Tag Archives: merchant services

Keep Your Holiday Profits: Chargeback Prevention Tips

January 12, 2015 Abtek Leave a comment

The holiday season has once again come to an end. Whether your customers used in-store credit card processing systems or visited your ecommerce site, you don’t want to see your holiday profits whittled away by subsequent chargebacks.

Common Reasons for Chargebacks

Before we discuss how to prevent chargebacks, let’s look at the most common reasons that chargebacks occur.

Fraudulent card was used
Cardholder disputes merchandise quality
Incorrect amount was charged to the card
Errors occurred during credit card processing
Proper authorization wasn’t obtained

General Prevention Tips

Here are some general chargeback prevention tips that apply to merchants who accept online payments as well as swipe cards on POS systems.

Be sure the customer recognizes the business name you give to your merchant services company. Many chargebacks occur because customers don’t recognize the business name that appears on their statement.
Respond to retrieval requests in a timely manner. If you don’t respond within the number of days allowed in your merchant services agreement, it’s likely a chargeback will occur.
Get an authorization 100 percent of the time. Failure to get an authorization will result a chargeback.

Prevention Tips for Swiped Cards

Following are tips that merchants who process cards through POS systems or mobile merchant accounts can follow to lessen the chance of a chargeback occurring.

Swipe all cards through your credit card processing terminal. Doing so proves the card was presented at your store. If you have to get an imprint because your terminal is down, be sure all information appears: amount, business name, business location and signature.
Always compare the signature to the back of the card. Understandably your cashiers want to get customers through their lines quickly, but it only takes a few extra seconds to check the signature. Your cashiers should check the signature against a photo ID if there’s no signature on the back of the card.
Ask for another form of payment if the card is declined. Don’t continue to swipe the card.
Make sure the number on the screen and the credit card number match.
Get an authorization for the full sale amount – don’t break the sale amount into smaller amounts.

Prevention Tips for Online Businesses

Here are some helpful tips that online merchants can follow to prevent chargebacks.

Make sure your customer is giving you the correct billing address by using the Address Verification System (AVS).
Provide your merchant services company with a telephone number that it can print on your billing statement. This increases the likelihood that the customer will call you and determine what the purchase is before disputing it with their card issuer.
Use shippers that provide proof of merchandise delivery to the full billing address. This will help you in case of a dispute. Require a signature for expensive merchandise to be left with the purchaser.

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EMV® Cards

10 Things You Need to Know About EMV Cards in 2015

December 26, 2014 Abtek Leave a comment

Changes are coming to way we purchase just about everything. After a few years of lagging behind the rest of the world, the U.S. is finally making its way toward EMV cards nationwide. EMV (Europay, Mastercard, Visa) capable cards are a leap into the future from traditional magnetic swipe cards of the past. So what do you need to know about this new economic innovation?

1. EMV Is The Safest Way to Purchase

Most individuals have already moved away from cash in preference of using cards to maintain their accounts and make purchases. However, even our cards are susceptible to fraud and misuse. The reason behind this is because the information contained on the magnetic strip never changes. If a criminal duplicates that strip they have the consumer’s information. EMV cards will have microchips instead. The information on these chips will change with each transaction making them impossible to replicate.

2. EMV Transactions Will Be Slower

Unlike quick swipe cards, EMV cards use a process called “dipping.” The card is dipped into a data portal where you must allow time for the machine to read the card. Because the verification process is more thorough, the process will take a bit longer.

3. Most EMV Cards Will Use PINs

Just like your old debit cards, new EMV cards will also have a PIN number.

4. New Fraud Rules With the Advent of EMV Cards

One of the big controversies associated with card fraud has always been who the blame should fall on when fraud occurs. Starting October 2015, major U.S. card issuers will hold non-compliant EMV parties liable when fraud occurs. So if a merchant has not gotten on board with EMV, and something fraudulent takes place, then the merchant may be held liable.

