Posts Tagged ‘credit card processing’

Important Changes to Discover Card Merchant Accounts

Thursday, June 10th, 2010

Posted by Michael Nardini, Vice President of Customer Satisfaction
Michael Nardini, Dydacomp VP of Customer Satisfaction

For those of you who accept Discover, you should have noticed a change on June 1, 2010.  For most of you if your merchant bank has made the change, Discover is now being deposited into your checking account combined with Visa and MasterCard.  It used to be a separate entry but now they have joined the main brands to offer you some additional benefits.

Besides bundling the deposit together making reconciliation easier, you should now have a few more benefits:

1 – One customer service phone number.   Your Visa/MasterCard processor should be able to handle all customer service inquiries for you.

2 – One voice approval hotline so that you don’t have to remember different voice approval phone numbers.

3 – One statement.  Discover should be itemized like Visa and MasterCard have been.

4 – Same time-frame for funding as you had with Visa and MasterCard.

5 – In some cases lower % fees for processing Discover the same as you pay for Visa and MasterCard.

There shouldn’t have been anything you would have had to do to change.  Your merchant provider should have helped you through with this change.  I mention above in terms like “should have” or “should be handling” just to remind you that your merchant bank should have made this an easy change for you and that they should have passed the benefits down to you.  If you’re not seeing any of the benefits above you should reach out to me to find out how our Payment Processing team can help you get set up with another provider.

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Posted in Payment Processing | No Comments »

Get a Competitive Advantage with Gift Cards

Friday, May 28th, 2010

Posted by Michael Chichester, Dydacomp Payment Processing Team Leader

Michael Chichester, Dydacomp Payment ProcessingI was talking with the owner of a very successful sporting goods company the other day.  This company has been using Mail Order Manager for over 15 years – they are running M.O.M. Version 7i with 34 workstations, use SiteLINK for e commerce, and still produce a yearly catalog.  But success wasn’t always the case for this company – they had some lean times.  In fact, this guy was telling me they once went an entire month without an order.  Not 1 order.  So, I asked him how did he turn it around?  I was very curious how they went from a 1 person operation running part-time out of Mom and Dad’s basement to where they are now – a $2 million dollar a  year company with over 40 full time employees.

“It’s all about finding a competitive advantage.”

Those words struck me.  So simple, yet so profound.  So how do you find a competitive advantage in today’s marketplace? How about having your company’s own unique logo in a customer’s pocketbook or wallet?  Even better, how about having your company’s logo in a POTENTIAL NEW CUSTOMER’s pocketbook or wallet?

Welcome to the wonderful world of gift cards.

In M.O.M. 7, we now have the ability to allow you to sell gift cards.  And you can customize your cards!  Did you know:

  • 65% of those given a gift card last season say they typically spend more than the value of the card? (Source: Consumer Reports Holiday Shopping Poll, October 2009)
  • In the 2008 holiday season, gift card sales added up to $25 billion (Source:  ValuTech)
  • Over 50% of all shoppers purchase gift cards (Source: commercegeneration.com)

Here’s a link to a webinar we recently completed on the upcoming Gift Card release.

So, if you are looking for that next big competitive advantage, look no further than gift cards.

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Posted in Payment Processing | No Comments »

Sounding Like a Broken Record on PCI Compliance

Thursday, May 20th, 2010

Posted by John Healy, Dydacomp CEO

The clock is running out on PCI compliance for payment applications…

The Payment Card Industry (PCI) has given all of us until 7/1/10 to have our payment applications officially PCI compliant and listed as approved on the PCI site.John Healy, Dydacomp CEO

I think everyone knows that PCI is the credit card industry’s effort to eliminate card not present credit card fraud globally. They have the total backing of all of the major credit card issuers. What you may not know is the definition of a payment application, so I thought I would share that with you and our source is the PCI Compliance Guide:

Q: What constitutes a payment application?
A: What constitutes a payment application as it relates to PCI Compliance? The term payment application has a very broad meaning in PCI. A payment application is anything that stores, processes, or transmits card data electronically. This means that anything from a Point of Sale System (e.g., Verifone swipe terminals, ALOHA terminals, etc.) in a restaurant to a Website e-commerce shopping cart (e.g., CreLoaded, osCommerce, etc) are all classified as payment applications. Therefore any piece of software that has been designed to touch credit card data is considered a payment application.

