious messages from entering the inbox.
Reject files with certain extensions in mail attachments, such as executable files.
Ransomware is an especially challenging form of malware to detect and protect yourself against.
By implementing some of these tips or reviewing the current settings, you can ensure the sensitive information is protected.
It is also recommended to educate employees about red flags and vulnerabilities, establishing processes and systems for preventative monitoring, and installing anti-ransomware software and tools. Organizations can effectively mitigate ransomware when employees are updated to the ever-changing types of fraud.

Hopefully, you now know a bit more about ransomware and can either implement new policies or be reminded to review the current setup.

Interested in more fraud? Check this.

Jodi Goddard In Compliance, Merchant, Payment Processing Industry

How to Avoid Chargebacks and the MATCH list

Chargebacks can a ticking timebomb. Here's how to fix it. If you are looking for ways to avoid chargebacks and the MATCH list these ideas are easy to implement. Schedule your appointment with a Payment Professional for a free analysis, we know we can help!

How to Avoid Chargebacks

Chargebacks can be a ticking timebomb. Here’s how to fix it.

If you are looking for ways to avoid chargebacks and the MATCH list, these ideas are easy to implement. Schedule your appointment with a Payment Professional for a free analysis, we know we can help!

Chargeback Prevention

Make sure the first four digits of the embossed or printed card match the four digits printed below.

Chip & PIN cards should be processed on EMV terminals, this way the customer can enter their PIN and verify the transaction.

Match the name and card number on the transaction receipt to make sure the magnetic strip is not counterfeit.

If you are unable to swipe a card, make sure the slip is signed by the customer and shows the transaction date, authorization code, purchase amount, your information (your name, location), and description/itemization of goods or services.

Card-Not-Present Transactions + Higher Risk Of Chargebacks.

Keep a transaction record – By keeping a record of problematic customers, you are ready and able to spot high-risk transactions. Save yourself by blocking specific credit card numbers and future purchases!

Address Verification Service (AVS) – A fraud reduction tool to verify the cardholder’s address prior to completing the sale (ask a payment professional about this, it’s amazing!).

Know your customers – Avoid chargebacks by having a relationship with your customers. For instance, call the customer to confirm the item number or delivery address.

Customer service phone number – The customer service phone number should be printed on the receipt making it easier for customers to resolve disputes via the phone VS chargeback process.

CVV2/CVC2 security – A security feature printed on the back of cards, which you can verify as an additional security check.

3D Secure transactions – If you accept online payments, ask your payment professional for a 3D Secure transaction authentication system. Used correctly with a cardholder’s security code you are protecting yourself and the customer from most cases of fraud chargebacks.

Cancellation Tips

If you’re not careful with cancellations things can get dicey fast and you could put yourself in jeopardy real quick. Also, it may be wise to make sure there is an unsubscribe option.

To avoid canceled recurring transaction chargebacks, take immediate action and update the CRM.

Customers should be aware of your cancellation or refund policy in writing.

Be sure to have your refund/cancellation policy clearly printed on the transaction receipt.

Online Purchases

The refund and cancellation policy should be on your checkout screen with an “I agree’’ button the customer must click on to complete the transaction.

If your policy is no refunds or in-store credit only, this information needs to be included on the receipt.

Refunds need to be done with the original credit card, remember not to refund credit card purchases with cash or check.

If a customer did not receive their goods or services, a non-receipt of goods chargeback may occur.

A “decline’’ code indicates that the card issuer does not approve the transaction. Do not try to force it through anyway.

Avoid duplicate transactions

• Process one transaction at a time through your POS terminal

• Balance your deposits at the end of the day

Unfortunately, chargebacks will always be a thing. Hopefully, you feel like some of these tips will help you minimize chargebacks, save money and that your stress level is no longer a frustrating ticking timebomb either.
Ask your Payment Professional for more details.

Jodi Goddard In Banking, Compliance, Merchant, Payment Processing Industry

Chargebacks 101

Chargebacks are a major pain point for business owners, and will only get worse. Especially with fraud skyrocketing at unprecedented rates, thanks 2020.

It is much easier to add steps to prevent chargebacks than it is to fight one.

What Is a Chargeback?

