Category - News

Fraudsters Looking For Fertile Ground In Card Not Present Environment

Small business owners tend to become increasingly high targets for card fraudsters.  As the EMVco Chip Card gains use in the U.S. fraudsters will have to seek new and fertile ground to commit their crimes.  What can a merchant or small business do to insure that they and their customers are secure?   Make sure that you have a qualified professional handling your account. Contacting an Electronic Transactions Association, Certified Payments Professional, ETA CPP, to assist in protecting your business and customers with the best technology and product fit for your SMB.

As Card Counterfeiters are being pushed out of the retail environment they will seek to do harm in Card Not Present Environments, Automated Fuel Dispensaries, ATM’s, and Internet.  Allcard USA offers great products and services to address these issues.  For more information about Card Fraud or Payment Card Industry Compliance please contact Allcard USA.  We are always happy to talk shop and educate merchants and consumers about the Payment Card Industry and Merchant Services.credit-card-fraud_gg69627770

Credit Card giant eases EMV liability, adoption

Newsimage

Credit card giant eases EMV liability, adoption

Restaurants lacking an approved EMV credit card processor will no longer have to pay fraudulent Visa or MasterCard charges under $25 starting Wednesday, Visa announced yesterday.

The company said it was also capping the number of chargebacks that could be levied on restaurants to 10 per account, regardless of how large a tab was charged on an illegitimate card.

To help restaurants get faster approval to use a chip-reading terminal, Visa said it was changing the process. Currently, restaurants can’t start using one of the processing devices until the system is certified as safe by Visa or a representative. Going forward, third parties that sign a restaurant up as a credit card accepter can “self-certify” that the system they installed is secure.

Visa says the new process could cut the wait times for certification by 50%.

In addition, Visa said it is exploring ways of allowing units of a restaurant chain to be certified for chip card charges if their equipment is identical to what’s being used in branches that have already secured approval.

The measures are intended to streamline the adoption of EMV (Europay, Mastercard, Visa) cards, the new generation of “smart” credit cards that incorporate a computer chip to thwart counterfeiting. Since October, a restaurant that has not installed an EMV reader or has not certified it is liable for any charges that a guest might run up with a bogus card.

Visa said it would no longer allow banks that issue its cards to seek reimbursements of illegitimate charges of less than $25. The company said that the paperwork burden of collecting the money far outweighed the financial benefits to the banks.

EMV cards are widely used in Europe, but have been adopted relatively slowly by restaurants in the United States. Operators have complained that the systems are pricey to install and that the process of certification can be long and arduous. They also grouse that many consumers have yet to switch to the new generation of cards.

Consumers Want Mobile Payments

mobilepayments

June 2, 2016

By Kevin Woodward
@DTPaymentNews

Just as consumers have become accustomed to using their credit and debit cards across multiple shopping channels, so too are many expecting the digitized, and mobilized, versions of these cards to mimic that experience.

The differences between two groups yielded some interesting results. One of the more surprising findings is how consumers plan to use mobile wallets within apps, McKee says. “Planned use of mobile wallets for purchases within native applications remains relatively low,” McKee says in an email, with only 26% of consumers as a whole and 18% of early adopters indicating they would use that payment option. “In these environments, card-on-file remains a dominant option for transactions and has made proliferation of alternatives difficult,” he says.

Other payment methods find more favor with each group. Forty-six percent of early adopters would use a mobile-payment app for online purchases, compared with 77% of consumers as a whole.

The percentages flip—at 76% and 45% for early adopters and all consumers, respectively—for using a mobile-payment app for an in-store purchase.

This illustrates that consumers want payment options that work across channels. “They expect it to seamlessly work across the virtual and physical worlds, much in the same way their credit card is able to today,” McKee says.

This expectation could prove troublesome to a company such as PayPal Holdings Inc., which says it has 184 million active accounts and has dominated online wallet use, McKee says. Four years ago, PayPal began an effort to add in-store PayPal acceptance at several retailers. The effort largely fizzled.

Apple Pay, in particular, is gaining ground among consumers with iOS devices, the survey found. When asked which app—PayPal or Apple Pay—they plan to use to make purchases in the next 90 days, 24% of early adopters chose PayPal and 67% said Apple Pay. Sixty-five percent of consumers as a whole chose PayPal and 50% of them chose Apple Pay.

