Does Adding a Credit Card Surcharge Fee Make Sense For Your Business?

Does Adding a Credit Card Surcharge Fee Make Sense For Your Business?

Surсhаrging is becoming more popular with merchants to offset their increasing credit card fees. The battle between merchants and the card brands has been long and ongoing. Last year, with the 11th District Federal Circuit’s ruling, merchants in certain states are now allowed to surcharge. That is, providing they do it correctly and by the card brand and state rules.

Previously only state, federal and local government agencies were allowed to surcharge. Merсhаntѕ were never given this privilege, they simply had to absorb the costs of payment acceptance. It wasn’t allowed by the card brands or most states. In fact, some states still ban this and it must be done correctly to avoid fines and continued card acceptance privileges.

The new allowance comes with a few challenges. Merchants will need proper equipment to surcharge accordingly and they are never allowed to surcharge a debit card. They must post the surcharge at their door, registers or at the point of sale. In аdditiоn, ѕurсhаrgе amounts muѕt bе diѕсlоѕеd оn a rесеiрt аnd сlеаrlу lаbеlеd fоr customer idеntifiсаtiоn.

Merchants will also need to саrеfullу еvаluаtе hоw this will impact their buѕinеѕѕ. After аll, thе surcharge fee саrriеѕ numеrоuѕ risks for mеrсhаntѕ-еѕресiаllу ѕmаll business оwnеrѕ who саnnоt riѕk lоѕing lоуаl сuѕtоmеrѕ. Before they make thе dесiѕiоn tо сhаrgе a surcharge fee, they nееd to think about any pushback they will receive from their customers. We are seeing a wave of merchants who have never accepted credit cards jumping on this and for them it is a non-issue.

Whаt a Crеdit Cаrd Surcharge Fее Means for your Customers

Cuѕtоmеrѕ are сhаrgеd аn аdditiоnаl fее оn top оf thе merchant’s рrоduсt or ѕеrviсе рriсе whеn thеу uѕе a сrеdit саrd tо mаkе a рауmеnt. Whilе thеrе are limitѕ to the аmоunt a merchant саn сhаrgе, and what type of card is allowed, the fее саn bе ѕignifiсаnt еnоugh to turn a customer away.

Riѕkѕ and rewards of Surсhаrgе Fееѕ

Thе obvious riѕk iѕ thаt a сrеdit card ѕurсhаrgе fее саn dеtеr a сuѕtоmеr from рurсhаѕing from one mеrсhаnt and inѕtеаd gоing tо a соmреtitоr. Whilе thе fее mау seem nоminаl, in a vеrу competitive buѕinеѕѕ еnvirоnmеnt, a ѕurсhаrgе fее саn deter a customer if not handled correctly. The upside is naturally an offset of interchange expenses which help with your bottom line. If explained correctly, most customers really understand costs associated with payment acceptance.

Cash Discounting, an Alternative tо Surcharging

Another way merchants саn avoid lоѕing сuѕtоmеrѕ аnd still offset their credit card fees is tо offer a cash diѕсоunt tо their сuѕtоmеrѕ willing tо pay via dеbit саrd, саѕh, or сhесk. Fоr еxаmрlе, a retailer can оffеr a 1.0 to 3.5 реrсеnt diѕсоunt оff merchandise when рауing with саѕh. This has been done for years at gas stations, furniture stores and a multitude of businesses. More and more retailers and restaurants are implementing cash discount programs. The only diѕаdvаntаgе iѕ thаt mеrсhаntѕ mау nееd to inсrеаѕе рriсеѕ to cover thе diѕсоunt which means their рrоduсtѕ mау at first ѕееm a bit higher. Once this is done it is typically forgotten. Also, customers will be getting a better price with cash and the merchant is happy because they are offsetting their costs. It truly can be a win/win for both parties.

Hоwеvеr, the аltеrnаtivе of raising product рriсеѕ thrоughоut thе store instead of adding a сrеdit саrd surcharge fee tо рurсhаѕеѕ mау make sense for ѕоmе mеrсhаntѕ due to complex pricing. Especially, if they have an antiquated Point of Sale System that doesn’t allow this. The new systems make it easy and seamless to do at checkout. It often only takes a one tо two percent рriсе change tо соuntеrасt the рrосеѕѕing fees сhаrgеd bу MasterCard аnd Viѕа. The dоwnѕidе to thiѕ approach iѕ thаt a mеrсhаnt’ѕ рriсеѕ соuld bе slightly higher thаn their competitors.

