A chargeback occurs when a customer contacts their credit card issuing bank to initiate a refund for a purchase they made on their credit card. The reasons why chargebacks arise can vary greatly, but generally they are the result of either a customer not having received or simply being dissatisfied with their purchase.
The customer may or may not have contacted the merchant about remedying this situation ahead of time. They may even be completely wrong. However, responsibility falls to the seller to ensure that the transaction goes smoothly and the customer is satisfied. A failure somewhere within the fulfillment process, including at the customer service level, can lead to a chargeback. Follow the advice in the following top ten list to help you reduce and eliminate chargebacks.
1.Set Realistic Expectations
◦Display shipping information and product delivery times prominently.
◦Send parcels registered and insured so that there is tracking information and proof of delivery.
◦For direct sales or affiliate marketing, highlight the opportunities for new distributors but be careful NOT to make any promises. Call new members and find out subtly what they just bought into.
2.Refunds, Refunds, Refunds
◦Give your refund policy prominent visibility on your website.
◦Carefully word your refund policy to encourage refunds instead of chargebacks - refunds cost you much less than chargebacks!
3.Be Reachable
◦Make sure your contact information is highly visible.
◦Make sure there is someone to speak with during the times posted; frustrated customers will immediately call their credit card company if they can't get in touch with you easily.
4.Use a Clear and Concise DBA (Doing Business As) Name That Will Appear on Customer Credit Card Statements
◦The name of your business that appears next to the charged amount on the customer's credit card statement is important. If it's clear, your customers won't need to call their credit card company to explain the charge.
◦Do not use a vague name or even worse a numerical business ID that may confuse the purchaser.
◦If possible, have your phone number listed next to your DBA, so customers can call you directly instead of their issuing bank.
5.Make it Simple to Check Shipment or Order Status
◦Make it simple for customers to check the status of their order by logging into their account.
◦For direct sales, consider an "opt in" billing system for new members during their first couple of months, and make it as easy as possible to get out of a program, as it was to get in.
6.Ship the Order First, and THEN Charge the Credit Card
◦Only charge the purchaser's credit card once the order is shipped. A long delay between order and shipment may cause customer suspicion, resulting in a chargeback.
◦In the case of back-ordered shipments, you will minimize customers asking for refunds which will save you both time and money.
7.Collect and Store all Documentation for Fighting Chargebacks
◦Keep hard copies of all invoices, contracts, delivery receipts, user IDs and shipping logs.
8.Only Accept Credit Cards Belonging to the Purchaser
◦Only accept transactions from the original cardholder, shipped to the cardholder's address on record. See Address Verification System (AVS).
◦If you choose to accept payment with a third person's card, make sure you speak to the original cardholder or get a faxed copy of their ID.
9.Don't Let the Same Credit Card Make Multiple Purchases in a Short Time Period
◦Be sure the "buy now" button can only be pressed once for each order.
◦Set fraud parameters to limit cards to an acceptable number of purchases per fixed timeframe.
10.When Possible, Perform Cardholder Authentication Checks
◦Use Verified by Visa and MasterCard SecureCode to protect yourself from receiving unwarranted chargebacks.
Naples Merchant Services
People make the difference
Friday, December 3, 2010
Monday, November 8, 2010
What Is PCI Compliance? Should I be Concerned?
The answer is YES!
Even small merchants are being compromised and it is very important that you are protected.
The major credit card issuers created PCI (Payment Card Industry) compliance standards to protect personal information and ensure security when transactions are processed using a payment card. All members of the payment card industry (financial institutions, credit card companies and merchants) must comply with these standards if they want to accept credit cards. Failure to meet compliance standards can result in fines from credit card companies and banks and even the loss of the ability to process credit cards.
Maintain a secure network
This standard refers to the actual network that cardholder data is exposed to. In the case of an online business, the most obvious vulnerability for this standard is the web server. Luckily, most hosting companies take responsibility for ensuring the security of their networks. However, there is more to this standard than meets the eye. Do you keep cardholder data (even just names) on a laptop that you use on public networks? Does your office network have a firewall installed and reasonable security measures in place?
In short, whenever any personal information about a cardholder is stored on a computer (which is also connected to a network), that computer is behind a firewall and all reasonable measures have been taken to protect that particular network.
