What is White Label Credit Card Processing?

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As you search for a credit card processing service that meets your needs, you may come across a number of terms you simply don’t understand, and that can make it complicated to select a good service for your company. One of the toughest terms you might encounter is “white label credit card processing service.” What does it actually mean, and how can you tell which companies meet the criteria behind this term? This quick guide can help you make the right decisions. 

The Basics

Credit card processing, while complicated, is easier to understand than you might imagine. Your customer presents a credit card to purchase your merchandise or services. When you run that credit card, it goes through your processor back to the acquiring bank who sends it to the credit card network who sends it to the issuing bank. Once authorization occurs, the process happens in reverse.  Your processor, though, is key to what happens at each stage of the game. 

Choosing a processor often means choosing from some pretty big names in the business, but the reality is that the market for processors is growing, and in some cases, it’s growing a lot. The reason for the growth? Branded credit card processing, also known as white label credit card processing services. 

Understanding the Idea

In the simplest possible terms, white label processing means a company has the opportunity to provide payment processing services under its own name. Instead of using a big name processor, a company chooses a white label payment gateway, then adds their brand to that solution. For many companies, it’s one more potential service avenue, as well as a stronger image and reputation. Imagine, for example, you provide turnkey business technology services to brick and mortar merchants. The ability to offer credit card processing to those same merchants, and get a slice of their sales, is an incredible one, and that’s exactly what white label credit card processing services allow you to do. 

Are There Drawbacks?

There are many benefits to being able to offer a service like this one. It can help expand your customer base and your brand, and it can help you build real relationships with your customers. Naturally, though, with any benefits come drawbacks. In this case, potential problems like PCI compliance remain on your shoulders if you’re a payment processing provider, and you’re usually stuck with what the other company has to offer. You can customize the look and feel for your users, but outside of that, there isn’t a lot of customization to be done. 

Is it Right For Me?

This could be a great option for your business, but it means choosing the best white label credit card processing companies to help narrow down your decision. Y2 Payments offers a phenomenal White Label Partner System you’re certainly going to want to consider.

We have a payment system that has already been certified by all of today’s top credit card processor, and thanks to a unique interface, you can work almost seamlessly with processors both on the front and back-end. You can customize your site’s colors and graphics as well as the applications involved. You also have the opportunity to customize your company communications and any collateral materials you offer. Want to offer your solution to others? We have lead tracking, sales materials, and much more ready to meet your needs. We even offer free, unlimited support. 

White label credit card processing services can offer some very useful options for your business. If you’ve thought about reselling in the past or you’re just looking for a new way to promote your brand, this may be the option you need to consider. It’s a great way to create customer loyalty and build some flexibility into your enterprise now. It may even mean higher levels of customer satisfaction for your clients. 

White label processing isn’t as complex as you may think. Instead, with the right partner like Y2 Payments on your side, it’s the way forward. To learn more about our options, contact us today. 

Preventing Chargebacks on Recurring Payments

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Too many chargebacks mean serious losses for your business. It could also mean you have trouble finding a credit card processor who will work with you in the future. Chargebacks are more likely to occur with recurring charges to a customer’s card than they are anywhere else, but is there anything you can do to prevent them?

What Are Chargebacks?

If you’re not already familiar with the term, chargebacks occur when the customer disputes the transaction. The merchant has the charges debited from its bank account, and the customer gets his or her money back. The goal of the card industry is to protect consumers and the merchant bears the risk.  Unfortunately, though, sometimes customers just aren’t happy and choose to initiate a chargeback. In settings like that, it is possible to reduce your numbers. 

Preventing Chargebacks

If you have a recurring service that customers can sign up for, there are several ways of avoiding chargebacks.  First, make sure you clearly inform customers about free trials. Help them understand how long that trial lasts and what happens at the end of it. As it gets closer, make sure they know how much time is remaining and how long they have to renew. Ensure they know exactly how much they will be charged, too. 

