Is The POS System Secure?

Neptune Holding Trident Shield RetroBe careful, retailers: Dubbed “PoSeidon” by ‘cisco’ Security Solutions, this adware and spyware is really a new kind of trojan viruses that particularly targets POS (reason for purchase) systems, nabbing the charge card information of the unsuspecting customers.

‘cisco’ mentioned inside a March 2015 are convinced that POS adware and spyware attacks are rising, affecting companies both small and big. One particualr recent high-profile PoS charge card data breach may be the BlackPOS adware and spyware strain, which uncovered greater than 40 freaking million Target customers’ debit and charge card information in 2013.

Concerned? You ought to be, while you could ultimately take place responsible for the thievery of the customers’ data when your POS system become infected. Continue reading to learn to safeguard your company in the PoSeidon virus, and the way to minimize your chance of POS system data breach generally.

The PoSeidon Point-of-Purchase Virus

During card-present payment processing, sensitive charge card information will come in plain text within the memory from the POS system. Like the majority of point-of-purchase trojans, PoSeidon utilizes a technique referred to as “memory scraping,” checking the RAM of infected POS terminals to locate these unencrypted strings that match charge card information.

Once this post is retrieved, it’s offered to dubious cybercriminals who might, say, encode it right into a magnetic stripe and employ it with a brand new card.

Senior technical leader for Cisco’s Talos Security Intelligence and Research Group Craig Johnson told SCMagazine.com that PoSeidon sticks out using their company similar POS adware and spyware in that it’s self-updatable.

Furthermore, states Johnson, “It has interesting evasions using the mixture of XOR, Base64, etc., and contains direct communication using the exfiltration servers, instead of common PoS adware and spyware, which logs and stores for future exfiltration from another system.”

OK, so do you not worry — you do not really should understand exactly what guy just stated. The takeaway here’s that PoSeidon is much more sophisticated than previous POS adware and spyware programs. Though PoSeidon isn’t the be-all, finish-all POS adware and spyware, this lucrative kind of crime isn’t disappearing, either. After PoSeidon, the following, smarter incarnation of POS bug will certainly seem to take its place.

PCI Security Standards

Fortunately, there’s something that you can do to safeguard your POS system from data breaches, and one of these simple involves something known as PCI compliance. Being PCI-compliant doesn’t cause you to impervious to attacks like PoSeidon, however it helps.

PCI DSS means Payment Card Industry Data Security Standard. They are standards set through the PCI Security Standards Council, and retailers are needed to follow along with them to be able to remain compliant.

You’ll have to find information about exactly what you ought to do in order to remain PCI complaint based on your particular kind of business (for instance, it’s much simpler to become PCI-complaint like a small e-commerce site versus. like a brick-and-mortar store), but basically, the factors need you to do all you are able to safeguard the cardholder data you process. One factor every merchant can perform is use PCI-complaint terminal equipment.

Take a look at our blog publish on PCI compliance to obtain the online sources you have to make certain your company is complaint with PCI standards.

How Cloud-Based POS Software Might Help

Another essential action retailers may take to secure their customers’ data against security breaches — most likely the most significant factor — can be used cloud-based POS software.

With cloud-based POS software, the credit card data and customer information is taken off both hands entirely —  this sensitive information is stored encrypted within the cloud, instead of your POS system. This will make an information breach a lot more difficult, and virtually impossible utilizing a PoSeidon-type virus.

Cloud-based POS software also enables the machine to remain up-to-date easier, which further helps safeguard you against new adware and spyware along with other issues. And contains a lot of other benefits, for example allowing the company owner to log to the cloud POS system remotely.

For any good overview around the cope with cloud-based POS software, take a look at our very readable article about them.

How Can Nick Cards Impact Data Security?

EMV nick or “chip card” technology adds another layer of information security. Also known as “smart cards,” they are credit/an atm card keep cardholder’s data on the micro-processor nick as opposed to a magnetic strip.

Very few US retailers accept nick cards at the moment, however this will probably change, like a new law regarding nick card fraud liability adopts effect in October 2015 (more about that here).

What exactly do nick cards relate to data security? Welp, they’ve dynamic (altering) card information rather of merely one string of figures, making replicating them a lot more difficult. When they won’t prevent data thievery, they’ll allow it to be so the stolen data itself cannot easily be employed to make counterfeit cards and fraudulent transactions.

So, you do not always have to improve your terminals to update nick cards right this second, but EMV nick transactions are inherently safer than non nick-outfitted debit or credit cards (a minimum of, with regards to card-present transactions). Because the technology gets to be more popular, it will likely be to your advantage like a merchant to simply accept nick card payments and therefore lower your fraud liability risk.

Conclusion

The PoSeidon virus demonstrates the significance of data to safeguard all companies, on the internet and off. Because the technology utilized by data thieves is constantly on the advance, also must merchants’ POS systems. Brick-and-mortar companies frequently think that they’re not in danger of data breaches, but Target, Lowe’s, Kmart, along with other large and small retailers have discovered hard way precisely how vulnerable they’re.

With regards to protecting your company from data breaches, getting an up-to-date POS product is important. Utilizing a cloud-based system, maintaining PCI compliance, and getting ready to accept nick cards when it’s time will help mitigate this risk.

To help you get headed within the right direction, check out the most popular cloud-based POS systems.

Shannon Vissers

Shannon is really a freelance author and editor located in North Park, CA. Shannon type of wants an apple iphone 7, but she’s not necessarily prepared to lose the headphone jack.

Shannon Vissers

Shannon Vissers

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Square’s EMV Nick Card Readers Unboxing and Review


Square-chip-card-emv-reader-unboxing-review

Square brought the way in which for that mobile processing boom, so it’s no shocker the company was the first to promote having a headphone jack nick card readers in front of the October 2015 nation-wide shift to nick cards. Some other mobile processors are biding time and telling customers that the nick card option would be “in the whole shebang,Inches Square debuted its nick card readers design late in 2014 and started accepting pre-orders around the same time frame.

Allow me to be obvious: All mobile payments apps that process transactions as card-present will possess a nick card readers by October, otherwise they’ll likely get free from the game (like Leaf POS). However with its excellent group of engineers and sizable jump, Square certainly has an advantage within the race and, come October, its readers will most likely function as the most tested and therefore probably the most reliable.

We ought to observe that other mobile processors that do not depend on swiping cards might not be effected through the nick card transition, since their transactions are technically processed as card-not-present. If this sounds like the situation, providers like Flint Mobile – which utilizes your phone’s camera to scan the credit card with no additional hardware – might find themselves better off since users won’t have to incur any extra hardware cost or hiccups.

But camera checking apps aside, Square is poised to achieve the best headphone jack EMV-compliant mobile nick card readers available on the market this summer time as business proprietors start to bother with the nick takeover.

My knowledge about Square’s nick card readers was entirely positive. It showed up with beautiful packaging and sufficient instructions, and labored flawlessly during a number of tests. I scanned dozens of transactions with no single error. It loads rapidly, reads rapidly, and works just as described. It’s small, simple to use, and doesn’t need a Bluetooth link. This is actually the first headphone jack nick card readers I’ve used, but it’s difficult to imagine a lot of enhancements came from here.

But here’s one pretty significant disadvantage for that Square nick card readers: No Uncover Card nick compatibility! Although this feature should launch eventually (hopefully by October), for the time being you’ll need to swipe all Uncover transactions.

Browse the full review and unboxing pictures below. Should you be undecided about upgrading your Square readers, I really hope this puts the mind comfortable. It’s not necessary to hurry, but because we obtain nearer to October you’ll likely see longer shipping delays because of elevated demand. So certainly order by September. Otherwise, it never hurts to become accustomed to the brand new hardware meanwhile. You’re likely already seeing nick cards out of your customers. Adding the additional layer of security can help you to protect against chargebacks and funding holds before the October 15th switch.

You can observe our in-depth Square Register review here, and out mobile processing comparison chart here if you are interested. Happy selling!

Table of Contents

Packaging:

Only nine days once i placed my order, the readers showed up via United states postal service. It shipped after four days. Square states it will require between two and three days to obtain the readers – and this can be true as demand increases – until then they appear to crank the orders out. I ought to observe that while my order mentioned which i may need to sign for that package, no signature was really needed. The readers was delivered within my mailbox using the regular mail.

What’s within the Box?

  • Nick card/magnetic stripe card readers
  • USB charging cord (USB to Micro USB)
  • Instructions (British and Spanish)
  • Emblem sticker (Square, Visa, MasterCard, American Express, Uncover)

Square’s Nick Card Readers Specs:

  • Cost: $29 ($31.32 with tax, free delivery)
  • Weight: 20 grams (under an oz)
  • Dimensions: 1.31″ H (2″ if including jack)  x 1.31″ W x  .56″ D
  • Time for you to arrive: 9 days from order date
  • Time for you to charge very first time: twenty minutes
  • Time for you to scan card: Under 1 second
  • Time for you to connect: two to three seconds (each time application is opened up)
  • How lengthy will a charge last? A lengthy time. Multiple times of heavy use.

So far as battery existence, observe that the very first time I made use of it battery appeared to empty more rapidly, possibly because of the initial firmware update. After that it appeared to carry up very well. Reconnecting over and over appears to become a bigger drain around the battery than running transactions.

The next images compare the brand new readers towards the old model. Clearly the older model may be the smaller sized one around the left.

Connecting towards the Device:

Every time you open the application, even though you haven’t removed the readers, the program will require a matter of seconds to acknowledge and fasten towards the hardware. This never required greater than three seconds, even if your readers is taken away and reinserted. I did not experience any glitches or slow starts.

Not Only for Nick Cards:

This readers really has two slots: someone to insert nick cards, and the other to swipe magnetic stripe cards. Even if your nick card shift is available in October, you will probably still visit a fair quantity of mag stripe cards in circulation, so it’s vital that you support them in to the near future to prevent lost sales. Fortunately you won’t be required to take with you two separate readers! The swipe slot will act as it has, and it is easily differentiated in the nick slot since the nick readers includes a barrier that stops swiping in addition to three visible metal connectors that browse the nick circuit. These connection points also actually firmly contain the nick card in position throughout the transaction.

Nick and Signature, Not PIN:

If you’ve seen European mobile nick card readers, you know the way bulky and inconvenient nick and PIN card readers could be. Since these readers need a dedicated PIN pad (i.e., the PIN can’t be joined around the devices touchscreen), these visitors completely outside of the telephone and communicate via Bluetooth. Which means you need to take with you and keep an eye on two devices, each of which may need substantial charging.

The Square nick card readers does require charging, but each charge lasts quite some time. And also, since it connects to the headphone jack, it will not consume your device’s battery by utilizing Bluetooth.

In america, we’re mainly likely to see nick and signature charge cards. Prepaid credit cards don’t require a PIN, only a signature. For transactions under $25, you may still turn the signature prompt off just like previous versions. If (or when) the united states switches to nick and PIN, we’ll visit a new wave of hardware. On the other hand there isn’t any need to take with you a bulky secondary device.

Troubleshooting:

Here are a few things common items you might encounter when first by using this readers:

  1. Charge the readers just before use: By trying for doing things as they are without charging, it will not work. You should check the proportion of charge residing in Settings.
  2. Improve your application: If you work with a classic form of the application, the nick readers will not be recognized.
  3. Don’t insert the credit card too soon: You need to insert the credit card only when you are getting towards the screen that states Insert, Swipe or Enter Number.
  4. Don’t take away the card too soon: The credit card must stay in the readers before the transaction is finished. Don’t remove it throughout the tip screen. The client must sign using the card still within the slot! Yeah, this is often a little inconvenient, but it is also safer.
  5. Your system is not compatible: Square lists compatible devices here. I tested this with an apple iphone 4, 5, and 6 without any problems.
  6. Your situation is obstructing the bond: As the Square card readers is really among the finest designed readers when it comes to situation compatibility, certain cases are simply too bulky. Used to do test drive it by having an Otterbox Defender (a fairly bulky situation) and also got it using a little finagling. (The readers must be verticle with respect to utilize that situation.)
  7. Browse the instructions: Should you browse the instructions just before use, you likely won’t have problems!

Whenever you connect your billed nick card readers the very first time, the Square Register application will initiate a firmware update. This takes only a couple of seconds.

Square Nick and Contactless Readers Review:

We’ve preordered the brand new nick and contactless readers from Square ($50), coming fall 2015. This allows companies to simply accept NFC payments alongside EMV-compliant nick card transactions. Consider an evaluation with that hardware soon! There’s additionally a Square EMV readers made particularly because of its Square Stand hardware. That readers is wireless and works via Bluetooth.

For now, certainly think about this nick card readers. It’s pretty affordable so far as mobile nick card readers go, although countertop EMV-compliant charge card machines are less costly than you may imagine. Helcim sells them just for $199, including an integrated receipt printer and PIN pad. Considering just how much a standalone printer or PIN pad would cost, it’s a very solid deal. But when it comes to mobile – Square’s readers is actually reasonable.

Since you’ve read our Square nick card readers review, you might like to take a look at our in-depth overview of the Square application and repair, and check out our mobile processing comparison chart too!

Have you ever used Square’s nick card readers? Have you ever used a mobile nick card readers from another brand? Tell us your ideas and encounters within the comments.

