Discover is updating the Discover “On Us” plan yet again, in an attempt to entice more merchants to accept Discover cards. Originally, the Add Discover on Discover promotion from 2011, the plan was based on the incentive that merchants begin accepting Discover cards for the first time and as a reward for this bold new move, those merchants would receive no transaction fees from Discover for an entire year.
Renaming the initiative to the Discover On Us plan, it once again was launched over the holidays a year later in 2012. The offer from Discover, through Host Merchant Services was bold and exciting. It essentially gave qualifying merchants a year of being able to process Discover payments at no cost. Discover “On Us” gave the merchants no fees when their customers swipe a Discover card. And they had this benefit for an entire year. The program lasted until December 31, 2012.
Then in July, 2013, Discover brought it all back. For many businesses the summer months are their “busy season” and as such this program is designed to add up to great savings all summer long. The “On Us” program offered from Discover is brought to merchants through Host Merchant services. When a customer uses a Discover card at checkout, merchants will not be charged any fees or interchange rates, so all the revenue stays in the businesses pocket.
This time Discover is extending it through June 30, 2014.
Download this PDF to discover how you can take advantage of this amazing opportunity and start saving on transaction fees for an entire year.
A new U.S District Court ruling could lead to major changes in debit card processing fees. Will the Durbin debit rates go lower with this? Let us understand.
On July 31, U.S. District Judge Richard Leon swept aside the Federal Reserve‘s 2011 implementation of the Durbin Amendment. Passed in 2010, this amendment to the Dodd-Frank law was intended to limit the upward trajectory of debit processing rates. According to Leon, the Fed’s 2011 regulations directly counteracted the original intent of the Durbin Amendment. Though the Fed capped the base rate for debit processing fees at 21 cents, they raised debit rates for transactions under $12. Essentially, the Fed lowered the debit price for large transactions while raising them substantially on small transactions.
Can Durbin Debit Rates Go Lower?
In general, debit card caps are highly advantageous for retail businesses. However, the current implementation of the Durbin debit amendment creates grave concerns for many retailers. It is sensible to lower debit card interchange fees at a time when many retail companies are struggling with low consumer demand. Months will pass before the nation sees new, concrete debit processing rules. In the meantime, the response to Judge Leon’s ruling starkly illustrates a growing conflict between the retail industry and major banks.
In this struggle to define the costs of merchant services, both sides claim to represent the best interests of the public. However, the banking industry is so politically influential and entrenched that it is hard to see this industry as truly vulnerable or consumer-focused. Retailers are achieving broader public support as they tout their intentions to lower costs for ordinary Americans.
To be fair, it is demonstrably true that banks could lose enormous profits in the wake of Judge Leon’s ruling. Undoubtedly, the banking industry will pass some of these costs on to consumers in the form of higher fees and tighter restrictions. A strong, profitable American banking industry is vital for the United States and the global economy.
At the same time, history has shown that the banking industry is far less volatile than the retail sector. When banks are in danger of failing, they can often use their political influence to gain unique concessions and loans from the government. In stark contrast, retailers must stand on their own during problematic times. In light of this power imbalance, the public may well benefit from retailer-friendly debit price controls.
The new ruling on Durbin debit rates represents a fascinating turn of events. However, only time will tell if Judge Leon will have the final word in Durbin implementation. The Federal Reserve and large banks have many more tools at their disposal in their quest to control the state of debit processing fees.
What Is the Durbin Amendment
The Durbin Amendment is a part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, a law enacted in 2010 in the United States. It was named after Senator Richard Durbin, who played a role in its development. This amendment primarily focuses on the fees that merchants pay to banks for processing debit card transactions, known as interchange fees.
The key features of the Durbin Amendment are as follows
Regulation of Interchange Fees: The Durbin Amendment introduced regulations to limit the interchange fees charged by banks to merchants, for processing debit card transactions. The aim was to make these fees more reasonable and transparent.
Exemption for Smaller Financial Institutions: These regulations specifically apply to institutions that surpass a certain asset threshold. Smaller banks and credit unions generally do not have to follow the restrictions on interchange fees.
Choice of Network Routing for Merchants: Another objective of this amendment is to promote competition among payment card networks. It allows merchants to select which network they prefer for processing debit card transactions. This provision encourages competition. May potentially reduce costs, for merchants.
