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Mike Strawhecker at the financial services consultancy The Straw Group posted a pointed criticism of proposed changes to credit card processing laws. An amendment to the proposed financial regulation overhaul would give the Federal Reserve the authority to regulate “interchange transaction fees," or the charges paid by retailers to debit-card processors. Strawhecker's take: Beware of unintended consequences.
Angela Moscaritolo of SC Magazine notes the unanimous passage in the U.S. House of Representatives this week of legislation that would exempt certain small organizations from complying with rules requiring creditors -- including some small business creditors -- to develop programs to identify, detect and respond to indications of identity theft. A bill passed this week would amend the rule and exclude health care, accounting and legal practices with 20 or fewer employees from having to comply with the regulations, set to be enforced starting next month.
Credit card processing fees are going to eat into your margins. Whether it's the cost of renting a credit card processing terminal or a cost per transaction, it’s unavoidable without legislative changes. Understand that the best you’re going to be able to do is to minimize those losses on credit card payments, which can be as much as two percent of your credit card transactions.
If you're accepting credit card payments, you'll need to have a merchant account with your bank, you'll need a credit card processing terminal or maybe more. You're going to need to decide on a payment processor for Internet transactions, and potentially bring your company processes in line with PCIU compliance requirements.
Swedish big-box home furnishing store, IKEA, has tailored its customer shopping experience in a way that would make M.C. Escher proud. Its goal, like yours, is to drive up volume and drive down costs.
The financial services world is about credit. Retail outlets and service providers that can't handle credit card processing, or haven't passed PCI compliance, are at a disadvantage to those that have credit card processing terminals.
Imagine if your business only accepted cash payments. How badly would it hit your bottom line? What if you didn't make sales on the phone, or online? Make no mistake, credit cards keep businesses alive. It's simple math: If you accept credit card payments, your revenue potential increases dramatically