Author Archives: hostmerchantservices

This POS is Vital for Your Business

Total Systems or TSYS is a payment processing company out of Columbus, GA. They are largely responsible for back-end merchant services and credit card processing, and they’ve recently merged with Global Payments. The merger has broadened their scope, making them one of the largest payment processing companies globally. With the new launch of their Vital platform, TSYS is becoming a giant in the merchant services industry, easily competing with their competitors such as Square and PayPal.

Vital is a cloud-based point-of-sale (POS) service that can be used across multiple devices. Offering flexibility of use, Vital is answering the needs of business persons and entrepreneurs in an ever-changing global environment that continually breaks the rules of how people conduct business transactions. Traditional merchants can have their large screen or laptop attached to a cash drawer for processing transactions at one particular location, while entrepreneurs on the go can use tablets or cell phones with a wireless card reader for processing payments, all equipped with the latest technology in a cloud-based format that can update to accommodate the most recent changes to industry standards, regulations, and technology.

Flexibility is a major selling point of Vital, as it can be separately customized for employees and supervisors. Vital also offers essential functionality such as a time clock, inventory tracking, pricing and the ability to offer discounts, and much more. Flexible function set up allows for business owners with employees to ensure security and minimize mistakes.

The Vital POS has powerful back-office customization. Because it’s cloud-based, owners and entrepreneurs can access Vital from any device, anywhere. The back office allows for management reports, inventory tracking, price control and discounts, and business scalability.

Depending on your needs and preferences, Vital is available in three platforms. In today’s ever-changing business world where the traditional rules keep being challenged, Vital offers solutions to help your business grow without confinements.

The first Vital POS offering is known as Vital Mobile, and it is the ideal solution for entrepreneurs on the go. Processing payments are handled with a wireless, portable EMV (which stands for Europay, MasterCard, and Visa) chip reader that complies with the latest banking recommendations for security and privacy.

The second Vital POS offering is Vital Plus, which is a great option for a small business owner who desires portability and function. The Vital Plus platform comes with a proprietary handheld portable card reader that can also take cash and digital wallets like Apple Pay and Google Pay. You or your employees can walk around the store with the handheld device, freeing you up to talk to customers and make more sales.

The final Vital POS offering is Vital Select, which is a full-service platform with a stand-alone device that more resembles a register. Vital Select allows merchants and employees to take tips, split orders, use different stations for payment processing, accept payments in restaurants at the table, track employee performance, and generate inventory reports that break down how well each product is selling.

If you’re interested in these products a Host Merchant Services specialist can be reached at 877-517-4678.

SwipeSimple Adds Level 2 Interchange Functionality

Swipe Simple adds Level 2 Data

CardFlight, a leading SAAS point of sale company and creators of SwipeSimple POS, announced the addition of Level 2 data acceptance within the SwipeSimple Merchant Web Dashboard. CardFlight is adding this functionality free of charge. Beginning July 1^st the new Level 2 Data tools will automatically be added and accessible by any existing merchants. This update adds the ability to track new data sets that enable the transaction to meet Level 2 standards and thus gives the merchant access to the lower card, not present interchange rates.

What is Level 2 Data?

Let’s start from the beginning – interchange rates differ depending on the risk level. For instance, ‘card present transactions’ are deemed less risky than ‘card not present transactions’. Because the merchant is standing face to face with the cardholder in a ‘card present transaction’, card brands deem this to be a low-risk transaction and gives it a standard interchange rate. On the other hand, a ‘card not present’ transaction, such as an online transaction, is viewed as much riskier. Since the cardholder is not physically present and is performing the transaction remotely, the interchange rate is higher due to the risk level. Level 2 is a way to reduce the risk level on ‘card not present’ transactions and thus lower the interchange rate. To qualify for Level 2 data the merchant must collect extra information from the cardholder. The extra data required to qualify for Level 2 interchange rates are the following: standard card information, merchants name, transaction amount, tax amount, transaction date, customer code or invoice number. Supplying this added information lowers the risk level and lowers the interchange rate as well.

How to get Level 2 interchange with SwipeSimple

Beginning July 1^st, 2019, the SwipeSimple Merchant Web Dashboard will automatically update to include the ability to collect extra data points that will qualify the transaction for Level 2 interchange. Merchants do not need to take any special steps to be able to use this functionality.

For further information please call our product specialists at (877) 517-4678 opt: 1.

What is an ISO in the Merchant Services Industry?

