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.

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.

Common Payment Processing Mistakes

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Online payment processing is a must in today’s business world. It means your business can accept credit card payments without a hassle, but it’s not always as simple as you might imagine. In fact, many companies make some critical mistakes when it comes to payment processing, and those mistakes can be costly in today’s business world. Understanding exactly what those mistakes might be is key to helping prevent issues in your company. Take a look at a few mistakes you might be making right now.

Five Key Mistakes

Mistake #1 – Poor Examination of Available Options

The differences between payment processing solutions is vast and knowing exactly what you need at the outset is a good way to avoid any potential mistakes. There are multiple payment processing solutions available today and comparing each one on level ground is a must. While many businesses simply examine the overall cost involved, the reality is that if you look closer at the services and benefits each offers, you’re going to find far more to that bottom line cost than you might imagine, and if you get stuck in a contract with one that doesn’t work for your business, you’re going to create more problems for your company in the future.

Mistake #2 – Lacking A Signed Contract In Place Before Auto Billing

Many companies offer services or products on an auto billing plan. It’s a great way to offer your customers a convenient service they don’t have to renew and keep customers with your brand for longer than you ever thought possible. However, often auto billing can create a headache, particularly if you don’t have your customers sign a contract at the outset. Create a straightforward terms of service agreement before that first bill arrives. If you don’t, you may experience a chargeback that you can’t reverse, which may mean you have trouble working with your payment processor in the future.

Mistake #3 – Failure to Watch for Hidden Fees

The last thing your business needs is additional fees, and in the world of payment processing, they can add up quickly. More often than not, you find hidden fees with payment processors who offer lower rates than you’ve ever seen, but it happens with others too. Cancellations, withdrawals, and batch processing all often trigger additional fees. The volume of business, though, may also impact your fees.

More than that, though, how you process a customer’s credit card can affect your fees. Lower fees are available for swiped transactions, something you may not have realized when you initially signed up for that service. Knowing exactly what you might pay with each payment processor you consider can help you avoid any surprises at the end of the month when you’re working on your books.

Mistake #4 – Avoiding the Right Fraud Solution

In 2018 alone, private companies experienced a fraud rate of nearly 28%, according to 2018 ACFE’s Report To The Nations. If your company is in that 28%, finding the right solution to fraud is an absolute must, and often that begins at the point of online payment processing. Take the time to implement a robust fraud reduction program. Encrypt your data, and keep customer contact information up to date. Only give access to private financial information to those employees who truly need it and see if your payment processor can help offer you additional fraud protection that will keep your business (and your customers) safe.  

Mistake #5 – Settling for a Payment Processor That Doesn’t Work For You

Imagine you’re going out for dinner tonight. Would you settle for a restaurant you don’t like? The chances are good that you wouldn’t, so why would you select a payment processor for your company that doesn’t seem to be a good fit? Because there are so many choices available, settling because you simply want what’s easy now could cost you more down the road. Instead, choose a certified payment processing company that seems like it would work well for every transaction you’ll have this year.

To learn more about common mistakes businesses make when it comes to payment processing, reach out to us today. We can help you decide if we’re the right choice to meet your needs. Call us at 888-693-1850.

Advice to a Business Owners Looking for a Payment Processor

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You have to find a way to accept customers’ electronic payments today. Whether you run a brick and mortar business or one online, to become profitable, you’ll need to deal with electronic payments like credit and debit cards and e-checks. While the number of payment processors wasn’t an obstacle just a few decades ago, for companies looking for the right processor today, the choice can be nothing short of overwhelming.

Who are the best payment processors and what are the differences between payment processing solutions out there? This guide might help you sort things out and find a processor that works for your company.

What to Look For

The first trick to landing the right payment processor is to watch for the signposts of a good processor as you read about each company. Good payment processors:

  • Are upfront about their fees – Fees vary from company to company. Make certain you find a company that is willing to discuss those fees and not hide them from you. Understand what the cancellation, withdrawal, and batch processing fees might be. Good payment processors will offer you a full schedule of fees before you ever sign up.
  • Offer fast access to funds – If your processor constantly needs to investigate suspicious activity, you could be without a paycheck for weeks. Find a company that, even in potential fraud cases, have a simple process that means access to your cash as fast as possible.
  • Care about data security and fraud protection – Protecting your customers’ data is a must, and it shouldn’t fall on your shoulders. After all, that can be an expensive process that may suck time away from your company. Choose a payment processor that offers secure, reliability with anti-fraud technology built right into the services. Make certain they reduce your PCI compliance workload so you don’t have to have an additional, costly system.
  • Have dedicated set-up support and assistance – You need help. It’s the bottom line in accepting electronic payments today. Ensure you have a processor dedicated to customer service so you get the assistance you need when you need it the most.

Are There Really Differences between Payment Processing Solutions?

The answer to that question is a solid “yes.” A Nilson study found there are 14.4 billion credit cards in the world as a whole, and with numbers like those, the industry will only continue to grow. Make certain you find a processor you can partner with to better run your business.