This happens when a customer disputes the legitimacy of a transaction, or when an item is returned. Charges are disputed for many reasons: if an item wasn’t received, duplicate charges, technical issues, or a cardholder’s information was compromised.

Types Of Chargebacks

True Fraud

When an unauthorized purchase is made with a credit card it is considered true fraud. Once the customer realizes they were a victim of fraud they will call the bank, file a dispute, and claim the charge was made without their knowledge or permission. The bank will reverse the charges and deposit the funds back into the customers’ accounts. (Great for the customer, not so great for you).

Merchant Error

Merchant error charges are directly a fault of your business. It could have happened because card information was keyed incorrectly, the transaction went through twice, or you failed to deliver the product.

Other errors could be caused by system failures or issues within your business. Processes such as bad customer service, unwanted recurring payments, authorization errors, or fulfillment issues can exacerbate the problems.

Customers could file chargebacks related to recurring payments if you are billing them regularly without their knowledge or consent. Hopefully, you canceled the recurring charges when they called in the first time and avoid this altogether.

Authorization Error

Authorization errors can happen when a merchant decides to override a declined transaction, especially if this override is done with a voice authorization. It can also be a result of multiple deposits made to complete a single authorization.

Having solid steps for inventory management, shipping processes, and a good customer service department will be your biggest asset. It is really important to be quick about refunds so customers will go to you with complaints rather than going straight to the bank. Read this blog to check if authorization fraud could be a potential issue for you as well.

Friendly Fraud Chargebacks

Friendly fraud happens when a customer makes a purchase with their own credit card and then disputes it directly with their bank. This happens frequently within the eCommerce space and the costs add up quickly. A common scam to watch for is when a product was delivered but customer claims they never received it, or they sent it in for a refund and didn’t get their money back.

Long story short is the customer knows exactly what they are doing and will file the chargeback with their bank for the direct refund. Be prepared to deal with a hefty amount of fraud if you play in the e-commerce world because your transactions are 100% card-not-present purchases.

Chargebacks + Merchants

Chargebacks add to the expenses of a merchant’s retail operations because they end up eating the costs for chargebacks. If a business starts trending with multiple chargebacks they are at risk of penalties, fines, loss of their merchant account. Unfortunately, if you have too many instances you are risking being placed on the MATCH list. The MATCH list identifies merchants by the number of disputes and chargebacks they have that show they are high risk.

Steps Of Action For A Dispute

If you happen to find yourself in a dispute, we recommend talking with all team members before reaching out to the customer. Find out the steps staff members took to resolve the issue. Reach out to the customer once you have a grasp of the situation.

Find out what they are disputing, take notes on the information the customer gives you.
Contact the processing bank
Be quick and organized with your facts and documentation.
Keep open communication.
Provide your documentation to the bank, such as photos of completion, contracts, work orders, receipts, etc. The more documentation you have, the easier it is to prove it belongs to you.

Schedule a time with a payment professional for a quick business analysis.

1-866-921-2982

Jodi Goddard In Merchant, Payment Processing Industry, Retail

2021 Payment Trends

Hindsight is 2020… but since we have PTSD from that’s 2021 Payment Trends!

Let’s focus on some 2021 vision instead.

Before we hit the 2021 Payment Trends. First things first, we need to address the big stupid elephant in the room that is the dumpster fire of 2020 and how COVID disrupted many things, but the largest economic impact was obviously ‘quarantine’ or ‘the shut down’. We had to adapt to our surroundings and power through, digging deep trying to understand and accept a new normal. One of the obstacles a majority of small to medium business owners experienced was finding a way to adapt. They needed a quick solution for a safer and more sanitary way to accept payments. Getting back to that 2021 vision, here are a few things we are expecting to trend for 2021.

Contactless Payments Dominate

Contactless payments was already a trending payment change but one day it was then blasted to the forefront due to COVID. 51% of Americas are using contactless payments, whether it’s tap-and-go, Apple Pay, Samsung Wallet. Many consumers in various reports state they are changing the places they frequent to a business that had proper payment methods. That same 51% of the US population reported cutting back on using cash down to only when necessary or not at all. In addition to this scenario, there was also a nationwide coin shortage so customers needed exact change, forfeit their change, or pay with a credit card.