The merchant services industry entails the following: Business owners pay for processing services through a company that represents Visa or MasterCard. Seeing as credit card processing is key to any operation, choosing who to work with is a vital decision by the business owner. We have to understand that brands like Visa or MasterCard are referred to as Associations. Banking institutions like Citibank, Bank of America and others are what is known as Association Member Banks

An ISO or independent sales organization in the merchant services industry is a third party payment processing company that is authorized to handle accounts for businesses, and they become the key link between the business and the card issuer, namely Visa or MasterCard. Said issuers then proceed to contact the specific bank that issued the card in order to verify there is enough credit available on the account. If said funds are available, those funds are then held for the business that made that transaction.

Merchant service providers must be registered with Visa or MasterCard so as to legally provide credit card processing services under their own name. An individual or a business that wants to become an ISO has to go through an extensive vetting process that covers security as well as legitimacy. The process is both very thorough as well as expensive seeing as they have access to specific card and transaction information. They must be well established, regardless of the size, to be able to become a Visa or MasterCard ISO. Their workforce can vary from a handful to thousands.

A common question that businesses would ask is what is the advantage of working with an ISO versus working with a bank. Usually, businesses find that working directly with banks ends up being more expensive and lacks the flexibility that a third party processor can offer. Contrary to what some might expect, banks are not more secure in their operations either. It becomes a matter of specializing and playing to the strengths of each institution. While a bank has a wide array of responsibilities and services, the ISO can dedicate its resources to facilitate the best merchant and consumer experience.

Would a Mobile Processing Solution Like SwipeSimple Be Good For My Business?

Accepting multiple types of payments is essential to the success of any business. Over the last four years, it’s estimated that 80 percent of American consumers prefer to use a debit or credit card when making transactions in person versus just 14 percent who prefer to use cash.

If you’re not using a mobile processing solution to accept credit cards, you’re missing out on a ton of potential revenue.

Why You Need A Mobile Processing Solution

Rapid advances in technology are occurring every day and savvy consumers notice if you’re still stuck in the cash only era. The simple fact alone that nearly three-quarters of adults currently own a smartphone proves that the world is continually changing.

As a business owner, you must adapt. Beyond increasing your customer base with a new mobile payment processing solution, you’ll also enjoy other benefits, including:

Merchant Services Simplicity – SwipeSimple has made the process of mobile payment acceptance easier than ever before. No bulky credit card machines and no slow dial-up Internet connections.
Complete Transactions Anywhere – Mobile processing means you or your employees don’t have to stay in one place just to take payments. Process a payment while speaking with another customer about your products.
Fast authorizations – Lag time in the payment authorization process is a thing of the past. Enjoy split-second approvals so your customers can be on their way in no time.
Manage Transactions – Perform voids or refunds with ease. You can also send digital receipts to your customers.
Offline Processing – If you don’t have a reliable internet connection. Not a problem, just enable offline payments and save the transactions for later processing.

Integrate with your own Software

Host Merchant Services is happy to be a provider of SwipeSimple for merchants looking for a mobile option. Mobile payment processing solutions are geared towards making life simple, including third party software integration. Customized integration is available on iOS, Android, Windows and Mac operating systems.

Is this right for my Business?

SwipeSimple has an entire POS system all in one easy to use package. Gain access to your transaction stats, with useful information like average ticket size, total charges and tip collected. Get more details about each piece of SwipeSimple equipment Host Merchant Services has available here!

The great thing about mobile payment processors like SwipeSimple is that any business who wants to accept credit and debit cards can use the system. Whether your business is based online, in a car or in a store, making the switch is the right thing to do.

MasterCard Making Changes To Subscription Payments

While credit card access makes the world of commerce go round, many customers find themselves saddled with expensive subscription programs they never intended to participate in long-term. To reduce this risk, MasterCard has begun targeting negative options. Negative option billing is providing goods or services for a recurring payment, and will be continuously paid until the subscription is canceled.

Subscription Management

For merchants hoping to sell subscriptions for regular deliveries, the negative option method of payment collection has long been very effective. Consumers sign up for a particular product line, and if they don’t opt out of a specific delivery window, the products are shipped. The default is that the person has opted in for the purchase.

MasterCard has found that this method of selling has locked some consumers into debt they never intended to take on. Merchant services providers will need to make sure their merchants are made aware of some of these new rules. Merchants will now be required to notify the customer that their free trial is ending. They will not be allowed to charge the customer without doing so.

MasterCard Will Be A New Hurdle

Moving forward, before a consumer’s MasterCard can be charged, the consumer will need to confirm with the credit card company that they have opted into the subscription. This provides the consumer with one more check for their product subscription prior to the first charge being placed.

After the free trial period ends, the negative option merchant must obtain the following information and have an agreement from the customer before charging them.

