AlignCloud and HMS partner up

Host Merchant Services, an industry leading provider of payment processing and e-commerce services for small and medium businesses, announced a promising new partnership with cloud consulting firm AlignCloud. This partnership is the product of extensive research and collaboration and the bold new alliance  represents an exciting opportunity for customers to benefit from the combined expertise of these two companies.

AlignCloud tailors services for cloud providers and end-users alike. From cloud readiness assessment planning to cloud vendor management, AlignCloud provides indispensable services for all cloud customers. For cloud hosting providers, AlignCloud can help providers train sales staff, draft sales plans and fully engage with Web marketing and SEO. With its focus on the cloud and web hosting market, AlignCloud is a natural referral partner for Host Merchant Services.

HMS CEO Lou Honick has aptly summarized the buzz surrounding this collaboration. “Our expertise in e-commerce, payment cost optimization, and security meshes perfectly with AlignCloud to create compelling offerings,” Honick said of the AlignCloud partnership. AlignCloud clients can now seamlessly access secure, reliable merchant services, PCI compliance solutions, and e-commerce.

In the business world, demand for cloud services has reached an all time high. As mobile devices become more important for business, public worries about information security keep pace. Cloud Hosting is a type of hosting platform that allows customers powerful, scalable and reliable hosting based on clustered load-balanced servers and utility billing. Web hosting services allow individuals and organizations to make their website accessible via the World Wide Web.

For AlignCloud’s customers, HMS has designed services to insure absolute peace of mind. According to AlignCloud CEO Stacy Griggs, the program will provide clients with “lower rates and better service for credit card processing, mobile payments and merchant services.” The experts at HMS combine technical knowledge with uniquely dynamic customer service. Through expertise in data security and fraud reduction, Host Merchant Services promotes more confident commerce, both for businesses and customers alike.

A cloud hosted website can be more reliable than alternatives since other computers in the cloud can compensate when a single piece of hardware goes down. Also, local power disruptions or even natural disasters are less problematic for cloud hosted sites, as cloud hosting is decentralized. Cloud hosting also allows providers to charge users only for resources consumed by the user, rather than a flat fee for the amount the user expects they will use, or a fixed cost upfront hardware investment.

For Host Merchant Services, the partnership with AlignCloud is part of their successful strategy to partner with the web hosting and cloud services industry. Companies like AlignCloud can better serve clients by integrating credit card processing into their offerings. Through Host Merchant Services, AlignCloud customers will experience hassle-free credit card processing with 24x7x365 hour technical support and responsive website.

Clients of AlignCloud can also earn extra revenue by referring their customers to the program.

Host Merchant Services and Brandywine Festival of the Arts

Host Merchant Services is proud to provide credit card processing for the Brandywine Festival of the Arts this weekend through our relationship with Barry’s Events.

The festival was originally called the Brandywine Arts Festival when it was started in 1961. “Big” George Sargisson was the founder of the event that now brings over 20,000 visitors to Brandywine Park’s Josephine Gardens.

The festival was a popular Delaware tradition for 48 years but was unfortunately cancelled in 2009 and then returned in 2010 under the new name Brandywine Festival of the Arts. Barry Schlecker has been in charge of running the festival since 2010. Barry is well known for running local events like the Newark film festival through his organization Barry’s Events. Host Merchant Services is the preferred credit card processor for Barry’s Events and so HMS has powered the credit card processing at the Brandywine Festival of the Arts since 2012.

2013 marks the 53rd annual Arts Festival. There will be over 250 artists exhibiting at the festival along with live music and plenty of good food!

For more information you can view the festival FAQ page here:

http://www.brandywinearts.com/visitor-faq/

The festival takes place this weekend at 1001 N. Park Drive, Wilmington DE 19802. The Festival is open from 10am to 6:30pm on Saturday, and 10am – 4pm on Sunday. Admission is $5 and includes admission to the Brandywine Zoo! Children under the age of 12 are free! You can find out more information at http://www.brandywinearts.com or call 302-690-5555.