Prohibition of Exclusive Network Agreements: The Durbin Amendment prohibits card networks from imposing agreements that would restrict merchants from routing their transactions through networks.
Measures to Protect Consumers: The amendment included provisions that aimed to strengthen consumer protection. One of these provisions required issuers to offer consumers a choice, between two payment card networks that were not affiliated with each other for each debit card. This gave consumers options and flexibility.
Challenges in Implementation
The implementation of the Durbin Amendment faced some difficulties, which sparked debates about its effectiveness and potential unintended consequences. While some believed that it successfully achieved its goal of reducing interchange fees others had concerns about effects on smaller banks and financial institutions.
Impact on the Debit Card Industry
The Durbin Amendment had an impact on the debit card industry by changing the dynamics of interchange fees and fostering competition among payment networks. It continues to be a regulation in the United States influencing the relationships, between banks, merchants and consumers when it comes to debit card transactions.
The mobile Internet revolution is rapidly changing the longstanding status quo in the payment processing industry. As more people purchase items with their mobile devices, the public is demanding more options and greater security from transaction processing companies. For many long years, big banks and processing companies like Visa and Mastercard faced little competition and were free to change processing fees at will. Today, the upstart MCX network (Merchant Customer Exchange) is making a strong bid to compete in e-wallet services. This consortium of retailers recently added Kohl’s to its roster of members. The cooperative already includes major players like Walmart, Target and Best Buy. Formed in August 2012, MCX has stated its intention to better protect consumer data, lower processing fees and otherwise improve conditions for mobile shoppers.
In many ways, MCX represents the most forward-looking hopes of the retail industry. Though the network is not fully operational, industry watchers are fascinated by the ways that MCX could change the e-commerce landscape. In its bid to create a viable alternative payment network, MCX seeks to emulate the success of Paypal, the most successful independent online transaction processor. With its focus on mobile purchasing, MCX shows a feel for the developing trends of modern commerce. As the battle over mobile payment fees heats up, many consumers aren’t aware of how their payment choices effect the underlying struggle for lower fees in the mobile commerce sector.
Increasingly, large banks and financial companies are bringing enormous resources to bear in their efforts to woo mobile consumers and prolong their dominance. While these large institutions are currently making concessions to secure their position in mobile payments, one could persuasively argue that more choice will lead to greater satisfaction for participants in mobile commerce.
Of course, MCX faces an uphill battle in its quest to change modern payments. Major banks and Interchange processors have rallied around Paydiant, the mainstream platform for e-wallet services. Though far from perfect, Paydiant has won broad acceptance for its widespread relevance and ease of use. Over the next few years, the competition between MCX and Paydiant will represent one front in the all-out war to control and define mobile payments. At the same time, Paypal will likely make every effort to extend its commanding position into the mobile commerce sector. While Google Wallet has yet to make major gains in mobile processing, it is never wise to underestimate the potential of this groundbreaking corporation.
Every month, dramatic numbers of people start using mobile payments to purchase goods and services. Familiar with brands like Visa and Mastercard, many of these consumers will gravitate towards Paydiant. At the same time, MCX has hired media-savvy personnel to potentially launch their brand into global prominence. If any group has a real chance of changing the status quo of modern transaction processing, it is MCX.
Compared to monolithic financial companies, retailers are arguably better poised to meet the changing needs of modern consumers. Only time will tell which mobile processing network will achieve the same kind of dominance that Paypal has realized in online payment processing. Though consumers are fairly loyal to major financial brands like Visa, the new decade tells a tale of increased public hunger for technological innovation and greater choice. Whoever succeeds in dominating mobile online payments, it is likely that consumers will experience a new era of speedy, secure transactions. As mobile devices continue to revolutionize modern culture, people from all walks of life will learn to appreciate the ease and convenience of doing business through cell phones and mobile devices. Experts can only guess at how many middle-class consumers will ultimately execute most of their daily payments online.
Merchants that sell goods through an online store have many decisions to make when it comes to setting up and running their new ecommerce business. Just one of these is how will they process payments when customer are finished with their shopping and ready to pay for their transaction.
One option is to setup what is known as “offsite processing”. This form of online payment processing allows merchants with little or no technical knowledge have the same security and convenience advantages as those merchants that use payment gateways.
First, we should explain what exactly a payment gateway is. Also referred to as “onsite processing” payment gateways utilize a link to Authorize.net through an API. This means that it uses software to call out from the merchant’s website to the Authorize.net systems to complete the transaction. Using this method also requires the business’ website to have an SSL certificate, meaning it is a secure website.