The amount of the transaction
The name of the customer as it appears on their credit card
The date the payment is due
The terms and agreements detailing the steps for canceling the subscription

MRP Registration

Merchant services providers will need to register negative option merchants with the MasterCard Registration Program, so they can have access to account data. Possible high-risk negative option providers will need to be screened for registration to the MRP system.

Relationships Are Key

If your customers work directly with your company via a subscription series, there may be some disruption as MasterCard attempts to confirm the validity of new subscription programs. Merchant services providers will need to be ready to help the valid sellers jump the hurdle put up by MasterCard to confirm that your service is truly one the customer wants to stick with.

Don’t Get Hit With A PCI Non-Compliance Fee

Don’t Get Hit With A PCI Non-Compliance Fee

As a merchant, you probably already have some familiarity with PCI compliance. PCI or PCI-DSS is a set of rules that all organizations handling card or payment information must follow to reduce the risk of data loss. The goal of PCI requirements are maintaining a secure network, protecting cardholder information, and implementing access control measures.

PCI requirements can be complicated and depend on the level of risk based on how many transactions you process every year. Many of the required actions will already be accomplished by your payment processing provider but there are some steps you must take yourself. It’s important to understand your obligations under PCI rules and how your payment processor handles PCI compliance. You may face not only PCI compliance fees from your processor but also PCI non-compliance fees that are easy to avoid.

How Payment Processors Handle PCI Compliance
Merchant services providers can handle PCI compliance in many ways. It all depends on whether your provider offers PCI compliance fees and whether you are charged a fee for these services. If you are an experienced merchant and comfortable handling PCI requirements, you may choose a provider who provides no PCI services and charges no fees. Most merchants prefer working with a processor that provides PCI compliance services for greater protection and reduced liability.

If you do decide to pay a fee for PCI compliance, make sure you understand what you’re getting. PCI compliance is a non-standard fee and guidance and support can vary. Some processors even charge PCI compliance fees without providing any extra value to merchants. At Host Merchant Services, every account includes a PCI Compliance Assessment Survey as well as live support, required PCI compliance network scans, and step-by-step help to ensure your business is compliant.

What Is a PCI Non-Compliance Fee?
As a merchant, you have some responsibilities to ensure your business is PCI compliant, even if your processor offers PCI compliance services. If you fail to do so, some processors charge what’s known as a PCI non-compliance fee. This avoidable and costly fee is often $20 or more per month. Companies that enforce the fee typically use it as a commission for agents and a way to punish merchants for a mistake.

One of the most important requirements you will have as a merchant is completing a Self-Assessment Questionnaire (SAQ) every year. This questionnaire is a standard list of questions covering the type of merchant you are, what payments you accept, a list of your locations and facilities that accept cards, and the vendors you use. If you have an eCommerce business, you will also need to show evidence of passing a vulnerability scan with a PCI SSC Approved Scanning Vendor every quarter.

At Host Merchant Services, we never charge PCI non-compliance fees. We believe the better approach is guiding merchants through becoming PCI compliant to ensure greater security and protection for all parties in a transaction. To ensure your business meets PCI requirements, we provide comprehensive assistance with every aspect of PCI compliance, including help with the SAQ and required network scans.

The Importance Of Fraud Prevention

Preventing fraud is something every business needs to make a top priority. This is especially true when it comes to payment processing. Businesses need to know their customers and be familiar with the transactions they regularly initiate. Having that knowledge goes a long way in making your credit card processing a much smoother task.

Failure to stop cases of fraud can severely harm your business. One solution for this is to use strict identity verification services. When a customer places an order, the system will know whether the transaction was made in the proper way and from the proper location. If you do business worldwide, you need this extra layer of protection.

Another aspect of fraud to consider is an insider job. If fraudulent transactions are a regular occurrence for your business, you may find that dishonest employees are taking advantage of this vulnerability. They can easily manipulate the system so that they can pocket the money from customer transactions or find other ways to steal. In extreme cases even business executives have been known to commit fraud against their own company.

This can lead to the deterioration of your business’s morale. For many businesses, this is the first step in a downward spiral. Being able to prevent fraud both internally and externally will protect your business from suffering irreparable damage.

Fraud prevention is important to both customers and payment processing providers because it safeguards their interests and stops them from losing money. In case you are a vendor, and you suspect the buyer may be trying to commit fraud, inform the authorities immediately.

The Benefits Of Having A Mobile Payment Option

In today’s world every business needs to offer a mobile payment option to their customers. If yours hasn’t yet, you need to ask yourself why not. Maybe you don’t realize all the benefits of being able to process credit cards faster than ever before.