Perceived Barriers to Accepting Credit Cards

Credit and debit cards have become nearly universal accessories in modern life. The great majority of Americans now use these cards to expedite and simplify their financial activities. According to the industry analysts at Community Merchants USA, a mere 27% of all POS transactions are cash transactions. In spite of this, only 45%of U.S small businesses currently accept credit cards. Modern companies have many reasons for not accepting credit. For many organizations, this state of affairs is the result of careful reflection. However, it is safe to say that most of these companies are limiting themselves in an ill-advised manner. In most cases, the potential benefits of modernization outweigh any disincentives. Though accepting credit cards can introduce new hassles and complexities, the public responds warmly to greater convenience and choice.

Many merchants who do not accept credit cards cite worries about high transaction fees. This caution is an understandable by-product of the cost-cutting savvy that typifies small business ownership. But even though the reticence is well-intentioned, the bigger picture of credit card processing is that the consumers look to use the most convenient payment means possible — so plastic trumps cash for a bulk of any business’ customer base. There are profits to be reaped by accepting credit cards and a company like Host Merchant Services has a processing solution designed to allow even the cautious business owner the ability to accept credit cards easily and cost effectively.

Lack of information may well be the biggest barrier to credit card acceptance. Well-settled in established habits, many merchants do not realize that developments in merchant services have driven down costs for many businesses. Passed by the U.S Congress in 2011, the Durbin Amendment capped and lowered debit transaction fees for a large cross-section of companies. The amendment also affirmed the rights of business owners to set minimum transaction limits for credit card users. Since 2012, MasterCard and Visa have allowed merchants to add surcharges to credit card transactions.

From a public relations standpoint, these tactics have definite downsides. However if they permit merchants to accept more payment methods, these measures can have outstanding effects on profitability.

Transaction fees aren’t the only barriers to wider credit card acceptance. Basing their perceptions on old information, some small business owners believe they would have to pay excessive monthly fees or make long-term commitments. Others remember a time when credit card processing equipment was dauntingly complex and expensive to rent. Fortunately, Host Merchant Services provides low-cost, hassle-free payment processing, along with free supplies and some of the most user-friendly and cutting edge processing terminals. As an industry leader, we use customer service, innovation, and technology to remove nearly all barriers to accepting credit transactions. Host Merchant Services is fully committed to supporting our merchants and making it worthwhile and profitable to accept credit cards.

Big Data, Payments And Customer Loyalty – Part Two

Across the ideological spectrum, business experts agree that the rise of Big Data is rapidly changing modern marketing and sales. In this transformational time, customer intelligence systems are proliferating at a remarkable rate. Although adopting these systems often involves overcoming logistical hurdles, the rewards of sophisticated data gathering are indisputable.

Proper customer intelligence is vital for marketing and growing customer bases. Exposed to increasingly diverse information sources, modern consumers are making quick, decisive changes in their purchasing decisions. To continually gain new customers, modern companies need up-to-date pictures of customer needs and desires. Fortunately, innovations in hardware and software have enabled newly accurate analytics.

According to business research firm McKinsey, companies that effectively engage with Big Data can demonstrate profitability rates at least six percent higher than those of their peers. Companies who rely on B2B transactions have particular need for strong data gathering and analysis. As B2B customers are affected by industry dynamics, they routinely search for ways to cut expenses. As a result, firms that provide B2B services are among those most likely to lose customers to competing companies. Dedicated analytics is important for retaining customers and actively courting those aren’t served well by competitors.

Across multiple industries, companies find that proper analytics inform how they use merchant services. By learning how their customers shop and what they expect, merchants can fine-tune their payments systems for maximal marketability. Naturally, modern consumers are drawn to merchant interfaces that are fast, reliable and safe.

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Whatever their specific goals or products, most modern businesses recognize the importance of credit card processing. However, the more insightful businesspeople fine-tune their payments procedures to meet the expectations of potential customers. In this time of fairly regular economic shocks and surprises, firms that fail to keep future customers in mind could experience unique difficulties.

 

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While the term Big Data is useful, it is also fairly restrictive. Even smaller companies can use data-driven procedures to shore up their fortunes. At Host Merchant Services, we work tirelessly to provide our clients with solutions for effective data-gathering and customer intelligence. In this exciting time of commercial possibilities, companies that gather and use data intelligently experience unique potential.