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The Top 5 Payment Gateways for Online Credit Card Processing

Online payment gateway

Setting up an eCommerce business involves making a lot of choices, but one important decision you might have overlooked is choosing the best payment gateway to allow your customers to actually make purchases on your site. Pick a good gateway, and you’ll be able to accept just about any payment method imaginable, interface with the online shopping cart of your choice, and, perhaps most importantly, easily be able to migrate your customer payment data to a different system if you later decide to change gateway providers. If you pick a not-so-great gateway, you may someday find yourself with a product that no longer meets the needs of your business – and no easy way to switch to a better one.

If you’re new to eCommerce, your first question might be “Just what the heck is a payment gateway, anyway?” Admittedly, payment gateways are something of a nebulous subject. Merchants are often unsure about what they do, and why they might need one in the first place. They’re also often confused with merchant accounts, which is a related (but separate) merchant service that you’ll also need to accept credit cards and other forms of payment.

We’ll try to keep it as simple as possible. A payment gateway is a software application that establishes a communication link between your eCommerce website and your merchant account provider’s payment processing system. Much like your computer’s BIOS and other operating system functions, payment gateways run in the background, and your customers won’t have to interface with them directly. The primary purpose of a payment gateway is to allow your customers to make purchases on your site using the payment method of their choice. While almost every gateway will support credit card purchases, the better ones will also allow customers to pay using eChecks, debit cards, their PayPal account, and even contactless payment methods such as Apple Pay. Most gateways also maintain a secure database of your customers’ payment method data, shipping and billing addresses, and other information. With this database, returning customers won’t have to re-enter their payment method information every time they make a purchase. This feature naturally translates to increased sales due to the convenience it offers your customers. For more details about payment gateways and how they work, see our article The Complete Guide to Online Credit Card Processing With a Payment Gateway.

Merchant accounts, on the other hand, process payment transactions and disburse the funds to you after a customer makes a purchase. Both retail and eCommerce businesses need a merchant account to accept credit card payments, although today payment service providers (PSPs) such as Square and Stripe can offer basic credit card processing without the need for a full-service merchant account. If your business is strictly retail and you don’t make any sales online, you can stop reading now. You won’t need a payment gateway. eCommerce merchants, on the other hand, will usually need both a payment gateway and a merchant account. This is because their transactions will all be in a card-not-present environment where they won’t be able to verify their customer’s identity or have access to the magstripe or EMV-chip data that helps to prevent fraud in the traditional card-present environment of a retail location.

With so many different choices of merchant account and payment gateway providers on the market, you might wonder what the best way is to set your business up with both of these services. There are two methods you can use: an integrated approach, or a non-integrated approach. Under the integrated approach, you’ll use the same provider for both services. For example, an account with a payment service provider (PSP) like Stripe includes both payment gateway functions and transaction processing services. The non-integrated approach, on the other hand, requires you to sign up for each service separately. The easiest way to do this is to use the payment gateway offered by your merchant account provider. Often this will be a proprietary product, such as the Quantum Gateway provided by CDGcommerce. While most providers will charge you additional fees for a payment gateway, CDGcommerce will let you use their gateway for free. Many providers also offer access to third-party gateways, which may be a better option if you need more advanced features than what the proprietary gateways have to offer or simply want to have more flexibility to change your merchant account provider at some point in the future. The majority of merchant account providers (including CDGcommerce) offer Authorize.Net as one of their payment gateway options. Signing up for the Authorize.Net gateway through your merchant account provider is often less expensive than going with the company directly, as providers can negotiate discounted rates and fees for their customers.

Another way to take the non-integrated approach is to sign up for your merchant account and payment gateway separately. For example, let’s say you’ve found a great merchant account provider that offers significantly lower processing rates than you’ve been able to find elsewhere. Unfortunately, they don’t offer a gateway that includes all the features you need for your business. You can always sign up for a third-party gateway and integrate it into your merchant account. While this may be the best option for some merchants, be aware that there are two disadvantages to this approach. For one thing, you’ll have to make absolutely sure that the two services are fully compatible with each other before you sign up. Also, you will almost always end up paying more money with this approach. Watch out for gateway setup fees and additional per-transaction charges for using a third-party gateway.

So, which approach is right for your business? There’s simply no clear-cut answer to this question, unfortunately. As a general rule, however, smaller businesses will usually save money by signing up with a payment service provider (PSP) that doesn’t charge monthly fees for either transaction processing or the use of their payment gateway. The trade-off, of course, is that you will pay higher per-transaction processing costs, as most PSPs only offer flat-rate pricing. Upgrading to a full-service merchant account and adding in a payment gateway will cost you more in monthly fees, but you’ll usually save money on processing charges – at least if your provider offers interchange-plus pricing. Larger businesses that have a higher monthly processing volume can more easily afford the extra fees and will save money overall because of the lower processing rates available from full-service merchant account providers. Because of the number of variables involved, there is no easy way to determine what your processing volume needs to be for a full-service merchant account plus a gateway to be more cost-effective than simply going with a PSP. We recommend that you take a close look at the total percentage of your transactions each month that goes to paying for merchant services and compare this to what you would pay under a different provider.

How We Chose:

While all payment gateways offer the basic function of processing transactions over the internet, there’s a lot of variability beyond that. The best gateways on the market offer a combination of fair pricing and a robust feature set that will meet the needs of most eCommerce merchants. In evaluating how well each gateway stood up against the competition, we used the following criteria:

  • Pricing: While everyone wants to save money, we firmly believe that pricing should be evaluated in terms of overall value rather than simply trying to find the cheapest option available. Trying to save a few dollars can easily result in being stuck with a product that doesn’t fully meet your needs. Nonetheless, there are some things to look out for. Many gateway providers, for example, charge a gateway setup fee when you first open your account. While this is a one-time charge, it’s mostly a junk fee that you should avoid paying. You’re more likely to get hit with a setup fee if you sign up directly with a gateway provider. Merchant account providers often waive this fee if you get your gateway through them. Monthly gateway fees (usually around $15.00 – $25.00 per month), on the other hand, are very hard to avoid. Unless you sign up with a company like CDGcommerce, which doesn’t charge a monthly fee for their gateway, you can expect to pay this on top of whatever monthly fee you have to pay for your merchant account. Gateway processing charges (typically $0.05 per transaction) are another thing to look out for. Some companies will charge you separately for this, while others will include it in their processing rates. You might also have to pay PCI compliance fees, particularly if you’ve signed up directly with a gateway provider. Usually, however, these fees are included in your merchant account pricing.
  • Contracts: Most payment gateway providers will bill you on a month-to-month basis, with no long-term contract and no early termination fee (ETF) if you close your account. However, your merchant account provider might include both of these provisions, so read all your contract documents very carefully before signing up. It won’t do you much good to be able to drop your payment gateway whenever you want if you’re stuck in a three-year contract for your merchant account.
  • Features: Obviously, you’ll want a gateway that includes the features you’ll need to run your business. Confirming that a gateway will meet your needs, however, isn’t always as easy as it should be. Companies naturally tend to play up the unique features of their services, but in most cases, they won’t disclose the limitations or shortcomings of those services. For starters, you’ll want to confirm that the gateway supports all the payment methods your customers use. For example, almost every gateway on the market will support Visa and MasterCard credit card purchases. Support for less-common cards isn’t as easy to find. If your customers use Diners Club (as unusual as that may be), you’ll want a gateway that supports it. Support for multiple currencies is also important for some merchants, and you’ll obviously need a gateway that supports the specific currencies your customers use. If you prefer a particular online shopping cart for your site, you’ll need a gateway that is certified to integrate with it. If you need to customize the integration between your site and your gateway, access to an API that allows you to do that will be essential. Finally, we recommend that you choose a gateway that allows for easy and convenient data portability in case you need to switch to a different gateway.
  • Security: No eCommerce merchant ever wants to have their site hacked and their customer’s sensitive payment data exposed in a data breach. Your gateway provider doesn’t want this to happen, either, which is why every gateway on the market comes with a number of security and encryption features to keep your account safe. Some of these features, however, are more effective than others. Look for point-to-point encryption (P2PE) and a gateway that meets Level 1 PCI compliance standards. Other features, such as data breach insurance, are also useful to have.
  • Customer support: Like any other software product, payment gateways are prone to occasional hiccups and glitches – often at the most inconvenient times. The eCommerce world runs around the clock and isn’t limited to just regular business hours. For this reason, you’ll want a gateway that’s backed up by 24/7 customer support. While options like email and online chat are nice to have, you really should be able to talk to a customer service representative via telephone when a problem arises.

Before we dive into our specific recommendations, let’s be clear about one thing: there really isn’t a perfect gateway out there that will meet the needs of every merchant. Even the best gateways fall short of perfection in one aspect or another. Nonetheless, there are several gateways that provide a significantly better combination of features and services than others. Here are our recommendations:

Authorize.Net

Authorize.Net logo

Originally founded in 1996, Authorize.Net is one of the oldest and most experienced payment gateway providers in the industry. Thanks to partnerships with a host of merchant account providers, they’ve also cornered the lion’s share of the market for payment gateways. There’s a good chance that your merchant account provider offers Authorize.Net as their payment gateway.

But, does being the biggest gateway provider also make them the best? Well, maybe. With over twenty years in business to perfect their product, they’ve definitely managed to add a lot of bells and whistles to their core product. Their gateway can accept all major credit cards (yes, even Diner’s Club), debit cards, eCheck payments, and even digital payment methods such as PayPal and Apple Pay. They can accept international transactions from just about any country in the world, although your business must be based in the United States, Canada, the United Kingdom, Europe, or Australia. Their Advanced Fraud Detection Suite (AFDS) can protect your site from card-not-present fraud – a common issue with eCommerce. Best of all, their gateway seamlessly integrates with a huge number of third-party eCommerce platforms.

Sounds great, doesn’t it? Well, there are a few things to watch out for. Pricing can be on the high side if you sign up directly with Authorize.Net, with a $49.00 gateway setup fee, a $25.00 monthly gateway fee, and a $25.00 fee for chargebacks. If you already have a merchant account, you’ll still pay an additional $0.10 per transaction for the use of their gateway. International transactions also pay an additional 1.5% for processing. If you don’t have a merchant account, Authorize.Net will set you up with one, but it uses a flat-rate pricing plan of 2.9% + $0.30 per transaction. While this is the same as what you’d pay for PayPal or most other payment service providers (PSPs), you can get lower rates by signing up with a merchant account provider that offers interchange-plus pricing.

The good news is that you can usually get a better deal on the Authorize.Net gateway by signing up with a partner merchant account provider. Most providers will waive the setup fee, and they’ll often charge a lower monthly gateway fee and per-transaction processing fee (typically $0.05 per transaction). However, Authorize.Net does have one major weakness: data portability. Or, rather, the lack of it. Their Customer Information Manager (CIM) is a powerful feature that allows you to store customer data, including credit card numbers, securely. Unfortunately, it’s difficult and very expensive to download that data and take it with you if you ever decide to switch to a competing payment gateway. This is a serious limitation, especially considering that other providers (such as Braintree) offer you the freedom to take your customer data with you if you want to. You’ll want to very carefully evaluate whether Authorize.Net will be able to meet the long-term needs of your business before you sign up.

PROS:

  • Broad support for multiple payment methods and currencies
  • Strong security and fraud prevention features
  • Month-to-month billing with no long-term contracts

CONS:

  • Pricing is expensive for merchants who sign up with the company directly
  • High flat-rate pricing for optional merchant account
  • Data portability is unusually difficult and expensive

For a more in-depth look at Authorize.Net, check out our full review.

Braintree Payment Solutions:

Braintree Payment Solutions logo

Founded in 2010, Braintree Payments Solutions is now a PayPal company. They offer an integrated approach to eCommerce, with each account including both a payment gateway and a full-service merchant account. It’s available in 44 countries, including the United States, Canada, Australia, and most of Europe. Payments can be accepted in over 130 currencies, including Bitcoin if you’re particularly adventurous.

Standard accounts at Braintree follow a pay-as-you-go pricing model, with no account setup fees, monthly fees, or even gateway fees. All transactions are processed at a flat rate of 2.9% + $0.30 per transaction. Billing is on a month-to-month basis, with no long-term contracts or early termination fees. While the flat-rate pricing is not particularly cost-effective for larger businesses, the lack of monthly fees makes it a great deal for smaller companies. Braintree addresses this limitation by offering enterprise pricing for larger businesses (presumably with interchange-plus rates), but you’ll have to process over $80,000 per month to qualify for it.

Braintree’s gateway includes some excellent standard features, including its Drop-In UI for customer checkouts and support for recurring billing. It’s also compatible with a huge variety of third-party integrations, including shopping carts, accounting software, and analytics. Developers can further customize the gateway using Braintree’s client and server SDKs. Perhaps the best feature Braintree has to offer is that they provide complete data portability for free. If your needs change and you want to switch to a different provider, you’re free to take your customer data with you.

While Braintree offers an excellent service at a fair price, it’s not for everyone. If you already have a separate merchant account (particularly if you’re stuck in a long-term contract), their gateway-only option is quite expensive at $49.00 per month and $0.10 per transaction processed over the gateway. There’s also almost no support for card-present (i.e., retail) transactions, although they do support a handful of third-party mPOS solutions.

PROS:

  • Pay-as-you-go pricing with no monthly fees
  • Simple flat-rate pricing for standard accounts
  • Free, unrestricted data portability

CONS:

  • No support for eCheck (ACH) payments
  • Gateway-only option is expensive

Check out our full review of Braintree for more information.