Protect Cardholder Data
This category focuses on how cardholder data is stored and transmitted. Business owners that choose to store cardholder information have an obligation to protect that data. Protecting information means that not everyone can access that it. Businesses that store actual credit card numbers will often store them as encrypted data, so that even if someone got access to the database they still could not decipher the information in it.
Ecommerce businesses need to be especially critical of the way that cardholder data is transmitted. When a customer makes a purchase on a website, his/her cardholder information is sent across the Internet. During that transmission, cardholder data must be encrypted with at least a 128 bit SSL certificate in order to meet this standard.
Maintain a Vulnerability Management Program
This one is relatively simple, and translates to keeping up to date with your systems. Vulnerability exposure can be minimized by regularly updating computer hardware, operating systems and software. Keeping up to date anti-virus software, as well as running regular virus scans, is another requirement to meet this standard if your systems are susceptible to such vulnerabilities.
Implement Strong Access Control Measures
The most exploited breach in security is the human element, which is harder to protect. Part of meeting PCI compliance means limiting access to cardholder data to only those persons that need to use it. In addition to restricting physical access to cardholder information, business owners are also responsible for assigning a unique identification to each person that does have access.
Regularly Monitor and Test Networks
Networks that store cardholder data be monitored and tested regularly. Regular scans of security measures and processes, monitoring and tracking of network access to cardholder data are required to satisfy this standard. Consider signing up for a security testing and auditing service, such as ScanAlert's Hacker Safe program, which can help you to identify and fix potential security problems as they arise.
Maintain an Information Security Policy
Considering that humans are generally the easiest part of a system to hack, and also that ignorance does not relieve liability, it's important to draft and implement a company-wide information security policy. Make sure that your employees know and understand their responsibilities with regards to cardholder data before it becomes an issue.
The major credit card issuers created PCI (Payment Card Industry) compliance standards to protect personal information and ensure security when transactions are processed using a payment card. All members of the payment card industry (financial institutions, credit card companies and merchants) must comply with these standards if they want to accept credit cards. Failure to meet compliance standards can result in fines from credit card companies and banks and even the loss of the ability to process credit cards.
Maintain a secure network
This standard refers to the actual network that cardholder data is exposed to. In the case of an online business, the most obvious vulnerability for this standard is the web server. Luckily, most hosting companies take responsibility for ensuring the security of their networks. However, there is more to this standard than meets the eye. Do you keep cardholder data (even just names) on a laptop that you use on public networks? Does your office network have a firewall installed and reasonable security measures in place?
In short, whenever any personal information about a cardholder is stored on a computer (which is also connected to a network), that computer is behind a firewall and all reasonable measures have been taken to protect that particular network.
Protect Cardholder Data
This category focuses on how cardholder data is stored and transmitted. Business owners that choose to store cardholder information have an obligation to protect that data. Protecting information means that not everyone can access that it. Businesses that store actual credit card numbers will often store them as encrypted data, so that even if someone got access to the database they still could not decipher the information in it.
Ecommerce businesses need to be especially critical of the way that cardholder data is transmitted. When a customer makes a purchase on a website, his/her cardholder information is sent across the Internet. During that transmission, cardholder data must be encrypted with at least a 128 bit SSL certificate in order to meet this standard.
Maintain a Vulnerability Management Program
This one is relatively simple, and translates to keeping up to date with your systems. Vulnerability exposure can be minimized by regularly updating computer hardware, operating systems and software. Keeping up to date anti-virus software, as well as running regular virus scans, is another requirement to meet this standard if your systems are susceptible to such vulnerabilities.
Implement Strong Access Control Measures
The most exploited breach in security is the human element, which is harder to protect. Part of meeting PCI compliance means limiting access to cardholder data to only those persons that need to use it. In addition to restricting physical access to cardholder information, business owners are also responsible for assigning a unique identification to each person that does have access.
Regularly Monitor and Test Networks
Networks that store cardholder data be monitored and tested regularly. Regular scans of security measures and processes, monitoring and tracking of network access to cardholder data are required to satisfy this standard. Consider signing up for a security testing and auditing service, such as ScanAlert's Hacker Safe program, which can help you to identify and fix potential security problems as they arise.