Android users, who can select from PayPal, Android Pay, and Samsung Pay for mobile payments, overwhelmingly favor PayPal. Thirty-eight percent of early adopters would choose PayPal, compared with Android Pay’s 29%, and Samsung Pay’s 15%. The results for consumers overall were 72% for PayPal, 32% for Android Pay, and 9% for Samsung Pay.

The expectation of using the same mobile-payment method regardless of where the transaction takes place will alter the payments industry, McKee says. “This expectation will continue to increase the pressure on PayPal, which despite its incumbency online, has significantly lagged in expanding its offline presence. Banks with mobile-wallet aspirations will need to consider how to address the growing omnichannel needs of their customers.”

That finding, from 451 Research LLC’s “Mobile Pay and Commerce Advisory Report,” suggests that early adopters of mobile payments want more than the ability to pay with their smart phones only in stores. “This audience is expressing a clear demand for omnichannel capabilities in their mobile wallets,” says Jordan McKee, 451 Research senior analyst for mobile payments.

In an effort to assess how consumers view current mobile payments and wallets, 451 Research surveyed two groups of consumers. One, comprising more than 4,000 U.S. consumers, represented the U.S. population as a whole, McKee says. The other, with more than 4,100 respondents, was made up of early adopters.

The differences between two groups yielded some interesting results. One of the more surprising findings is how consumers plan to use mobile wallets within apps, McKee says. “Planned use of mobile wallets for purchases within native applications remains relatively low,” McKee says in an email, with only 26% of consumers as a whole and 18% of early adopters indicating they would use that payment option. “In these environments, card-on-file remains a dominant option for transactions and has made proliferation of alternatives difficult,” he says.

Other payment methods find more favor with each group. Forty-six percent of early adopters would use a mobile-payment app for online purchases, compared with 77% of consumers as a whole.

The percentages flip—at 76% and 45% for early adopters and all consumers, respectively—for using a mobile-payment app for an in-store purchase.

This illustrates that consumers want payment options that work across channels. “They expect it to seamlessly work across the virtual and physical worlds, much in the same way their credit card is able to today,” McKee says.

This expectation could prove troublesome to a company such as PayPal Holdings Inc., which says it has 184 million active accounts and has dominated online wallet use, McKee says. Four years ago, PayPal began an effort to add in-store PayPal acceptance at several retailers. The effort largely fizzled.

Apple Pay, in particular, is gaining ground among consumers with iOS devices, the survey found. When asked which app—PayPal or Apple Pay—they plan to use to make purchases in the next 90 days, 24% of early adopters chose PayPal and 67% said Apple Pay. Sixty-five percent of consumers as a whole chose PayPal and 50% of them chose Apple Pay.

Android users, who can select from PayPal, Android Pay, and Samsung Pay for mobile payments, overwhelmingly favor PayPal. Thirty-eight percent of early adopters would choose PayPal, compared with Android Pay’s 29%, and Samsung Pay’s 15%. The results for consumers overall were 72% for PayPal, 32% for Android Pay, and 9% for Samsung Pay.

The expectation of using the same mobile-payment method regardless of where the transaction takes place will alter the payments industry, McKee says. “This expectation will continue to increase the pressure on PayPal, which despite its incumbency online, has significantly lagged in expanding its offline presence. Banks with mobile-wallet aspirations will need to consider how to address the growing omnichannel needs of their customers.”

Great News For QuickBooks Users

Bookkeeping software is an important part of business. credit card processing and your merchant account equally so.  Allcard USA and it’s partners have the technology and the products to seamlessly integrate your transaction information into your QuickBooks products like QuickBooks Online, Pro, and Financial.  These easy integration methods have been long awaited by merchants and we are glad that they are available today.

eCommerce Merchant Solutions

QuickBooks Integration

 

Quick Chip / EMV to be Faster Now

image

News
Visa Tweaks Chip Card Processing Protocol; Says EMV Debit Cards Now Surpass Their Credit Brethren
April 19, 2016
By Kevin Woodward
@DTPaymentNews

Many consumers and merchants adjusting to using newly-issued EMV credit and debit cards may undergo a perception versus reality check as Visa Inc. prepares to debut its Quick Chip for EMV program. Visa also provided updated chip card issuing and acceptance data.