The distinction between onsite and offsite processing comes down to one simple difference. Onsite payments are processed on the merchant’s website without ever leaving. Offsite payments are directed to, you guessed it, a page off the merchant’s site. Other than where the payment actually takes place the process is identical and there is no difference in security or information required.
Business owners with little or no technical or web savvy may have no idea what any of the last paragraph means. Even those merchants who may have more knowledge of web design, online payments, and API integrations may not have the time or desire to set this up for themselves.
That’s OK because Host Merchant Services has the capability to setup offsite processing for merchants that don’t have the technical knowledge or spare time to setup this extra piece of the puzzle. HMS can provide your online store with a branded payment page that eliminates the need for setting up your own SSL certificate or learning how to work with Authorize.net. When customers reach the payment stage of their transaction, they are simply directly over to your offsite payment page. The advantage this provides to customers of Host Merchant Services is that we can put our years of programming knowledge to work for your business.
In many states merchants have had a decision to make. Recent developments allow merchants that accept credit cards to pass card processing charges on to their customers. So should merchants surcharge their customers?
First of all, in at least ten states there are laws that prevent merchants from assessing their customers a surcharge. In any case a debate rages among consumer protection groups; how will merchants react to this new legal ability to pass on credit card charges to their customers?
Merchants have now had almost a month to start surcharging but not many have done so. It would seem that under the current economic climate and with a do nothing Congress, that merchants both large and small realize it would be a mistake to upset their customers.
Merchants should do more than quietly not pass on these charges. They should inform their customers that they are not, and will not, pass on such charges. Consumers are much more aware than before. On the first day that merchants could pass on credit card processing charges I asked at the market if my grocer was passing on these fees. The clerk told me no and informed me that at least seventy-five percent of customers on that day had asked the same question.
Merchants are being watched very carefully as our society is very distrustful of those that have, and how they treat those that have less. Should merchants start passing on surcharges it could be expected that customers would react in a way that would not be favorable for the merchant.
Thanks to technology and widely available access to the Internet consumers now have more of a voice in business. With social media website growth where people share thoughts and ideas, the word will spread quickly about any merchant passing on such charges. Worse yet will be the response to any merchant that tries, albeit little by little, raising prices quietly to cover these charges. That is the reason merchants should declare their policy on this matter and assure customers why they are not passing on credit card surcharges. Honesty and truthfulness is always the best policy, especially for merchants that depend on customer loyalty to remain in business.
When a social issue goes viral things can get out of hand. One negative aspect of the Internet and online social interaction is that rumors often spread faster than facts. Once social networks get down on a person, subject or organization it takes time, attention and money to set the facts straight. This has happened most recently to restaurant chains. Their response to online social pressure was naive and just made the situation worse. This is another reason that any merchants that accept credit cards should publicly and obviously answer the question; should merchants surcharge?
Welcome to the world of entrepreneurship! In today’s era creating and managing an eCommerce online store has become a popular way to transform your passion into a profitable venture. Whether you have a product idea or want to tap into a product category the possibilities are limitless, in the vast realm of eCommerce.
Where should you start? How can you ensure that your online store shines amidst competition? Don’t worry, because this comprehensive guide is here to assist you every step of the way. It will provide you with all the knowledge and tools to build an online store.
From selecting the right ecommerce platform and designing your website to choosing products that resonate with your target audience and implementing marketing strategies – we’ve got everything covered. So buckle up. Get ready for a journey, towards establishing your own thriving online empire!
Without further ado let’s dive in and discover how to create and manage a store that not only grabs attention but also generates unprecedented sales.
Choose the Right Ecommerce Platform
Setting up a store starts with selecting the right ecommerce platform. With a range of options, it can feel overwhelming to make a decision. However by understanding your needs and considering factors, like user-friendliness, customization options, and pricing you can narrow down your choices.
When choosing an ecommerce platform consider the size and scale of your business. If you’re starting small or don’t frequently engage in ecommerce a simple and affordable option might be suitable. On the other hand, if you have growth plans or require advanced features such as inventory management and customer segmentation opting for a more robust solution would be beneficial.
It’s important to think about how the platform integrates with tools and services that are crucial to your business operations. For example, if social media marketing plays a role in your strategy look for platforms that seamlessly integrate with social platforms.
