Merchant Warehouse President is Featured in Transaction World Magazine
In the December 2008 edition of Transaction World Magazine, Merchant Warehouse President and Co-CEO, Henry Helgeson, is cited as he shares his views about the proposals for government regulations in the credit card industry.
The article, “To Our Next President: Rough Seas Ahead,” talks to the current state of the US financial market, addresses how it has and could affect the credit card processing market, stressing the fact that legislation may ultimately be prompted to regulate. Many industry players anticipate increased policing on the merchant acquiring industry and pricing issues, and have already begun planning ahead. Others, like Helgeson, are not confident in any legislative bill being passed to adjust Interchange fees because of the detrimental revenue impacts it may have with the financial institutions.
However, it is widely recognized that merchatns are becoming more concerned than ever about the rising costs to process transactions due to Interchange fees, which may become one of the hot issues of 2009. “If and when regulations are enforced, legislation must maintain a balance to ensure there is enough room for opportunity and growth on both the merchant and acquiring sides,” suggests Henry.
Right now, with the PCI security regulations in full effect, it seems that the acquiring side is perfectly capable of regulating itself, but only the future will tell.
Cardline Online Cites Henry Helgeson of Merchant Warehouse
On November 28th, 2008, Cardline online cites Merchant Warehouse President & Co-CEO, Henry Helgeson, as he addresses the enhanced scrutiny merchants will receive due to the struggling economy.
The article, titled “Ailing Economy has ISOs Examining Merchants More Closely,” discusses how the slowing economy is leading many independent sales organizations (ISOs) to re-evaluate their Underwriting guidelines, and to thoroughly evaluate both new and existing merchants regarding their credit card transactions and the way in which they conduct business. Since so much risk is assumed by the ISOs who service these merchants and their incomes depend on them, ISOs are taking precautionary measures to ensure they are protected. Should consumer spending decrease significantly enough that a merchant go out of business, the ISO not only faces losing that merchant’s business, but also any chargebacks from their customers. Bottom line, Helgeson suggests that ISOs be weary of any business offering future-delivery of products since they typically come with the most risk.
Credit Card Machines and Connectivity
In my last blog, I discussed how different terminals were capable of performing different functions, or processing different types of transactions. This time, I will be discussing another factor which separates terminals apart from each other: connectivity. During a transaction, the credit card terminal will connect to the processor and then within seconds, a result response will come back to the terminal. Though this is a simplified description of the process, it should make clear that the terminal must be connected to some sort of telecommunications network in order to work at all. There are many different types of terminals out there, but they can all be separated into three categories based on how they connect to your Merchant Account processor.
Dial-up, phone line based terminals: This is your basic terminal which you’ll find in a majority of small to medium sized businesses. If you do some research, you’ll find that these are overall the least costly machines and the ones that have been around the longest. In order to use this type of equipment, you’re business will need a dedicated, analog phone line. By analog, I mean a regular landline, not digital or Voice Over IP.. By dedicated, I mean that it shouldn’t be a phone line which is part of a greater office phone system, such as a PBX or IP-PBX System. Though your office can use one of these, you should speak to your phone people about getting a dedicated phone line which is separate from your system. Many times, a merchant will already have a fax machine which runs off of a dedicated line. One good thing to note is that almost all dial-up credit card terminals come with an extra phone port so that they can share the phone line with a fax machine or a single phone. The one problem here is that you wouldn’t be able to use your credit card machine and your phone or fax machine at the same time. The next type of terminal connectivity eliminates this problem
IP-based terminals: These terminals work off of your broadband internet connection, and they are great for merchants who use Vonage or other Voice Over IP solutions. Basically, you’d attach your terminal to a Cable Modem, DSL Modem, or into your IP Router in order for the terminal to process transactions. Two great advantages to IP terminals is that they process transactions faster and that they allow you to process transactions and leave phone lines open, allowing you to conduct business without having to wait to free up a line or receive phone calls without worrying about disrupting your credit card terminal. There are also two disadvantages: Firstly, these terminals are usually more expensive than dial-up terminals. Secondly, if you’re experiencing problems with your IP-terminal and need to perform a download to correct programming problems, you may need an analog phone line. Though your terminal will work over IP for authing credit cards, there’s a great chance your processor won’t have the ability to have your terminal pick up your merchant information over IP. It’s been my experience that many merchants who use the internet or VoIP for their phone service won’t have a backup analog phone lines for situations like this. I’d advise you to invest in a phone line for this very reason. It can prevent downtime your business would experience from your Internet Connection or VoIP connection being down.
Wireless terminals: No in-depth explanation necessary. Just like a cell phone, these credit card terminals access a cellular network such as GPRS or CDMA to send info to the credit card processor. Although these are usually the most expensive of the three connectivity types, they are definitely worth it for merchants who process a volume of credit card transactions at trade show sales events or in on-site situations like a plumber or carpenter who comes to your house to make improvements. With this terminal, you will have the piece of mind knowing whether or not a customer’s card will go through at the actual point of sale instead of writing down their information and bringing it back to your office to be keyed in. Not only will it give you piece of mind, but swiped credit card accounts generally get lower rates than those of a MOTO or Keyed Face to Face merchant account would so it may end up saving you money in the long run.
