Unsecured vs. Secured Credit Card: A Guide for Merchants

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Once your business decides to accept credit cards, you open your company to an entirely different world of payments – one that requires a good payment processor like Y2 Payments on your side. As you work with customers to accept their preferred form of payment, you’re likely to see two main types of payments – debit and credit cards. Debit cards debit the cardholder’s bank account directly. Credit cards charge the amount to the customer’s bank, then the customer repays that amount. There are, however, differences in credit cards. Customers may either be carrying a secured credit card or an unsecured credit card.  

Secured Credit Cards

Customers who have bad credit or no credit at all may not be able to open a credit card account with a simple application. Instead, the issuing bank may need some assurances that the customer can actually pay his or her bill. As a result, in addition to the issuing bank accepting the application for the customer’s credit card, it will also require the customer to deposit a certain amount of money, sometimes as little as a hundred dollars. The amount deposited is the limit for the customer’s credit card.

Unsecured Credit Cards

Most merchants are more familiar with unsecured credit cards. These are a bit more traditional. The customer applies for the card, then the card issuer grants him or her a card. The limit is based on current income, credit history, and overall credit score. That limit, though, can be massive. 

The difference between secured and unsecured credit card products isn’t vast. Instead, it’s simply a matter of protecting the issuing bank to ensure all customers have access to this type of payment method. From a merchant’s point of view, the two don’t really process any differently. Instead, they’ll both work for the goods and services you have available. 

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

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. 

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.

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.

What’s the Difference Between Chip and Signature and Chip and PIN Transaction?

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It seems nearly every major credit card issuer has gone to chip-enabled cards, and for good reason. These cards have far more fraud-prevention features than others available today, and that not only protects the credit card companies that issue them but merchants as well. There are, however, two different kinds of cards available – those cards that are dubbed chip and signature cards and those called chip and PIN cards. What’s the difference between the two, and which is the best payment type for your business? Take a look.

Chip and Signature Cards

At the heart of the difference between these two kinds of cards is how customers buy merchandise. A chip and signature card means the customer inserts his or her card, then signs for the purchase. This should be a pretty familiar process, as it’s a bit like the older, magnetic cards. It’s fast, it’s convenient, and it’s a familiar process for many consumers. There is a drawback, though. Signatures can easily be forged in this system.

Chip and PIN Cards

With this type of card, a customer puts it in the chip reader, then keys in a PIN, personal identification number, to complete the transaction. This system is probably the safer of the two, and while customers are familiar with the swipe and sign, as debit cards have become more and more important across the United States to consumers, they’re more familiar than every with entering a PIN for purchase. Studies have shown that fraud losses plummet with the adoption of a chip and PIN system for all cards.

Do You Have a Choice?

Just because there are two kinds of cards available doesn’t mean you have a choice of which ones to accept. Most of today’s updated terminals read both chip and signature transactions and those that require a PIN, so you don’t have to worry about choosing between the two. In fact, few payment processors even require a different fee for one over the other. What you do need to know, now, is that there is a difference, and should an option pop up in the future, you may want to go with chip and PIN to protect your business.

Learn more about payment processing options for your business at Y2Payments.

The Difference Between Credit Card and Debit Processing

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Most merchants can process both credit and debit cards. The two work very differently, though, for both the customer and the merchant. For the customer, those differences are obvious. The source of the funds on a credit card is an account the consumer holds with that company. It’s often an agreement to borrow money from that company and pay it back. A debit card, though, gets its funds from a bank account. From a processing perspective, that difference is less obvious.

Credit Card Processing

When a customer chooses to use a credit card to make a purchase at your store, the processing takes place through the major digital networks of each credit card company. The payment processor sends the details to a credit card network like Visa or MasterCard, then the card’s issuer accepts or declines the transaction. Naturally, the entire process takes only a matter of seconds. Interchange fees on a credit card transaction tend to be higher than those on a debit card, and those fees increase with web or mobile credit card transactions.

Debit Card Processing

When a customer swipes a debit card, the data can go through Visa or MasterCard, but it can also go through other options like Interlink, STAR Network, or Maestro, just to name a few. That data is then forwarded to the issuing bank, and then the transaction is either approved or denied. Debit cards have a unique set of regulations that govern payments. Processing costs are lower, but the amount depends on whether the card is regulated or unregulated. It may also depend on the total amount of the transaction. Additionally, the smaller the bank, the more likely a PIN or signature will be required, which can affect the fee structure.