So both your order management system and shopping cart have to be PCI compliant. One or the other does not qualify. One study we looked at showed the majority of credit card fraud in North America comes from merchants using third party payment applications so this is something that the folks at PCI are very interested in having happen.

What it really means is that on 7/1/10 PCI and credit card issuers are probably going to start to clamp down hard on non compliance, especially if a breach occurs. Here is what the PCI Compliance Guide had to say on non compliance penalties:

Q: What are the penalties for noncompliance?
A:
The payment brands may, at their discretion, fine an acquiring bank $5,000 to $100,000 per month for PCI compliance violations. The banks will most likely pass this fine on downstream till it eventually hits the merchant. Furthermore, the bank will also most likely either terminate your relationship or increase transaction fees. Penalties are not openly discussed nor widely publicized, but they can catastrophic to a small business.
It is important to be familiar with your merchant account agreement, which should outline your exposure.

To upgrade your software at least for Mail Order Manager and SiteLINK, if you haven’t already, is fairly painless and inexpensive. It is something you want to make sure you have done today and should not be put off.  By the time you read this note you are two more minutes closer to the deadline.
The clock is running out on PCI compliance for payment applications…

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Time to Appreciate your MOM (System, That Is)

Tuesday, May 11th, 2010

Posted by Michael Chichester, Dydacomp Payment Processing Team Leader

Michael Chichester, Dydacomp Payment ProcessingThis past Sunday was Mother’s Day.  I’d like to extend a belated Happy Mother’s Day to all the mothers out there.  As we all take time out to appreciate our mothers, I was thinking what a great time to take a deep breath and appreciate your M.O.M. system.  All of us here at Dydacomp feel we have a superior product and work hard to provide a great customer experience.  Here in the Payment Processing Department, we are excited about the opportunity to save you money on credit card processing.  I love my job because I get to save our customers money every day.  It’s an awesome feeling and I highly recommend you try it sometime.

Last week I was speaking with the owner of an automotive shop who processes about $150,000 per month in credit cards.  They have 6 workstations and process via phone and internet. This customer was convinced that we could not help them save money because they already had “rock bottom prices” for credit card processing.  It took some convincing, but the merchant finally agreed to send me 3 months worth of credit card statements so I could do a full cost analysis for them.  In doing the analysis, I discovered several areas where switching to our Bundled Services Package could save them money.  I spoke with our First Data Rep and was able to negotiate a sweetheart deal for this customer, which included a FREE First Data Global Gateway.  Including the elimination of the gateway costs, we were able to save them $185 per month right off the bottom line! 

It was with great pleasure that I was able to call the owner back and present them with the savings.  This individual could not believe that we found them any savings, much less $185 per month.  With the extra money in the budget, they plan to purchase the Address Correction and Validation Module (ACVM) and upgrade to a higher tier of Mail Order Manager Support.  This, in turn, will save them even more time and money.

So, take a minute to appreciate your M.O.M. system.  We are all working hard to help make your business as successful as possible.

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Posted in Payment Processing | No Comments »

Saving with the Dydacomp Bundled Gateway

Wednesday, May 5th, 2010

Posted by Soha Boustani, Dydacomp Payment Processing Specialist

Soha Boustani, Dydacomp Payment Processing SpecialistA Dydacomp client in called in recently with a question about payment gateways that integrate with Mail Order Manager.  He is in the gift industry and processes a large volume of credit cards with an average ticket of $50 and over 90,000 transactions per year.

I explained all their options and they were interested in the First Data Global Gateway and Merchant Services Bundle Package especially because we can negotiate better rates and, in some cases, be able to secure a free global gateway on their behalf.  In addition, the First Data Global Gateway and Merchant Services Bundle Package integrate perfectly with M.O.M. 7, our PCI compliant version of M.O.M.