Maintain an Information Security Policy
Considering that humans are generally the easiest part of a system to hack, and also that ignorance does not relieve liability, it's important to draft and implement a company-wide information security policy. Make sure that your employees know and understand their responsibilities with regards to cardholder data before it becomes an issue.
Sunday, October 10, 2010
eMail Security
E-mail is a convenient way to communicate. But, DO NOT send personal information, bank account, social security, or Credit Card Numbers as e-mail is not a secure method of communication. Most e-mail travels unencrypted over the Internet.
Some e-mail services boast Secure Socket Layer (SSL) encryption. Gmail is one example. This creates an encrypted connection between your computer and the mail server. Hackers can't snoop on your data as it's sent or received to the server.
However, only the connection is encrypted. The e-mail itself is still readable. During its journey, e-mail passes through a number of servers. Copies of your messages can linger on these servers. Anyone could stumble across them.
If you must transmit personal information use a fax machine to deliver your information.
Some e-mail services boast Secure Socket Layer (SSL) encryption. Gmail is one example. This creates an encrypted connection between your computer and the mail server. Hackers can't snoop on your data as it's sent or received to the server.
However, only the connection is encrypted. The e-mail itself is still readable. During its journey, e-mail passes through a number of servers. Copies of your messages can linger on these servers. Anyone could stumble across them.
If you must transmit personal information use a fax machine to deliver your information.
Thursday, August 5, 2010
Naples Merchant Services , Why Use Online Processing
Why process online?
The most common question among merchants is, why choose a "virtual" credit card machine instead of the typical stand-alone credit card machines? The greatest benefit of using a "virtual" merchant console is that it provides the merchant with the ability to process from any computer with an internet connection in the world. Processing online gives a company mobility and scalability that a stand-alone credit card machine simply can not provide.
Merchant Console
The Merchant Console starts with the basics that every merchant needs. These basic functions include the ability to process a sale, void, credit, authonly, postauth and settlement; all the functions of a credit card machine but it's all done online.
Reporting
The console also allows merchants to view a wide array of different reports. Transactions for reports are stored for the life of the account and merchants can decide to either view a report for their entire processing history or view a report for just the past day. Visual reports with graphs and charts make it easy for any merchant to see their transaction history. Export users can create custom reports with specific criteria to fit any merchant's reporting needs and any report can be printed, emailed or downloaded at any time.
Customer Database
Without having to install any additional software, the Customer Billing section of the Merchant Console allows merchants to create a customer database and to create and maintain auto-billing cycles for those customers. Customers can be auto-billed on a daily, weekly, monthly, bi-monthly, quarterly, bi-annual or annual basis. This feature works especially well for hosting companies and time-payment merchants who allow their customers to pay in installments.
Batch Uploading
Whether your merchant needs to upload a file of ten transactions or ten-thousand transactions, the batch uploader allows them to do so. Built into the console, the Batch Uploader allows merchants, who do not authorize in real-time or who prefer to upload batches of transactions (such as fulfillment centers) at one time, to upload files of transactions in supported formats [such as comma and tab limited] and then process them without having to key them in one at a time.
Security
Along with being PCI Compliant, the Merchant Console runs on the highest level of security. We use the best in 1024-bit SSL Digital ID encryption for all transaction processing and goes far beyond the minimum standards making our gateway one of the most secure in the industry.
The most common question among merchants is, why choose a "virtual" credit card machine instead of the typical stand-alone credit card machines? The greatest benefit of using a "virtual" merchant console is that it provides the merchant with the ability to process from any computer with an internet connection in the world. Processing online gives a company mobility and scalability that a stand-alone credit card machine simply can not provide.
Merchant Console
The Merchant Console starts with the basics that every merchant needs. These basic functions include the ability to process a sale, void, credit, authonly, postauth and settlement; all the functions of a credit card machine but it's all done online.
Reporting
The console also allows merchants to view a wide array of different reports. Transactions for reports are stored for the life of the account and merchants can decide to either view a report for their entire processing history or view a report for just the past day. Visual reports with graphs and charts make it easy for any merchant to see their transaction history. Export users can create custom reports with specific criteria to fit any merchant's reporting needs and any report can be printed, emailed or downloaded at any time.
