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Author: tushar

WHAT IS A PCI QIR?

Posted on by tushar

At Impact Pay System, we champion small businesses. We provide payment systems that empower intrepid entities to find success. In order to do that, we know we have to make security and excellence a priority. At the end of the day, it doesn’t matter how careful you are: if your equipment and systems are faulty, they will let you down. Cyber criminals have identified systems as a weakness, so they target companies that set up payment applications on for small businesses. Unfortunately, many small businesses have suffered because of this.
In our last blog, we discussed the Payment Card Industry Council. They are aware of application weakness, and in March 2016, they implemented the Qualified Integrators and Resellers Program (QIR Program) to make sure that installed systems comply with Payment Card Industry Data Security Standards (PCI DSS). Basically, they want to make sure knowledgeable, experienced people set up payment systems so the businesses depending on them don’t suffer the consequences.

THE QIR PROGRAM HAS TWO OBJECTIVES:

  1. Installing and adjusting qualified applications to support compliance to PCI DSS compliance.
  2. Ensure that, following installation, the applications properly facilitate compliance.

QIR PROFESSIONALS HAVE TO PERFORM THE FOLLOWING TASKS:

  • Document any risks to PCI DSS compliance.
  • Protect all confidential and sensitive information.
  • If QIR-installed applications are included in an investigation, the professional must support the investigation.
  • Make sure all installations and configurations are properly done to comply with PCI DSS standards.
  • If engaged to do so, service installed payment applications. This includes troubleshooting.

If you own a small business, you have allies working to protect you. Make sure you take care of the services they offer. Contact us for merchant payment services you can depend on!

UNDERSTANDING PCI DSS COMPLIANCE

Posted on by tushar

Whenever there’s a transaction between you and a customer, a bunch of things happen all at once. Security is paramount to you, your customers, and your business’s reputation. There are many standards that have been put in place to protect everyone involved. In our last few blogs, we discussed interchange fees and discovered that following best practices for card transactions is key to keeping those fees down. The less risk, the smaller the fee. In today’s blog, we want to discuss Payment Card Industry Data Security Standards (PCI DSS). Put simply, these are the rules of engagement that must be followed when processing payments. They ensure that everyone transmitting, accepting, storing, or processing card information is safe.

DOES PCI APPLY TO EVERYONE?

Yes. If you store, transmit, or accept payment card data, PCI applies to you. This is a good thing!

WHO MAKES PCI RULES?

Good question! Rules are created by the Payment Card Industry Security Standards Council. The members of this council are responsible for promoting, evolving, and maintaining standards. It was founded by (and is enforced by) Visa, MasterCard, American Express, Discover Financial Services, and JCB International.

WHY DOES COMPLIANCE WITH PCI MATTER?

A merchant’s reputation and sales can be ruined by a security breach. The issues go on from there, including the following:

  • Penalties and fines
  • Having to issue new payment cards
  • Degredation of your brand
  • Increased employee turnover
  • Undermined consumer confidence
  • Legal fees
  • Raised costs for future PCI assessments

The better you understand PCI DSS, the safer your business (and your customers) will be. Let us help keep your i’s dotted and your t’s crossed with our merchant payment services. Learn more today!

HOW CAN YOU LOWER YOUR INTERCHANGE COSTS?

Posted on by tushar

Lowering operating costs is always a good thing, as long as it can be done constructively and legally. Many times, the success of your business will depend on it. The fact that everybody has to take their cut of your profits before they get to you can create a challenging situation and make the complexities of payment processing quite daunting. We are here to not only provide world-class processing services, but to help you understand our world and how it works for you.

In our last blog, we went into some detail about how interchange fees work. Understanding what makes interchange what it is will help you going forward. Today, we want to talk about a common topic for merchants: how to minimize interchange fees.

I WANT TO LOWER MY INTERCHANGE FEES!

The best way to do this is to strictly follow best practice for card acceptance. Remember, the lower the risk, the lower the fee. Now, what does best practice look like?

  • If a terminal can’t read a card and you have to enter information manually, make sure you check and verify the cardholder’s address. Use the Address Verification Service to do this.
  • Always settle your point-of-sale every day. If you don’t, you will run into downgrades and raised interchange rates.
    Always get proper authorization for your transactions.
  • Restaurants must adjust for tips before settling the batch at the end of each day.
  • Hotels must enter and track check-in and check-out dates as well as folio numbers.

The best way to minimize the risk of your transactions is stick to the guidelines developed over time. The guidelines are made to protect everyone involved. Make sure you have the very best credit card processing when you work with Impact Payment Systems!

HOW IS INTERCHANGE DETERMINED FOR A TRANSACTION?