Also, take into account the level of knowledge required to operate the chosen platform. Some platforms provide drag-and-drop website builders that make it easy, for anyone without coding experience to create their store. Others may require some HTML knowledge or professional assistance.
Keep in mind that every platform has its strengths and weaknesses when it comes to optimizing your website for search engines (SEO). Look for platforms that offer built-in SEO features, like URLs, options for optimizing tags, and page structures that are friendly to search engines.
By considering these factors and conducting research, on the various ecommerce platforms available today you’ll be able to choose one that perfectly matches your specific requirements. This will ultimately lead you towards establishing a store.
Choose a Niche and Develop a Business Plan
Selecting an area and crafting a thought-out strategy is a vital step, in establishing and operating an online shop. It’s essential to choose a niche that aligns with your passions, expertise, and market demand. The key is to find the balance where there’s both a need for your products or services and a level of popularity.
To begin identify a product category that enjoys appeal or an underserved market segment that resonates with your interests. Research thoroughly to grasp the concerns, preferences, and buying habits of your target audience. This valuable insight will enable you to tailor your products and marketing efforts
Once you’ve pinpointed your niche it’s time to create a business plan that will act as your roadmap to success. Outline clear goals, strategies, financial projections, and marketing tactics as contingency plans.
When formulating your business plan consider factors, like market conditions, competition analysis, customer acquisition costs, pricing strategy, shipping logistics, and customer support capabilities. A crafted plan will guide you through the stages of launching and expanding your online store.
Keep in mind that successful online stores possess their style and brand identity. Leverage this opportunity by offering products or delivering customer service to set yourself apart from competitors.
To achieve long-term success, in the eCommerce world, it is crucial to select the niche and create a well-thought-out business plan that caters to the specific needs of your target audience. By doing you position yourself effectively for growth and prosperity.
Plan Your Ecommerce Online Store
When it comes to launching a store one of the critical steps is carefully planning your ecommerce online store. This involves selecting the software or website builder that aligns with your business requirements and ensures a shopping experience, for your customers.
Consider the nature of the products you intend to sell and the level of customization you desire. Some platforms offer flexibility in terms of design and functionality while others may be better suited for stores with simpler needs.
Think about your target audience and their preferences. Take time to research what features and functionalities are important to them when they shop online. This will help narrow down your options and choose a platform that specifically caters to their needs.
Another crucial aspect to consider is search engine optimization (SEO). Look for platforms that come equipped with built-in SEO tools or provide ways to optimize your product pages for visibility on search engines.
In addition take into account factors such, as pricing, payment options, shipping integrations, and customer support. These elements can significantly impact the success of your store.
Lastly don’t forget about scalability. As your business expands you’ll want a platform that can handle increased traffic and sales without compromising performance.
Before you launch your store it’s important to plan your ecommerce online store. This will give you a foundation, for success in the market. Make sure to invest time in researching options and selecting the one that best aligns, with your business goals and meets the needs of your target audience.
Pick the Right Products
When it comes to running a store one of the most crucial aspects is selecting the appropriate products to sell. This decision does not affect your sales and profitability. Also determines how effectively you can attract and retain customers.
To make decisions, about which products to offer in your store conducting comprehensive market research is essential. Begin by identifying your target audience and gaining an understanding of their needs and preferences. What are they searching for? What problems do they need solutions for? By answering these questions you can discover product ideas that align with this demand.
Next, explore product categories that resonate with your target market’s interests. Are there any trending or niche items that you could leverage? Look for gaps in the market where competition’s limited but demand is high – this will give you an edge.
Another crucial factor when selecting products is whether they align with your brand identity. Your online store should have its style and values so opt for products that mirror this image.
Consider aspects such as profit margins and shipping requirements well. Ensure that the products you choose provide room, for profit while being easy to ship without incurring costs.
If you follow these steps and carefully choose the products, for your store you’ll position yourself for success, in the fiercely competitive world of ecommerce. Therefore it’s crucial to invest time in researching and assessing product options before making any conclusive choices!
Design Your Online Store
Creating an ecommerce online store business requires attention to designing your online store. It’s not, about making it look good; it’s also crucial to ensure that it is user-friendly and optimized for driving conversions.
When you design your store it’s important to consider the layout and navigation. Make sure your website is easy to navigate allowing visitors to quickly find what they’re looking for. Incorporate categories and filters to help users narrow down their search.
