While they still offer this service, they now charge to get a snack or a drink on the plane. On my last trip I overheard, do you accept credit cards? To my amazement the flight attendant said yes. This just shows how often people use credit cards over cash, even on a plane when only buying a soda and a candy bar or a package of nuts, they will choose to use their credit card or debit card, over paying with cash.

If the airlines did not accept credit cards, they would lose out on quite a bit of money I’m sure, because of how unpopular cash is becoming. Many people on the airline would probably not have bought snacks unless the airline accepted credit cards as form of payment.

From a business perspective this is an important fact, because if consumers will buy a soda and a snack, which is a smaller purchase, on a credit card, don’t you think they are looking to make larger purchases on their card as well?

It is crucial for businesses to make the move to accepting credit cards no matter their size. While it can be an intimidating experience, it is much needed for the convenience of each customer.

Brent W. says:
It’s definitely irritating as I rarely carry cash for my own personal issues with, well, carrying a load of cash on me.  Unfortunately a few of my favorite places are cash only.

Dave “Cats Rule” N. says:
Maybe they have enough business and don’t care if they lose a handful of customers. when my kids went to a private school, they allowed you to make your tuition with a credit card.

Rico “You down with Brown?” T. says:
The busier the joint is, the more cash the owner can stuff into their mattress. Think about it…the place charges you for the bill, tax & maybe even tip.  By accepting cash, they don’t pay the merchant processing fee…

Martina “Martz” W. says:
Stores should think about customer convenience though. I can’t always carry a huge wad of cash in my pocket, you know!

Try not to piecemeal solutions together – find one provider that can meet all your needs
For example, if your business is selling goods and services online you may need credit card storage, a payment gateway, virtual terminal, risk and fraud management and echeck solution. What services you need depend on your acceptance channels such as website, phone, fax, mail and instore.  Make sure your provider can not only do all of those things – but do them well. Ask to look at their solutions before committing.

Do enough research about prospective providers to gain a level of trust
This industry is fundamentally very complex. As a business owner, you won’t have time to learn or keep up to date on everything going on in the payment processing industry. You will need to work with a company that won’t take advantage of your limited understanding. One of the best indicators is to evaluate whether or not they are upfront with their prices and capabilities. For example, if they list their fees on their website, do they disclose all fees or is it bait and switch. You can also read Some advice to help you avoid common mistakes.

Other Suggestions
Ask good and through questions in the beginning of a relationship to find out what your provider’s capabilities are. Ask them to throughly explain all fees, rates, and conditions. Ask them if they have experience with different products and services and then ask for examples of when and where they previously implemented it. Try to avoid getting into a relationship where your vendor runs out of steam right after the most basic service is in place.

Price usually ends up being the primary driver which can lead to some larger and more costly challenges. Even those that have years of experience with credit card processing fees struggle to truly understand enough to successfully negotiate good pricing.

More experienced merchants search better understand technical capabilities, security and compliance implications, underwriting and risk management, products and solutions, customer support, and rate disclosure practices.

There are basically two types of providers, processors and ISO’s (resellers for processors). One of the takeaways of that post was that ISO’s can be just as good if not better than processors in providing high value processing solutions.

This is mentioned because this is counter intuitive to some who run with ‘cut out the middleman’ thought process.

First, don’t let price be your primary decision making factor
It’s understandable that watching your costs is the one of the most important parts of your business, but don’t let it be the primary driver when choosing a merchant service provider.

Providers know this and so to appeal to your needs they advertise rates and fees that are not all inclusive. This industry is so competitive and the margins that merchant processors make are so small, get a competitive rate, but focus your energy on larger and more important issues.

If you’re not convinced and still want to pursue price as your sole decision making factor, just know that the ‘creative’ selling strategies being used by some are really just part of a larger, and accepted culture in the industry.