Image Credit: Visa Inc.
The tweaks works with all Visa cards, but requires a change to the POS terminal, says Stephanie Ericksen, Visa executive.
Announced Tuesday, the program enables consumers to remove their EMV cards typically within two seconds of inserting them into compatible point-of-sale terminals. The program addresses a perception issue that chip transactions take more time than those made with a magnetic-stripe payment card, Stephanie Ericksen, Visa vice president of global risk products, tells Digital Transactions News.

“With more and more cardholders and merchants using chip cards as part of their lives we have heard concerns about chip transactions,” Ericksen says. The move will enable consumers to put away their cards quicker while the merchant rings up purchases.

Unlike mag-stripe transactions, the chip card must be inserted and left in the POS terminal until authorization. That is a measure to ensure the card is not counterfeit. The Quick Chip program does not alter the speed or components of an EMV transaction, Ericksen says. What it does is to enable the consumer to remove the card from the reader prior to the authorization response.

“From a card perspective no changes are required,” she says. “It works on all our cards today.”

What does need to change is the instruction sent to the POS terminal. “There’s a small change to the terminal to allow for the prompt to remove the card in advance of the authorization response,” she says.

No additional testing or certification is necessary because this protocol is part of the EMV standard already, Ericksen says. The middleware provider, terminal maker, or potentially the acquirer or processor has to make the prompt alteration.

The process is somewhat similar to when a power outage strikes a merchant location that has EMV terminals, she says. In that case, the transaction proceeds, but the authorization response is deferred until the terminal connects again. “It’s already an existing function being used today in some environments,” Ericksen says, pointing to in-flight EMV transactions that are processed once the plane lands.

Already, some payments-industry companies are working with Visa on reduced insertion times, including processor Total System Services Inc. (TSYS), POS terminal makers Equinox Payments and Ingenico Group, and payments software and certification firm B2. No merchants are enrolled yet, but Ericksen says Visa is working with some to do just that.

Meanwhile, Visa’s update on EMV data shows that for the first time there are more EMV debit cards in issue in the U.S. than EMV credit cards. As of March 31, there are 133.9 million Visa debit EMV cards and 131 million Visa credit EMV cards. The total of 264.9 million is 86.6% higher than the 142 million cards in October 2015, making the United States the largest chip-card market. At the end of December, Visa said there were 212 million Visa chip cards, but it did not split the total by credit or debit.

Issuers delayed their EMV debit card plans while technicalities over a software tweak to enable multiple debit network transaction-routing options were worked out. The tweak was necessary to comply with the Durbin Amendment to the 2010 Dodd Frank Act.

Visa also says there are 1 million merchant locations with chip-enabled terminals, or about 20% of all merchants, Ericksen says. More than three-fourths of them are small and mid-size merchants.

Counterfeit card fraud, which EMV chip cards aim to prevent, is down at the five top chip-enabled merchants by 18.3% from the fourth quarter of 2014 to the same quarter in 2015. That contrasts with the top five non-EMV merchants, which saw counterfeit card fraud increase 11.4% in the same period.

Once at least 50% of U.S. payment card transactions are made with chip cards at chip-activated terminals—in a so-called chip-on-chip transaction—fraud rates will begin to decline, Ericksen says. “That’s where we start to see occurrences of the counterfeit card fraud trend line go down overall.”

Banks Promise Faster ACH Deposits in 2016

NACHA: Most Top Financial Institutions Are on Track To Offer Same-Day ACH This Year
April 5, 2016
By Jim Daly
@DTPaymentNews

Automated clearing house governing body NACHA says nearly all of the nation’s biggest financial institutions plan to originate same-day ACH payments this year.

The January-February telephone survey of executives at 22 of the nation’s top 25 ACH originators found that 95%, which works out to all but one of the respondents, plan to offer same-day ACH origination services by year’s end. Under Herndon, Va.-based NACHA’s same-day ACH rule, banks and credit unions will be required to receive same-day ACH transactions beginning Sept. 23, 2016, but originating ACH payments, including same-day payments, is optional.

NACHA conducted the survey to get a read on financial institutions’ same-day ACH plans. Same-day ACH, which would speed up settlement by about a day, is the subject of a big and sometimes controversial effort at NACHA. And faster payments in general are the focus of major projects by not only NACHA, but the Federal Reserve and companies such as The Clearing House Payments Co. LLC and Early Warning Services, the new owner of the clearXchange person-to-person payments network.