Another vital aspect of design is the appeal of your store. Choose a professional theme that aligns with your brand identity. Utilize high-quality product images. Provide descriptions to captivate customers.
In today’s mobile-driven world mobile responsiveness is paramount. Optimize your store for devices since more people are shopping on their smartphones or tablets than ever before. Ensure that the design seamlessly adapts across screen sizes.
Don’t underestimate the significance of trust signals on your website. Feature customer reviews, testimonials, and payment icons and prominently display contact information on each page to establish credibility, with customers.
Simplify and streamline the checkout process so that customers can easily complete their purchases without unnecessary steps or distractions causing friction along the way.
When you carefully consider these design aspects while establishing your store you will be able to create a welcoming atmosphere that imparts trust in visitors encouraging them to make purchases from you.
Begin Listing Your Products
Now that you have your ecommerce online store set up and your online store designed, it’s time to start listing your products. This is where the real work begins!
First, gather all the necessary information about each product you plan to sell. Take high-quality photos from different angles, write detailed descriptions that highlight the features and benefits of each item, and determine the pricing for each product.
Next, create a product page for each item on your website. Make sure to include all relevant details such as size options, color choices, and any variations or customization options available. Use keywords in your titles and descriptions to optimize them for search engines.
When listing your products, consider your target market and their needs. Think about what would appeal to them and how you can differentiate yourself from competitors in the same niche. Highlight unique selling points that make your products stand out.
Don’t forget to provide accurate inventory information so customers know if an item is in stock or not. This will help manage customer expectations and avoid disappointments or delays.
Regularly review and update your product listings based on customer feedback or changing market conditions. Stay vigilant with monitoring stock levels so you can quickly restock popular items before they run out.
Listing products may seem like a daunting task at first but with careful planning and attention to detail, it can become an enjoyable part of running a successful online store.
Choose The Best Payment Options
When it comes to running an online store, choosing the best payment gateway is a critical decision that can greatly impact your success. With so many different payment methods available today, it’s important to consider the preferences of your target audience and provide them with convenient and secure options.
It’s also essential to consider the specific needs of your target market when selecting payment options. If you’re targeting international customers, offering multiple currencies or alternative methods like Alipay or WeChat Pay might be beneficial.
Additionally, don’t forget about mobile payments. With more people shopping on their smartphones, providing options like Apple Pay or Google Wallet can enhance the user experience and streamline checkout.
Remember that security should always be a top priority when selecting payment providers. Look for reputable companies that offer fraud protection measures and comply with industry standards such as PCI DSS (Payment Card Industry Data Security Standard).
Choosing the best payment options for your online store requires careful consideration of your target audience’s preferences and needs while prioritizing security. By offering diverse and convenient payment methods, you can enhance customer satisfaction and increase conversions in your ecommerce online store journey
Finalize Shipping Strategies and Policies
Finalizing your shipping strategies and policies is a critical aspect of running a successful online store. It’s important to carefully consider all the factors involved in order to provide the best experience for your customers.
First, you need to determine what shipping options you will offer. Will you provide standard shipping, expedited shipping, or both? Consider the preferences and expectations of your target audience when making this decision.
Next, establish clear and transparent shipping costs. Customers appreciate knowing exactly how much they will be charged for shipping before making a purchase. Offering free shipping can also be an effective way to incentivize sales and attract more customers.
Another important consideration is the packaging. Make sure you choose appropriate packaging materials to ensure that products arrive safely and undamaged. This not only protects your reputation but also reduces the chances of returns or refunds due to damaged goods.
Additionally, it’s crucial to communicate your return policy regarding damaged items or other issues that may arise during shipment. Be sure to outline any requirements or steps that customers need to follow to initiate a return or replacement.
Consider partnering with reliable courier services or fulfillment centers that can handle the logistics of delivering orders efficiently and on time. Research different options available in your area and select one that aligns with your business needs.
By finalizing these aspects of your online store’s shipping strategies and policies, you can help build trust with customers while ensuring smooth transactions from start to finish.
Publish and Promote Your Online Store
Now that your online store is set up and ready to go, it’s time to get the word out and start driving traffic to your website. The success of your online store depends greatly on how well you promote it and attract potential customers.