When changes are implemented in the credit card processing industry, there are also changes in the regulations on how this data is processed. Here is what level I, Level II and Level III data comprise of :

Level I data includes:

• Date
• Merchant Name
• City
• State
• ZIP Code

This information is not prompted by the terminal, and the merchant has to further enter the purchase amount including sales tax.

Level II Data includes:

• Date
• Merchant Name
• Tax ID
• Merchant Type Code
• Merchant Category Code (MCC)
• City
• State
• ZIP Code

This information will automatically programmed into your terminal and you should not need to enter it. In Level II transactions, the merchant is prompted by the terminal to enter some information, such as, purchase amount excluding sales tax, sales tax, local tax indicator and customer code (when using a purchasing card).

Level III Data includes:

• Date
• Merchant Name
• Tax ID
• Merchant Type Code
• Merchant Category Code (MCC)
• City
• State
• ZIP Code

This information will be automatically programmed into your terminal and you should not need to enter it. The terminal will however prompt the merchant to enter more information for level III transactions such as purchase amount, excluding sales tax, sales tax, local tax indicator, customer code, and full line item details.

Level I transactions are usually standard retail transactions, where the card holder uses his credit card, issued to him by an American bank. Level II transactions comprise of corporate cards issued by an American bank. Level III transactions are government credit cards or corporate cards. Level I and II transactions can be run through a standard credit card terminal or PC processing program if setup correctly. Level III transactions require special software to transmit the extra information required to qualify the transaction.

It’s hard to determine which credit card processing solution is best for your business with so many choices available. Below are the criteria TopTenREVIEWS used to rank credit card processing services:

Average Approval Rating
This criterion, usually evaluated by percentage of approved applicants, refers to its approval rate, the processing speed and the fee to apply. An accommodating service will have a high approval rate and process your application quickly and without a fee.

Cost per Month
A low monthly cost helps keep overhead costs down. A competitive credit card processing company will require a low monthly fee with clear communication about ongoing fees and costs. Our ratings are based on 500 transactions per month with one statement, charge back and gateway fee.

Start-Up Cost
Credit card processing companies shouldn’t charge you too much to set up a merchant account and a payment gateway.

Account Setup Time
A competent service will expedite your application and get you in business as quickly as possible, some can approve the application and set-up an account within a days time.

Customer Service
Accessible customer service answers inquires 24 hours a day, seven days a week. The service should offer many avenues of contact including telephone, email or instant messaging and help should be quick to respond and provide useful information.

Internet Based Features
Most companies offer more than one type of virtual terminal as well as an online merchant account and payment gateway.

POS/ Swipers Features
A variety of Point of Sale options and swipers (card readers) should be available through the service. This is especially important if you are a retail business or operate from remote sales locations.

With a good credit card processing service, you can increase your sales and flexibility and give your customers many payment options.

Ecommerce stores may be forced to shut down if there is a data breach related to credit card processing, but it all depends on the circumstances. Why did the data breach occur? Where did the breach occur? What steps have been taken to prevent a reoccurance? Did the company meet PCI Security Compliance standards at the time of the breach? Who do you think will force you to shut down your site?

If your company was in PCI compliance, and preventative measures have been taken, it’s doubtful you’d be forced to shut your site down. You’d be protected by Safe Harbor from financial liability.

Who can force you to shut down your site? The card associations or your payment processor are the most likely. The actual site doesn’t need to be closed, but you may not be able to accept credit cards online. You may still be able to accept Paypal, Google, or other payment types, again, depending on the nature of the breach. For example, Paypal etc would take the transaction off your site for secure payment.

As a book must be read for it to be meaningful, a credit card’s magnetic strip must be read for the information it contains to be useful and applied.  A credit card swipe reader accomplishes this task.

If you’ve ever paid for something in person with your credit card it’s almost a certainty the card was swiped through a credit card reader for authorization (and for eventual settlement) by the merchant. The device is used to read the magnetic strip on credit and debit cards and is also known as a magnetic strip(e) or swipe reader. However, a magnetic strip reader is able to read several types of cards that come with a magnetic strip on them, such as certain types of ID cards, and driver’s licenses, etc.