5. Most Merchant Terminals Will Be EMV Compliant By 2017

The EMV shift will take some time. Although merchants are being encouraged to be compliant by 2015 to avoid fraud liability, automated fuel dispensers will be compliant by 2017.

6. You Can Use EMV Cards With Non-Compliant Merchants

Although the risk of fraud is greater, non- compliant merchants will be able to process EMV cards with their old card machines.

7. EMV Cards Are Great For Traveling

The U.S. is actually one of the last major markets to change over to EMV cards, so if you are traveling outside of the U.S. it is likely that you will have an even easier time using them while traveling abroad.

8. EMV Cards Will Not Solve Online Fraud

Do not get the idea that EMV cards will solve all forms of fraud. Online fraud can still take place within the new system which is why consumers and merchants are encouraged to continue to keep tight reigns on their transactions and security measures.

9. Expect to See A New Card Soon

When the financial institutions that you use become EMV compliant, you will receive a new EMV card or smart card with instructions on how to use and protect it.

10. Merchants Need to Get On Board

In order to avoid the risk of huge fraud liability, merchants do not need to drag their feet on EMV compliance. Updating systems and getting on board with EMV can safeguard small to mid-size businesses from being a part of possible fraud situations.

Stay up to date on payment processing trends by following Abtek on Twitter and Facebook. Sign up to receive our newsletter, too.

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Merchant Service Providers

Merchant Services Companies Can Protect Merchants and Consumers from Identity Theft

September 11, 2014 Abtek Leave a comment

Before consumers will take any risks on making purchases with a merchant service, they need assurances that their privacy is intact, their financial information is secure during credit card processing and that they are being protected from the invasive efforts of identity thieves through merchant service compliance initiatives.

Leading providers of merchant services offer credit card processing and POS systems management to most level 4 merchants such as debit card and credit cards from Visa, MasterCard and others.

Merchants understand, for the most part, that PCI compliance is not just a requirement, but a business responsibility for covering their consumers. Small business merchants believe that complying with PCI standards improves their business security. In fact since 2012, businesses that have stepped up their security PCI compliance have seen up to 50% growth in customer based sales, and even more recently.

Identity Theft Can Happen to Companies and Individuals

Business identity theft protection is as vital to thriving businesses as it is to consumers. When hackers compromise the security of business merchant records, they can get a hold of personal financial records of thousands of customers. With the continuing global growth of ecommerce trade, new innovative controls have been developed over the years to keep ahead of business hacker’s efforts.

Digital Solutions to Credit Card and Identity Theft Threats

Consumers are readily adopting the concept of mobile commerce technologies. Many find it easier to trust mega-corporations to secure customer online payments using business intelligence security using their smartphones and other digital devices than to trust the security of small businesses in brick and mortar shops.

One way financial institutions are protecting consumer security from identity thieves is by using geo-location within their payment and purchasing eco-systems. In fact, mega corporations like Google, Apple, PayPal and Square are investing big time in new geo-based technology. Processes for secure transactions using smartphone apps will soon become recognized as the safer and more secure transaction method, our digital wallets, over physical credit and debit cards.

Retailers have the capacity to provide security in a seamless, secure market with direct service transactions for their customers who elect to use mobile payment technologies. The built in securities in smartphones and payment apps will deter identity theft and wall out hackers, making mobile merchant accounts and their ecommerce companies highly regarded by consumers for their digital protective powers.

Efficiency in Chargeback Procedures and Compliance

An integrated online payment duty of merchant service accounts is to guarantee coverage for following through with customer chargebacks. The financial service industry is more versatile in administering certain guidelines and maintaining reserve funds for chargebacks for dissatisfied credit card holders. There have been many instances with banks denying valid claims because of their restricting regulations.