PayPal:

PayPal Logo

You might not think of PayPal as a payment gateway provider, but their Payflow Payment Gateway is actually a very capable product. In fact, PayPal offers a host of merchant services for eCommerce businesses, and you can integrate most of them with the merchant account, shopping cart, or another service you’re already using.

Offering PayPal as an additional payment method is the simplest option, as it’s free to set up and there are no monthly fees or long-term contracts. Pricing is pay-as-you-go and based on a flat rate of 2.9% + $0.30 per transaction (4.4% + $0.30 per transaction for international transactions). While this is certainly the least expensive option, realize that as a payment service provider (PSP), PayPal is not giving you a full merchant account. Instead, your account is aggregated with those of other sellers so that you won’t have a unique merchant ID number for your business. The downsides to this arrangement, of course, are that your account won’t be nearly as stable as a merchant account, plus account freezes and holds on your funds are more common. PayPal is rather notorious for withholding seller’s funds at the slightest suspicion of fraud, so it’s better to use them as a backup payment method rather than relying on them entirely for your transaction processing needs.

If you already have a merchant account through a different provider, the Payflow Payment Gateway is designed to integrate with it and expand your payment options. There are two pricing plans for the Payflow gateway: Payflow Link and Payflow Pro. Payflow Link (the best choice for most merchants) is practically free. There are no gateway setup or monthly fees. You pay an extra $0.10 per transaction, and that’s it. You can use a PayPal-hosted payment page or a template embedded on your website. Payflow Pro, on the other hand, offers full customization and additional PCI compliance features. However, it’s rather expensive, with a $99.00 setup fee and a $25.00 monthly fee after that. You’ll also still pay $0.10 per transaction with this option.

PROS:

  • No setup or monthly fees (for Payflow Link)
  • Simple, transparent flat-rate pricing with no hidden fees
  • Easy to setup and begin accepting payments

CONS:

  • Flat-rate processing charges are higher than most merchant accounts offer
  • Elevated risk of account holds, freezes, and terminations
  • Inconsistent quality of customer support

For more detailed information about PayPal, see our complete review here.

PayTrace:

PayTrace logo

While they’re not nearly as well-known as the other heavy hitters in the payment gateway industry, PayTrace offers a solid product with lots of specialized features, particularly for merchants in the B2B sphere. Unlike other merchant services providers who offer a broad range of products and services, PayTrace is a payment gateway provider first and foremost. They don’t offer merchant accounts or any hardware, so you’ll have to go with a third-party provider for these items. Although the PayTrace gateway is their primary product, the company also offers a virtual terminal and a mobile payments app.

PayTrace offers both Basic and Pro pricing plans, with the former being suitable for small eCommerce businesses and the latter offering specialized options for larger B2B merchants. The Basic plan has no setup fee and costs only $15.00 per month after that. You’ll also pay $0.30 per transaction processed over the gateway, which is in addition to any processing charge you pay to your merchant account provider. The Pro plan requires a $75.00 setup fee, and $20.00 per month after that. However, your gateway processing fee drops to $0.10 per transaction. You’ll also be able to process Level II and Level III credit card data, which will save you up to 1.0% in processing charges due to the lower interchange rates for these transactions. Processing Level III data requires some additional data input on your part and is mostly useful for B2B transactions, but if you process a lot of these types of transactions, the savings could be significant.

The PayTrace gateway also supports additional features such as eCheck (ACH) processing and recurring billing. However, these are optional features requiring additional fees, and are only available under the Pro plan. PayTrace bills on a month-to-month basis only, so there’s no long-term contract and no early termination fee to worry about. Be aware, however, that your merchant account provider might not be so generous. As always, we highly recommend that you read all contract documents thoroughly before signing up for a merchant account. The same advice goes for payment gateways, even though gateway providers are generally much more flexible about contract terms.

Like most gateway providers, PayTrace also offers a customer information database so returning customers don’t have to re-enter their payment method data every time they make a purchase. Unfortunately, it’s only available under the Pro pricing plan. Data portability is supported, although PayTrace notes on its website that “only truncated payment information is available for export from the system.”

PROS:

  • Month-to-month billing with no long-term contracts
  • Integrates with most merchant account providers and shopping carts
  • Supports Level II and Level III credit card data for B2B merchants

CONS:

  • High per-transaction processing charge under Basic pricing plan

To learn more about PayTrace, check out our full review.

Stripe Payments:

Stripe logo

Much like Braintree, Stripe Payments is a tech-focused merchant services provider that specializes in serving the eCommerce community. Those services are tightly integrated into their payments system, so the company doesn’t offer a discrete Stripe-branded payment gateway. Instead, it’s built into their overall payments platform and comes with every Stripe account. For small businesses, this is a very affordable approach, as there’s no separate account setup fee, no monthly gateway fees, and no additional per-transaction processing fee. You also don’t have to worry about trying to integrate two or more third-party services into your website. Another advantage is that Stripe includes several additional features for free that most gateway providers charge extra for, including eCheck (ACH) processing and recurring billing.

Stripe’s pay-as-you-go pricing couldn’t be simpler. Credit card transactions are processed at a single flat rate of 2.9% + $0.30 per transaction. eChecks are 0.8%, up to a maximum of $5.00. Stripe also supports digital payment methods such as Bitcoin and Apple Pay. Qualified nonprofit corporations get a discount on these rates, and enterprise users (i.e., those processing over $80,000 per month) can also negotiate volume discounts on their processing rates. Like most of its direct competitors, Stripe bills month-to-month only and doesn’t impose long-term contracts or early termination fees.

Sounds great, doesn’t it? If you think that there must be a catch – of course there is. Stripe is a payment service provider (PSP), and so they don’t provide true full-service merchant accounts. Like other PSPs (i.e., Square or PayPal), funding holds and account freezes or terminations are distressingly common. Customer service is another weak point, with almost all communications between Stripe and its merchants being conducted via email.

The best thing about Stripe is that it’s designed specifically for eCommerce merchants. Most providers are more focused on the retail sector, and their support for eCommerce always comes at a higher cost in the form of gateway fees and additional per-transaction charges. With Stripe, new eCommerce merchants get everything they need to start accepting payments as soon as their account is approved. While a Stripe account covers all the basics, you can also add or customize features through their huge API library or supported third-party integrations. Stripe also supports data portability, so you can easily take your customer information with you if you decide to change providers later.

PROS:

  • Pay-as-you-go pricing with no setup or monthly fees
  • Simple, transparent flat-rate pricing structure
  • No long-term contracts or early termination fees
  • Huge API library for developers

CONS:

  • Flat-rate pricing is more expensive than interchange-plus for high-volume merchants
  • Frequent account holds and terminations
  • No telephone customer support

For more information, see our complete review of Stripe Payments here.

Final Thoughts:

If you’ve been reading this far, you’ve probably concluded that selecting a payment gateway provider can be a very complicated decision. While that’s sometimes true, it doesn’t have to be all that difficult. Gateway providers offer a dizzying array of options, customizations, and add-ons, but in most cases, you won’t need all of them. Take a close look at what your business needs are today, and consider how those needs might expand over time as your business grows. For example, if you don’t need recurring billing, there’s no reason to pay extra for it. If your needs change later, you can always add it to your service. Level II and III credit card data processing is another feature that a sales agent might try to upsell you on. Yes, the rates are lower, but you still pay extra to access them, and if you don’t take many B2B transactions, you’ll wind up paying extra for something you don’t use.

You’ll also want to put some thought into whether the integrated or non-integrated approach will work best for you. Payment service providers (PSPs) like PayPal or Stripe are an excellent way to add credit card processing to your business without spending any money up front. However, once your business grows large enough, the high flat-rate pricing will end up costing you more money than you’d pay with a traditional merchant account offering interchange-plus pricing. Since there’s no long-term contract to worry about, it’s relatively easy to make the switch once this happens. However, you’ll probably have to find a merchant account provider and a new gateway.

Although there are no hard and fast rules, we recommend providers such as PayPal or Stripe for new, low-volume eCommerce businesses. Braintree is also a good option, especially if you’d like to get all your merchant services from the same company. When you’re ready to step up to a full-service merchant account, Authorize.Net is a good option. However, we recommend getting their gateway through a third-party provider rather than the company itself due to the generally lower costs. PayTrace is also an excellent choice if you already have a merchant account, especially if you run a lot of B2B transactions.

Much like merchant account providers, there is no single “best” gateway provider. Even the companies we’ve profiled here have their shortcomings. Every business has different needs, and it’s up to you to decide what features your business needs the most. Fortunately, most payment gateway providers offer a similar set of standard features that cover the most common requirements of a majority of businesses. They also provide a very high degree of customization to make their service work with your business, although in many cases you’ll have to have developer skills (or hire one) to implement them. If you’ve had any experience with the providers profiled in this article or you want to highlight a gateway provider we haven’t mentioned, please feel free to tell us about it in the Comments section below.

The post The Top 5 Payment Gateways for Online Credit Card Processing appeared first on Merchant Maverick.

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Best PayPal Alternatives

PayPal alternatives for merchants

Thanks to its long-standing relationship with eBay, PayPal has become one of the most recognizable names in payments. And with over 165 million users, it’s got consumer trust. You don’t have to be an eBay seller to accept payments through PayPal — you can set up your own online store, open up a brick-and-mortar location, and even take payments on the go.

But should you? There are several advantage to PayPal, including the ease of setup and its accessibility. Unfortunately, it’s also known for placing holds on accounts if it gets even the slightest suspicion that not everything is hunky-dory. And its rates, while competitive among similar services, are not the lowest in the industry.

Are you a small merchant looking to get started quickly? Are you tired of your current processor and looking to switch to one that has fewer hoops to jump through?

Whether this is your first foray into merchant payments or you’re shopping around for PayPal alternatives, we’ve got you covered. Take a look at how PayPal stacks up against some of our other top-rated payment options, including other pay-as-you-go processors and some traditional merchant accounts, and see which one is best for you.

Don’t forget to check out the full reviews for each of these PayPal alternatives. Need help choosing a payments provider? We can help! Contact us here.

PayPal

Paypal-Logo-2015In our 2015 review of PayPal, we gave it 4 stars. We like PayPal. It’s convenient, trusted, and easy to use. However, we have a hard time endorsing PayPal as anyone’s standalone, sole payment option.

Pricing

There are no monthly charges or hidden fees with PayPal — you pay just 2.9% + $0.30 per swipe. Since there are no contracts, there’s no early termination fees. You also don’t pay any PCI compliance fees. If you use the PayPal Here mobile processor, you pay just 2.7% per swipe (excluding keyed/scanned transactions).

You can get volume discounts, too: At $3,000 per month, rates drop to 2.5% + $0.30; at $10,000 it falls to 2.2% + $0.30. If you process more than $100,000, you get to call 1-855-787-1012 and ask for special pricing.

If you need features beyond credit card processing (such as a virtual terminal to accept mail and fax orders), you can upgrade to a Pro account for $30 a month. However, those orders will process for a higher (and undisclosed) fee.

We like this setup — a lot. However, the flat fee still isn’t as transparent as an interchange-plus setup, nor as low.

Without a doubt, one of the most attractive features of PayPal is how quickly you have access to your money — it’s almost instantaneous. And if you have the PayPal debit card, you can spend that money anywhere you can swipe a card.

Customer Support: Fair

When it comes to any sort of payment processing, you need to know that there’s someone standing by who can help you when trouble arises. PayPal’s customer service can be spotty, but overall, we’d rate it fair.

The problem is in PayPal’s phone support. Sometimes your representative is competent, sometimes…not so much. The good news is that in a lot of cases, PayPal’s other resources, including its Quick Questions, Community Help Forum, and @AskPayPal Twitter account, can get you the answers you need, so you may not ever need to pick up the phone.

Reliability: Fair

PayPal lets just about anyone open up a merchant account and get approval very quickly. That makes it great for new businesses. It’s also a great solution when you don’t have the sort of volume that merits a traditional account. However, this “we welcome anyone” approach results in greater risk, and therefore a very active risk department dedicated to finding and stomping out fraud.

Paypal’s tendency to put holds on accounts or even terminate them isn’t as bad as some of the other pay-as-you-go processors (we’re looking at you, Stripe and Square), but it’s enough to earn just a “Fair” rating in the reliability department.

That said, PayPal is a spectacular backup, especially if you want to take payments on the go and your merchant account’s offering is a bit lacking. No monthly fees mean you aren’t losing money on a service you only use sporadically.

Integration & Implementation Options

With the basic PayPal account, you get your standard payment buttons and a variety of shopping cart integrations, including an in-house solution. However, your site will redirect your visitors to PayPal to complete the transaction. You can upgrade to the Pro account to get a hosted payment page on your own site along with PayPal’s virtual terminal for orders by mail, fax, and phone.

PayPal also offers one-touch checkout for in-app and web purchases.

We like that you can set up secondary accounts and set permissions. PayPal also equips you for recurring billing and handles customer information storage for you.

There’s also a substantial list of partners and integrations for you to choose from. You can check out the full list of PayPal partners here.

Other Features

We’ve already mentioned PayPal’s mobile reader, PayPal Here. You pay just 2.7% per swipe (or 3.5% for keyed-in transactions). The reader is free if you order it from PayPal; you can also buy it at a store and PayPal will reimburse you. We’re still waiting on details about PayPal’s EMV reader, but we’ll keep you updated before the big liability shift on October 1, 2015. We do know it’ll accept chip-and-pin cards as well as contactless payments (such as Apple Pay and Android Pay).