The finаl аnаlуѕiѕ is it iѕ up tо thе diѕсrеtiоn of each merchant to add a сrеdit саrd ѕurсhаrgе fее or implement a cash discount program. Whilе there are ѕоund alternatives to both, how this is communicated at the Point of Sale, is critical to make this process easily implemented and accepted. Mеrсhаntѕ should соnѕidеr thеir customer bаѕе carefully prior to implementing either program to decide which they feel is more palatable for their customers.

A truѕtеd merchant ѕеrviсе рrоvidеr iѕ a great rеѕоurсе fоr gеtting еxреrt аdviсе on how to properly аdd a credit саrd surcharge fее or a cash discount program and which iѕ thе bеѕt move fоr уоur buѕinеѕѕ.

 

Shop For Success

Shop For Success

Don’t miss the shopping event of the year! The annual Dress For Success Shop for Success will be held at the Crowne Plaza, Friday November 2nd; VIP Admission starting at 3 p.m. ($50 tickets…hurry, only 6 remaining), General Admission at 5 p.m. to 9 p.m.  Over 5,000 square feet will be packed with exclusive brands such as White House/Black Market, Chico’s, Talbots, St. John as well as other special well-known designers.  With prices starting at just $5 each it’s a bargain shopper’s paradise!

Card Systems and eGuarded are once again proud sponsors of the event and our staff will be there to assist you with all your purchases.  We hope to see you there – come start your holiday shopping with us!

Card Skimming/Shimming 101 – Protect your Business and your Customers

Card Skimming/Shimming 101 – Protect your Business and your Customers

With the advancements in technology, it’s just a matter of time before your business could become a victim.  Everyone who works with credit card and/or chip readers in any capacity should be aware of skimming threats and be watchful.  It could cost your business thousands and it may be someone right under your nose.

The card skimming wave was active this week in Oklahoma where the waitress was fortunately caught by her manager.  Read the full story here.  By the way, the waitress DID have an adverse background that would have been found had they run a background check.

The new era of thievery is now called “shimming”.  The thieves are inserting ultra thin circuit boards through any card slot to read EMV card details from inside the device.

What is the difference between skimming and shimming?

Skimming is recognized as fraud that “skims,” the information off the magnetic strip on a credit or debit card.

Shimming refers to an attack that captures data by tapping directly into the EMV chip.

7 Tips to Protect your Business:

  • Inspect card and chip readers regularly in and around the card slot
  • Background every employee dealing with credit cards and payments
  • Trust your instincts when it comes to your employees
  • Look into pay-at-the-table or mobile devices and software to take credit card data out of scope
  • If you must write down credit card data, protect it by locking it securely away
  • Inspect for hidden cameras or unrecognized devices
  • Ensure your host network is checking card verification codes of both magnetic strip/chip-based transaction authorization processes

7 things to Protect Yourself:

  • Trust your gut.  Rely on your instincts.  Know your surroundings
  • When in doubt, don’t use the ATM or hand your card over to a cashier
  • Make sure your card stays in sight. Never let anyone walk away with your card
  • Use your credit card instead of your debit card.  Don’t use your PIN unless you have to
  • Not all ATM’s are equal. Be particularly careful in a tourist areas
  • Use NFC or contact pay, Apple Pay, Android Pay or Samsung Pay (payment tokens). Always monitor your accounts
  • Be aware of transactions that force your card to use the magnetic stripe

We have your safe-guarded practices in mind always.  Remember, trust, but always verify.  For ideas to help safeguard your devices, call Card Systems now for all your POS, Credit Card Processing  and Equipment & Software needs.

A World Without Receipts – Can You Imagine?

A World Without Receipts – Can You Imagine?

Is it time you considered adding a Signature Capture Device?

It may be closer to reality than we might expect.  There are key chemical components utilized in receipt paper that are low in supply and high in demand.

Why?  An estimated 80K factories have been fined, shut down or hit with criminal offenses due to the Chinese Government’s renewed enforcement of environmental regulations.

There has been a buzz in the air that there is a global thermal paper shortage.  Paper vendors continue warning about the imminent price increases and shortages.

We know how critical it is for you to have a reliable supply of thermal paper at a reasonable price, and we will do everything within our power to assist through this paper shortage.  The reality is that there will be price increases, and paper will need to be allocated and rationed at times.

