Baby Boomers recognizing that “cash is out and Plastic is in”




Aug 29 2007 : A study by VISA USA reveals that the majority of Baby Boomers are now predicting that electronic payment transactions will one day completely replace cash and checks.
The study found that 79 percent of baby boomers, (people born 1946 – 1964), believe cash is on the way out. The same belief is held by 74 percent of people born from 1979 to 1989. With the world moving more and more towards plastic payment solutions, Cash stands no chance in the near future.


Together these two generations are “the powerhouses of U.S. consumer spending,” Wayne Best, Visa USA’s chief economist, says. Visa USA estimates that by the year 2015 the two groups will together account for more than 50 percent of total consumer spending.
That said, if you are in business and don’t accept plastic or at least some form of electronic payment, you are drastically limiting your client base. In the very near future it will be crucial to accept all electronic payment types if you haven’t already.

posted : Monday, June 27th, 2011

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PayPal vs Google Wallet

The two biggest players in the Credit Card Processing industry go head to head. PayPal has officially filed a lawsuit against Google following the announcement of the Google Wallet. PayPal Claims that Google stole trade secrets to create the Google Wallet and all its key features. PayPal states that a key PayPal Employee moved to Google following failed contracts for Google to adopt  PayPal as its go-to payment platform on Android.

Google Offers a Groupon like service that sends coupons, while Google wallet can store multiple credit card information and reward information while communicating with Near Field Communications on capable Android cell phones. Google launched the two services on May 19th, and PayPal filed suit that day.

PayPal is claiming that is was in the middle of developing software to provide large retail store with the next generation of Credit Card processing and point of sale technology. PayPal also, points out that a former employee who had in depth knowledge of these secrets, Senior executive Osama Bedier was recruited to Google by former eBay employee, Stephanie Tilenius.

PayPal wasn’t by any means unaware of Bedier’s move over to Google. According to Beider he informed the Credit Card Processing giant  in early November 2010 that he was considering a position at Google to work on the Mobile Credit Card Processing Application. PayPal advise Beider at the time that it would hinder PayPal’s trade secrets if he took the position at Google.

Google has released a statement in regard to the suit and simply stated. “Silicon Valley was built on the ability of individuals to use their knowledge and expertise to seek better employment opportunities, an idea recognized by both California law and public policy,” a company spokesperson said. “We respect trade secrets, and will defend ourselves against these claims.”

PayPal files lawsuit against Google. A reason worth fighting for 

posted : Saturday, June 25th, 2011

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Is a “free credit card terminal” really free?

While shopping for a new merchant account, many are asking themselves, “is a free credit card terminal really free?”

Everyone knows that nothing in this world is free so why would a merchant service provider be offering free credit card terminals? While many companies offer what seems to be a free credit card terminal, you will find that it turns out to be quite the opposite. Many merchant service providers offer free terminals along with a slough of hidden fees, annual fees, compliance fees and usage charges.

While shopping for a merchant service provider offering free credit card terminals, you want to be sure you are going with a reputable company backed by a reputable bank. Reputable banks will not take on merchant service providers that are doing bad business and or price gouging their customers. You also want to be sure to read all the fine print that goes along with free credit card terminals. Many times you will find they have the ability to charge you just about everything under the sun. Many merchant service providers will also lock you into a lengthy contract when giving you a free credit card terminal.

Is it better to purchase a credit card terminal?

In most cases the answer is Yes! When purchasing a credit card terminal you no longer will be subject to rental, compliance and other slap on charges associated with “free credit card terminal” programs. The downside to purchasing your own credit card terminal is that you are on the hook should something happen to the credit card terminal. For instance, if you buy a credit card terminal and it malfunctions six months down the road, chances are you will have to purchase another credit card terminal. On the other hand, if you were on a free terminal program and the credit card terminal malfunctions, chances are the merchant service provider will happily swap the credit card terminal out for you. Remember if you cant process credit cards, you aren’t making the merchant service providers any money. Another major plus to purchasing a credit card terminal is that it gives you much more negotiating power when dealing with contract term/length. Most merchant service providers will be more willing to give you shorter contracts when they aren’t proving a free credit card terminal.



Conclusion: Getting a free credit card terminal can be risky although it does come with its fare share of perks. If you are going to take advantage of a free credit card terminal be sure to read the fine print, go with a reputable company backed by a reputable bank and explore all options before making your final decision. Purchasing you own credit card terminal has it perks as well. You are less likely to be hit with hidden fees and can negotiate much shorter contract terms.

posted : Wednesday, June 22nd, 2011

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Is PCI Compliance a hoax?