Beyond that, you can clearly state your refund and return policy. Highlight your policies on your sign up page. You may even want to have them check a box so you know they understand when they can get a refund or make a return. You may also want to make canceling a subscription a fairly easy process. After all, if a customer knows he or she can easily cancel, you’re more likely to empower them and help them understand that they have control. That means less risk, which usually translates to more loyal customers. 

Finally, make certain the bill is posted on a regular bill. Keeping the same billing date and the same format creates a level of transparency that is a must with recurring charges. Chargebacks happen, especially with recurring services, but they don’t have to happen to you. Contact Y2Payments today at 888-693-1850 to learn about our payment processing and chargeback protection system.

EMV Chip Cards – Are They More Secure?

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Credit card processing has changed significantly in the past several years, and one of the biggest advances came with EMV chip cards. Because processing credit cards could frequently involve fraud, card issuers knew something had to change, and they believe EMV chip cards may make the process more secure, but is this really the advance necessary to keep customer data safe?

Credit card processing formerly relied on a magnetic stripe. Initially developed in the 1960s, this technology is the same used to develop the cassette tape, and while the US was a leader in early credit card technology, it was quite slow to adopt anything after the magnetic strip. Other parts of the world, though, quickly upgraded to the EMV chip for a number of reasons. First, the cards are quite difficult to clone. Technologies fraudsters were using to clone cards, like skimmers, don’t work with the chips, and that means in places where the EMV is common, some types of fraud have declined dramatically. More than that, though, EMV cards have better encryption technology build directly into the chip. That means the data isn’t broadcasted when a customer pays. 

Fraud is a multi-billion dollar industry. In 2017 alone, more than 14.2 million credit card numbers were exposed, and that makes this a serious problem for banks and merchants alike. While EMV cards aren’t the only answer to this fraud problem, they are one that may prove useful in fighting fraud wherever possible. 

For merchants, that may mean an equipment upgrade to help meet this new standard of security, which will likely present an initial upgrade cost, but it’s worth it to ensure that every customer in your store can shop safely and know that you’re going to do everything possible to keep credit card numbers safe during each transaction.

Contact Y2Payments today at 888-693-1850 to learn how we can help provide you with a superior payment system and fraud protection.

About Card Not Present Transactions

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When a customer chooses to use a credit card with your company, you can process it one of two ways. The first is to swipe it through your payment processing terminal. The second, though, is to have you process the card without the swipe. This tends to happen with phone and online orders, but it is possible to key in a card entry in a traditional brick and mortar setting. When you key those credit cards in without swipes, you’ve processed credit card not present, or CNP, transactions. They’re more common than you think today, but in the world of credit card processing, they can actually cost you quite a bit more than you expect.

What are Card Not Present Transactions?

A better definition of card not present transactions is any time a seller doesn’t have to physically use the card to process the transaction. If, for example, a person could simply recite the pertinent numbers from the card to complete the transaction, you’re completing a CNP sale, and it could really change your overall fees.

Why Does It Matter If the Card Is Swiped?

Card not present transactions change the entire processing equation for one simple reason – they involve a much higher risk of fraud. Any time you’re taking an over-the-phone order, a mail order, or even an online order, there’s a chance the cardholder didn’t authorize that move. That means that there’s a possibility that the transaction may fail at some point during the process.

In any type of pricing module, whether you’re looking at interchange-plus pricing or something completely different, you’re going to pay added costs because the processor doesn’t want to deal with the potential risk of a CNP transaction. In some cases, even when you don’t see those interchange costs directly, you’re paying for them in a marked-up base rate because the processor has to accept some of the risks.

Keep in mind, though, that not all CNP transactions will mean the same risks for your company. Online transactions, for example, have built-in security measures. Often, they ask for address or CVV verification. Keyed-in entries, on the other hand, don’t have those added layers of security, and that can mean even higher rates you may end up paying.