Credit card readers can be connected in several ways such as a keyboard wedge, a serial port (rs-232) or a USB connection. A typical credit card reader will be set up to read tracks one and two, or track two only. PC-connected, keyboard, and portable readers are also commonly used by merchants.

When it comes to credit card readers, one company generally stands out above the rest, and that is Magtek.   The Magtek Company is based in Seal Beach, California, and has been one of the leaders in the electronic payment business since opening its doors in 1972.

Magtek swipe readers are popular among the business world because they are designed to help merchants complete their transactions effectively, easily and securely. They are also compatible with most software applications and PC computers. Moreover, they allow several possible interface configurations to handle the transfer of card information into your system.

Some of their most popular credit card readers include:

Mini Swipe Reader

These economical and compact magnetic card swipe readers are designed to conform to and read ISO (International Organization for Standardization) and AAMVA (American Association of Motor Vehicle Administrators) card formats.  Yes, International credit cards and even driver’s licenses may be read.

The readers are available in various interface options including USB, RS232, Wedge, and TTL and don’t require any external power (except TTLs) to be operated with multiple track configurations. The reader itself doesn’t take up much room at all as it is just a little bit longer than a credit card. It is also very easy to mount as you can fasten it with adhesive strips or by securing it with the embedded threaded mounting hardware.

This Magtek swipe reader can be used with POS software including PC Charge Express and PC Charge Pro. Swiping customer credit cards is simpler and quicker than keying in the data and your transactions will also be eligible for the lower “card present” or “swiped’ discount rates.

MagTek Mini USB Stripe Reader

The Mini USB reader is designed to work with existing software applications developed for keyboard interface. The device is powered by USB which means no external power supply is needed. This compact Magtek swipe reader can work with any computer or terminal that has a USB interface. It also possesses dual and three track capability.

The information is sent as if it was a USB keyboard. Read data can be viewed in various applications such as Windows Notepad without the need for additional drivers and application programming.

This product also comes with a Human Interface Device (HID) Software Interface but a developed or modified application is needed to communicate with this reader. Here, unlike the reader that uses keyboard emulation software interface, data will not be viewable in applications such as Windows Notepad.

Full Size Readers

If you have the room, a full-size reader may be more convenient for all types of card reading applications as the cards can be swiped in the machine both forwards and backwards. These readers are compatible with both the standard RS-232 interface and the traditional keyboard wedge interface. The Magtek full size swipe readers can work easily with PCs and terminals, with up to three tracks of data from magstripe in the extended path to ensure accurate reads.

SureSwipe Reader

The Magtek SureSwipe Reader comes with a USB interface in both HID and Keyboard Emulation modes and can also be reconfigured in the field. The SureSwipe reader has two magnetic heads, one on each side, and is designed to gather three tracks of data from all types of ISO and AAMVA encoded magnetic stripe cards. The reader also comes with a green/red LED indicator that provides you with status of the reader operations.

Authorize.net Compatible Magtek Readers

Authorize.net’s virtual point of sale (VPOS) continues to grow in popularity.  Here, the merchant uses the virtual terminal in conjunction with a card reader to swipe customers’ credit cards.

Merchant: What is a manual imprinter?

Credit Card Processor: A manual imprinter, A.K.A., “knuckle buster,” is a device that enables you to make a physical imprint of your customer’s credit card.  The imprint will reveal the customer’s name, card number, and other information on a sales slip.

Merchant: Will my business’s name appear on the sales slip?

Credit Card Processor: We offer an encryption plate that allows up to 4 lines of information.  Your business’s name, address, and phone number can be listed, and even your Visa/MasterCard merchant identification number may be indicated.

Merchant: How much does the unit cost?

Credit Card Processor: The device may be typically purchased anywhere from $20 to $50 – a one time expense.

Merchant: I’m a retail merchant and plan to use a physical credit card terminal.  Why would I need a knuckle buster?