Are Credit Card Rewards Points Programs Harmful?

Over the course of the past ten years, credit card providers have ramped up their efforts to woo consumers with point-based loyalty programs.

Custom gift cards and loyalty cards are a great way to encourage repeat business and so many merchants have embraced the concept that the credit card providers have pushed. These redeemable Transaction Cards let customers make flexible decisions when purchasing goods or services from a merchant.

Early in the history of credit cards, most financial institutions were too dignified to offer game-like rewards systems involving point accumulation. As time went by, it became increasingly clear that nearly all types of credit card users were energized and excited by point systems. In the early part of the last decade, easy credit led to a dizzying proliferation of rewards programs. Although credit limits and eligibility requirements have tightened in recent years, credit card issuers maintain loyalty programs as integral parts of their marketing initiatives.

On an individual, case-by-case basis, rewards programs create very attractive incentives for customers. The public record abounds with stories of individuals who use reward points to gain earn free flights, hotel stays and other financial advantages. Collectively, some loyalty programs inspire widespread exploitation and abuse.

Since point-based reward programs are textbook examples of gamification, it is little surprise that many program members are gaming these systems irresponsibly. These individuals have perfected cunning “ghost transactions” that earn points without adding real value to the economy.

One popular technique is to purchase numerous gift cards with credit, only to use the gift balances to pay off credit card balances in a circular fashion. Though most of these schemes are technically legal, they consume manpower and resources in an exploitative manner. Point churning is a zero-sum game that leads to more expensive payments processing for retailers. Ultimately, many of these increased costs are passed on to the general public.

Point system abusers only account for a small percentage of loyalty program members. Even for ordinary users, rewards programs aren’t always as beneficial as they first appear. Individuals who use loyalty programs need to read and understand the fine print of program rules and regulations. In many cases, gains from cashing in points are fully offset by the costs of using additional credit. At their best, loyalty programs are engaging systems that spur responsible spending. However, economists argue that aggressive rewards programs can distort incentives and upset natural credit use patterns.

Here at Host Merchant Services, we are sensitive to how responsible credit card use contributes to the health of the broader economy. We provide our customers with tools to better understand and fulfill the needs of the public. Flexible, responsive payment processing encourages consumers to use credit with caution and care.

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Emerging Markets and Credit Cards [2023 Update]

The global economy is deeply affected by the rise of credit card use in emerging markets. As citizens of developing nations gain access to mainstream credit cards, they are empowered to participate more in their national economies and in the global marketplace. Since the world economy is increasingly connected, the growth of credit can produce benefits that are widely felt.

MasterCard’s recent story offers an interesting example of international development. Last May, MasterCard reported a net income gain of 12% over the previous year. While this number disappointed some analysts, it is clear that MasterCard is a healthy company with enormous potential. Critically, MasterCard’s May report showed that the company’s fate is indisputably linked with growth in emerging markets. According to the report, MasterCard’s transaction volume grew by 20% in the developing world. Meanwhile, US transactions only expanded by 4%.

In Asia, Africa and the Middle East, people are demonstrating a growing hunger for credit. Through development in these regions, major credit card companies will find relief from the regulatory and economic pressures that are driving down credit use in the United States. With more secure revenues, these companies should have fewer incentives to push new fees and restrictions on U.S customers.

After China, India is the world’s second most populous nation. While the Chinese government obstructs credit card companies fairly often, India is embracing credit cards with open arms. The Times of India reports that the nation’s average monthly spend-per-card number has risen 42% over the past two years. This growth is accelerated by an appreciable drop in Indian credit card defaults over the past few years. Credit consumers in developing nations are usually quick to learn the value of good credit ratings.

As credit card usage grows in India, issuing banks are doing a fine job of navigating a regulatory bureaucracy that is famously sluggish and problematic. With widely disparate regulatory systems, developing nations offer excellent case studies in the effects of financial regulations. In many cases, international merchant services are more competitive and responsive to marketplace demands. While proper oversight and consumer protection is important, international case studies emphasize the dangers of saddling financial companies and merchant services providers with stifling regulations.