For Best Practices and help during this shortage, here are some things you may wish to consider:

  1. American Express, Discover, MasterCard & Visa are no longer requiring signatures on credit card charges. So unless you have tips to consider, turn off the credit card signature receipt, or better yet, enable signature capture on your devices.
  2. Take advantage of and emailing or texting receipts to your customers. This is a big win because you can retain your customer’s data for future promotions, and have a positive impact on the environment
  3. Remember to Offer Pay at the Table in restaurants
  4. Take advantage of guest self-pay options (apps, kiosks, etc.)
  5. Use Signature Capture PIN pads

The new signature capture devices have become more affordable in every industry. These devices save you money by empowering you to electronically accept payments at the table, through a Kiosk or even through your phone.  You also will reduce paper consumption by sending payment requests electronically through apps that automate the checkout process.  It couldn’t be a better time to adopt these simple to use technologies to go paperless and save!

Be informed, Only YOU can prevent a VPNFilter attack

Be informed, Only YOU can prevent a VPNFilter attack

Today, you are going to be an informed consumer.  Routers are weak points.  The VPNFilter is dangerous.  But we are here to help you.

It is unrealistic to expect home users and small business proprietors to become security experts.

Reputable router manufacturers do equip their devices with security features.  You have to sign up for the necessary automatic updates so your router is maintained though.

Think safety when it comes to your home and business and moving forward you will be able to easily defeat vulnerabilities from this day forward.

Even if your router was not on the released “at risk device list,” take this opportunity to realize there are mobile-management tools available and configuring your router has become easier.  Take advantage of the advanced features.  Utilize the step-by-step process and perform maintenance and you will not become a statistic.

Choose a router that offers security.  A router with Wi-Fi Protected Setup (WPS) let’s you add compatible devices with the push of a button.  For a more secure connection, use Wi-Fi Protected Access (WPA or WPA2), which requires entering a password for EACH device. Routers with WPA-Enterprise security offer the highest level of security.

The technology currently used to assign static IP addresses known as Internet Protocol iPv4 will eventually be replaced with iPv6.  The iPv4 is a 32-bit address scheme running out of addresses due to the number of devices connecting to the internet.  iPv6 has 128-bit scheme which offers an almost infinite number of IP addresses.   Make sure you get a router that has built-in support for iPv6; and verify this so you are ready for the transition when iPv4 finally hits the wall.

Future proof your home and small business now; and pay up front for a router that is enterprise level.  Amazon is a great resource to utilize and compare prices.  Send us an email if you want to know what features to look for.

A Year to Remember

A Year to Remember

Some people say the past 12 months has reminded them of the apocalypse. Wild fires in the west, an earth quake in Mexico and Oklahoma, Hurricane Harvey and Irma leaving a wide path of destruction throughout Texas and Florida, Hurricane Maria totally devastating Puerto Rico, flooding in the west and Hawaii, mudslides in California, blizzards and multiple nor’easters, just to name a few. All this leaves desperate people in the wake of these catastrophic disasters to pick up the pieces and rebuild their lives. Property owners will more than likely have to rely on out-sourcing the rebuilding and repairs.

We want to make sure you’re aware that in most states, and especially the State of Florida, there are building and compliance codes that contractors need to follow. Make sure the company you hire is licensed and bonded before they start any type of repair so as not to negate your insurance claims.

ARE YOU HIRING ADDITIONAL STAFF TO HANDLE THE INCREASED WORKLOAD?   

Do your due diligence and background the influx of new hires you plan on recruiting for the busy months ahead.

Our sister company, eGuarded can help by not only offering license verifications but also background screening for new and existing employees. Simply click on this link to get started.  No Monthly Fees, No on Going Fees you just pay for when you use it.

CONTRACTORS, ARE YOUR PROSPECTS HAVING A HARD TIME MEETING THEIR DEDUCTIBLE?

Have you considered offering a finance program? These programs can bridge the gap between insurance claims and out-of- pocket expenses. They also allow your “credit challenged” customers to finance your products and services at no risk to you. This can dramatically increase your sales by giving your customers an alternate means of payment, especially in the case of an emergency.

Finance programs give your customer a completely unsecured loan option. By offering multiple financing sources, you will increase the chance of your customers getting approved for financing the first time. This will reduce how often you have those awkward decline conversations!

Consumer Finance Benefits to your Customers: 

  • Quick loan amounts up to $60,000
  • Approvals when others say no
  • A second chance while rebuilding credit

Consumer Finance Benefits to your Business: 

  • Low merchant rates
  • Full payment made directly to your office
  • No Setup Fee, No Minimums and No Monthly Usage Fee
  • Average 6 out of 10 declines approved
  • No Collection Headaches
  • Simple website integration

Look for a program that allows for instant decisions that fund quickly to increase your bottom line.  Do what your competitors aren’t doing in your market area and see the results. Simply click here for more financing information.

Financing helps your business grow by turning your prospects into customers!

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