One of the most effective ways to promote your online store is through digital marketing strategies. Utilize social media platforms like Facebook, Instagram, and Twitter to create a presence for your brand. Engage with your target audience by posting relevant content, running contests or giveaways, and interacting with followers.
In addition to social media marketing, consider investing in search engine optimization (SEO) techniques. This involves optimizing your website’s content so that it ranks higher in search engine results pages when users search for keywords related to your products or industry. Research popular keywords within your niche and incorporate them into product descriptions, blog posts, and meta tags.
Another powerful promotional tool is influencer marketing. Collaborate with influencers who have a following that aligns with your target market. They can help showcase your products through reviews or sponsored posts on their blogs or social media accounts.
Don’t forget about traditional marketing methods as well! Consider running ads in local newspapers or magazines if you have a physical location tied to your online store. Attend trade shows related to your industry where you can showcase and sell products directly.
Remember that promoting an online store requires ongoing effort – not just a one-time push at launch. Continuously analyze which marketing channels are driving the most traffic and conversions for you, then invest more resources into those areas while refining others.
By taking advantage of various promotional strategies tailored specifically for an ecommerce online store business model like yours, you’ll be able to reach a larger audience and increase sales potential significantly!
Conclusion
Setting up and running an online store can be a challenging but rewarding venture. With the right strategies and tools in place, you can create a successful online business and tap into the growing world of e-commerce.
By choosing the right ecommerce online store that suits your needs, selecting a niche market, planning your website layout and design effectively, listing products strategically, offering convenient payment options, optimizing shipping strategies, publishing and promoting your online store wisely – you are well on your way to creating a profitable online store.
Remember to conduct thorough research on your target audience and their needs. Utilize social media platforms to reach out to potential customers and engage with them regularly. Keep an eye on market conditions and adapt accordingly to stay ahead of the competition.
Building brand identity through effective logo design, utilizing search engine optimization techniques for better visibility in search engine listings, providing excellent customer support – these are all crucial aspects that contribute to the success of your online store.
As a new entrepreneur in the ecommerce online store market, it may seem overwhelming at first. However, by following these steps diligently while keeping an open mind for future adjustments based on customer feedback or changing trends – you can build a thriving online business that stands out from the rest.
Remember that setting up an online store is not just about selling products; it’s about creating an enjoyable shopping experience for your customers. By combining quality products with exceptional service and marketing efforts tailored towards reaching your target audience effectively – you will be able to establish yourself as a trusted player in the competitive world of e-commerce.
So go ahead! Take this comprehensive guide as a starting point for launching your own successful online store today. Embrace innovation, stay adaptable to change,and never stop learning along this exciting journey!
Here’s wishing you tremendous success in building and growing your very own profitable ecommerce online store empire!
The Official Merchant Services Blog would like to announce that Host Merchant Services has now added next-day funding to their already impressive line of services. Merchant services customers appreciate getting their deposits the next business day, as this is critical for funding payroll and inventory purchases for the week.
Merchants can now expect funding for MasterCard, Visa, and Discover transactions by the next business day, rather than within 48-72 hours, as is customary for other processors. All HMS Merchants can qualify. HMS long-term merchants will attain next-day funding, immediately upon request.
A merchant who currently has two day funding for example, would not see the money from a transaction processed at noon on a Monday, until Wednesday morning at the earliest, creating a 48-hour delay that could be the source of a merchants’ cash flow dilemma.
Any merchant that processes with Host Merchant Services and batches, or settles their terminal regularly in the evening, will receive those funds in their bank account by the next business day. Batching is the end-of-day or end-of-shift process in which the merchant balances and submits transactions for clearing and settlement. This allows executives to make quicker business decisions that impact their bottom line, as well as increase cash flow for the business.
Merchants should beware however that not all next day funding programs are created equal. While many companies claim to offer next day funding, merchant account providers have different capabilities and requirements resulting in very different times for fund dispersal.
Next day funding can benefit particular types of merchants like restaurants, principally when it comes to those that have heavy weekend volumes. For these merchants, next day funding can help them gain their weekend proceeds faster so they can be used to fund payroll and inventory purchases for the week. These restaurants would get their deposit for Friday, Saturday and Sunday activity on Monday instead of Tuesday, which is a very big cash flow benefit.