The client then addressed another concern, asking “What if we sell cigars and alcohol or adult material? Would we still be approved?” I let him know that with our First Data Global Gateway and Merchant Services Bundle Package we can approve all merchants as long they provide certain financial documents and meet website requirements such as including disclosure of privacy and return policies.  One of the reasons we recommend that our clients use SiteLINK as their ecommerce platform is that the SiteLINK team is very familiar with these requirements and will make sure that the client site meets them.

Needless to say, that my client ended up sending me 3 recent merchant statements to analyze and in return I negotiated lower rates through First Data on their behalf as well as a Free Global Gateway.  The client’s Gateway savings alone were over $9000.  The client is very pleased with not only the savings but the level of service they are receiving.

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Common Myths about PCI Compliance

Monday, April 26th, 2010

Michael Chichester, Dydacomp Payment Processing

Posted by Michael Chichester, Payment Processing Team Leader

I was speaking with a Dydacomp client who is the owner of an automotive supply parts company this week about PCI compliance.  He was informing me that he did not think that PCI compliance applied to them because they are a “very small company” and “do not process credit cards on the internet.”  They have 2 Mail Order Manager workstations and average 70 credit card transactions per month.  Their average ticket is $100, so their average sales per month are $7,000.  All orders are taken over the phone.  It took some convincing, but he finally came around to realizing that PCI compliance does, in fact, apply to his business every bit as much as it applies to a giant like Walmart. 

Unfortunately, I have had many conversations just like this one over the years.  The simple fact of the matter is that even if a company only processes 1 credit card transaction per year, the PCI compliance regulations apply.  Please remember, if you are not using M.O.M. 7, you ARE NOT PCI COMPLIANT!  As John Healy wrote last week, the 7/1/10 deadline is fast approaching, so if you have not upgraded to M.O.M. 7 yet, you are quickly running out of time. 

The PCI Security Standards Council has provided a great Top Ten Myths of PCI Compliance list that I think everyone should check out here: https://www.pcisecuritystandards.org/pdfs/pciscc_ten_common_myths.pdf.

This list should clear up a lot of the misconceptions that you had before you started reading this blog entry.  I’ve been preaching for years that PCI Compliance is mainly common sense.  It is really not that hard to become compliant, and we, along with Coalfire, will help you get through the process.

If anyone has any questions or concerns regarding M.O.M. and PCI Compliance, feel free to give me a call at 1-800-858-3666, x 326 or email me at Michael.c@dydacomp.com.

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Posted in Ecommerce, Industry News, Payment Processing | No Comments »

Coordinated Implementation

Wednesday, April 21st, 2010

Posted by Paul Mendelsohn, Dydacomp Director of Implementation & Professional Services

Paul Mendelsohn, Dydacomp Director of Implementation

Recently I was working with a new client who sells a product that shields credit and debit cards and passports from being read by wireless RFID Readers.  The client needed to put up a SiteLINK Store and Mail Order Manager back end quickly to handle the high demand for his product he anticipated would follow an upcoming interview scheduled on a national news program and a product placement in a major motion picture.   

The Dydacomp Implementation department not only worked directly with the client to set-up and implement his M.O.M. system, but also coordinated with other departments to ensure that his entire system was up and ready to fill the upcoming orders.  The SiteLINK team was able to create his SiteLINK Store the same day he purchased M.O.M. and SiteLINK.  They set him up with FTP access so he could easily modify the pages of his site and transferred his domain and installed his SSL shortly thereafter. 

Dydacomp Payment Processing took the client through the Credit Card Gateway application, acquisition and setup to ensure that once M.O.M. and SiteLINK were fully implemented he could receive payments.  From start to finish, the client’s implementation, including his SiteLINK eCommerce store, Gateway account, M.O.M. setup and training, was completed in just two weeks.

Because his M.O.M. system and SiteLINK eCommerce store were up and running so quickly, the client was able to publish his entire store, complete with product information, testimonial pages and YouTube video of the news interview to make the most of this great opportunity.