Customer Database
Without having to install any additional software, the Customer Billing section of the Merchant Console allows merchants to create a customer database and to create and maintain auto-billing cycles for those customers. Customers can be auto-billed on a daily, weekly, monthly, bi-monthly, quarterly, bi-annual or annual basis. This feature works especially well for hosting companies and time-payment merchants who allow their customers to pay in installments.
Batch Uploading
Whether your merchant needs to upload a file of ten transactions or ten-thousand transactions, the batch uploader allows them to do so. Built into the console, the Batch Uploader allows merchants, who do not authorize in real-time or who prefer to upload batches of transactions (such as fulfillment centers) at one time, to upload files of transactions in supported formats [such as comma and tab limited] and then process them without having to key them in one at a time.
Security
Along with being PCI Compliant, the Merchant Console runs on the highest level of security. We use the best in 1024-bit SSL Digital ID encryption for all transaction processing and goes far beyond the minimum standards making our gateway one of the most secure in the industry.
For more information:
Naples Merchant Services
12th Avenue South
Naples, FL 34102
239-449-6040
Credit Card Termial Batching Daily Saves $$$
Visa® and MasterCard® have strict timelines for settling transactions through their systems. In most cases, transactions need to clear through the card companies within two days, excluding Sundays and major holidays, to qualify for the most favorable interchange rates. All payments processors have only two days to process your transactions and forward them to Visa and MasterCard.
Batching even one day late can significantly increase the interchange rate. Transactions that don’t meet the two-day time period are “downgraded” to a higher rate — which means you actually pay more for them. If you settle your accounts only one day late, it costs you as much as 0.76% more per retail transaction for Visa transactions and 0.31% more for MasterCard transactions. As more time passes, the fees get even higher — as much as 1.16% more for Visa and 1.12% more for MasterCard.
Most issuing banks drop the holds based on the authorized amounts from cardholders’ accounts after seven days. If the hold is dropped on the seventh day, and the sale comes in on the tenth day, the customer may experience an overdraft. As recourse, a customer may request a refund of the overdraft charges as well as a letter to clear his/her name. Worse yet, the cardholder may decide to no longer patronize your business.
Also, the longer you wait to download transaction information, the longer it takes to show up on a customer’s billing statement. After some time, the customer can dispute the charge and request a refund — which comes in the form of a chargeback to your business.
Consider batching your transactions on a timely basis. If all other qualifying criteria are met, you qualify for the best interchange rates by settling your transactions daily. Plus, you avoid paying any fines to Visa and MasterCard — putting that money back in your business where it belongs.
These and other money saving tips are for the merchant! The money you save goes directly to your bottom line.
This tip and more are for your information:
Naples Merchant Services
Naples Florida
239-449-6040
http://www.naplesmerchantservices.com/
Please take time to read our free online tips to save you time, money, and run your business much more efficiently.
Batching even one day late can significantly increase the interchange rate. Transactions that don’t meet the two-day time period are “downgraded” to a higher rate — which means you actually pay more for them. If you settle your accounts only one day late, it costs you as much as 0.76% more per retail transaction for Visa transactions and 0.31% more for MasterCard transactions. As more time passes, the fees get even higher — as much as 1.16% more for Visa and 1.12% more for MasterCard.
Most issuing banks drop the holds based on the authorized amounts from cardholders’ accounts after seven days. If the hold is dropped on the seventh day, and the sale comes in on the tenth day, the customer may experience an overdraft. As recourse, a customer may request a refund of the overdraft charges as well as a letter to clear his/her name. Worse yet, the cardholder may decide to no longer patronize your business.
Also, the longer you wait to download transaction information, the longer it takes to show up on a customer’s billing statement. After some time, the customer can dispute the charge and request a refund — which comes in the form of a chargeback to your business.
Consider batching your transactions on a timely basis. If all other qualifying criteria are met, you qualify for the best interchange rates by settling your transactions daily. Plus, you avoid paying any fines to Visa and MasterCard — putting that money back in your business where it belongs.
These and other money saving tips are for the merchant! The money you save goes directly to your bottom line.
This tip and more are for your information:
Naples Merchant Services
Naples Florida
239-449-6040
http://www.naplesmerchantservices.com/
Please take time to read our free online tips to save you time, money, and run your business much more efficiently.