Posted on by tushar

No matter how comprehensively you understand the world of payment processing, chances are good you understand that it’s full of important policies that can be easy to miss if you aren’t an expert. Just understanding the processes completely can be a formidable challenge. The good news is, you can stay in the know by doing your research and putting in the time to understand. If you find yourself too busy to get deeply into the nitty-gritties, you can hire an expert to help you out.

In our last blog, we introduced interchange fees and discussed their benefit to you as a merchant. Interchange covers fees that accrue when a charge is transformed into a cash deposit into your account. We mentioned that interchange is different depending on the size of the charge, but just how does that work?

HOW AN INTERCHANGE FEE IS DETERMINED

Several different factors affect the size of an interchange fee, including the merchant’s industry, the method of accepting card payment, the type of card, and the size of the transaction. To clarify how this works, here are some examples of things that affect interchange:

  • Was the payment entered manually rather than by swipe? The interchange will be higher, because the lack of swipe data increases the risk of fraudulent transactions.
  • Was payment made with a debit card? The interchange will be lower because the transaction isn’t as risky.
  • Was payment made with a rewards card? The interchange will be higher, because it funds the reward program.
  • Was payment made with a commercial card? The interchange will be higher in order to fund rewards programs, reporting, and spending controls.

Now that you have a bit more insight into how interchange fees work, we invite you to contact us and learn more about how we put your interests first. We are proud to stand out among payment processing companies as the best!

INTERCHANGE AND WHY IT’S IMPORTANT

Posted on by tushar

Some business owners are passionate about accounting and they enjoy getting into the nitty-gritty of policy. Other business owners need to hire accountants to make sure their businesses stay on the straight and narrow. Wherever you fall in the continuum between these two approaches, if you own a business, you need to understand exactly how money processing happens. This will help you avoid unpleasant surprises.

WHAT IS INTERCHANGE?

When a customer makes a purchase with you using a card, the bank who gave the customer the card (the issuer) pays you the amount owed. After that, the issuer collects the same amount from the customer’s funds and the transaction is complete. As the merchant, you end up paying the issuer an interchange fee for this service. It doesn’t matter what system you use; you’ll be paying interchange fees if you want to accept card payments.

WHY IS INTERCHANGE IMPORTANT?

  • When a charge is converted into a cash deposit into your merchant account, your back will assess fees for billing services, fraud risk, credit risk, and float. Interchange fees cover all of this at once, which minimizes hassle for you as a merchant.
  • Interchange stimulates growth of card issuers by giving them financial motivation and protecting them risk.
  • Interchange opens up the field for a wide range of merchants by making tailored interchange programs available. By this, we mean small transactions get a lower interchange fee, which makes it possible for merchants to accept small card payments.

At Impact Pay System, we are dedicated to making it easy to run your business. We understand the challenges of being a merchant, and we are passionate about being a close, dependable ally for you. Check out our next blog to learn more about interchange and our credit card processing for small business.

PAYMENT PROCESSOR RED FLAGS

Posted on by tushar

When you run a business, there’s lots of things to keep track of. Payments are close to the top of the list! It’s important to have a payment ally you can trust. Your payment processor is an important member of your team, and you can’t have success without it. The issue is, there are so many companies to choose from. Finding a company that will give you what you need, allow you to grow, and put your interests first can be a formidable challenge. The good news is, there are distinct signs of processing companies that are only looking out for themselves.

In our last blog, we pointed out a few red flags, including short service agreements, low volume penalties, cancellation fees, and flat transactions. In today’s blog, we want to point out a few more signs of processors that may not be the best choice for your operation.

YOU HAVE TO PAY RENTAL FEES FOR EQUIPMENT

If you rent equipment, you’ll likely end up paying more for it in the long run than you would just purchasing it yourself. When you buy your own equipment, you won’t be limited by your processor’s choice of equipment. You will be free to find the exact equipment that will work best for your company and your budget.

THE COMPANY WON’T DISCLOSE THEIR INTERCHANGE MANAGEMENT PROGRAM

If they won’t share this information with you or try to get by without offering to share, pick a different company. If they do share their program, it’s generally fair for you to be paying a firm interchange fee plus a service charge that consists of a constant market up. If you have questions about interchange management, we will write about it in future blogs!

THEY CHARGE “BUSINESS POINTS”

Processors that charge “business points” for interchange or transactions that have been downgrade are stealing from their clients. Don’t bother using a processor like this.

THE COMPANY WON’T SHARE THEIR DISCOUNT RATE IN DETAIL WITH YOU

Good processors will be happy to share their discount rates. Generally, it should be around 0.02 to 0,07 percent. If your business processes less than 100k a year, the discount rate can be as high as 0.1 percent.

Make sure that your business has an ally that will cover its six. When you have merchant payment services you can trust, it’s much easier to take your business to the next level. Let Impact Payment Systems bring you the comprehensive support you need!