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Deadline Looms: 7.1.10

Friday, April 16th, 2010

John
One of the biggest complaints I am recently getting at Dydacomp is around the confusion of the PCI Deadline.  For those not completely familiar with the term PCI, it stands for Payment Card Industry that is an organization that is backed by all the major credit card issuers who through this Council, have a stated goal of eliminating credit card fraud globally.

PCI Security Standards Council

Pretty lofty goal, but the Council is well on its way.  The UK reported credit card-not-present fraud is down for the first time ever in 2009.  The deadline everyone wants to know about is actually for your vendors, not you as a merchant.  Merchants were already supposed to be PCI compliant a while back, but that is pretty hard to do when your vendors have a different deadline.  Anyway on 7.1.10 your vendors whose technology deals with credit cards (storing, processing, etc.) have to be PCI compliant.  The good news is that Mail Order Manager has been PCI compliant for a while now.  So clients can meet almost all of the requirements of PCI by simply upgrading to M.O.M. Version 7.

The other deadline is for your merchant bank.  For them, they have to ensure that all of their new clients that they take on are PCI compliant.  The merchant bank in essence, has become the PCI police.  If your database is compromised, you will not be fined by PCI, Visa, AMEX, etc., but your merchant bank will and they will pass the fine on to you right out of your settlement account, possibly with notice but not permission.  Remember where your merchant bank sits in the whole payments landscape:

Mail Order Manager Settlement Process

So I have been saying it for a while, but merchants need to be pro active.  We have heard through the grapevine that things will really heat up in terms of fines after the vendor deadline.  So  the first thing you need to do is talk to your bank about PCI.  They are going to tell you that you need to be compliant.  The easiest way to do that is to upgrade to Mail Order Manager v7.  It’s up to you to find out more on this one… fast!

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Posted in CEO | 1 Comment »

Saving Money with the Dydacomp Bundled Package

Monday, April 5th, 2010

Michael Chichester, Dydacomp Payment Processing

Posted by Michael Chichester, Payment Processing Team Leader

Recently I have been working with a large sporting equipment supply company to help them save money on their credit card processing and become PCI Compliant. This merchant has 12 different companies (or DBAs) running in M.O.M. on 65 workstations. They sell multi-channel – Mail Order, Phone Order, Internet Order through SiteLINK eCommerce, as well as Retail Card Swipes through the Point Of Purchase module.

The owner wanted to find a way to significantly reduce the fees they are paying each month for credit card processing. The owner also wanted to ensure that the solution supported their efforts to become PCI Compliant by the July 2010 deadline. Starting in July, all merchant banks must ensure that their customers are PCI Compliant, especially their new ones (hey, that sounds like a great topic for my next blog!). Anyway, this company did their due diligence, securing several quotes from local merchant service providers before calling me to discuss the issue. Since we get our bundled packages through First Data Corporation, which is one of the leaders in the PCI Compliance movement, I immediately thought they would be a good fit. I informed them of our bundled package option which is compatible with MOM 6.2 (and higher).

I asked that they send me the last 3 months of merchant account statements as well as the quotes they received from the various merchant service providers in an attempt to get them an even better offer from First Data. I performed a full cost analysis and side-by-side comparison of the offers. Then I called our rep at First Data to see what they can offer this merchant in an attempt to help them reduce their costs and support their PCI Compliance efforts. They offered a greatly reduced Gateway fee for all 12 of their companies on top of offering the best price for the merchant accounts. Needless to say, it was the highlight of my week to be able to help this customer save over $1000 per month right off their bottom line.

The end result is that this company is now paying significantly lower fees for their 12 merchant accounts as well as paying virtually nothing for the 12 Gateways. In addition, they are now with a merchant service provider who is a leader in the PCI Compliance movement. The cash saved on Credit Card Processing fees will come in handy when budgeting for future projects, hiring a few extra employees, or to upgrade equipment in the office. For anyone out there looking to put cash back in their pocket, I strongly recommend exploring the Dydacomp Bundled Package.

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Posted in Payment Processing | 4 Comments »