Monday, June 14, 2010
Use Your Own Cell Phones To Process Credit Cards Securely
Mobile ePay
In the past, if you wanted to process outside of the office you would either have to call in the transaction or collect the card information and process it when you got back to the office; this would result in a non-swiped rate. Mobile ePay takes these problems away with one simple solution. You can simply install the Mobile ePay Java software, and instantly process credit card transactions.
Easy Interface
The Mobile ePay software has a simple, user-friendly interface with step-by-step instruction on how to use. You will feel comfortable and confident from the first transaction.
Just Swipe and Process
The software makes processing credit cards as simple as just swiping a card. Once you log into the software and select a function, such as a sale, the software is automatically ready to read a card through the swiper cradle or wireless bluetooth swiper/printer. All you need to do after the card is swiped is enter a dollar amount and push process.
Reports and Statistics
Connection to the USA ePay Reporting features within the gateway is something you won’t be able to live without. Since all transactions done through the wireless device come through the USA ePay gateway, the system captures and stores all transactions securely and generates reports and statistics on these transactions in real-time. Gone are the days of shifting through rolls and stacks of paper receipts from your credit card machine, everything is now calculated and stored online for easy access.
Contact us today:
Naples Merchant Services
239-449-6040
Naples, FL
info@naplesmerchantservices.com
In the past, if you wanted to process outside of the office you would either have to call in the transaction or collect the card information and process it when you got back to the office; this would result in a non-swiped rate. Mobile ePay takes these problems away with one simple solution. You can simply install the Mobile ePay Java software, and instantly process credit card transactions.
Easy Interface
The Mobile ePay software has a simple, user-friendly interface with step-by-step instruction on how to use. You will feel comfortable and confident from the first transaction.
Just Swipe and Process
The software makes processing credit cards as simple as just swiping a card. Once you log into the software and select a function, such as a sale, the software is automatically ready to read a card through the swiper cradle or wireless bluetooth swiper/printer. All you need to do after the card is swiped is enter a dollar amount and push process.
Reports and Statistics
Connection to the USA ePay Reporting features within the gateway is something you won’t be able to live without. Since all transactions done through the wireless device come through the USA ePay gateway, the system captures and stores all transactions securely and generates reports and statistics on these transactions in real-time. Gone are the days of shifting through rolls and stacks of paper receipts from your credit card machine, everything is now calculated and stored online for easy access.
Contact us today:
Naples Merchant Services
239-449-6040
Naples, FL
info@naplesmerchantservices.com
Friday, June 11, 2010
Terminal Tips That Will Save a Merchant Money
Be sure to swipe the card into the terminal instead of manually inputting the cardholder information. If it does not read the card properly the first time, don’t give up, swipe it again. Assure that you are swiping in the correct direction and that the card is not held at an angle that affects the read.
Refrain from manually entering as this can affect your rate from .5% and higher.
Check additional ID like a drivers license, comparing the name on the license to the name on the card. Compare the signature on the signature line by the cardholder with the signature on the back of the card, to avoid chargebacks and other disputes. A single chargeback can prove to be a costly occurrence and can adversely affect their business.
Process transactions on the same day the purchases are made. To save transactions from downgrading (higher fees), use the terminal's settlement function within the same period of the purchases. If you settle your transactions more than 24 hours after they were accepted, payment processing companies raise the transaction charge.
Take care of digital prompts that the terminal provides. The terminal often asks for additional information for corporate cards and some debit cards. Don’t neglect these prompts, because not following the directions can lead to a significant increase in transaction charges.
Refrain from manually entering as this can affect your rate from .5% and higher.
Check additional ID like a drivers license, comparing the name on the license to the name on the card. Compare the signature on the signature line by the cardholder with the signature on the back of the card, to avoid chargebacks and other disputes. A single chargeback can prove to be a costly occurrence and can adversely affect their business.
Process transactions on the same day the purchases are made. To save transactions from downgrading (higher fees), use the terminal's settlement function within the same period of the purchases. If you settle your transactions more than 24 hours after they were accepted, payment processing companies raise the transaction charge.
Take care of digital prompts that the terminal provides. The terminal often asks for additional information for corporate cards and some debit cards. Don’t neglect these prompts, because not following the directions can lead to a significant increase in transaction charges.
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