If you are interested in finding out more about which terminal you should use with your existing telephony setup or about how you could benefit from a wireless terminal, call up Merchant Warehouse and let one of our account representatives help you figure out what type of terminal would work best for you. We will definitely have the solution to your credit card terminal needs.
Joseph Fitzgibbons – Senior Support Specialist
Credit Card Machines and Functionality
Not every terminal is built the same. Different terminals have different features and perform different sets of functions. The same goes for merchants; not every merchant is the same and not all require the same functions from their credit card terminals. If you are looking to purchase the POS equipment that best fits your business, you will first need to know how you’ll be conducting business. In addition, you’ll need to know which kinds of payments you’re looking to accept. Determining what you actually need, instead of having someone telling you what you should buy, can keep you from spending unnecessarily.
First, how will you be conducting business? Are you generally going to see the customers or do you do business via the Internet or telephone? If business is done face to face and payments are accepted directly at the point-of-sale, you’ll probably want to purchase a credit card machine. However, MOTO or Internet merchants may want to consider an Internet Gateway, which integrate with a website’s shopping cart, or with a Virtual Terminal such as MerchantWare. One advantage to using an Internet Gateway, Virtual terminal, or both, is that these can be used on a computer with a broadband internet connection. If you already have this in place, all you have to buy is the software or a license. Not having to invest in new hardware will save you both money and work-space.
Secondly, for regular Retail merchants, do you have customer demand for more secure, PIN-based transactions? If so, you might want to get a POS terminal with an internal PIN-pad (no additional hardware to purchase, besides the terminal itself), or one that is compatible with an external PIN-pad. If you have a compatible terminal, I would recommend that you get an external PIN pad. With the external option, the PIN-pad is usually already facing the customer so there wouldn’t be a need for you to hand over the entire credit card terminal for the customer to use. This also means that your credit card terminal is more secure and there is less of a chance of the terminal falling into the wrong hands, literally. Using a customer-facing, external PIN pad should also cut down on transaction time.
Credit and Debit transactions aren’t the only electronic payments you can accept as a merchant. Gift Cards could be a great way to strengthen customer loyalty, beef up your customer retention, and broaden your customer base. If you are considering taking these cards, you will need to either make sure that your existing POS solution can work with your Gift Card service provider, or purchase a new solution which will.
However, like I first mentioned, not all terminals are the same and different merchants will require different functions out of their terminals. If you want to learn more about how to accept Gift Cards, Debit, or even simply credit card transactions and want to know what POS solution will best suit your needs, give a call to Merchant Warehouse and allow one of our friendly and knowledgeable Account Representatives to assist you. They can help you figure out what kind of merchant account you will need and what POS Solution will best fit your business. Check back for my next blog which will discuss POS Solution connectivity.
Joseph Fitzgibbons – Senior Support Specialist
MerchantWARE by Merchant Warehouse is Referenced in ComputerWorld Blog
On November 12th, 2008, a ComputerWorld blog by Eric Ogren referenced Merchant Warehouse’s secure MerchantWARE payment processing solution.
Ogren’s blog, titled “The Time is Right to Start New Companies,” addresses the fact that the coming months might be the best time to launch a new company, despite the down economy.
Ogren suggests that, in the current economic situation, businesses are being more cautious about their spending, lowering risk, and are working hard to secure funds and retain customers. In addition, businesses are reconsidering the manner in which tasks are completed, in an effort to set foundations for future expansion. That said, Eric believes that businesses will more than likely prioritize projects based on revenue returns over ensuring security and PCI DSS compliance, unless the security products offer an all-in-one business solution that will benefit merchants in various areas. He mentions how Merchant Warehoues’s MerchantWARE secure payment processing solution can accomplish this, by saving merchants money on achieving PCI DSS comliance while securing their credit card transactions.
Merchant Warehouse President is Cited in RSPA Connect
In the November 2008 issue of RSPA Connect, Merchant Warehouse President and Co-CEO, Henry Helgeson, joins a panel of expert representatives in key retail technology markets to examine how the struggling economy has impacted their industry. Topics addressed included market trends, challenges, industry threats and misconceptions, emerging technology, and opportunities within the market.
Helgeson was looked to as the expert in the payment card industry, discussing matters of data security, PCI DSS, and point-of-sale technology.
Merchant Warehouse Appears in The Green Sheet
On October 27th, 2008, Merchant Warehouse President and Co-CEO, Henry Helgeson, appears in The Green Sheet to provide his expertise on the state and future of the payment processing industry, should the struggling economy impact it.
In the article titled “Rainy Day ISOs,” Helgeson addresses the possible trickle effect that the down economy could have on the payment card industry, from a slowdown in consumer spending and decline in credit card transactions, to an inflation of processing fees and residual income losses from merchant death or the decline of consumer spending.
In preparation for these potential circumstances, Henry warns merchant level sales people (MLSs) that they should expect stricter guidelines for account underwriting and tighther industry policies and thus, should scrutinize higher risk merchants.