This article is based around my 10+ years of experience in the Credit Card Processing Industry

I will start with “What is PCI”


The Payment Card Industry Data Security Standard (PCI DSS) is a set of requirements designed to ensure that ALL companies that process, store or transmit credit card information maintain a secure environment. Essentially any merchant that has a Merchant Identification Number (MID).

If you process credit cards and don’t use a third party to do so (Pay Pal) you are subject to comply with the Credit Card Processing Companies and their PCI regulations.


When Merchants hear PCI compliance or Visa- MasterCard Regulations, they typically make sure to follow procedures to secure their business from being hacked. On the surface it seems like a standard process. When you follow standard PCI Questionnaires and scans, you would assume that the third party providing the service would be doing anything in their power for you to pass the required tests to make the business owner compliant. Right? Wrong. What I am seeing is quite the opposite when it comes to the business owners protection and the protection of their customers. Instead of a feature that will protect you, it’s a feature that Credit Card Processing Companies use to charge you more fees.  The PCI questionnaires are close to impossible for the laymen to complete thus allowing the Credit card processing companies to charge “non-compliance” fees.   The Credit Card Processing Companies do asses a fee for everyone of their merchants to be PCI compliant, but they are charging the business owners up to 5X more than what they are being charged.  

PCI Survey and Scan


This is typically the most annoying, aside from the high fees. Credit Card Processing Companies outsource the PCI compliance surveys and scans. So we put these third party PCI compliance companies to the test. These PCI companies make you take lengthy surveys to see if you are doing everything it takes to be compliant. I had taken the survey for my own merchant account and being in the industry for 10+ years you would think it would be a breeze for me. NO! Far from it. I actually gave up half way through the survey and had my in house technician try and finish the test. Results you ask? Not only did we fail the first scan, but the PCI Compliance company that was scanning the servers said, we had many problems and one being they couldn’t get into our servers. You would think if they couldn’t get into our servers that no one else could and we were doing our job when it came to security. From there,  my technician opened our fire walls allowing the PCI Company or scanning system to take  a look inside. We failed again, because our fire walls were not protected enough. We chased our tails for days trying to satisfy this PCI scanning software and couldn’t pass the test. After a week we passed the test and the technician and I had a couple of drinks to celebrate. The PCI companies and the Credit Card Processing Companies don’t make it easy to pass the test, because they both want the PCI fee income. The PCI fees are usually charged as follows 1. Annual PCI fee that can range from $25.00-$149.95. The 2nd would be what they call a monthly “Non-Action” or “Non compliance” fee of $5.00-$29.95 a  month for not passing the “Scanning Tests”. Since this is a fee that neither the Credit Card Processing companies and the business owner can get away with not paying, make sure you negotiate this upfront when choosing a Credit Card Processing company. It cost the processing companies about $25.00 annually and shouldn’t cost you anymore than $75.00 a year. I wanted to write this article to make all business owners aware of the fees and what they should expect out of them. I own a Credit Card Processing company and I wanted to know what my customers had to do to be compliant. When my technician and I went through this experience we wanted to make sure our customers didn’t go through the same thing. Since this is a mandatory piece of our business we make sure to pick the BEST third party PCI companies. We walk all of our merchants through the process so they are compliant, secure and understand all the fees.


Conclusion: PCI fees are not a hoax! However, be sure to talk with your Credit card processing company as these fees can be high and outlandish. Be sure you are not paying extraordinarily high fees on you annual PCI fees. If you find yourself stuck on the PCI scans or surveys, don’t hesitate to call your credit card processing company for help.

posted : Monday, June 20th, 2011

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How to Choose a Credit Card Processing Company

There are thousands of Credit Card Processing Companies that offer Merchant Accounts and provide small to large companies the ability to accept credit cards in their retail, ecommerce and service based businesses. But finding the right Merchant Service Company for your business can be tough. The Merchant Service business is a very cut throat industry with a lot of over promising and under delivering. With this industry being so aggressive with one another all the down falls fall on the business owner. This comes with hidden monthly fees, annual fees and the well known fluctuating rates. The best way to start your search is by eliminating the companies that want you to sign a long term contract. Make sure your contract has a thirty day out claus or no contract at all. This way the business owner has the flexibility to leave the current provider at anytime protecting the business owner from hidden fees, bad service and other un expected issues. Another item to negotiate is the terms of the equipment. Most Credit Card Processing Companies like to give away a free credit card terminal but most companies charge a high annual fee or a monthly rental fee after the free promotional offer is over. This fee can run between $9.95-$49.95 a month depending on the type of terminal you choose. Buying your equipment outright is the best solution for any business owner. Switching companies is easy but finding the right solution for your business needs to be strategic. Take your time with pricing, contracts, and always get everything in writing!!

posted : Sunday, June 19th, 2011

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posted : Tuesday, April 5th, 2011

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