Preventing CNP Fraud

If fraud occurs during a CNP transaction, you could end up bearing the brunt of the costs. A 2010 LexisNexis study found that merchants tend to lose about $310 for every $100 of credit card fraud. Preventing fraud, then, can help your company save quite a bit of money in the long run. These tips may help.

  • Minimize CNP Sales: If possible, make sure you’re processing card present transactions. If you have a choice between the two options, have your customers swipe their cards through an actual terminal.
  • Increase Online Security: Make sure you’re gathering as much information as possible when you process online sales. Ensure you have the cardholder’s name as it actually appears on the card. Get the expiration date, the billing address, and the card’s CVV or security code too. If you have a way to store information about when an order was placed and other details about the order, you should do that as well.
  • Ensure PCI-DSS Compliance: If you take phone orders, make certain your company is PCI DSS compliant when you handle a customer’s confidential data. Additionally, you should keep copies of all the information provided by customers until the customer has received his or her order and the transaction is complete. Most companies keep this information on file for twelve to twenty-four months.

The Complexities of Credit Card Processing

Processing cards, whether you have customers swiping them or you’re dealing with card not present transactions, can be complex, but the reality is that the more you know about how to safely process a customer’s card, the less likely you are to be the victim of fraud of any type. What’s more is that you could be saving hundreds in credit card fees with just a bit of added knowledge.

To learn more about how we can save you money with every single CNP transaction, contact Y2Payment Systems today.

The Importance of Fraud Protection

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A 2016 Nilson Report estimated that fraud losses related to credit cards topped $24.71 billion in that year alone. Those numbers have only increased since that study was done, and businesses like yours simply can’t afford the cost of fraud today. In fact, one survey found a small business will spend nearly $40,000 just to recover from a security breach. As fraud becomes more and more relevant to companies in nearly every vertical, learning how to protect your company from fraud is essential. These tips can help.

Move to Chip Cards

EMV chip cards can help you with credit card fraud protection. The United States has one of the highest fraud rates of any other country today, and a big part of that has been its slowness to move to the EMV chip system, something many businesses are just starting to do. The UK saw nearly a 70% decline in fraud when they moved to the same system. You’ll need to talk to your processor to get the required equipment, but it could help you create a consistent cardholder experience and avoid liability.

Watch for Potential Problems

If you’re handling a card present transaction, keep an eye out for potential signs of fraud, and train your employees to do the same thing. Simple things like a customer purchasing a large number of pricey items or trying to rush you through a sale when it’s closing time are indicators you may be processing a fraudulent sale.  Having a customer who tells you their card is damaged may also indicate a fraudulent sale.

Follow the Right Procedure for CNP Transactions

If you process a lot of online sales or you take orders over the phone, you’re processing CNP, or Card Not Present, sales on a regular basis. Take a few extra precautions with these kinds of sales. Watch for orders that include several items of the same type or nature. You should also take extra care with orders that are made up of bigger ticket items. Rush orders, too, can be a problem, as are those that fail the Address Verification Service you’re using. International orders may pose a problem, as may orders that have made multiple attempts to pass through your system.

Keep Friendly Fraud in Mind

Friendly fraud is just as dangerous as any other type when it comes to your business’ costs. This happens when a customer asks their bank to issue a chargeback, even if the refund is unwarranted. Chargeback fees can be incredibly damaging to a company, but it’s really easy for a customer to initiate. Often, credit card websites display a “Dispute” button next to every single transaction, and you not only have to give the customer his or her money back, but you also have to pay a chargeback fee of as much as $50 per transaction. It’s tough to reverse chargeback fees once they’ve gone through, too. Good communication with your customers from the start can help, as can setting clear expectations about the sale from the outset. Even taking an added step like confirming that shipments successfully reached your customer is a helpful step.