You can send invoices from PayPal — and you don’t pay until you get paid. Invoices run you 2.9% + $0.30. You can even send invoices from within the mobile app.

PayPal also offers special nonprofit pricing, at 2.2% + $0.30 per swipe and no monthly fee.

Payline Data

payline-data-logoPayline Data earned a perfect 5-star rating from us for its fair pricing on merchant accounts, and great  customer service — but on top of all that, we love its commitment to charitable giving. Payline donates 10% of its profits from your account to a nonprofit partner of your choosing.

Pricing

Payline Data uses an interchange-plus format on top of monthly fees. For small-volume processors, there’s the Simple plan; for higher volumes, the Pro plan.

Simple (Under $5,000 per month)

  • $5 monthly fee
  • Interchange + 0.50%
  • $0.10 per transaction

Pro (Over $5,000 per month)

  • $20 monthly fee
  • Interchange + 0.20%
  • $0.10 per transaction

The nice thing is, the $5,000 mark is the break-even point for both plans, so you’d pay exactly the same. If you come in under that $5k mark more often than not, go with the simple plan. If you go beyond the $5k regularly, go with the Pro plan.

We like that Payline makes your funds accessible within 24 hours. Next-day funding is the fastest you’re going to get apart from PayPal, so you really can’t do better if you need a merchant account.

Customer Support: Excellent

You can reach the Payline team by phone and email, but there’s also a substantial knowledge base if you’re more prone to solving the problem yourself. Overall, the team has really great reviews, as befitting a 5-star processor.

Reliability: Excellent

The complaints against Payline Data are virtually nonexistent, which is great to see. We have full confidence in the company’s ability to handle your business fairly, with minimal risk for a potential hold or freeze. (We hope you understand, no processor is immune to risk — and no merchant immune to a hold. However, traditional merchant accounts are less susceptible to risk than pay-as-you-go providers.)

Integration & Implementation Options

Payline makes it very easy for you to set up recurring billing for your clients. We also really like Payline Shop Professional ($79/month), which includes your merchant account, as well as a shopping cart, gateway, web hosting, a domain name and SSL security. As far as comprehensive eCommerce solutions go, this is spot-on. Comparable services through shopping carts will run you the same, or higher, and may not include everything that Payline does.

On its own, the Payline gateway is $10 per month. It supports a customer information vault as well as invoicing. There’s a virtual terminal, too. The virtual terminal allows you to use a USB swiper, although no USB chip card reader is currently available.

In addition, you’ll find payment buttons, tools for recurring billing, customer info storage, and fairly good support for third-party shopping cards as well as Payline’s in-house option. The one thing that’s lacking is a hosted payment page.

Other Features

If you need mobile processing, Payline again has two solutions. If you process less than $5,000 per month on the app, you get a Flint account. Flint uses your device’s camera to scan credit cards rather than swiping — there’s no reader required. Debit rates are just 1.95%; credit cards 2.95%. Above that $5k threshold, you should use the ROAMpay X Mobile app with Payline, which will support EMV when the switchover happens in October.

For retail shops, there’s an iPad POS through Vantiv Mobile Checkout as well, and that will run you $69 per month. You can accept Apple Pay transactions in store with a future-proof terminal (supporting EMV and NFC) and also integrate Apple Pay for in-app payments.

Payline stands out from the rest of the options in this list in part because it also offers high-risk processing. Merchants who operate in an industry that’s deemed high risk (such as antiques, how-to programs, and even selling on eBay), typically make merchant account providers — and pay-as-you-go solutions — skittish. A high-risk account means you pay more, but you’re far less likely to encounter those dreaded holds and freezes…or worse, an account termination.

In addition to allowing merchants to donate to a charitable partner, nonprofit organizations can set up accounts with Payline and get discounted rates. There’s also a Payline Commercial Co-Venture program: In essence, you refer clients to Payline, Payline will create a solution for them, and you get recurring donations to your organization.

CDGCommerce

cdgcommerce-logoWe like CDGCommerce, a traditional merchant account provider, quite a lot — enough to give it a perfect 5-star rating. However, the service is only available in the U.S., for merchants who sell primarily in the U.S.

Pricing

Head to the CDG site and you’ll find an advertised rate of 1.7% + $0.25 for payment processing (1.95% + $0.30 for online processing). However, if you visit the site through this link, you’ll also find a special rate offer for our readers: interchange plus 0.30% + $0.15. There’s no monthly minimum processing, and no ETF. (If you do ever want to cancel, you’ll have to follow the steps to provide proper notice of cancellation).

Beyond that, the only other fee you must pay is the $10 statement fee. There’s no PCI compliance, and the CDGcommerce gateway is free to use.  You can get volume discounts, but they’re not advertised. You’ll have to negotiate with CDG directly if you think you qualify.

Merchants will typically have funds deposited in their account within two days. That’s not as fast as PayPal, and slower than some other merchant account providers, as well.

Customer Support: Excellent

On top of the spectacular rates, CDGcommerce excels in the customer service department. You can get live chat, email, and phone support 24/7. The volume of BBB complaints against CDG is incredibly low, but what really sets this company apart is the fact that the CEO has actually responded to user complaints found on the Internet. The level of dedication to customers is outstanding.

Reliability: Excellent

As we’ve said, complaints against CDG are incredibly low. Every processor will occasionally face a situation where it must put a hold on a company’s account. However, everything we’ve seen indicates that CDG is careful to minimize these instances.

Integration & Implementation Options

CDG offers its customers a USB-based card reader. That means you don’t need a traditional credit card terminal, which is actually quite convenient. The USB readers do not support EMV, but we were told that the upgrade, when available, will be optional. (Go here to learn about EMV and your liability for processing cards when the new rules take effect October 1, 2015.)

And while we have repeatedly and vocally spoken out against terminal leases, here we have probably the best rental terms you can get: just pay $79 annually for insurance and return the device when you no longer need it. The terminal is EMV-ready and compatible with NFC payments, so unless you have a really good reason for sticking with USB, you should consider upgrading.

You can also have the company reprogram your existing terminals…for free.

CDGcommerce offers extensive reporting options, which we like to see. There’s also an optional  security service for $15 monthly, which includes $100,000 of data breach insurance —  a worthwhile investment.

With this provider you also get a virtual terminal to use with the Quantum gateway. There’s no payment buttons or in-house shopping cart. What’s interesting is that Quantum has a feature that lets it emulate an Authorize.net gateway, which ultimately increases your options for third-party shopping carts.

Other Features

For mobile processing, you get a free reader, which runs on CDG’s ProcessNow mobile app (available for Apple devices running iOS 7.0 and higher and Android devices running OS 4.0 and higher). Swipe rates for mobile are 1.70% + $0.25 per transaction (2.9% + $0.30 for keyed and other nonqualified transactions).

There’s no nonprofit pricing here. If you want to accept Apple Pay and other contactless payment methods, you’ll need the future-proof terminal.

We like that CDGcommerce helps merchant reduce the headaches that  come with dealing with chargebacks thanks to its Chargeback Defender, which lets you know about chargebacks pending — even before the fees are debited from your account. The platform also helps you rebut it and has a built-in tool to detect previously issued refunds, so that the funds aren’t deducted twice. It’s not something we see so openly advertised, and it’s a very useful tool.

PayJunction

PayJunction-logo-squarePayJunction is a 5-star processor for its customer service and reliability, but we also really like that it makes it easy for merchants to go paperless. It’s not just environmentally friendly; it’s easier for merchants to securely manage their records.

Pricing

We really like that PayJunction is another month-to-month service provider with interchange plus. There’s no ETF, no PCI compliance fees, and no charges for the gateway. However, if you process under $10,000 monthly, you can expect a $35 monthly fee. The gateway also includes check (ACH) processing at 0.75%.

For new processors, PayJunction offers interchange plus 0.75% — but established merchants may be able to get lower rates, as the company offers match or beat your existing rates. This isn’t uncommon in the industry, but most processors don’t meet our high standards for quality of service, too.

Admittedly, the 0.75% markup is high — but there’s no per-transaction fee, which could be a major benefit to small-ticket merchants.

Something else we definitely like: next-day deposits.

Customer Support: Excellent

You don’t get to be a 5-star processor without great service. PayJunction’s support options include its knowledge base, phone, and email. Something we haven’t seen here before is the option for remote support. Basically, it means that someone at PayJunction will remotely access your computer to either walk you through a process and show you what to do, or handle it for you. It’s actually a really useful tool.

Reliability: Excellent

Complaints about PayJunction are few and far between — and the ones you will find have been thoroughly addressed by a company representative. We like that. We can’t say that you won’t ever have an issue with PayJunction, but if you do, you can expect it to be handled quickly, fairly, and in-house.

Integration & Implementation Options

Among the many features available, PayJunction provides a hosted shopping cart for free, and it has good third-party integrations as well. We’ve already mentioned the free payment gateway/virtual terminal. You can also expect features for recurring billing info storage. Combined with the paperless feature and you really do have everything you need in a single browser-based interface. All that’s missing are payment buttons and a hosted payment page.

Other Features

A couple of noteworthy additional features: PayJunction’s customer management system, which serves as a directory for your clients and their information. It also lets you create groups of clients and account numbers.

PayJunction will also set you up with digital signature collection — by providing a signature capture device, the company really does allow you to go paperless. No reason to bother with signed receipts, ever again. For eCommerce and other card-not-present transactions, there’s email signature capture, where customers sign using their computer cursors.

PayJunction also lets merchants create teams and set permissions, which is always a handy feature to have.

If you need mobile processing, you can opt for PayJunction’s partner company, iPay. You’ll have to set up your gateway, and the app is only available for iOS devices — but it’s better than nothing. The mobile reader doesn’t support EMV.

You can get free equipment if you provide two months of billing statements — so in other words, this offer applies only to established merchants.

For EMV, you’ll need a traditional credit card terminal, but PayJunction stresses that for low-risk merchants, this upgrade is optional. The site actually has a very detailed explanation of EMV and how it affects merchants, which you can find here.

There’s no additional nonprofit pricing, but there is a feature you can set up on your site to accept donations.

Braintree

Braintree-payments-logoBraintree is actually a wholly owned subsidy of PayPal, picked up in 2013. For that reason, you’ll see a couple of similarities, as well as some noteworthy differences. While PayPal hovers at a 4-star rating, we wholeheartedly endorse Braintree with a perfect 5-star rating. This is another option that’s very developer-friendly, with a comprehensive suite of tools that make it easy to get started.

Pricing

This should come as no surprise (it’s a PayPal company), but Braintree’s fees are just 2.9% + $0.30. There are no fees, no contracts, nothing. If you process over $80K per month, you will likely qualify for a discounted rate. While not advertised, Braintree also offers interchange-plus pricing for some high-volume merchants.

Interesting to note, Braintree has an offer of $50k in free payment processing. There’s no contract, no deadlines, no monthly minimums. Seriously. Learn more here.

It bears mentioning that Braintree deposits take 2-4 business days (2 days for most cards; 4 days for American Express). That’s a bit longer than most of the other options here..

Customer Support: Great

Whereas PayPal’s customer service can be spotty, especially over the phone, Braintree has an outstanding reputation. The low volume of complaints against Braintree is astounding considering its size and its parent company. There’s a good knowledge base, but also solid phone support — and even a 24/7 emergency line. However, you won’t get as much personalized attention as the merchant account providers in this list.

Reliability: Excellent

The number of incidents we found of Braintree freezing accounts was exactly zero. The company also has a list of noteworthy clients and some pretty amazing customer case studies.

Integration & Implementation Options

Braintree offers an impressive array of features at no extra cost, including a marketplace solution, and a simple checkout option (PayPal actually built its One Touch feature on Braintree’s original offering).

Something else we really like is the fact that you can take your customer data with you if you ever decide to leave Braintree, which means your recurring billing won’t be interrupted.

What you won’t find are a virtual terminal, an in-house shopping cart, a hosted payment page, or payment buttons. However, Braintree does offer an impressive list of integrations for a variety of services, including shopping carts.

Other Features

Braintree’s v.zero SDK (software development kit) has Bitcoin and Apple Pay integration, both of which we like. You can also incorporate native in-app payments as well as a “check out with PayPal” option. However, Braintree doesn’t offer nonprofit pricing right now.

You’ll also have to look elsewhere for mobile processing — if you’d like to keep all the transactions in a single account, Inner Fence is your best option. Just provide a code to Inner Fence to link it with your Braintree account.

We gave Inner Fence 3.5 stars on our last review, mostly because we felt it under-delivered in some areas while over-delivering in others, creating an interesting dichotomy, to say the least. We also took issue with the pricing model. In addition to the fees you pay to Braintree, Inner Fence charges you a percentage of each transaction plus a monthly fee. A “Professional” account will run you $79 a month with a 0.9% transaction fee. That includes support for up to 10 terminals…but you get only one free card reader. With Braintree’s free $50k in processing we can almost say the cost might be worth it for low-volume merchants, but not really.

If you’re willing to forgo the convenience of all your funds going to the same account for the sake of better rates, here’s a great opportunity to try Braintree’s parent company offering, PayPal Here — or our top-rated mobile processor, Flint.