Pro-Active Protection Methods Used by Merchant Services Companies

Many merchant service companies provide their customers with software that can notify them if fraudulent activities are suspected on their accounts. Some banks will put a temporary hold on credit card activities until the customer makes a call to confirm unusual charges, before anything really serious can happen. If too many password attempts hit a merchant website page, their merchant account will be temporarily blocked until they call in to change the password.

Some merchant services websites outline the steps to take if a suspected fraudulent incident happens to a merchant account; these steps are designed to stop identity thieves in their tracks. Some financial services act as interceders between the seller and purchaser so they never have a printout or stamp of your account, and the information they receive on any transaction is limited. This can be as effective as using encoded passwords and account numbers.

Internet specialists, programmers and software designers are working around the clock to stay ahead with innovative features for safety in the online financial and marketing industry. Many trusted avenues for transferring money are being tasked to ensure that clients have a safe mode of completing business and sales without the danger of identity theft. Users who are observant, make good decisions and follow protection warnings when online can safely avoid identity theft.

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History of Credit Cards

The History of Credit Cards, Part 3: The Evolution of True Digital Credit Card Systems

September 2, 2014 Abtek Leave a comment

Today’s ecommerce depends heavily on digital credit card processing solutions and efficient, reliable, secure merchant services. While business is booming with brick-and-mortar companies relying upon digital POS systems, these digital systems have actually been evolving for over 30 years.

The First Online Shopping Cart

According to ”Internet – Technical Development and Applications,” the first online shopping cart system was demonstrated by a British entrepreneur named Michael Aldrich in 1979. Because of this, Aldrich is actually credited with the invention of online shopping. In other words, he developed the first system that made it possible to conduct online transactions between customers and businesses.

Even though this was the first true “ecommerce” system, that word had not yet been coined. Most people did not really even know that online shopping was possible way back in the late 1970s and even the 80s. In fact, the first internet browser, simply called the WorldWideWeb, was not invented until 1990.

One might also imagine that today’s internet security experts would be horrified by how vulnerable and transparent these first online payment systems actually were. But basic technology has to be developed and demonstrated before it can evolve into the truly useful and secure systems we rely upon today.

In 1992, two years before Amazon emerged, an article called Visionary in Obscurity reported that a bookstore moved their old dial-up BBS system to the internet as Books.com, and it attracted half a million visitors a month at its peak. The owner of the bookstore, Charles Stack, reported feeling very moved because his first online customer told him that he was a blind person who was able to make his own purchases with computer aids for visually impaired people.

Even then, true POS systems had not been developed, and the process of taking credit card information from the online system was partially manual and usually relied up a traditional store’s merchant account. This is similar to the fact that the first mobile merchant accounts actually relied upon sending text messages that needed intervention in order to get processed as transactions.

Early Mobile Payments

You might be surprised to learn that Coca-Cola innovated mobile payments in 1997. They introduced a few vending machines that allowed thirsty customers to send a text message to the machine with payment information. In that same year, Merita Bank introduced a similar system that accepted text messages with payment information for purchases.

No-Contact Payments

Radio frequency identification, called RFID, describes systems that are able to help customers make purchases with a chip and antennae embedded into electronic devices. Most commonly, these devices are smartphones. The customer just needs to wave their phone over a payment terminal in order to make a purchase. In some cases, the system might request a PIN number, but this is usually only for very large purchases or in cases where the automated system detects unusual payment activity for a specific customer.

The first example of this was Speedpass, a product from Mobil that allowed gas station customers to wave a small key ring fob over a payment panel in order to pay for gasoline. Today, ExxonMobil still accepts a Speedpass, and other companies have also adopted this technology.

The Future of Digital Merchant Services

At Abtek, we have provided secure, innovative and reliable ways for consumers to make online payments since 1986, and we continue to keep up with advances in digital technology and security. We thrive in this competitive business with a combination of futuristic solutions and a timeless commitment to customer service.

Besides providing basic credit card processing, we offer mobile merchant accounts, POS terminals and other aspects of today’s digital commerce. Our main commitment is to make certain that our services make our merchant affiliate’s businesses more productive and profitable. Contact us to learn why Abtek can provide the right solutions for your business.