Online Ordering Skyrockets

The curbside pick-up was considered a ‘thing’ at some of the larger franchised restaurants. While pick-up was always a good option, it became a way of life for so many of us. Online ordering and curbside pick up was, and most likely will continue to be the preferred and most used method of payment.

Improving Security

Rising fraud is always trying to hold hands with eCommerce, then it ruins the relationship for the rest of us. Rest assured, we are always looking for ways to add to the security and making sure that everything is up to date with the latest technology.

Schedule a time with a Payment Professional to help you with Online Ordering. It will only become more prevalent and business owners need it to stay relevant.

Curious as to how this compares to last year’s predictions? Read that post here.

Jodi Goddard In Business Services, Finance, Merchant, Payment Processing Industry, Retail, Technology & Equipment

ACH Defined

Any business owner wants to improve their bottom line. One way to do this is by improving your credit card processing fees. Depending on your industry, one avenue is ACH or Automated Clearing House. ACH is a network for electronic payments from one bank to another, favored especially by those who need recurring payments.

What are ACH payments?

Customers allow the business to access their account information to automatically withdraw funds at a predetermined time. ACH payments are generally used for revolving things like mortgage and car loan payments, utility bill payments, and phone bill payments, or subscription services.

Benefits of ACH payments

Improved cash flow – No longer waiting for payments to come in or chase down past due accounts.

Convenience – Improving the consumers’ experience by lessening the hassle of customers needing to authorize or initiate each payment.

Improved Accounting – Gone are the days where you would struggle managing paper invoices. Each electronic invoice is created automatically, making the reconciliation of invoices a breeze.

Better Processing Fees – ACH Payment Processing is less costly than a credit card. There are a few options on ACH set up but businesses can expect to pay a small monthly fee with a per-transaction fee OR a set percentage with a per-transaction fee.

Easy Set-Up – Super easy to set up with the customers’ banking information. By adding their information, customers can pay invoices at any interval. The payment will be automatically taken from their account ensuring the payment is made on time. Customers no longer need to deal with invoices and manual payments.

No More Expired Credit Cards – Credit cards expire and usually, people are going to forget each account that is tied to that specific card, or maybe the card was stolen so new card numbers would need to be generated. By going the AHC route, there won’t be a need to track down updated information saving you time and money.

How Can ACH Payment Processing Help My Business?

When payment comes due, your bank will send a request to the customers’ bank to being the transfer the funds with automatic invoicing. ACH is great for recurring bills or setting up autopay, however, it can be used for one-time purchases as well. ACH not only saves your business money, but it also saves on time.

How Do I Get ACH Payment Processing?

Schedule with a payment professional to review your merchant account and find out where we can help your business be more efficient and profitable. We assist you from setting up to troubleshooting, we will make sure that everything is on point. The software will allow you to set up payments via online website, email, in person, or over the phone with ease. More payment options mean happier customers.

Christian Horn In ISV, Partnerships, Payment Processing Industry

How To Identify A Trustworthy Payment Processor Partner

When partnering with a payment processor, you, as a company are putting your clients in
someone else’s hands and it is vital that you ensure those clients are not just adequately taken
care of, but exceptionally serviced.

Most busy business owners can’t tell what the hieroglyphics on merchant statement actually
mean and the processors exploit that. Our hopes is this article can shed some light on the world of processing.

Companies in the credit card processing industry notoriously resort to shady business
practices like charging hidden fees and doing routine margin increases. This will help you learn the differences.

1- What is the Processors Attrition Rate?

While many processors would attest to providing great service and having many satisfied
customers, the numbers don’t lie. What is their attrition rate, or in other words, how many
clients does the processor gain / lose in a given year and or once their contract is up?

If the attrition rate is high but clients are leaving in droves and that is a sign of poor service.
The bitter taste of poor quality is remembered long after the sweet taste of low price is forgotten.

2- Does the Processor have margin increases?

It is standard practice in the payments industry for processors to raise their margins every 6
months each April & October. This allows processors to do two things;

A) To sign accounts they couldn’t get otherwise by efficaciously undercutting the current rate
incurring a loss initially, then insidiously raising rates over time to make up for it at a profit.