Stripe

Stripe-logoWe had high hopes for Stripe in our 2015 review update. However, what we found was enough to downgrade Stripe’s rating to 3.5 stars, so please bear that in mind. Whereas PayPal is a good option for anyone, Stripe is particularly suited to developers, with easy implementation for all sorts of eCommerce and Internet operations.

Pricing

Stripe’s pricing is on par with PayPal, at 2.9% + $0.30 per transaction. There’s no monthly fees, there’s no ETF, no PCI compliance. The suite of tools Stripe offers — at no additional charge — is actually a huge value, especially for low-volume merchants.

You can get volume discounts (undisclosed rates) but to do so you need to process at least $80,000 per month.

As far as payment schedules are concerned, Stripe takes two days to deposit your funds in your account for US-based merchants. Canadian and Australian merchants have to wait four to seven days, and all other countries will be on a seven-day delay. Still, this is a major improvement over Stripe’s former deposit schedule, which was seven days across the board.

Customer Support: Poor

One of the sources of Stripe’s review score was its poor customer support. There were numerous complaints on our site and elsewhere from customers about their awful experiences. Stripe doesn’t offer any sort of phone support, just a knowledge base and a Freenode-based chat support (#Stripe).

Reliability: Poor

The other reason we downgraded Stripe’s rating was the reliability factor. The number of complaints about held funds (something we admit is common with this type of payment processor) rose dramatically. Access to your money is critical to a business, and nothing to mess around with.

Integration & Implementation Options

Stripe’s poor support is such a letdown because of how many other great features it offers — which we’ve said before are actually a solid value for the cost. Stripe gives you a hosted payment page through Stripe Checkout, as well as payment buttons, in-app payments, the ability to set teams and permissions, and even marketplace solutions. Checkout, as far as industry offerings go, is actually one of the best payment flow options out there.

There’s no virtual terminal, in-house shopping cart or payment buttons, but the third-party shopping cart integrations are great. Get the full list of integrations here.

Other Features

Stripe supports in-app Apple Pay integration, as well as BitCoin, both of which we like. There’s no nonprofit pricing right now, and no mobile processing.

If you want mobile processing, however, you’ll have to look at Inner Fence, and link your Stripe account. If you want to incorporate mobile payments and don’t want to deal with Inner Fence, allow us to point you at Flint, our 5-star rated option for mobile. You can also consider some of our other mobile options.

Quick Comparison

Paypal PaylineData CDGCommerce PayJunction Braintree Stripe
Monthly Fee $0 $20 $10 $0 $0 $0
Pricing 2.9% + $0.30 0.20% + $0.10 + interchange 0.30% + $0.15 + interchange 0.75% + interchange 2.9% + $0.30 2.9% + $0.30
Customer Service Fair Excellent Excellent Excellent Great Poor
Reliability Fair Excellent Excellent Excellent Excellent Poor
Gateway Payflow Payline Data Quantum PayJunction Braintree Stripe
Features
Virtual Terminal X X X X
Included Shopping Cart X X X
Hosted Payment Pages X X X X
Payment Buttons X X
Recurring Billing X X X X X X
Info Storage X X X X X X
Shopping Cart Compatibility Excellent Good Good Good Excellent Excellent
Availability
US X X X X X X
Canada X X X X
Mexico X X X
UK X X X
Europe X X X
Other X X X

Want More PayPal Alternatives?

PayPal has such great recognition and a solid suite of tools for newbie merchants that in some cases, it seems the obvious choice. However, if you’re like most merchants, you will eventually reach a point where you experience some major growing pains — or you might encounter the dreaded account hold. At that point, it’s time to start looking for a provider that can deliver what you want, and more importantly, what you need.

The list of PayPal alternatives doesn’t end with those mentioned in this blog post, of course. Even if they aren’t direct PayPal competitors, there are plenty of merchant account providers to choose from when your business is ready to graduate from a third-party payment processor like PayPal. Check out this handy chart of top-rated merchant account providers. Don’t forget to also look at our mobile processing options!

Need help deciding? Want to get the lowest rates? Contact us and we’ll help you sort out your options!

The post Best PayPal Alternatives appeared first on Merchant Maverick.

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Do You Want an EMV Nick Card Terminal?

emv-terminal

“The nick cards are coming! The nick cards are coming! By land by ocean. Organize the merchant militia!”

Should you haven’t already heard, the instatement of EMV cards is imminent in america. All of a sudden all individuals sales pitches from agents in the last couple of years (“You actually need this future-proof terminal” “EMV cards would be the future, you may as well upgrade now”) are starting to seem less like manipulative gimmicks and much more like overlooked prediction, together with your soon-to-be useless charge card machine hanging out your neck such as the mariner’s albatross.

It’s not every gloom and disaster, though. Yeah, lots of retailers will need to upgrade soon (maybe a great time to purchase stock&#8230), however the real headache will probably be for that merchant providers who require to make certain all their customers are while using right equipment and convincing the clients that the upgrade is essential. There’s some The Boy Who Cried Wolf within this scenario: We’re constantly bombarded using the upsell (Do you want fries with this?), so we’re cautious about this type of factor, especially from payment processing companies, who the majority of us regard as on componen with used vehicle or insurance sales people (no offense to those professions).

But I’m here allow it for you straight. Yes, you absolutely require a new fancy charge card machine soon. It&#8217s and not the finish around the globe should you don&#8217t start running with all of those other lemmings immediately, however, you will attend and the higher chances for fraud liability should you process a counterfeit nick card come October 2015. Also, sooner or later your processing company will pressure you to definitely upgrade, check out a lot of our favorite providers which means you don&#8217t get screwed when you purchase a brand new machine.

What’s an EMV Nick Card and So Why Do I Care?

To begin with, EMV means “Europay, MasterCard and Visa,” which attempted to create world-wide standardized protocols for thus-known as &#8220integrated circuit&#8221 cards and also the hardware essential to accept prepaid credit cards. It was very difficult task, but by 2005 &#8211 almost a darn decade ago &#8211 nick cards grew to become established order within the EU. By 2012, Canada also became a member of in around the EMV party.

Prepaid credit cards are produced having a small integrated circuit (or “chip”) within the card. Payment information is read out of this nick rather of in the magnetic stripe. This protects against fraud in 2 ways. First, the nick is harder and costly to counterfeit. Second, how a information is transmitted varies every time it’s read, which makes it dynamic rather of static. Thus, while info from the magnetic stripe could be “skimmed” easily, nick information is a lot more complicated to glean.

While the potency of EMV cards in thwarting fraud is debated (it will nothing for card-not-present fraud, for example), this is near the point so far as we’re concerned. We don’t reach decide we have to obey. The good thing is the EU and Canada and essentially all of those other planet were the guinea pigs here, therefore the US must have an even transition theoretically. (May be the metric system next?)

You Can’t Cause Me To Feel (Right?)

And So I understand what you’re thinking, “Who’s gonna come here and pressure me to get this done? I don’t need to basically don’t wish to.” And, essentially, you’re correct. If you wish to continue processing cards using the magnetic stripe and say screw it towards the whole EMV protocol, you’re presently free to achieve that. You won’t lose any company, since smart cards have a magnetic stripe like a support. You won’t be fined, as well as your transactions will still process as always. But you will see one vital difference: Beginning in October 2015, both you and your processing company is going to be responsible for any counterfeit smart card transactions. This is exactly what they call a “liability shift.” Since getting the EMV terminal might have theoretically avoided the fraud, the liability has become on acquirers and retailers (you).

The Timeline for EMV Nick Card Liability Shift in america

  • April 19, 2013 &#8211 Maestro shifted liability for worldwide nick cards used in america.
  • October 1, 2015 &#8211 Visa, MasterCard, American Express and Uncover liability shift for POS terminals.
  • October 1, 2016 &#8211 MasterCard liability shift for ATMs.
  • October 1, 2017 &#8211 Visa, MasterCard, American Express and Uncover liability shift for pay-at-pump gasoline stations, and for Visa and American stock exchange at ATMs.

So, as you can tell, October 2015 may be the big date most retailers have to bear in mind. With that point, your processor will most likely have previously forced you to definitely upgrade to be able to safeguard itself against fraud liability.

“But nobody is using nick cards, this doesn’t even matter.”

Well, that could be true today, however the occasions, they’re a-changin. Prepare to determine an enormous rise in nick cards at the register because the card systems start to implement the modification.

What Must I Do About Smart Cards Now?

At this time, you ought to be seriously considering it. And That I do mean seriously.

Make no mistake &#8211 you absolutely have to safeguard yourself from fraud liability. The couple of $ 100 a brand new terminal can cost you may be worth the reassurance. However, this really is America, the land where we’ve the authority to make our very own choices, however stupid, and you’re also liberated to roll the dice if you like (as well as your processing company enables you to definitely). In the end, there’s always the possibility that nobody is ever going to present a counterfeit nick card at the register. Could it be well worth the worry in order to save just a little cash? Should you&#8217re Scrooge McDuck, maybe. For me personally, no.

For additional info on buying an EMV nick card terminal and EMV compliance, take a look at our FAQ about them. Or if you think your present credit card merchant account services provider will swindle you for that new terminal, please check out the most popular providers.

Tell us that which you consider smart “chip” cards, and whether you’ll be upgrading your terminal!

The publish Do You Want an EMV Nick Card Terminal? made an appearance first on Merchant Maverick.

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The Best Help guide to Accepting Mobile Payments

This Year, the PewResearch Internet Project discovered that 65 % of respondents in the survey thought that by 2020, mobile payments may have almost entirely replaced the requirement for cash or perhaps charge cards. And if you&#8217re a merchant who&#8217s not accepting mobile payments yet, you&#8217re already behind the bend.

Now is a great time to have a look at why you ought to accept mobile payments, we’ve got the technology in play (and just what&#8217s coming), not to mention, the main players. We&#8217ll also demonstrate how to pull off obtaining the tools you have to accept mobile payments.

Why you ought to Accept Mobile Payments

Accepting mobile payments

Infographic by Jess3. Source: http://visual.ly/global-rise-mobile-payments

The truth is, business proprietors can&#8217t manage to focus on cash-only systems. Even though you&#8217re only a small-time crafts business and attend a couple of shows annually, should you don&#8217t accept card payments, you’re passing up on an enormous quantity of potential earnings.

Based on a 2012 study through the Fed, lots of people carry less than $20 in cash. Even though cash transactions were the most typical kind of transaction, their overall value was under credit, debit, or electronic transactions. By 2017, experts predict cash will take into account just 23 percent of transactions.

In a nutshell: if you would like people a larger investment along with you, you have to accept cards.

Technological progress around the mobile payments front continues to be slow. Square introduced its mobile payment system, enabling smartphone proprietors to show their devices into card readers, in ’09.

Google Wallet debuted this year, turning individuals same phones into digital wallets that replaced cards and funds, supplying, obviously, the business had the required equipment.

PayPal, the darling of e-commerce for a long time, didn&#8217t introduce its very own mobile payment solution until 2012.

However in 2014, Apple finally debuted its very own mobile payment solution, Apple Pay, which utilizes biometric authentication and NFC to create payments through the iPhone and Apple Watch. The adoption rate among Apple Pay is promising, with major retailers reporting massive increases in mobile payments.

In a nutshell: Apple joining the mobile payments field, and getting aboard a large number of major companies along the way, would be a big advance.

And also in 2015, Google made the decision to exchange Google Wallet&#8217s mobile payment abilities with a brand new application known as Android Pay. Google Wallet grew to become a peer-to-peer payments tool, allowing users to transmit money to buddies and family.

A 2015 study through the Given discovered that 22 percent of cell phone users and 28 percent of smartphone users had designed a mobile payment in the past year. That&#8217s up from 16 percent of cell phone users in 2014. And mobile transactions increased with a whopping 118 percent over five years, according to Business Insider.

Comprehending the Consumer Mindset

Researching the market may be the cornerstone associated with a effective strategic business plan. Here is exactly the same: Before you begin adding mobile payments for your business, it&#8217s essential that you understand a bit concerning the consumer mindset regarding them. Knowing your consumer can help you choose which option is the best for both you and your business.

Overall, there&#8217s great news. In america, Europe, and lots of japan, the outlook is usually positive and individuals are receptive. And when people begin using mobile payments, they are more inclined to keep doing so. The rate and ease of mobile are generally big factors within their appeal, so you have to remember this.

Plus, smartphones are starting to saturate the marketplace. An astonishing 82 % of 18-to-25-year-olds had smartphones by Q4 2013. About 60 % of the parents have smartphones, too.

That, however, doesn&#8217t mean there aren&#8217t any barriers to resistance or objections. Actually, a couple of pervasive myths might be keeping consumers from going mobile:

Infographic: Mobile Payment Myths

Infographic by Intuit. Source: http://payments.intuit.com/
mobile-payments-myths/

A 2013 survey by Accenture revealed some surprising insights about consumer sentiment toward mobile payments:

  • Many people understand their phones can complete mobile payments, however the adoption minute rates are low. That stated, once individuals have designed a mobile payment, they’re certainly going to keep doing so.
  • People aren&#8217t prepared to switch banks, upgrade phones, or make other changes just to obtain more support for mobile payments. Quite simply, it&#8217s around the merchant to become as flexible as you possibly can where mobile payments are worried.
  • Most importantly, individuals are concerned about privacy, security, and convenience with regards to mobile payments. Additionally they worry about value. Sixty percent of people that make mobile payments will make much more of them if utilizing their smartphone generated instant coupons. Several-third of mobile payment users are prepared to give private information in return for that convenience. They’re also thinking about value-added tools like receipt tracking.
  • Additionally to coupon incentives, consumers want to see other tools to supplement mobile payments. Which means features like receipt tracking or perhaps balance checkers might make an impact in adoption rate, as would having the ability to make use of a cell phone as evidence of ID.
  • Possibly most surprisingly, consumers AREN&#8217T waiting to determine what technology claims dominance. Which means there&#8217s likely room for a lot of types of mobile payments on the market, and it wouldn’t be impractical to think about finding a method to accept variations.