Credit Card Processor: Consider the scenario where the customer’s card cannot be swiped because the magnetic strip in the back is worn or demagnetized.  You’re going to need proof that the customer authorized the transaction should he/she attempt to dispute the charge at a later time.  Think of this device as a backup insurance policy against chargebacks.

Merchant: Do I have to use the knuckle buster if a customer’s card successfully swipes into the terminal?

Credit Card Processor: No, it’s not necessary.  A signed receipt by the customer should help to win any possible dispute pertaining to a given transaction’s authenticity.  Some merchants, however, still take an imprint of the customer’s card if the transaction amount is very large to have 2 pieces of documentation to defend against chargebacks.

Merchant: Should the customer also sign the sales slip?

Credit Card Processor: Yes, absolutely.  Taking an imprint of a customer’s card is only one step of a multi step process.  You should fill out the sales slip fields (e..g, the amount of the transaction and date) and get the customer to provide his/her John Hancock.

Merchant: My wife has an e-commerce business?  Does she need to obtain a manual imprinter?

Credit Card Processor: As she will not have face to face interaction with her customers, there is no reason for her to purchase the device.  In contrast, any business owner who sees customers at the point of sale should obtain a unit.  For example, we have merchants who participate in trade shows, and later input the customers’ credit card information into a virtual or physical terminal.  It is imperative for them to get this device as they must have some documentation that the customers authorized the sales.

Merchant: Can the knuckle buster replace a physical credit card terminal to process transactions?  It seems much cheaper than buying a terminal.

Credit Card Processor: No, unlike a physical credit card terminal, the manual imprinter cannot facilitate the transfer of funds into your account.  It just aids the merchant in keeping a paper trail about the transactions that have taken place, and serves to provide proper documentation to help merchants win chargebacks.

Merchant: Obviously, I need to keep sales slips in case of future chargebacks?  How long should I save the slips?

Credit Card Processor: The merchant typically has six months to dispute a charge a charge after a transaction has transpired.  It then seems imperative that you hold these slips for at least six months, and preferably up to a year.

Merchant: Thanks for providing this feedback on knuckle busters.  I’m going to order one as soon as possible.

Credit Card Processor: I’m happy to help.  I’m glad that I made an impression on you regarding the importance of the manual imprinter.

One credit/debit machine was put into service Saturday at the Damonte Ranch Walmart.

“We have received three of the machines,” said Major Doug Williams, corps officer. “So many people these days use debit or credit cards, rather than cash. It’s another convenience that we can offer our donors.”

Two other Walmart stores, off Kietzke Lane and off Pyramid Way, served as test sites for the debit/credit card option Saturday. The three machines will be tested at other sites around the area.

Donors at sites equipped with the machine can use MasterCard or VISA debit/credit. The donor handles the transaction, following step-by-step instructions.

Those wishing to help, but who can’t stop by a kettle location can donate on the Salvation Army Web site, www.salvationarmyreno.org.

Also being offered is a turkey option on the Web site for those wishing to donate to Operation Turkey Drop, which is 6 a.m. to 6 p.m. on Tuesday at the Salvation Army offices, 1931 Sutro St. Turkeys and nonperishable food items are needed for thousands of Christmas food boxes

Salvation Army Credit Cards? Well, not really. Traditional Salvation Army donation kettles are on the streets to accept cash for the holidays — but in Oregon they’re happy to accept plastic, officials say.

An “electronic kettle,” moving around the Salem area, offers donors the ability to donate more than spare change; they can donate with a credit card, Salem’s Statesman Journal reported Saturday.”Everyone is having a tough time with the economy, especially those in need in our area,” Mary Yoder of the Salvation Army said. “We really want to extend to those who want to give a variety of different ways that we can do that.”

Donations help pay for meals and food boxes for the homeless and toys for children.

“This is a tough time for lots of people,” said Anna Hender, who donated to a red kettle Friday. “I can put food on the table. I’m one of the lucky ones.”