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Merchant Service Providers

Expert Tips for Growing Your Business

August 27, 2014 Abtek Leave a comment

We understand that a common challenge of all businesses, especially smaller ones, is that of cash flow. No matter how profitable a business, it requires increasing levels of working capital to support ongoing growth. The successful entrepreneur understands this need for cash and capital and takes steps to ensure it is available when needed.

Increasing Cash Flow with the Right Merchant Services

Many people think the only way to fund a small business is through incurring debt or selling equity. While both of these methods are common, we work with many creative entrepreneurs who find additional ways to help manage their cash flow. For those companies involved with ecommerce especially, efficient credit card processing services is just one of those tools.

The use of our modern POS systems helps business owners generate accelerated cash flow. We provide merchant services that facilitate all types of large and small business transactions, from retail to online payments. We also offer mobile merchant accounts that fit the needs of a wide range of businesses. Importantly, our systems help our clients minimize the common problem of chargebacks.

Low cost and dependable credit card processing are only part of what we provide to business owners who want to maximize cash flow. As a part of our package of progressive merchant services, we also offer different forms of advances and business loans for those who serve their customers with our state-of-the-art POS systems.

The advantages of these financing options are numerous. Instead of trying to get a loan from a bank and committing to a rigorous payment schedule, we accommodate our clients with convenient terms that automatically reduce the balance they owe based on the volume of business they do.

Other Tips for Financing Your Business

In addition to debt, equity and the correct use of credit card processing services, the savvy business owner will focus on these key areas of managing working capital needs:

Working with vendors. The longer you work with certain vendors, the better terms you can expect. It is important to set up your company’s financial accounting system to ensure you pay your accounts on time, building a strong credit history. Setting up a D&B account is part of this process. Depending on your industry, you can also work with vendors to smooth out seasonal peaks in buying and payment terms.

Managing inventory. Today, there are many inexpensive inventory control systems to help keep inventory levels at the lowest level possible while meeting customer expectations. Many companies reduce their working capital needs by as much as 20 percent when they pay attention to inventory levels. This is especially important for companies with seasonal business or products that may go out of date. Clearing out excess inventory at cost is far better than letting it sit on shelves.

Consider invoice factoring. Many companies today are turning to the concept of selling their invoices to a factor to improve cash flow. The great thing about factoring for a small company is that the factor looks at the credit worthiness of the company buying the products or services. These are often larger companies with established credit, allowing even a new business to sell their invoices quickly. While this can be an expensive route, it may be the right way to support growth for some companies. Over the long-term, factoring is preferable to some businesses wishing to avoid debt or selling shares in the company.

Taking Care of the Basics

Companies must generate profits and have sufficient cash flow to survive and grow. Meeting customer expectations with quality service and professional credit card processing services are one of the basics for businesses today, especially those involved with ecommerce.

Delivering what customers expect will ultimately improve sales, reduce chargebacks and increase your ability to attract the type of financing you need for growth. Abtek’s POS systems are designed to help you provide that level of service and build the revenue you want and deserve. We also work with you to provide part of the financing you need as your growing base of charges shows you are taking care of business.

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History of Credit Cards

The History of Credit Cards, Part 2: Processing Before eCommerce

August 19, 2014 Abtek 1 Comment

Today, sophisticated merchant services and mobile POS systems rely upon digital information transfers via the internet or phone lines. To those of us who have watched this technology develop, the existence of mobile merchant accounts that allow businesses to accept payments via smartphones from almost anywhere in the world almost seem like a miracle.

In order to get a picture of how far merchant services have come, it is interesting to take a look back at more primitive processes, which eventually evolved into the fast and worldwide credit card processing solutions that we provide to our current customers.