There&#8217s a little bit of push and pull happening here. There&#8217s a proper segment of shoppers who wish to use mobile payments. You may also lure new users to use mobile payments with the proper incentives.

Also important to note: Millennials, undoubtedly the greatest users of technology, are far interested in financial choices from technology, e-commerce and payment giants like PayPal, Amazon . com, Google, and Apple compared to what they have been in services using their own banks. One-third of them feel they won&#8217t want to use a financial institution whatsoever soon.

That stated, over fifty percent from the commercial banks have some type of mobile banking, and 61 percent of 18-to-25-year-olds who own smartphones use mobile banking. They have a tendency to determine their bank as interchangeable along with other banks, that is most likely one of the reasons for curiosity about alternative payments. The 2008 recession most likely didn&#8217t do much to assist Millennial perceptions of banks, either.

Mobile Payment Technology

At this time, you will find three contenders competing for dominance in mobile payments. They all have its very own advantages and disadvantages:

  • NFC
  • QR Codes
  • iBeacon

Let&#8217s take particular notice each and every to actually know how they might dominate mobile payments.

NFC

NFC, or near-field communication, is really a contactless data transfer system similar to RFID. When two NFC-enabled devices enter into range, you are able to transfer data from together (for example getting a telephone in selection of a charge card terminal). It plays well along with other technology for example Bluetooth and Wi-Fi, that is a huge advantage.

NFC isn&#8217t ubiquitous (yet), however it&#8217s found in many phones, particularly the flagship devices from Samsung, LG, and The new sony. Apple finally leaped in to the NFC game in 2014, and Google relaunched its mobile payments service as Android Pay in 2015. Samsung also launched its very own application, aptly named Samsung Pay, in 2015.

NFC is really a safe way of payments. Sensitive information is kept in a safe and secure element, either included in the Sim of the phone or put into another nick. Generally, retailers never really see your card or banking account data.

For any much deeper take a look at NFC, check out our guide, &#8220What is NFC, and Why Would You Care?&#8221

QR Codes

QR codes, or quick-response codes, have the type of ubiquity that NFC lacks. They work similar to your standard barcode symbols, with the exception that rather of counting on one-dimensional analog checking, they’re digital. This means that having a QR code readers application, your smartphone&#8217s camera could be temporarily converted to a scanner. QR codes can embed far more information than your standard barcode symbols, which provides them the ability to complete such things as open mobile sites, lead you to YouTube Videos, you will find, even allow you to complete mobile payments.

iBeacon

iBeacon is definitely an Apple-developed technology that utilizes Bluetooth Low-Energy (BLE, or sometimes also known as Bluetooth Smart). Unlike another two kinds of technology, it&#8217s really still within the developmental stages. While you can use it for mobile payments, right now the greatest application for iBeacon is really as closeness alert or geo-fence that may go where Gps navigation doesn&#8217t.

It really works such as this: iBeacon units are positioned up within a building (like a mall). If somebody by having an iBeacon-enabled device makes selection of individuals beacons, they transmit information. A few of the ways fraxel treatments might be used is always to transmit mobile coupons or any other special deals, to steer customers through the store by department, or perhaps to enable them to find specific products on the grocery list.

A primary reason that NFC had an edge over Bluetooth for any lengthy there was a time the huge quantity of energy that Bluetooth needed. However, BLE uses much less energy than its predecessors, and that’s why it&#8217s now becoming more popular for pairing wireless rodents and keyboards (the batteries can last considerably longer). iBeacons with Bluetooth Smart technology won&#8217t be considered a massive power-suck for consumers. Plus, iBeacons have a further range than NFC: NFC devices have to be within 8 inches (though 2 ” is really most effective). iBeacons, however, have a variety of 50 meters, or about 165 ft.

For payments, iBeacons works as being similar to NFC: the telephone would wirelessly transmit payment information towards the terminal or beacon via Bluetooth.

It&#8217s also important to note that although iBeacons are Apple technology, they aren’t only at iOS devices. The telephone just will need Bluetooth Smart and also the appropriate application. In addition, Samsung announced its own form of the iBeacon, known as Closeness, at its 2014 developer conference in November. it really works exactly the same way as iBeacons, but instead of dealing with an application, Closeness works directly using the phone&#8217s hardware.

Even Facebook features its own Beacon service for companies. The beacons prompt people to the place to love the organization&#8217s Facebook page and offers additional information.

Major Players in Mobile Payments

Let&#8217s begin by analyzing a few of the major players in mobile payments, where they stand, and just how they compare when stacked facing one another. Included in this are:

  • Apple Pay
  • Android Pay
  • CurrentC
  • Flint
  • Square
  • LevelUp
  • PayPal Here
Apple Pay
apple-pay-logo

When Apple announced the iPhone 6 and iPhone 6 Also in September 2014, additionally, it introduced Apple Pay, which utilizes a mix of biometrics and NFC to accomplish mobile payments. Furthermore, Apple already had major retailers arranged to begin accepting Apple Pay. With this particular mobile payment method, consumers never need to give their names, charge card figures, or security codes to retailers. Rather, Apple utilizes a unique device ID to process the transaction.

Apple Pay works together with debit and credit cards for major US banks, including Visa, MasterCard and American Express from Chase, US Bank, Wells Fargo, PNC, and much more. You should check out the entire listing of banks and retailers here.

&nbsp

Android Pay

Before Apple Pay, there is Google Wallet. It never acquired much traction, however in 2015, Google launched Android Pay, the successor to Google Wallet. (GW continues to be available, but because a mobile wallet and peer-to-peer payments application.) Android Pay also uses NFC. To really make it work, you have to let the lock screen in your device. Unlock the telephone together with your preferred method (fingerprint scanner, PIN, or pattern) and tap it towards the terminal to accomplish the transaction.

There&#8217s also the Google Wallet Card. It&#8217s debit cards from MasterCard, that’s linked straight to your Google Wallet balance. You are able to link your GW account to your Android Pay account as well as withdraw cash from ATMs using the card.

&nbsp

CurrentC
CurrentC_App

Apple Pay encountered some trouble when some major retailers (including CVS and Rite Aid) disabled its NFC terminals to bar Apple Pay. The main reason? Wal-Mart, Best To Buy, Rite Aid, CVS along with other retailers have partnered inside a partnership known as the Merchant Customer Exchange, that is creating a mobile payment option known as CurrentC.

CurrentC uses QR codes instead of NFC. However the CurrentC process is slow, much slower than NFC, and extremely clunky. It&#8217s exactly the same kind of system combined with direct deposits. First, the client must scan the QR code generated by register while using CurrentC application. Then, the cashier scans the QR code generated through the phone.

The main reason people from the MCE are tossing their support behind CurrentC is it could conceivably enable them to sidestep the charges that charge card issuers charge. Most retailers pay between 1 % and three percent from the transaction in charges. CurrentC would sidestep this by utilizing checking accounts, gift certificates, and store-issued an atm card.

Right now, CurrentC hasn’t gone live, however the application will come in iTunes and Google Play. Worth mentioning is the fact that in October 2014, CurrentC was hacked and user emails were stolen. That&#8217s before the woking platform is fully ready to go.

Here&#8217s why that&#8217s so troubling:

CurrentC collects your driver&#8217s license number, your ssn, as well as your birth date to ensure your identity. Additionally, it collects your wellbeing information. Plus, among the key selling options that come with CurrentC may be the coupon-and-rewards feature. While it might be a large draw for purchasers, additionally, it reveals a lot of data about users as well as their shopping habits. Everything information goes directly to retailers, since retailers are the type who developed the platform.

Apple Pay, by comparison, doesn’t collect that data, also it doesn&#8217t share any information with retailers.

Flint
Flint-mobile-logo

Unlike another mobile payment options we&#8217ve discussed to date, Flint doesn&#8217t need any kind of terminal. It&#8217s a really &#8220mobile&#8221 solution because all that you should accept payments is the phone, that makes it well suited for service companies which make house calls along with other vendors who travel. Flint&#8217s mobile application works together with the digital camera to scan cards (note: it never stores the photos it requires of the charge card) and process payments. Which means no fighting with card readers as you’ve to with PayPal and Square. However, you are able to only accept Visa and MasterCard right now, with no pre-compensated cards. (It&#8217s also important to note that in October 2014, Flint guaranteed $9.4 million in funding, with Verizon adding the majority of it).

Flint offers invoicing, support for mobile coupons (via email and Apple Passbook), and digital receipts for money and appearance options. Should you also sell online, you may also setup an e-commerce system for checkout using Flint. For retailers, Flint&#8217s rates rely on regardless if you are charging a debit or credit card: for debit, you have to pay 1.95 % for credit, 2.95 %. Money is deposited straight into your bank account within 2 working days.

Square
Square-POS-Logo

Square really was the very first company to go in the mobile payments space, completely in 2009. Anybody having a cell phone could start swiping cards and accepting payments having a dongle that connects to headphone jack. Square, like other mobile payment services, charges a set rate per transaction.

For card swipes, retailers pay 2.75 %. Should you key the transaction in by hand, that jumps to three.five percent plus $.15. Square&#8217s greatest issue, from the merchant perspective, is its difficulties with holding funds if this suspects fraud. Otherwise, retailers obtain money within 1-2 working days.

Using the EMV liability shift, Square introduced a brand new card readers that is capable of doing studying the nick-and-PIN cards. It provides 2 types of the readers, including one which has NFC support to be able to accept payments via Apple Pay, Android Pay, along with other NFC-based services.

LevelUp
LevelUp-logo

LevelUp is really a mobile payments processor with increased functionality than the other available choices we&#8217ve seen. It really works much like CurrentC for the reason that you scan QR codes. However, instead of linking to some banking account, it enables users to produce a mobile wallet using their debit and credit cards (the website states any U.S. debit or charge card is recognized). Additionally, it integrates with loyalty programs and generates coupons for you personally. LevelUp has greater than 14,000 partners, and you should check out their email list here.

Like Square, LevelUp includes a POS functionality. However, LevelUp also adds its very own terminal devices, that also support NFC and iBeacon. Much more promising, LevelUp&#8217s application for consumers can be obtained not only for Android and iOS, but additionally Home windows Phones.

Another thing that sets LevelUp apart is its open platform, that can be used to integrate to your own systems. You are able to integrate it into greater than 40 other POS systems in addition to e-commerce an internet-based ordering platforms.

Retailers pay just 1.95 % per transaction, without any chargebacks. Money is deposited the following day to your account.

PayPal Here
paypal-here-logo

PayPal is, unquestionably, a huge in e-commerce, as well as in 2012 it finally moved into mobile payments. Like Square, you need to simply swipe the credit card while using free card readers. The funds you collect go straight into your PayPal account are available for you quickly. If you possess the PayPal bank card, the different options are the cash inside your PayPal account when it&#8217s inside at any location that accepts charge cards.

Like Square and LevelUp, retailers are billed flat charges per transaction. There’s additionally a POS system and support for invoicing. You are able to accept checks by snapping photos together with your phone&#8217s camera. PayPal Here charges 2.7 % for card swipes, though manual key-ins are 3.five percent plus $.15.

Something also worth mentioning is PayPal&#8217s One Touch. This mobile solution enables you to definitely stay logged to your PayPal account in your phone and employ that to accomplish any in-application purchases.

Like Square, PayPal also offers an EMV-compliant readers with NFC abilities to be able to accept mobile payments via consumers&#8217 selected apps.

Accepting Mobile Payments with a free account

What must you do in order to start accepting mobile payments? Should you travel for the business, a mobile solution like PayPal Here’s most likely the greater choice for you. However, if you want POS capacity and also have a brick-and-mortar location, you’ll need an NFC-enabled terminal that may accept Android Pay, Apple Pay, yet others.

Credit card merchant account providers can frequently assist you to get yourself a terminal, because of free or at an inexpensive. Let&#8217s check out a few of the top-rated providers, using their charges for their terminal options.

  • Dharma A Merchant Account
  • CDGcommerce
  • Helcim
  • PaylineData
  • PaymentDepot
Dharma A Merchant Account
dharma-merchant-services-logo

Dharma A Merchant Account offers retail and e-commerce solutions alike, if you come with an web store in addition to a physical store you are able to integrate them easily. As opposed to a tiered prices model Dharma charges a $15 fee every month (including PCI compliance) by having an interchange-plus cost model for transactions. Dharma charges .25 % along with an additional $.10 per transaction for in-person transactions, and .35 % plus $.10 for e-commerce.

For small companies (individuals earning under $10,000 per month), Dharma includes a partnership with Flint, so use a smartphone or tablet to process charge cards. However, this doesn&#8217t provide NFC abilities.

Terminals: During the time of penning this, Dharma can re-program your overall equipment to utilize its services for $100. For $299, you can aquire a VeriFone Vx520 terminal, that is NFC enabled in addition to EMV ready.