He also suggests that ISOs and MLSs remain cautious with their merchant portfolios and set aside at least one month’s earnings to secure funds, in case there becomes a desperate need for funds for costly marketing strategies and other expenditures.
Merchant Warehouse Appears in QSR Magazine Online
On October 27th, 2008, QSR Magazine online turned to Merchant Warehouse’s Vice President of Business Development, Todd Giblette, to help merchants cut down credit card processing costs.
The article, titled “Cutting Down Credit Card Processing Fees,” offers quick-serve businesses a few tips on how to save money on their credit card processing expenses with the help and knowledge of Giblette, who urges that merchants learn as much as possible about their business’s credit card transactions and Interchange fees, which are collected by their processing company.
He also introduces Merchant Warehouse’s patent-pending BINsmart Cost Management tool, which helps keeps transaction processing costs to a minimum by prompting consumers to pay by debit or credit, depending on which payment method will render the lowest cost to the merchant.
The right stuff – Get the credit card machine that’s best for your business
Working in the merchant services industry with the Technical Department of Merchant Warehouse for the last 4 years has put me in steady contact with merchants and their POS solutions. Over that time, I’ve worked with and helped out countless merchants who were experiencing difficulties with their credit card machines and equipment. Many times, merchants will experience technical difficulties that are caused not by defective credit card equipment itself but by buying the wrong equipment in the first place; there are many problems that can be avoided by buying the right solution the first time.
There are many types of credit card terminals out there and many times a particular terminal may not be the right stuff for a merchant and their business. Finding the correct POS solution isn’t very hard, as long as the merchant knows what they need to be looking for. I’d like to impart some advice, some general guidelines to search by for the merchants out there who believe it is upgrade time or just need to replace an existing solution.
I’ve been around the POS block long enough for it to become clear to me that there are three important things to be looking for when purchasing POS equipment. I’ve never been in the merchant’s situation of needing to find the best solution for my business, but if I was and had thought about what kind of functionality I needed to get out of my POS equipment, how I would fit this technology into my current business environment in terms of connectivity, and where I could find the best deal on this POS equipment, I would be ahead of the game and would probably be setting myself up for smooth sailing when it comes to accepting all sorts of electronic payments.
To explain a tiny bit more what it is the merchant should consider heavily, they should know
A) The types of payments they want to accept be they Credit, Debit, Gift Cards, or Checks;
B) What kind of telephone or Internet services they have (usually both nowadays, but sometimes there is neither!) which the POS equipment would work on so that transactions can take place; and lastly
C) Where to find the best prices for these solutions.
This does not really paint the entire picture of the landscape a merchant must take a good look at and think on. It’s only exposing the outlines which need to be filled in with accurate information in order for a merchant to make sense out the whole thing and to come up with the best POS equipment for their business. In forthcoming blogs, I will be explaining this further and hopefully helping merchants choose wisely and make informed decisions concerning the technology they’ll use to accept electronic. This should make business for the merchant much easier and hopefully even much more successful in the long term. Stay logged on!
Joseph Fitzgibbons – Senior Support Specialist
First Funds- An Opportunity Not to Miss!
One of my important responsibilities as an employee of Merchant Warehouse is to assist businesses in having their First Funds application approved. First Funds is our cash advance program offered to businesses. Personally, I think it is a wonderful opportunity for business owners. It allows them the benefit of reaching their goals in a faster timeframe than they envisioned.
Today’s business owners are interested in cash advances for many reasons. Capital can be used to improve or expand the business, pay off debt, advertise, purchase equipment, and make down-payments, just to name a few..
Unlike a loan, a cash advance does not have fixed payments or collateral. Instead, First Funds deducts 20%-25% of the borrower’s daily transactions until the advanced amount is paid in full. Depending on their eligibility, merchants can be approved for a cash advance of up to $150,000.00. In order to qualify the business must be retail/store front, it cannot be out of home, it must have at least 13 months of longevity, and have been processing credit cards for at least 6 months. If the merchant does not yet process through Merchant Warehouse, they will be required to do so before they are funded.
The application is only one page and needs to be submitted along with the four most recent processing statements. The landlord reference or mortgage verification must be listed on the application. In addition, First Funds will be required to conduct merchant interviews and site inspections with all merchants who apply for advances.
Once a merchant is approved, a six page ACH Agreement will be provided for the merchant’s review and signature. This Agreement will disclose the advance and payback amounts. Three days of previous batching (which must be at least 70% of the merchants daily average processing) must also be submitted. Once this information is received, the merchant can be funded as early as the following morning.
Through my experience I find that merchants who applied for First Funds have benefited greatly. Many of them come to realize what a wonderful program this actually is, and decide to renew. Before the advance is paid off, First Funds will contact the merchant and handle the renewal. Renewals are usually funded much faster than the original advance.
The advantages of First Funds are many. There are no personal guarantees required, the payback is completely automatic based on your credit card sales, merchants with bad credit qualify, there isn’t a limited timeframe to pay back the advance, and there are no late, setup or application fees. Those are just to name a few.
If you are interested in making your business the success you dream of, please contact us to get started!
Eve Miceli – Account Manager