And B), To make more and more money off the backs of their existing client base resulting in big
bonuses and sky-scraping company evaluations.

Don’t be fooled by payment processors that just quote lower rates, make sure those rates are
permanently fixed, and get that in writing!

3- Are Their Agreements Term Based?

Nearly all processors make their clients agree to process with them exclusively for a given
period of time. Do not fall victim to this tactic, look for a processor that works
constantly to earn each client’s business and only has true month-to-month agreements.

4- Does The Processor Charge a Termination Fee?

If a business wants to switch processors or change POS systems the vast majority of
processors will charge the merchant a termination fee. This makes for a nightmare when
coupled with routine margin increases, term based agreements, and poor quality of service. Let’s hope you signed the agreement that doesn’t enforce liquidated damages.

5- Does the Processor Lease terminals and POS systems?

Equipment leasing is widely known within the payment processing space as a rip off and scam.
Any company that does that to its customers is knowingly exploiting them for their benefit.
Opting to partner with a processor that refuses to participate in terminal & equipment leasing
will ensure an honest and ethical relationship that benefits your members.

6- Is the Processor equipped with a team that can handle POS and software integrations?

The payment processing industry is rapidly moving towards integrated company management
software and point of sale solutions. If a payment processor does not have a dedicated team
of software engineers that regularly do those integrations, your clients will struggle and be
technologically left behind. This will result in a massive unnecessary headache for the
merchant down the road that should be as easy as putting an already established and
experienced software team to work.

If you are looking to partner with one of the few payment processors that never raises rates,
has virtually no attrition, has a team of expert software engineers, exclusively uses month to
month agreements never charge termination fees and place the needs of the merchants
above its own then you can contact Platinum Payments at 1-866-921-2982

Jodi Goddard In Compliance, Payment Processing Industry, Retail

What’s your rate?

A lot of people always ask “What is your rate”, unfortunately, it is not that simple. There are over 800 different options.

If we break down the fees one keyword to know is Interchange.

Interchange is a set of fees that have been added by the card issuer. The network will collect the fees and pay them directly to the bank that issued the card.

When someone uses a card to make a purchase, Visa and other card companies do the transfer process from one bank to the other. In order for them to do that they add their fees, which are referred to as Interchange, or dues, fees, and assessments. The card companies then pay the bank and collect their network fees.

So, look at it this way, you need to take the subway from A to B, you have to pay the fare. If you had forgotten something important at home and had to go from B back to A, you again, pay the fare. Once you have gotten the things you needed and head back to the subway to go from A to B again, you still have to pay the fare.

That is the easiest way to explain what interchange is and how it works. Each time the banks transfer money, there is a fare charged to send and receive that information. If you are not taking cards correctly, that process starts all over again and it charges another fee. This is why it is so important that Merchants are doing their best to make sure they have all the correct information and running the cards the correct way to minimize all the transfer fares.

The card issuers determine what those rates will be, which vary from card to card. They also decide which type of card goes through at a higher rate, such as; debit, credit, rewards and corporate cards. So, knowing how to take cards correctly is a big deal when it comes to security and savings.

There are a few different areas of compliance, PCI is one of them. Merchants really should make sure that they are compliant with their own protection. If they are not compliant, the liability all rests on their business if fraud were to happen. I have heard from so many people, “Oh I’m fine, it rarely happens, no one I know has been affected” etc. Well, the problem with that is you’re fine until you’re not. Why take the risk when being compliant is a very simple process and needs to be done once a year.

It’s a huge risk for a business to take on, in the chance that there is a breach or fraudulent card, most businesses’ would not be able to recover from that devastation. In addition, risking the chance of a penalty by the card issuers for not being compliant.

At Platinum, we offer a monthly protection plan and account monitoring to make sure that our clients are always protected from the increasing instances of fraud and data breach. Talk to one of our Professional Consultants today on how we can help!

Payment Processing Industry

How Do You Pay?

How seniors like to pay

Generation X: Late 1970s-Mid 1980s

Millennials or Generation Y: Late 1980s-Mid 1990s

Why the Habits?

Generation Z: Mid-1990s-Early 2000s

Baby Boomers: 1946-1964

How Do You Pay?

Does Your Age Match Your Money Habits?