(EMV is really a global standard that will become a lot more common stateside in 2015 because of the massive liability shift that starts in October 2015. Essentially, this means that debit and credit cards includes a unique nick that gives extra security. Basically we&#8217re more worried about mobile payments here, you need to certainly locate a terminal that’s EMV compatible too.)

Also worth mentioning: Dharma donates 50 % of their profits to charitable organization. It&#8217s additionally a certified eco-friendly business and B-corp. If social or ecological responsibility are part of your company model, this appears such as the apparent fit.

CDGcommerce
cdgcommerce-logo

CDGcommerce also offers retail and e-commerce payment solutions — but additionally, it includes a mobile payment option that Dharma lacks, known as ProcessNow.

Prices wise, CDG charges 1.95 % plus $.30 for online transactions, 1.7 % plus $.25 for swipes, and 1.7 % plus $.25 for mobile transactions. On the top of this, there&#8217s a $10 monthly support package as well as an optional cdg360 package with value-added security measures for $15 per month.

Terminals: For $79 annually, CDG will give you an EMV-ready and NFC-enabled PerkWave terminal along with a customer-facing readers. It&#8217s suitable for Apple Pay, Google Wallet, and Softcard, along with the remaining NFC payment services. CDG also promises to replace it all within 24 hrs. The long run-proofing guarantee helps to ensure that if another bit of technology becomes standard (for example iBeacon), it’ll change your terminal. Plus, you receive free terminal reprogramming for just about any existing equipment, a totally free USB card swiper that&#8217ll use most Home windows and Mac devices for those who have existing software, and much more.

Helcim
helcim-logo

Helcim is yet another processor with multiple solutions: it provides an online terminal for implementing computers or running an e-commerce site, retail solutions with terminals, along with a mobile payment solution, all on the monthly subscription plan plus interchange-plus prices (Helcim calls it cost-plus prices).

The virtual terminal package runs $30 per month, the retail package runs $12 per month, and also the mobile package runs $25 per month. CDG charges just .18 percent per transaction for mobile and retail transactions, and .36 percent for virtual/e-commerce transactions.

Your monthly subscription also covers PCI compliance. The mobile package incorporates a totally free card readers and limitless users — but additional card visitors $45 each.

Terminals: With Helcim, you possess an range of terminal choices to accept mobile payments, beginning at $199. Re-programming of terminals is free of charge, and the organization offers exchanges for $45, where it’ll give back a refurbished pre-programmed model.

Payline Data
payline-data-logo

Payline Data again provides retail, e-commerce, and mobile solutions, also it claims to give the cheapest rates, guaranteed. They&#8217ll even provide you with $500 whether they can&#8217t beat your overall prices.

Payline uses interchange-plus prices on the top of the fee every month. Standard plans start at $5 monthly for any subscription, though you will get the professional take into account $20. Using the standard plan, you have to pay .five percent plus $.10, and pro accounts pay .2 percent plus $.10.

Terminals: Once again you can buy multiple terminals from VeriFone and Ingenico, including EMV and NFC devices. Prices start at $195. There is also a number of other retail supplies, including check readers, card readers, PIN pads, as well as receipt paper.

Also worth mentioning is the fact that Payline Data will donate 10 % from the processing revenue from your bank account to some charitable organization of the selecting from Payline&#8217s listing of approved partners.

Payment Depot
payment-depot-logo

Payment Depot operates a little differently compared to other processors we&#8217ve spoken about here. Again you’ve mobile, retail, and e-commerce solutions. You are able to pay a regular monthly fee or perhaps an annual fee that discounts the price by 20 %. But rather of interchange-plus, you have to pay a set rate.

That fee depends upon the package you select, which depends upon your monthly volume.

  • For sales under $10,000: $199 each year ($20 monthly) $.25 per transaction.
  • For sales as much as $40,000: $399 each year (40 monthly) $.15 per transaction.
  • Limitless: $599 each year ($60 monthly) $.10 per transaction.

Using the mid-tier package there is also a totally free virtual terminal so that you can enter payments from the browser or mobile phone. Using the limitless plan, Payment Depot offers an EMV-ready Smart Terminal.

Terminals: Again, you can aquire a free Smart Terminal using the limitless plan. Should you&#8217re not doing quite that volume, Payment Depot can reprogram existing equipment free of charge. Otherwise, you are able to use the organization to obtain a new terminal of the selecting, which will come at wholesale cost (the website states costs start just $49).

Final Ideas

We&#8217re residing in digital age, folks. Consumers have not had a lot of options, approximately much power — and for retailers, that may certainly appear frightening. And when you&#8217re not devotedly following a latest developments in technology, the idea of stepping into the sport can appear overwhelming.

Anything you do, don&#8217t just sit around at nighttime ages.

We&#8217re here to assist. Take a look at our reviews of charge card processors/credit card merchant account providers, in addition to our overview of mobile payment solutions. Need assistance selecting a service provider? Call us for help. We will also help you select a web-based shopping cart software to get involved with e-commerce, and pick a qualified POS software for you personally.

What else would you like to learn about accepting mobile payments? Ask away!

The publish The Best Help guide to Accepting Mobile Payments made an appearance first on Merchant Maverick.

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What’s the main difference Between Nick-and-PIN and Nick-and-Signature Cards?

difference between chip and pin and chip and signature

The EMV liability shift is well going ahead and customers have began dipping individuals cards. At this time, most small company proprietors are most likely wondering why the heck everyone is speaking about nick-and-PIN cards when everyone appears to become using nick-and-signature. What’s the main difference between nick-and-PIN and nick-and-signature cards? We’ve briefly pointed out this before, however if you simply want all of the exciting details&#8211how it really works, what it really method for you, etc.&#8211we’ve got your back the following.

Support one minute.

Let’s review the way the whole magstripe/nick factor works again. Magstripes have secret figures baked into the small black box in your card. Whenever you swipe it, the device reads the figures and transmits on them the internet or phone lines to ensure the figures are correct. Charge card companies have made the decision to update prepaid credit cards since with magstripe, it’s simple for less-than-honest individuals to carry the secret information once the card is scanned or as the figures have been in transmission. Since magstripe figures never change, fraudsters can wreak lots of havoc with this particular information.

However, nick cards essentially possess a small embedded computer. Whenever you dip the nick, it interacts using the terminal&#8217s computer. First the credit card will be sending a secret, encrypted, at random generated message, towards the terminal that is construed through the terminal having a secret key, then the other way around. By doing this the credit card and also the terminal make certain that things are authentic.

To ensure the person while using card isn&#8217t a crook, the credit card user has to set up a PIN (that ought to match the PIN kept in the credit card or around the banks servers). Or, when the card is nick-and-signature, the individual merely has to sign their name and also the cashier may-or-may-not verify it matches the main one on the rear of the credit card. It&#8217s no question one expert stated that nick-and-signature cards are the same as “locking the leading door and departing the rear one open.”

That Seems Like an issue.

Okay&#8211that last sentiment is too dramatic in my opinion, however it got your attention, right? Here’s the factor: nick cards allow it to be incredibly hard for fraudsters to create a fake card because things are encrypted. The verification method (PINing or signing) determines how difficult it’s for any crook to utilize a legitimate, but stolen, card. For any nick-and-PIN card, the crook has to understand the PIN. For any nick-and-signature card, the crook just needs to be half-way decent at forging a signature (when the cashier even checks whatsoever). Since fake cards are an even bigger issue in the US than stolen cards, it truly isn’t a large problem.

Why Don’t We Simply Use Nick-and-PIN?

Short answer: it&#8217s a piece happening. There’s two big reasons we aren’t going right to nick-and-PIN. The very first reason is, the charge card companies don’t believe that consumers are designed for much change. They’re accustomed to swiping and signing, now they have to get accustomed to dipping and signing.

Prior to going off on the tirade about how exactly humans aren’t that stupid (I needed to after i learned this), there’s proof: when card companies in Canada folded out nick cards, individuals who sent nick-and-PIN cards recognized that individuals stored failing to remember their PINs. You’d think this is entirely the consumer’s problem, before you keep in mind that almost everyone has multiple cards, and also the card that’s an enormous discomfort will probably be the main one that’s used minimal. Bad deal for card provider.

Another reason happens because ATMs aren’t nick-compatible yet (plus they won’t be until October 2016 or 2017). Since magstripes continue to be a computerized fallback on ATMs, if your fraudster will get your hands on the magstripe data and PIN for any chipped card and uses the data at an ATM, they’re will make served by a great deal of money. Because the bank needs to cover the lost money, it&#8217s bad deal for that bank.

So How Exactly Does This Affect Me, the company Owner?

Glad you requested! The good thing is, you can’t take place liable if somebody utilizes a stolen nick-and-signature card together with your fancy EMV terminal. Hooray!

Unhealthy news is, you may be liable if somebody utilizes a stolen nick-and-PIN card at the terminal and you’ve got to fallback to processing it as being nick-and-signature. The reasoning is equivalent to it’s for just about any other EMV-related change: should you have had the best technology, theoretically the fraud wouldn’t have happened. Since most cards will be nick-and-signature at this time, I wouldn’t be worried about that as well much. However when the PIN cards start getting more widespread (which I’m guessing may happen inside a couple of years when ATMs get caught up), you might like to consider upgrading your terminal to 1 that does PINs.

Yet Another Thing…

There’s a repayment process increasing that bypasses the credit card altogether, and that’s NFC (near field communication). To obtain all of the juicy information regarding how it operates, take a look at our articles here and here, but let’s review the fundamentals. Customers can connect their cards to virtual wallets like Apple Pay or Android Pay, or connect their banking account straight to applications like CurrentC.

The verification process works similar to it will for chipped cards: the telephone and terminal send encrypted messages backwards and forwards over short range electromagnetic waves to make certain that things are legitimate. Within the payment application, you will see a verification method just like a PIN to guarantee the user is true. The entire factor is all very secure, theoretically. It’s additionally a couple of years lower the street from being broadly used.

We&#8217re tied to regular-old signatures for some time longer, but safer choices are coming. For now, verify individuals signatures!

The publish What&#8217s the main difference Between Nick-and-PIN and Nick-and-Signature Cards? made an appearance first on Merchant Maverick.

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The Retailer’s Help guide to Nick and Pin Cards

accepting chip and pin cards

After 4 years of anticipation, the October 1st EMV liability shift deadline originates and gone. If you’re like the majority of retailers, you aren’t quite prepared to jump in and will be a little bit late towards the party. Fortunately, it’s fashionable to reach late and we’ve still got the data you’ll have to take on each one of these liability shenanigans.

What’s EMV Again?

This short article adopts more detail, but EMV means Europay, MasterCard, and Visa, and essentially this shift implies that your company just adopted much more responsibility your money can buy spent at the store.

Typically, should you pay a magnetic stripe card at the terminal also it switched out to become a fraudulent charge from the lost, stolen, or forged card, the credit card issuer (Europay, MasterCard, or Visa) would result in reimbursing the client. However, since banks allow us nick and PIN cards which are safer than the earlier versions, if a person still seems to develop a fraudulent transaction (since you don’t possess a nick and PIN machine), you’re now accountable for it.

The entire reason for this transition from magnetic stripe cards to nick and PIN cards would be to boost security as it is more difficult to skim a nick&#8217s information than the usual magnetic stripe&#8217s information. However, if retailers don&#8217t possess a readers that may process the nick&#8217s information then your efforts are nullified. Banks do operator by issuing safer cards, now retailers need to do operator by buying machines that may process individuals cards. Whomever fails on their own end—either the financial institution for neglecting to issue nick cards or else you for missing a method to accept them—takes around the liability for just about any fraudulent charges.

Will I Actually Need a brand new Readers?

I’d look at this article for the entire story, but basically the reply is: it depends.

The Gestapo isn’t going to appear at the doorstep in the center of the night time demanding that you simply acknowledge the EMV shift otherwise, but it may be just like painful should you don’t. Sure, if nearly all your transactions undergo Dwolla or PayPal and also you don’t process charge cards anyway, then you definitely don’t have anything to bother with. However, should you choose accept debit and credit cards with no nick and PIN readers the only real kinds of fraud you’re not accountable for are: (1) using a lost, stolen, or counterfeit magnetic stripe card or (2) using a stolen or lost nick and signature card.

Side Note: Nick and PIN cards aren’t the same as nick and signature cards. See this short article for clarification.

Now a number of you may be thinking, “But nobody is with such fancy nick cards yet,” and you’d be partly right. Based on CreditCards.com, you may still find about 1.2 billion charge cards that still need to be upgraded to nick cards, but there happen to be 60 million U.S. nick card transactions processed in August alone. Through the finish of 2015, it’s believed that 60% of U.S. charge cards is going to be re-issued as EMV cards and perhaps only 40% of shops is going to be compliant at that time. I don’t like individuals figures, and that i don’t what you think, but I’d prefer to be safe than sorry.

How Can This Transformation generate income Conduct Business?

To begin with, you’ll take some new equipment, which might or might not be considered a hindrance. For one, nick card visitors more costly than their magnetic stripe-studying counterparts. We’re not speaking a 1000 dollar difference, but there’s still an obvious markup. This really is most clearly seen among mobile processors who accustomed to offer free magnetic stripe readers having a subscription for their processing services. Now, however, you’ll be billed between $30 and $50 for any readers that—if you’re an especially small company (and also you most likely are if you’re utilizing a mobile processor)—you might never use. Again, we’re not necessarily emptying your wallet here, but it’s an additional expense you’ll have to take into consideration.