Early Manual and Semi-Automated Credit Card Processing Solutions

Most credit card transactions today are processed digitally by sophisticated electronic POS systems. Before that, accepting credit required quite a bit of manual effort, and most of the processes were at risk for errors and outright fraud. It may be that the development of reliable and safe electronic processes paved the way for the boom in worldwide credit card use by average consumers.

Store Credit Processing With Charge Plates

Before the 1950s, the ancestor of the modern plastic charge card was made of solid metal, flimsy paper or cardboard stock. Processing paper credit cards was an entirely manual effort with employees recording transactions and customer information on forms that got sent off for manual processing.

In the 1930s and 40s, some stores issued charge plates to customers, perhaps the first example of semi-automated processing. These were simply small metal plates with a customer’s name and address engraved on the face. When a customer wanted to use their credit plate to make a purchase, a store employee would run it through a small machine that used an inked ribbon, sort of like an old typewriter ribbon, to make an impression on a sales slip with carbon copies.

After filling in the totals, the employee would hand a copy to the customer as a receipt. In order to keep track of each customer’s debts and mail statements, the original form and other copies got retained by the store to be processed manually.

Customers were expected to visit the store or mail money to make prompt payments by the end of the billing cycle. Some stores employed “collection carts” that traveled door to door to collect overdue debts.

Interestingly, charge plates are not entirely worthless today; many collectors are interested in them for their historical or artistic value.

How Was the First Plastic Processed?

Even after plastic credit cards became common, processing did not change that much. Until a few years ago, many stores ran credit cards through small machines to produce an imprint on special forms. Copies of these forms still served as receipts and documents used to manually process and record credit transactions.

The biggest difference in the latter part of the 20th century, and early 21st century, was the that credit card processing companies employed data entry people who would manually enter information from these receipts into computer systems, instead of simply recording them in ledger books.

Abtek Moves Merchant Services Into the Future

At Abtek, we work with the latest innovations for safe, fast and reliable credit card processing systems. Though we provide the latest advancements in digital online payments, we also remember the past. One thing that hasn’t changed for our company over the decades is the importance of great customer service, which is why we treat every one of our valued merchant partners as if they are our only customers. Contact us to learn how we can improve your business and protect your bottom line.

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EMV® Cards

EMVs: The Future of Credit Cards Is Here

August 13, 2014 Abtek Leave a comment

The serious data leaks suffered by Target and Neiman Marcus caused by hackers during the holiday season have re-energized the now long-standing question, “Are EMVs the future of credit cards?” US retailers are finally making the effort to catch up with the rest of the world.

Instead of leading the globe in innovation and cutting edge technology, the US has fallen behind in use of EMV (Europay, MasterCard, Visa) protocols. The recent breaches have magnified the security flaws in cards with magnetic stripes. These deficiencies have not been a “secret,” but obvious to all credit card issuers and manufacturers for some years.

EMV-Enabled Cards

With embedded computer chips and PINs, these cards are the height of security for retailers and cardholders. Credit card processing becomes equally secure, protecting both retailers and shoppers.

Commonly called “smart cards,” EMV-enabled cards use open-standard specifications to record payments on terminals programmed to accept them. EMVCo manages and maintains these protocols. EMVCo is owned by AmEx, Discover, JCB, MasterCard, Visa and other payment industry organizations, partnering as associates and technical consultants.

Where Are These Cards Now?

EMV cards are currently active for merchant services in an estimated 80 countries around the globe. Other countries not yet fully on stream with EMV smart cards, such as Canada, are in the process of converting to this embedded chip technology.

Instead of being the first, the US is one of the last countries to convert its mag stripe cards to EMV. In fact, EMVCo estimates that as far back as the fourth quarter of 2012, there were over 1.6 billion (with a “B”) smart cards active around the world.

Europe has over 95 percent of all payment terminals that are smart card active.
Canada and Latin America, including the Caribbean, have around 80 percent EMV-enabled terminals.
Even the Middle East and Africa have almost 80 percent smart card terminals.