Host Merchant Services is always looking for ways to make it easier and more convenient to do business as well as provide added value in accelerating the growth of companies. With next day funding Host is enabling small business owners to improve their cash flow with faster funding of dollars earned through credit card sales. This corresponds with HMS’s ongoing goal to provide quality payment transactions solutions at the best price to merchants across the United States. Contact Host Merchant Services now to save money on your processing fees, as well as see your money a full day earlier than with other processors.
Today the Official Merchant Services Blog brings NFC technology back into the spotlight, with a look at a pilot program U.S. Bancorp is running in two test cities. The company, one of the nation’s more tech-oriented big banks, is joining the ranks of companies testing near-field communication (NFC) technology by pairing a rewards credit card with Apple Inc.’s iPhone in Salt Lake City, Utah, and Portland, Oregon.
It’s been a while since we discussed the technology surrounding Near Field Communication, or NFC, so lets take a moment to recap. NFC is a short-range high frequency wireless communication technology which enables the exchange of data between devices with a touch. This touch capability allows for sharing, pairing, and transaction capability between the NFC devices. A smartphone or tablet that is NFC capable can be used as a keycard or an ID card. The same device can also be used to make credit card payments.
U.S. Bancorp, based in Minneapolis is offering new holders of its FlexPerks Travel Rewards Visa Signature card a special sleeve for the iPhone 4 and iPhone 4S. The sleeve contains a microNFC chip, and an antenna that facilitates payments by communicating with contactless point-of-sale terminals. Unlike a small but growing number of smart phones running Google Inc.’s Android operating system, the iPhone does not have a built-in NFC chip. With the sleeve and U.S. Bank’s new Go Mobile app, cardholders will be able to use their iPhones to make purchases at any merchant location that accepts the contactless Visa payWave card.
Cardholders will receive the case free for participating in the test. The case also includes a battery that extends the iPhone’s charge time by more than 50%, a feature U.S. Bank says will appeal to frequent travelers. The card itself is free in the first year but afterward charges a $49 annual fee.
U.S. Bank, already has offered the FlexPerks card with a Europay-MasterCard-Visa (EMV) chip so that international travelers can use their cards easily in EMV countries, which is now most of the industrialized world. The new test is part of an effort to learn how consumers and merchants take to NFC, according to Dominic Venturo, chief innovation officer at U.S. Bank Payment Services.
Some major players in mobile payments, notably PayPal Inc., Square Inc. and Starbucks Corp., are using non-NFC technologies such as browser-based systems or 2-D bar codes. NFC is a high-capacity, fast technology, but skeptics cite its need for chip-equipped phones and POS terminals as reasons to use other technologies. And while still small considering that the U.S. has about 8 million card-accepting locations, Venturo says the number of locations capable of accepting NFC payments, is now up to about 300,000 and growing.
U.S. Bank picked Salt Lake City and Portland for the NFC testing because of their tech-oriented populations and previous experience with high-tech card or Internet systems. Salt Lake City, for example, is one of the two test cities for Isis, the NFC mobile-payments joint venture of AT&T Mobility, Verizon Wireless and T-Mobile USA. Also, the Utah Transit Authority, the Salt Lake area’s mass-transit system, already accepts contactless cards. Google, meanwhile, picked Portland as its first test site for Google Offers, a competitor of Groupon Inc.’s daily-deal offers now available in about 40 cities. U.S. Bank has no end date for the test and in fact considers it a limited rollout that may expand later this year.
This technology is being embraced by some major companies in the e-commerce industry for its ability to process credit card transactions. PayPal purchased Zong for just that reason. Visa invested heavily in mobile payments, as seen by their marketing plans for the 2012 Olympics. Google is making its Google Wallet and Google+ beta work toward that same vision of mobile payments made through NFC-based touch technology. Only time will tell if the future of NFC payments is in fact bright and as usual, Host Merchant Services will keep you up to date on any new developments.
This is the latest installment in The Official Merchant Services Blog’sKnowledge Base effort. We want to make the payment processing industry’s terms and buzzwords clear. We want to remove any and all confusion merchants might have about how the industry works. Host Merchant Services promises: we deliver personal service and clarity. So we’re going to take some time to explain how everything works. This ongoing series is where we define industry related terms and slowly build up a knowledge base and as we get more and more of these completed, we’ll collect them in our resource archive for quick and easy access.
E-Commerce
Today’s term is Electronic Commerce, or E-Commerce for short. E-Commerce is the process of using the Internet or computer networks in order to buy or sell information, services, or products. This includes all transactions involved in conducting business over the fore mentioned networks. The act of buying or selling over these networks allows for secure paperless transactions to happen electronically. It has also given many businesses the ability to expand from local and regional markets to national and global markets.