Another component of your company that might have to evolve is the procedure of performing transactions over the telephone. Within the many articles presently available concerning the liability shift, one lady expressed her concern over this problem:

“What I&#8217m not seeing is exactly what transpires with our business? The majority of our charge card transactions are keyed records, Irrrve never see or handle the credit card whatsoever. Our clients give us a call using the card information and that i key it in.” –Jeri Rogers

Simply because you’re not pressing the credit card doesn’t mean you’re not accountable for verifying the identity of the individual trying to get something of your stuff. Should you process a dishonest transaction over the telephone, you might get a chargeback and &#8211 in some instances &#8211 be responsible for the transaction amount. And when the keyed-in information is compromised or hacked which results in fraudulent purchases, you might be responsible for any large slice of cash. However the new nick cards won’t impact these transactions, since they’re &#8220card-not-present&#8221 (CNP). The liability shift only pertains to card-present transactions, in which the merchant comes in touch with the credit card. Getting the nick around the card will not have helped to avoid fraud when the card wasn’t present anyway.

Finally, your company may also be affected inside a pretty major way with this whole nick and PIN business due to the fact not every POS systems are EMV compliant yet. Instore, particularly, takes a “wait and find out approach.” They assure their users that they’re testing prospective nick and PIN machines, consider “EMV devices and standards really are a moving target” you will find a lot of unanswered questions which will ultimately affect your choice to see the shift. Read Instore’s undertake it, however i disagree using their assertion that the chance of fraud is comparatively low (particularly if you’re a little store) which this justifies ignoring the shift. Even though you possess a limited fraud history, it might take only a few large fraudulent charges to manage some serious harm to your company. Certainly greater than a $200 EMV readers can cost you.

How Can I Buy an EMV Nick Card Terminal?

There exists a FAQ article on buying EMV nick readers that you could reference, but I’ll provide you with the SparkNotes version.

You are able to essentially buy a new nick readers from the places you can get a non-EMV terminal (your a merchant account provider or some third-party supplier if you will find a better cost). Most nick and PIN card readers—as lengthy while you purchase the model suitable for your POS software—can be programmed to utilize your credit card merchant account. Obviously, a merchant account providers reserve the authority to charge ridiculously high charges to get this done or they might simply won’t reprogram the unit whatsoever. Using this into consideration, it may be simpler to simply pay what they’re requesting the unit or it may be a great time to reevaluate whether you want to stick with your provider.

For leasing any type of card readers, EMV enabled or otherwise, we strongly advise against it. When you’ve steered clear of the conventional 48-month lease, you’ll most likely finish up getting compensated thousands more in interest compared to system is really worth. You will get the entire picture here, however the moral from the story is just don’t get it done.

Conclusion

In conclusion, here’s what we’ve learned:

  • The EMV liability shift is ultimately made to better safeguard against fraud, however if you simply don’t do your behalf within this effort, it might set you back.
  • Ultimately, you don’t need to become EMV compliant, but through the finish of 2015 it’ll be pretty foolish to stay so unless of course you don’t accept debit or credit cards.
  • Like every major transition, your company might need to evolve. Carefully evaluate how this transformation will affect your company and then try to stand above it.
  • You can buy an EMV-compatible terminal out of your a merchant account provider, but you might not wish to. Have a gander at our article about how much you ought to be having to pay for charge card processing and if you feel it’s time for you to switch, our favorite merchant services offer very affordable choices for EMV-compatible devices.
  • If you’re considering leasing a brand new EMV readers, please don’t. It&#8217s not worthwhile.

We know how demanding any type of major business transition could be and we’re here to assist. For those who have any queries regarding this publish or EMV compliance, please ask within the comment section below. Otherwise, you are able to call us directly for assist with cutting your processing charges or assist with selecting everything from a brand new reason for purchase system to loyalty rewards software. In almost any situation, don’t hesitate to tell us how the largest your work simpler.

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Are You Currently Meeting EMV Standards?

meeting EMV standards

The shift originates! I understand denial continues to be establishing pretty hard, and when you’re similar to retailers, you’re only beginning to understand that it may be smart to exchange your magstripe readers to have an EMV-enabled device. Regrettably, whether you’ve got the correct equipment or otherwise, you’ll still might be responsible for certain kinds of charge card fraud. So it’s time for you to shake the sand from individuals boots and obtain an advantage on these new rules or perhaps your business are affected for this.

What’s the EMV Standard Exactly?

EMV is short for for Europay, MasterCard, and Visa, the 3 firms that first produced the conventional in 1994 (yes, this idea is a lengthy amount of time in the making). Since 1999, EMVCo—owned by Visa, MasterCard, JCB, American Express, UnionPay, and Discover—has been the entity behind EMV standards.

The purpose of the EMV shift would be to strengthen security by embedding “smart” micro-processor computer chips into charge cards. These chips tend to be more heavily encrypted compared to magnetic stripes available on traditional charge cards, avoiding fraud a lot more effectively. Obviously, as these cards have an alternative way of storing sensitive data, retailers will need an additional way to read them. By October 1st, if you don’t possess a device able to studying the brand new chips (forcing your clients to swipe their cards rather of dipping them) you have the effect of certain fraudulent charges created using a counterfeit or stolen nick card.

How Can This Be Happening?

As technology advances, our economy is relying more heavily on debit and credit cards than in the past. Since cards are simpler to steal and forge than cash or checks, we’re searching in a natural rise in swipe card fraud. This task-in technologies are an essential change to keep track of the more and more sophisticated data breaches and skimming techniques. It’s a kind of arms race by which each side need to keep improving their technology so as have an edge on another. This EMV transition is certainly victory around the security side since Europe has witnessed an 80% decrease in charge card fraud using the implementation of EMV standards. Meanwhile, the U.S. has possessed a 47% rise in fraud because we’ve taken such a long time to meet up with already EMV compliant regions like Canada as well as other areas of Europe, Asia, and South America.

Is Everybody Aboard?

Virtually. Visa, MasterCard, American Express, and Uncover all announced their step-by-step plans for shifting certain kinds of fraud liability from themselves towards the retailers. On the more global scale, most countries have previously implemented or are at some stage in applying EMV nick technology for debit and charge cards. When I pointed out before, the U . s . States is a touch late towards the party, but we’re getting there.

What This Signifies for Retailers

To put it simply, should you don’t want to accept possibility of getting to fork over a collection of cash, you’ll have to safeguard yourself from fraud liability by buying new EMV-compliant charge card processing equipment. For most retailers, it might be a good idea to install new systems as quickly as possible, but when you’re still not convinced it might be a pertinent investment, browse the article Do You Actually Need An EMV Terminal?

Note, though, the liability shift isn’t relevant to CNP (card not present) transactions. Phone order and web order transactions is going to be worked with because they always were, and therefore should you never really are exposed to a charge card, you most likely won’t need to bother about being EMV compliant.

Implications for Consumers

Apart from a sense of elevated security and also the task of really finding out how to begin using these cards, consumers won’t experience as most of the changes or hassles of EMV implementation—certainly not as much as the retailers who’ve to buy the brand new equipment and undertake the additional liability. Until nick card dipping gets to be more common, though, you’ll most likely see some slower moving lines because it requires a couple more seconds to process nick cards and never all clients are quite sure cooking techniques yet.

Steps to consider like a Merchant

(Before you get the EMV equipment)

  1. Don’t panic, but don’t get too comfortable.
  2. Verify customer ID cards when processing charge card transactions.
  3. Be positive about locating the EMV equipment and payment processing options that actually work good for you.
  4. Check this out publish on buying an EMV nick card terminal.

Looking Around

If you’ve discovered that your payment processor isn’t quite EMV-compliant yet or they’re charging a leg along with a leg for any new machine, you’ll most likely be thinking about switching providers. Should you decide you are looking at doing that, you’ll would like to get quotes from a minimum of three different trustworthy providers to make certain you are receiving the best offer. This publish on negotiating the very best charge card processing deal will be able to help, but when you’re still baffled, tell us and we’ll lend a hands.

What’s Going To a brand new EMV Card Readers Require Me To Pay?

Though you can buy new readers from the couple different sources, the particular cost largely depends upon the company and also the equipment you choose to get. For example, there’s a couple compact, mobile EMV readers that exist for approximately $30, some countertop nick terminals (with built-in receipt printers and pin pads) average within the $200 to $400 range.

Based on the number of devices you’ll need and just what your business’s revenue stream is searching like, you might be thinking about leasing an EMV charge card terminal, but that’s certainly something I wouldn’t recommend. Read this short article for the entire story, but essentially the thing is that you’ll most likely finish up spending hundreds more about the device than really worth.

Summing Up

If you’re already setup having a nick card readers, congratulations! You’re formally EMV-compliant. Should you don’t accept any in-person payments, you’re ready too. If you’re presently accepting charge cards with no EMV-enabled device, however, don’t panic. Not, a minimum of. You shouldn’t encounter a lot of problems this early hanging around, however the charge card market is evolving rapidly and you’ll need to maintain the rules to safeguard your company. Since the technological bar continues to be elevated, fraudsters will likely be searching for individuals companies which are still vulnerable. Don’t be caught unawares!

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3 Things Every Merchant Ought To Know About Charge Card Nick Technology

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Credit Card Chip Technology

Should you&#8217re one of the numerous American retailers who presently accepts charge cards, you&#8217re most likely conscious that situations are altering, gradually but surely. Nick cards happen to be used ought to be course in lots of other regions, despite the fact that the U.S. continues to be late to obtain around the EMV bandwagon, the change to nick-and-pin technologies are now fully going ahead. By October first, 2015, retailers are actually responsible for any fraudulent activity occurring because of non-EMV-compliant hardware. The brand new charge card technology is referred to as EMV because Europay, MasterCard, and Visa, among other brands, take presctiption the council that’s overseeing the switch and setting the conventional. The brand new standard requires nick-based payment cards and terminals to become globally compatible wherever you will be on the planet.

For individuals individuals who haven&#8217t yet updated your hardware to support chipped cards, it&#8217s time to perform some serious thinking. You ought to get new equipment &#8211 that&#8217s confirmed &#8211 but it’s also wise to take time to find out more about how a new charge cards work. Listed here are three from the more essential things you need to know if you wish to be truly ready for that &#8216chip and dip&#8217 revolution.

What’s Nick Technology?

Nick cards (sometimes known as smartcards) look basically similar to every other debit or credit cards, and also the average consumer won&#8217t notice a improvement in the transaction process. However, unlike traditional cards, prepaid credit cards take root with small microchips which add yet another layer of fraud and counterfeit protection towards the card. The brand new cards will have magnetic stripes, a minimum of for the moment, which means you technically could process payments with similar old equipment you&#8217ve used for a long time. But by refusing to change your hardware (in order that it can see the brand new nick cards and utilize additional safety measures), you’re taking on responsibility for just about any fraud that may have otherwise been avoided using the new technology.

How Can The Nick Cards Work?

Unsurprisingly, because of the natural human inclination for corny word play, some have created the word &#8216chip and dip&#8217 to consult this latest type of technology, which entails partly inserting the credit card in to the terminal therefore the nick around the front could be scanned. The credit card must stay in the terminal for the whole transaction.

Nick-based payment transactions rely on a micro-processor that is baked into the charge card this small nick has the capacity to connect and communicate inside a unique way with EMV-enabled POS terminals. When among the new chipped cards is &#8220dipped,&#8221 the embedded microchip generates a 1-time, completely original authorization code. Because the authentication only works once, the details are basically useless to the would-be thieves.

What Must a Merchant Do?

Rapid response is stop, think, and behave as rapidly as you possibly can. Though EMV compliance isn&#8217t mandatory at this time, all retailers who accept charge card payments could be remiss not to a minimum of think about the danger-reward ratio involved with purchasing new equipment. For a lot of, if even one large fraudulent transaction was avoided, then your machine will pay for itself. The state deadline to apply EMV nick readers was on October first of the year, and retailers who haven’t yet purchased new, compliant hardware may be held responsible for fraud committed in their stores. This is actually the very last minute. You need to upgrade now, or risk taking a loss drawn in from the fraudulent nick card transactions.

Yes, the shift is inconvenient, and you might want to covering out extra cash for brand new hardware, but be assured that you simply&#8217ll considerably best after doing this. Furthermore, customers will understand the greater degree of security you&#8217re supplying and feel much more confident about utilizing their new cards at the establishment. If you would like more information on the topic, here contains some in-depth info on chip and pin cards.

Like I stated before, that old, standard charge cards with simply magnetic stripes will still work all right, and also the new nick cards all will be outfitted with magnetic stripes too. However if you simply still process charge cards while using old technology, you’re putting yourself at high-risk for fraud liability. Sure, you will get away with swiping &#8211 for the time being &#8211 but if you wish to keep the business (as well as your status) intact, you have to change, and rapidly. Shoppers within the U . s . States have previously started to receive new nick and pin cards using their banks, and it might be prudent to purchase equipment that may accept prepaid credit cards as quickly as possible.

Summary

Allow me to reiterate: experts are adamant that embracing and applying EMV technology isn&#8217t a choice, it&#8217s essential. If you’re one of the numerous business proprietors who missed the March. first deadline, you’re already in danger. By not conforming, you face charges for fraudulent activities connected with transactions inside your store or business. Upgrading ought to be a high priority.

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