 

What works for your company will depend a bit on the differences between payment processing solutions and what forms of payment your company currently accepts. Search around to find the best payment processor not just for you, but for your customers as well.

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

Get Faster Payments with Credit Card Invoicing

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If you’ve ever managed a business’s accounting, you realize that the job gets misrepresented a lot. Accountants are often represented with their noses in spreadsheets, furiously sweating minuscule financial details. Sometimes that’s the easiest part of the job. The hard part is tracking down clients who still haven’t paid, and negotiating a path between a business that doesn’t want to lose that client but does need to get paid by them. Accountants are often diplomats just as much as they’re financial specialists. That job can be made easier with credit card invoicing and credit card processing.

Why Accept Credit Cards?

When you manage your own business or do the accounting for it, you’re also managing your time. Time is money. If you spend it chasing clients, you’re using up time that could be devoted to developing other aspects of your business. The more you can streamline your invoicing and processing, the more time you save.

You’ve probably heard that statistic, the one that says most businesses fail in their first two years. This usually isn’t due to someone failing to produce a good product or deliver a good service. By the time someone is ready to step into starting a business, they’re talented and knowledgeable enough to know how to deliver products and services well. Chances are, they’ve already been in that industry for years and their clients are already very happy with them.

Credit Card Invoicing Eliminates Wasted Time

The difference between a successful business and one that fails is where time gets wasted. When you’re waiting on invoicing and processing, in chasing down clients and reminding them to pay, they’re wasting your time. You can’t dump them outright. You walk that fine line between keeping a client with good payment potential, and getting them to actually live up to that potential.

And yet it doesn’t change the fact that every time you do this, they’re wasting your time. This holds you back from developing other aspects of your business, including product revision, adding services, customer service, and making your marketing more effective. That’s a big enough difference to make your business sputter and collapse before it gets its feet under it.

Rewards, Enabling Future Purchases, and Security

Credit card invoicing is quicker. It enables customers and clients to utilize credit card reward programs. You get paid right away, which eliminates both the time spent with your nose in a spreadsheet and the time spent playing diplomat with clients. Payment information is easily encrypted and stored, which puts customers and clients at ease about making future purchases.

Customized reporting and analysis is easy to produce, allowing you to analyze your customers’ and clients’ spending habits. Security liability shifts at this point from you to your credit card processing provider. Why accept credit cards? There’s a long list, and it begins and ends with making sure your time isn’t wasted, so you can choose how to spend more of it.

Contact us today to learn more about our interchange pass-through pricing model.

Credit Card Companies Dropping Signature Requirement

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Businesses are always looking for ways to make checkout faster. With advancing technologies and a need for faster credit card processing, many credit card companies have decided to drop the need for signatures on payment slips and checkout terminals. This makes your payment processing options even faster.

Dropping Signature Requirements

Mastercard, Discover, American Express, and Visa have all dropped the signature requirement as of April 2018. Technology and anti-fraud capabilities have advanced far enough that signatures are no longer necessary to fight fraud. This is because they’re no longer among the most effective pieces of evidence considered in anti-fraud work.

This isn’t a radical or sudden idea. It’s long been considered and weighed as an option. If anything, credit card companies have waited longer than they have to before doing away with the need for signatures.

What about Chargebacks?

The ACH payment system has no real use for signatures either. Regardless of ACH and the decisions companies are making about credit card processing, some businesses are still taking things step by step. This is especially true for high risk merchants, since signatures are still used as evidence when considering chargebacks.

There will likely be a period of time until the approach to chargebacks catches up with the dropped signature requirements. Many businesses have reported this, and so are still requiring customer signatures.

Chip cards help eliminate the risk of this, but not everyone uses them, and there’s still a need for some departments to get on the same page. When weighing whether to request customer signatures or not, try to balance your risk of chargebacks against your need for speed in your payment processing options.

Balance Your Needs

If you need to accelerate customers through credit card processing, dropping signatures achieves this. If your business risks a higher rate of chargebacks, you may wish to keep requiring signatures for the time being. Credit card companies should catch up on this sooner rather than later.

Contact Y2Payments today at 888-693-1850 for a free no risk statement review & audit!