Report Fraud

The final step in protecting your business from the costs of fraud is to report it the moment it happens. If you suspect that you’ve processed a fraudulent transaction, be sure to call the credit card’s authorization center at that moment. Tell them you have a “Code 10 authorization request.” If the customer is still with you, be sure you remain calm and avoid alarming him or her. Hang onto the card if it’s possible. The operator will ask you a series of questions, and if necessary, you may be asked to contact the police. It’s also important you contact your bank and your credit card processor at some point after you’ve discovered fraud occurred.

Credit card fraud is a growing problem, and the single best way to prevent it within your company is to continue learning how it might occur and what you can do to save your company from the hassle of dealing with it. Because fraudsters are continually changing their tactics, you may want to consider reading fraud prevention blogs and even attending webinars that could help on a regular basis.

For information on how Y2Payments system works, give us a call today at 888-693-1850.

Law Firms Can Benefit from Credit Card Payments

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One of the best ways for law firms to get paid today is through credit cards. Whether you’ve been in business for some time now or you’re just getting started, the reality is that if you’re not accepting credit cards when you bill your clients, you’re hurting your practice. Law firm billing has changed a lot over the past several decades and taking credit cards from your customers means getting paid faster, getting more business, and simplifying your overall billing process.

The Concerns

Despite the ease of accepting plastic, credit card billing for law firms continues to be a daunting issue. Many attorneys are concerned about the risk of fraud and frustrated with the potential fees they might be charged from payment processors. Moreover, because there are PCI compliance issues surrounding credit cards, many firms are concerned about an additional layer of compliance complicating their practices. The reality, though, is that the benefits outweigh the risks.

What to Consider

If you’re ready to get started, the key is to find a credit card processor that works with firms like yours.  There are hundreds of processors and getting one that’s perfect for your firm is the best way to keep your costs low. Do your research throughout this process. Ask your colleagues what services they use. You may even want to check with your bar association to see if they have a recommendation, too. You want to find a company that’s a suitable fit so you have a good experience from the start.

The most important thing to remember is that fees and pricing structure vary from provider to provider, so understand what a flat fee may mean for your firm and what something like interchange through pricing could mean in terms of total revenue. You’ll also need to think about how you process payments – whether through an online portal or in person where you can swipe the cards, as those mean two completely different kinds of costs.

Accepting credit cards for your law firm is the right move, so find a system that’s right for your practice. To learn more about how Y2Payments can help your law firm or business, contact us today at 888-693-1850.

Streamlining Your Payment Processing

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How many businesses do you know that don’t accept credit cards? They’re few and far between, and if your company wants to grow, you’re going to have to accept cards as a part of daily life. This method is not without problems for merchants, though. A credit card payment is one that comes with its own fees and potential for fraud, and even if you use the best payment processing service in the world, you’re still going to find costs involved that you just didn’t expect. How can you streamline the experience and make certain you’re paying a little less with every single transaction? These tips can help.

Implement Fraud Protection
Businesses deal with thousands in fraud every single year, and with a few simple steps, you could protect your company and move forward fraud-free. Do some research about the types of fraud you’re most likely to encounter in your industry and make sure your online payment services if you accept orders over the internet, are up to speed and working to protect your company.

Know Your Business
Understand what types of payments customers are most likely to present, and the kinds of cards they typically use. Mastercard and Visa, for example, are processed very differently than American Express. Debit cards are cheaper for your company to process than credit cards. Some kinds of transactions mean higher rates. The key is to know exactly what kinds of payment methods your customers prefer and where your costs are going to be.

Choose the Right Processor
As you shop for payment processors, make sure you’ve selected the one to meet your needs. You’re going to find companies that offer flat fee payment processing that looks like a good choice, but the chances are astronomical that unless you’re dealing with really low transaction totals on a daily basis, you would save more with a company that offers a different structure.

Interchange passthrough rates, for example, tend to be far lower, as they pass the interchange fees on to you, so you can see exactly what you’re paying for every single time. Because there are so many different processors out there, though, and they all charge you differently, the key is to understand exactly what you’re getting.

Learn more about Y2Payments payment processing solutions, contact us today at 888-693-1850.