NACHA said its survey also found that the strongest use cases for same-day ACH are payroll transactions and business-to-business payments. All of the respondents plan to offer same-day payroll payments, and 95% said they’ll offer same-day B2B ACH payments in addition to expedited bill pay and person-to-person payments.

“Financial institutions see the value in providing new, faster payment options to their customers with certainty and surety, and same-day ACH allows them to do that in 2016,” NACHA president and chief executive Janet O. Estep said in a statement. “These findings support our earlier research that same-day ACH volume will come from use cases like payroll and B2B payments.”

Of the financial institutions planning to originate same-day ACH this year, 86% said they’ll offer the service to all of their clients, while 14% said they’ll offer it to select clients based on need, according to NACHA.

NACHA also is working with regional ACH associations to assess the readiness of smaller financial institutions for same-day ACH. One such association, Richmond, Va.-based EastPay, surveyed members at its March conference, where 64% of respondents said they plan to originate same-day ACH payments, NACHA said.

Melissa Lowry, head of product and marketing at clearXchange, a P2P service developed by some of the nation’s largest banks, says same-day ACH complements the real-time payment system clearXchange is rolling out. More than half of ClearXchange’s transactions so far are in real time, but its system uses the ACH for settlement in other cases.

While research shows consumers consistently favor the fastest possible payment option, not every transaction needs to be in real in time, according to Lowry. “There’s a place for both,” she tells Digital Transactions News.

Local Merchant Credit Card Processing | Local Business CC Processing

Credit Card Processing

Equal Rates But Un-Equal Bills…Here Is Why

If two restaurants both processed the same card volumes at the SAME RATES and TRANSACTION FEES their cost would be the same right? It may sound correct but the fees will wind up being completely different. How Is that posible you ask? Look at the example below.

Restaurant A. Restaurant B.

Rate 1.55% and $0.17 per transaction Rate 1.55% and $0.17 per transaction

Amount Processed $100,000. Amount Processed $100,000.

Restaurant A’s merchant fees Restaurant B’s merchant fees

$3200.00. $1720.00

This is of course is only an example of rate differences, however I seek to illustrate the point that RATE is used as a distraction and without other factors is meaningless.

You see Restaurant A is Bob’s Taco Stand and Restaurant B is Bob’s Prime Steakhouse. The taco stand has a much lower ticket than a steakhouse therefore the steakhouse has far fewer transactions. You see $0.17 is 1.70% of a $10.00 sale but only 0.17% of a $100.00 sale. So on a low ticket sale the transaction fee is more of the cost than the rate. On the reverse. The Higher the ticket on the sale the more important the rate is and the transaction fee cost becomes less of the cost of the transaction or less significant.

Transaction Fee $0.17 / $10.00 =1.70%
Transaction Fee $0.17 / $100.00 = 0.17%

My point here is only an example an only touches the surface of how merchants are charged for processing. If you find these example a bit confusing that is because they are supposed to be. Please contact a Certified Payments Professional to assist you in navigating out of the rough waters of payments processing and get you to smooth sailing.

Flat Fee or Interchange Plus $0.00

Some companies have gone to a FLAT FEE pricing model. Let’s look closer. You start a business and you search for inexpensive card processing and you see Cost Plus $0.00 or FLAT FEE. If your business only does $1000.00 per month in card sales then you would be paying almost 8% PLUS the Interchange Processing Fees, a very high cost. On the other hand if your business is processing $100K per month then you are only paying your processing agent a mere $8.00 plus Interchange Fees, and in that scenario, you probably won’t receive the personal service that a merchant of your caliber requires. There is NO perfect option. Find a Certified Payments Professional that you can trust. At Allcard USA we are here to help, we are Certified with the Electronic Transactions Association, and we can be TRUSTED. If you have a fee in mind that you feel comfortable paying your agent we are open to your offer.

Why Mobile Apps Work

When your business or organization decides to purchase a Mobile App you will begin to see results. Here is why. Our FREE UNLIMITED PUSH MESSAGE function allows you to push an instant message to your entire group. The open rate of a push message is 8 times higher than an e mail. Let’s face it we are coming of age with mobile technology, so let Allcard USA build a mobile app to help your business with, Online order/sales, booking appointments, loyalty programs, geo navigation/directions, social media, couponing, Geo Fencing and more. It makes sense for many businesses and groups and it won’t break the bank. Get ahead of the curve and stay ahead of your competition, let us build you a demo today call Allcard USA