Those benefits include the fact that your business will close more sales as a result. A card reader can easily be used with a tablet or smartphone. This makes it easy to sell your products at license and trade shows as well as conventions and other similar event types. You can also allow your customers to pay using their mobile phone, which is a growing trend in the payment processing industry.

Mobile payments make it easier for your business to communicate with customers. They even enable you to offer special coupons and discount to mobile shoppers. Your customers are able to get a description of any product they are interested in, potentially increasing your sales. This is also a convenient way to upsell to customers in a way that likely won’t offend them.

By using a mobile app you can learn a lot about your customers. It can tell you how often someone shops there, and if they prefer to use cash or credit card. When you accept mobile payments you can also keep better track of your inventory. This makes it easier to determine which products you need to reorder and which ones you have plenty of.

Having a mobile terminal allows your business to be on the go. This could be key for any merchant whose business is dependent on traveling from location to location. Make sure you talk to your merchant services provider about any mobile terminal options that may be available. These are the reasons why accepting mobile payments will help your business. Everything from credit card processing to customer loyalty is influenced by it.

How Small Businesses Can Save On Processing Fees

Launching a small business can be both exciting and overwhelming. A reliable credit card processing solution is a necessity for any business that accepts card payments. Unfortunately, merchant fees can add up quickly. Here are a few tips to help your small business save on payment processing fees.

Shop Around For The Best Pricing

Selecting the right merchant services partner is the easiest way to protect your company’s bottom line. Pricing structures vary greatly from vendor to vendor. Some charge a percentage of each sale while others use a tiered system or a subscription-based model. Analyze your business to decide which fee structure makes sense for your unique needs.

Should You Lease Your Credit Card Terminal or Buy?

Equipment purchase prices and lease terms can fluctuate depending on the provider. Calculate the long term costs for both options. Leasing will cost less initially but may cost more in the long run. Buying your credit card terminal outright can save money if you are planning for the long term. If purchasing your terminal, add a protection plan that will cover you for damage and repairs. After all, your business will be using this piece of equipment quite a lot!

Set a Minimum Amount on Credit Card Transactions

When your customer pays with a credit card, you are charged a merchant services fee to process the payment. For very small transactions, this fee may wipe away any profit. Set a $10 minimum amount for charges to help mitigate your transaction fees and encourage customers to spend more money.

Use Best Practices to Keep Fees Low

There are several steps you can take to keep your transaction fees as low as possible, starting with eliminating two money-draining practices: multiple batching and manual charges.

Does your processor charge a batch fee each time you send daily transactions to the bank? If so, avoid extra batch fees by batching no more than once per day.

Manual charges generally cost more than chip-based transactions. Reason being, many processors charge more when there’s a higher likelihood of an error. Have your customers insert their card into your terminal when possible.

When it comes to secure payment processing, knowledge is power. Research the terms of your merchant services account to avoid surprises on your statement. Your credit card processing solution should provide a stress-free payment experience for your buyer. Customer satisfaction leads to more sales and, ultimately, higher profits for your small business.

Why Next Day Funding Is Important

For many businesses, funding is a source of fuel to keep running on a daily basis. Office supplies, equipment, inventory, an online store, rent, advertising, and payroll all cost money. For many small companies, going a week without incoming funding can spell disaster. Not to mention, the business owner needs to receive a salary to survive. Plus, utilities need to be paid and more. When a company first opens, consistent funding can become even more critical to meet current expenses until profits can play catch up. In addition, not having enough funding can prevent healthy and well-balanced growth.

Credit Card Processing

Processing credit cards is the lifeblood of most businesses. Modern customers are used to paying with credit and debit cards. If your company enables a cash-only enterprise, you could lose many potential customers who prefer to pay with plastic. Yet, there are many types of merchant services to consider.

If your business accepts credit cards, you will see an increase in sales. Nonetheless, you still want to work with a merchant services company that offers next-day funding. Why? Because it’s your money; you deserve to have access to it right away. Moreover, your expenses aren’t going to wait for your funds to arrive.

What is Next-Day Funding?

It’s vital to choose a payment processing partner who understands your business needs funding for continuous operation. There are many credit card processing companies who make organizations wait days, or even weeks, before providing access to their funds. In some instances, the wait can range between 30 to 45 days.

The good news is you also can work with a processing partner who offers next-day funding. As the name implies, you get your payments within the next day. Instead of waiting, while your bills age and increase in late fees, you can have funds in your account by the next business day. Your company deserves to survive another day, which is why next-day funding is so important.

To achieve stability, businesses need money. Not only are their expected expenses to pay, but there are also many unexpected bills that come along with running a company. Don’t settle for waiting 30 days on your payments. Sign up for next-day funding to ensure your business continues to operate without any unnecessary financial burdens.