The Greatest Generation: Thrift Money Habits

Baby Boomers: Plan for Retirement Money Habits

Generation X: Do Your Research Money Habits

Millennials: Choose Debit Over Credit Money Habits

So Does Your Age Match Your Money Habits?

Hackers security passwords spraying

What Is a Password Spraying Attack?

How to Detect a Password Spraying Attack

How to Decrease the Risk of Password Spraying Attacks

Check out this post for ransomware what to watch for.

What Is Ransomware?

The Challenge in Detecting Ransomware

How Did You Get That Infection?

Types of Ransomware

How to know if you may have ransomware

Best Practices for Ransomware Detection

Education + Employees

Things that can Help

Create Honeypots

Software Solutions

Check email content

How to Avoid Chargebacks

Chargebacks can be a ticking timebomb. Here’s how to fix it.

Chargeback Prevention

Card-Not-Present Transactions + Higher Risk Of Chargebacks.

Cancellation Tips

Online Purchases

Avoid duplicate transactions

Unfortunately, chargebacks will always be a thing. Hopefully, you feel like some of these tips will help you minimize chargebacks, save money and that your stress level is no longer a frustrating ticking timebomb either.

Ask your Payment Professional for more details.

Chargebacks 101

Chargebacks are a major pain point for business owners, and will only get worse. Especially with fraud skyrocketing at unprecedented rates, thanks 2020.

It is much easier to add steps to prevent chargebacks than it is to fight one.

What Is a Chargeback?

Types Of Chargebacks

True Fraud

Merchant Error

Authorization Error

Friendly Fraud Chargebacks

Chargebacks + Merchants

Steps Of Action For A Dispute

1-866-921-2982

Hindsight is 2020… but since we have PTSD from that’s 2021 Payment Trends!

Let’s focus on some 2021 vision instead.

Contactless Payments Dominate

Online Ordering Skyrockets

Improving Security

What are ACH payments?

Benefits of ACH payments

How Can ACH Payment Processing Help My Business?

How Do I Get ACH Payment Processing?

1- What is the Processors Attrition Rate?

While many processors would attest to providing great service and having many satisfied customers, the numbers don’t lie. What is their attrition rate, or in other words, how many clients does the processor gain / lose in a given year and or once their contract is up?

If the attrition rate is high but clients are leaving in droves and that is a sign of poor service.

The bitter taste of poor quality is remembered long after the sweet taste of low price is forgotten.

2- Does the Processor have margin increases?

It is standard practice in the payments industry for processors to raise their margins every 6 months each April & October. This allows processors to do two things;

A) To sign accounts they couldn’t get otherwise by efficaciously undercutting the current rate incurring a loss initially, then insidiously raising rates over time to make up for it at a profit.

And B), To make more and more money off the backs of their existing client base resulting in big bonuses and sky-scraping company evaluations.

Don’t be fooled by payment processors that just quote lower rates, make sure those rates are permanently fixed, and get that in writing!

3- Are Their Agreements Term Based?

Nearly all processors make their clients agree to process with them exclusively for a given period of time. Do not fall victim to this tactic, look for a processor that works constantly to earn each client’s business and only has true month-to-month agreements.

4- Does The Processor Charge a Termination Fee?

5- Does the Processor Lease terminals and POS systems?

6- Is the Processor equipped with a team that can handle POS and software integrations?

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While many processors would attest to providing great service and having many satisfied
customers, the numbers don’t lie. What is their attrition rate, or in other words, how many
clients does the processor gain / lose in a given year and or once their contract is up?

It is standard practice in the payments industry for processors to raise their margins every 6
months each April & October. This allows processors to do two things;

A) To sign accounts they couldn’t get otherwise by efficaciously undercutting the current rate
incurring a loss initially, then insidiously raising rates over time to make up for it at a profit.

And B), To make more and more money off the backs of their existing client base resulting in big
bonuses and sky-scraping company evaluations.

Don’t be fooled by payment processors that just quote lower rates, make sure those rates are
permanently fixed, and get that in writing!

Nearly all processors make their clients agree to process with them exclusively for a given
period of time. Do not fall victim to this tactic, look for a processor that works
constantly to earn each client’s business and only has true month-to-month agreements.