Initially E-commerce just involved business to business transactions over private networks, it wasn’t until the mid 1990′s that it became completely open to the public. These businesses were using Electronic Data Interchange (EDI), which was a transfer of electronic data from computer to computer and Electronic Funds Transfer (EFT), which was an electronic transfer of money from one computer to another in order to do business with each other. Doing business like this guaranteed that the transactions would be completed in a faster and less expensive way. Advancing computer networking capabilities led to the public use of the Internet and opened the doors of E-commerce to the world.
E-Commerce has a major impact on the markets that businesses can reach. Businesses now have the ability to reach a large global market allowing for a greater return on their product sales. Retailers can sell more of a particular product at a lower cost, as a result of business being done online and not by man power alone, which gives them the ability to lower prices and increase sales. Although we may take advantage of E-commerce and the ease it creates in our daily lives, its benefit to the global economy is always changing and ever-increasing as technologies continue to develop. Everyday we see new businesses from all over the world implementing E-commerce into their business strategies, resulting in the growth of a “global community”.
Host Merchant Services offers a variety of E-commerce solutions to fit your business, including HMS Express, our own cutting edge in house payment gateway. HMS is able to interface with most of the major Payment Gateways out there, including Authorize.net. We also offer unparalleled protection for all of our merchants in the form of our PCI Compliance Initiative.
Today the Official Merchant Services Blog brings you another update on the ongoing Interchange lawsuit settlement. We began talking about the possibility of ‘The Big Cash Comeback’ back when the settlement was first announced in July, and later we discussed the opposition to the settlement. Last week a federal appellate court denied a retailer’s appeal to review part of the controversial settlement in the massive credit card interchange case, clearing the way for the trial court to move toward final approval. At the same, the process of notifying the millions of merchants affected is getting under way.
Judge John Gleeson of the U.S. District Court in Brooklyn, N.Y., gave preliminary approval of the settlement on Nov. 9 and has set a hearing for next Sept. 13 to consider final approval.
Lawyers representing seven merchant trade groups as well as some individual merchants asked the Second Circuit Court to consider a narrow part of Gleeson’s preliminary approval, the provision of the settlement that releases defendants Visa Inc., MasterCard Inc., and some major banks from liability for interchange pricing policies. The provision is shaping up to be the key objection of the 1,200 retailers and trade associations since it would affect current and even future card-accepting merchants. This case, now seven years in the making, began when merchant plaintiffs accused the networks and banks of using anti-competitive practices in setting interchange rates.
Under the settlement announced in July by lawyers for both sides, the defendants will pay class merchants about $6 billion in damages, and Visa and MasterCard will provide another $1.2 billion in temporarily reduced interchange rates and ease up on certain rules, especially ones restricting merchants’ ability to add a surcharge for card transactions. In return, the networks want to be released from future court challenges by merchants regarding Interchange and network rules. The defendants also are paying about $550 million to a handful of large merchant plaintiffs that have now dropped their claims.
Judge Gleeson indicated that the standard for final approval is much higher than the one for preliminary approval, which means that the objecting plaintiffs still have some hope even though parts of the settlement already are going into effect or will be soon. For example, the networks have 60 days from Nov. 27, when the court entered Gleeson’s order implementing preliminary approval, to conform their rules to terms of the proposed settlement.
The district court meanwhile, is setting up the machinery to administer the settlement process. Gleeson appointed Kansas City, Kan.-based Epiq Systems Inc., a specialist in legal-systems administration and technology, to oversee notifications and related matters. That is no small task: the class settlement covers any merchant that has accepted Visa and MasterCard cards between Jan. 1, 2004, and late 2012. Experts estimate 6 million to 8 million affected merchants that must be notified. The settlement agreement also calls for merchant acquirers to assist in the notification process.
While we have discussed this settlement from different aspects previously, noting the advantages it would seem to give the Issuing Banks over merchants, the settlement seems to be proceeding along without much further adjustment or negotiation. Although it is not finalized yet, the dissenter’s cries seem to be going unheard, as they believe that the settlement protects the status quo more than anything, and will not change the way the networks set interchange. Host Merchant Services will keep you informed of all the latest news involving this landmark litigation.
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