Logical Processing Solutions

800-373-7298

 
 

         

payment Processing consulting

As all merchants are aware, accepting credit cards can be a risky business. However, business owners can significantly reduce this risk by doing a few things including, fully understanding their current pricing, being aware of all the latest card industry requirements and keeping abreast of the current scams that are being perpetrated. On a regular basis we will be posting tips, stories and other information to help merchants minimize the risks of accepting credit cards. Please feel free to add any comments or personal experience that would be useful to the Merchant Community.

Why Do I Need to Upgrade My Credit Card Terminal

Many business owners are not aware of the changes they will need to make next year regarding how they process credit and debit cards at their store or restaurant.

On October 1, 2015, if a cardholder presents a card for payment and that card has an EMV* micro-chip in it the card must be processed through an EMV terminal. EMV terminals have the standard slot to read the magnetic strip and an additional slot to read EMV cards. The merchant will be required to look at the card to determine if it has a micro-chip and which slot should be used. If the terminal does not have EMV capability or the merchant ignores it and just "swipes" the card via the old fashion magnetic card reader the merchant will be liable if it is later determined to be a fraudulent card transaction. The old rule of swiping the card and getting an authorization will no longer protect the merchant.

By the end of 2015, 70% of U.S. credit cards and 41% of U.S. debit cards will be EMV enabled. For merchants who use a stand-alone credit card terminal the cost for an EMV terminal should be about $250.00. But be aware that some processors are selling terminals that will be out of compliance within a year or two or are convincing the merchant to lease the equipment. A 48 month lease of $39.00 per month for a $250.00 terminal is not a good deal for the merchant.

For retail or restaurants that process their transactions though a POS system they should contact their POS provider for details on how these transactions will be handled. Our company is offering a backup unit for our POS merchants in case their system is not compliant.

Sorting through all the new requirements and determining which terminal is compliant, cost effective and reliable can be very confusing. Our company is here to help you sort through the process and set you up with the system that works best for your business and gives you the protection you need.

For more information on this or any other issues, please call us anytime at 215-953-9847.

*EMV stands for Europay, MasterCard and Visa, and refers to a global standard for inter-operation of integrated circuit cards (IC cards or "chip cards") and IC card capable point of sale (POS) terminals and automated teller machines(ATMs), for authenticating credit and debit card transactions.

Should I Use Square for My Credit Card Processing Needs?

If you are thinking about using Square to process your credit card transactions two important factors to consider are costs and service.

Square charges a flat percentage for each transaction and no other monthly fees. If your credit card sales are less than $2,000.00 per month and if your average transaction is around $10.00 per sale it makes sense to look at Square. Their fee of 2.75% for each swiped transaction works out to a cost of only $0.28 on a $10.00 sale. Since there are no other monthly fees, this would be a savings of at least $0.10-$0.18 per transaction over a traditional debit/credit card processing service.

However, if your average sale amount is $20.00 or higher and you process at least $2,500.00 per month then it makes sense to look a little harder at the numbers. For example, a $20.00 debit card transaction at Square's rate of 2.75% will cost you $0.55. If we process that same debit card transaction, your cost would be around $0.42. With us like any other processor you would have the monthly fees of $15.00-$20.00 which would cover a Statement Fee, Association Fees, PCI and Regulatory charges.

You should also consider what type of service your company requires. Square requires that you e-mail all questions or concerns because they do not offer any type of telephone customer support. With our service we can go to your office, meet with you in person and assist in evaluating the best options for your business, from POS Systems to Mobile processing and Virtual terminals. If you have a problem with the customer's transaction unlike Square, you can call us anytime.
For more information on this or any other issues, please call us anytime at 215-953-9847.


 
 

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