Why the US Is “Late”

Those outside the banking and credit card processing industries often wonder why the US, typically a world leader, is so late getting to the dance? The delayed entry can be summed up in one word: volume. Migration to EMV cards in the US involves massive cost because of the number of magnetic stripe credit and debit cards, along with traditional and handheld POS systems, in circulation.

The merchant services industry and card issuers have been technologically ready for some years. However, the pure volume of mag stripe cards and terminals has generated the conversion delay. It was not until 2012 that major card issuers, such as MasterCard, Visa, AmEx and Discover, published strategies to perform the migration from magnetic stripe to embedded computer chip cards.
Since existing POS systems also need conversion, the cost of migration further increases for retailers of all sizes. Still, the benefit of using EMV cards and terminals remains indisputable.

Benefits

The benefits of EMV technology are impressive and well known.

Fraud prevention remains the most important benefit. The recent unfortunate events plaguing Target and Neiman Marcus, where so much plastic card sensitive information was compromised, emphasized this benefit beyond a shadow of a doubt.
Increased use of ecommerce, mobile merchant accounts and online payments are much more secure with EMV-enabled plastic cards. While the “best” hackers try to stay ahead of the curve, smart cards enjoy a uniquely secure reputation at the moment.
EMV technology offers detailed cardholder verification techniques, which provide online security that mag stripe cards do not. Using EMV cards minimizes the current problems of counterfeit, lost or stolen cards.

Credit Card Processors

This industry eagerly anticipates the future conversion to EMV technology. Industry insiders predict fewer errors, chargebacks and processing delays through the migration away from magnetic stripe terminals to EMV-enabled devices. The reasons?

Increased card authentication during the payment transaction protects cardholders from counterfeit card use by others.
Secure cardholder verification further protects merchants and cardholders against use of lost or stolen cards.
Use of card issuer determined permissions increases security of transaction authorizations, minimizing many potential problems.

Some US banks have started issuing EMV cards to customers. The process of total migration will take some time, requiring the patience of the industry, cardholders and merchants. The resulting huge decreases in fraud losses will be worth the wait, however.

Since most current EMV cards also have a mag stripe, travelers from the UK and other EMV countries can use their credit and debit cards at US retailers until the conversion is complete. While issuing only chip-enabled cards is under discussion in Europe, for the foreseeable future, most international travelers should encounter no problems using chip and mag stripe cards in the US.

Common Reasons for Chargebacks

General Prevention Tips

Prevention Tips for Swiped Cards

Prevention Tips for Online Businesses

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1. EMV Is The Safest Way to Purchase

2. EMV Transactions Will Be Slower

3. Most EMV Cards Will Use PINs

4. New Fraud Rules With the Advent of EMV Cards

5. Most Merchant Terminals Will Be EMV Compliant By 2017

6. You Can Use EMV Cards With Non-Compliant Merchants

7. EMV Cards Are Great For Traveling

8. EMV Cards Will Not Solve Online Fraud

9. Expect to See A New Card Soon

10. Merchants Need to Get On Board

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Identity Theft Can Happen to Companies and Individuals

Digital Solutions to Credit Card and Identity Theft Threats

Efficiency in Chargeback Procedures and Compliance

Pro-Active Protection Methods Used by Merchant Services Companies

Share and Enjoy

The First Online Shopping Cart

Early Mobile Payments

No-Contact Payments

The Future of Digital Merchant Services

Share and Enjoy

Increasing Cash Flow with the Right Merchant Services

Other Tips for Financing Your Business

Taking Care of the Basics

Share and Enjoy

Early Manual and Semi-Automated Credit Card Processing Solutions

Store Credit Processing With Charge Plates

How Was the First Plastic Processed?

Abtek Moves Merchant Services Into the Future

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EMV-Enabled Cards

Where Are These Cards Now?

Why the US Is “Late”

Benefits

Credit Card Processors

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Credit Card Processing and Merchant Account Solutions