Imposing Credit Card Minimums

Service Impact of Imposing Credit Card Minimums [2023 Update]

Throughout many industries, companies are feeling the effects of 2010’s Durbin Amendment. This much-vaunted amendment to Dodd-Frank was intended to protect consumers and businesses from unreasonably large interchange transaction fees. As finally implemented in 2011, the amendment protects one large class of businesses while doing measurable harm to firms specializing in smaller transactions. Though the Durbin Amendment has certainly produced positive benefits for a huge cross-section of America, the overall effects of Dodd-Frank show the limitations of using legislation to alter complex economic systems.

Even before Durbin Amendment enactment, companies often made little on very small transactions. Fortunately, new Mastercard and Visa regulations give companies greater flexibility in setting minimum transaction limits. Of course, adopting these limits can have adverse effects on public relations. Businesspeople must tread carefully when implementing such conspicuous limitations on customer choice.

For some types of business, minimum credit card transaction rules have long been standard practice. For example, independent coffee shops garner much of their revenue from two to five-dollar transactions. When visiting these establishments, consumers expect transaction limits and generally take them in stride. When consumers encounter unexpected new transaction limits, this can cause consternation and distress. At the same time, financial considerations may force companies to move forward with transaction limits and learn to deal with any consequences. During these critical transition periods, managers should do everything they can emphasize appreciation and respect for customers. Employees need adequate training and oversight to politely deal with questions about new transaction limits. Companies can also ease these transitions by offering samples, gifts and other thoughtful incentives. One doesn’t have to spend much to make customers feel appreciated and valued.

While most companies can adopt transaction limits without alienating customers, some commentators question if it is fair to saddle merchants with all responsibility for limiting credit transactions. Banks use reward point systems to aggressively push consumers into making ever more credit purchases. According to lead economist Fumiko Hayasha of the Federal Reserve Bank of Kansas City, point system users drive up transaction costs throughout the nation. Additionally, credit consumer advocate Joan Ulzheimer argues that reward point benefits are generally smaller than the costs of overusing credit.

Here at Host Merchant Services, we understand that the costs of doing business are shared by consumers and businesses. As part of our commitment to promote healthy merchant relationships, we help our customers create solutions to problems that complicate modern payments and commerce.

Payments And Customer Loyalty

Big Data, Payments And Customer Loyalty – Part One [2023 Update]

Businesses in many industries are contributing to the rise of Big Data, a confluence of modern data-gathering mechanisms. Larger hard drives and faster CPUs enable people to gather and analyze vast collections of commercial information. Though Google is the largest and most prominent data-gathering operation, retailers like Amazon and Walmart famously gather and analyze enormous amounts of customer data. On a smaller scale, companies of all sizes are utilizing similar procedures. The Big Data revolution is refining the consumer experience in ways that are mostly positive and promising, albeit with looming privacy concerns. For example, modern analytics enable better fraud detection in credit card processing and payments, as well as enhanced marketing and behaviorally targeted promotions to customers.

One successful recent IPO demonstrates the growing relevance of cutting-edge data analysis. Tableau Software has impressed investors with an online platform that turns various types of data into visualizations and charts. Doubling its initial stock price in less than two months, Tableau Software has amply demonstrated the importance of information analysis for diverse industries and organizations.

Throughout the merchant services industry, companies are using analytics to refine systems in ways that are appealing to businesses and consumers alike.

Advances bring greater access to customer information and more ways to analyze that information. This evolution is complemented and affected by the remarkable growth of mobile commerce. For example, consumers who use mobile wallet software increasingly insist on impeccably safe, secure credit card processing. Modern analytics make it far easier to identify suspicious patterns indicating fraudulent activity. Better fraud prevention inspires consumer confidence and leads to greater participation mobile commerce. Customer participation enables the proliferation of more effective, targeted, and individualized marketing and offers. In turn, more transactions lead to larger information sets and further refinements of payments technology. This type of feedback loop is merely one example of the game-changing effects of the Big Data revolution.

Stay tuned for part 2 of this series as we take a more in depth look at ways that big data is changing payments.