Contact Y2Payments today to learn more about our Payment Processing solution and our Conduit 3.0.

What is a Remotely Created Check or a RRC?

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Many payment methods are available today, and among them are remotely created checks, or RCCs. They’re a convenient way to take payments from customers, and for more than two decades, they were a dominant way for customers to pay bills or merchants. That, however, may change in the near future.

A Bit of History

RCCs aren’t created by the account holder’s bank, and they don’t include the signature. Instead, they include the account holder’s printed name, and the merchant takes the customer’s bank and routing number through the web (or over the phone), then prints a check with that information and processes it just like they normally would.

RCCs came from Check 21 legislation. Created in 2004, the checks were not subject to ACH rules. The goal was to create a way for customers to easily use checks to make purchases over the phone or online. The legislation also made remote deposit a possibility.

The Problems with RCCs

The biggest problem for most who deal with RCCs is that there is a pretty high risk of fraud involved. It’s easy to debit a customer’s account without consent, and the method is used today by online scammers on a regular basis.

The other frustration for many is that it’s hard to detect and control any fraud in this arena, which means there’s a higher rate of return on these checks. One study found that rate of return as high as 70%, which is as frustrating for payment  processors as it is for merchants.

Lawmakers are currently taking a closer look at RCCs to decide whether they will continue to authorize their use. It is possible that at some point in the near future, RCCs will no longer be legal tender for businesses.

Are They All Bad?

RCCs can be a really good solution for high-risk merchants, especially if they want to be able to take electronic check payments. Because many cannot qualify for ACH processing, RCCs give them more possibilities than ever. As with other payment methods today, though, they are not without their potential problems.

Y2Payments and Customer Service Go Hand In Hand

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The world of consumer products is a customer service oriented world. Actually, thanks to the internet and the fact that any information is instantly available, any business that deals with customers or clientele needs to have high quality customer service.

At Y2Payments, we understand how important it is to have the right customer service agent available when you need them. The world of commerce and sales doesn’t stop for anything, especially if you’re an online retailer. The Y2Payments difference is that we have a customer service associate here and ready to help you, 24 hours a day, 7 days a week.

One of the reasons we try to make sure that we’re available at any point in time is due to today’s retail climate. Customers want to be able to buy what they want, when they want it. The last thing you want to have to deal with is any sort of payment issues.

At Y2Payments we can help you immediately so that you don’t have to wait until the next day to get things solved. We’re even available on the weekend, which means your Monday will be a little less stressful as you’ve been able to take care of any payment issues over the weekend.

Friday evening you decide to look over the Conduit report and you discover something that doesn’t make sense? No problem. We’re here to help! Just give us a call at 888-693-1850. It does not matter the time of day, we’re available and ready to help you understand the report. If there are any problems, our agents are fully capable of taking care of them for you, or knowing what process needs to be followed to get everything fixed properly.

With Y2Payments, you don’t have to worry about being left in the dark or floundering with a payment issue. We pride ourselves on making sure that our customer service is top notch so that you can provide high quality customer service to your customers!

To learn more, contact us today.

What is a Payment Processor?

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A payment processor is a company that handles transactions for a merchant. Obviously, the merchant themselves can handle cash transactions. The payment processor handles payments involving credit cards, debit cards, and more recently, cryptocurrencies. Are there differences between payment processing solutions?

We’ll examine these. The best payment processors provide more than just the basic service. They can help you implement payment processing solutions, solve problems that arise, provide solutions to better handle chargebacks, as well as produce reporting that helps you analyze how your customers spend their money.

ETA Certified Payment Processing

Certified payment processing exists to act as a trusted and accountable mediator between your business and various financial institutions. The payment processing industry holds certain standards and requirements that enable financial institutions to feel comfortable entrusting many businesses with more extensive payment processing solutions.

Certified payment processing means that a processing company has been certified by the Electronic Transactions Association (ETA). This ensures you that a payment processor meets and maintains certain standards that are important to client businesses.  And, yes, Y2Payments is a long-time member of ETA.

High Risk Payment Processing

There are differences between payment processing solutions. To start with, many businesses are classified as high risk. Not all payment processors will provide their services to high risk businesses. If they do, their terms won’t be very favorable because this type of client falls outside their specialty.

A payment processor that handles high risk clients will often be able to provide better terms in your payment processing rates. Not only this, they’ll also be able to provide you more complete service. The best payment processors will help you implement all your payment processing tools, give you training so that you know how to use them, will respond to inquiries, can explain things, and will produce valuable reporting you can use to analyze customer habits and needs.

Payment processing deals with technology is first and foremost, but it excels when personal communication allows for the kind of flexibility that businesses need to operate within high risk industries.

For more information on Y2Payments payment processing, contact us today.

Watch Trends in Online Payment Processing

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The world of online payment services has changed rapidly. Many of these changes could be seen coming years back. Others seem to take hold at surprising speed. What are the biggest online payment processing trends that can be seen taking shape today?

Methods of Payment

Credit cards are still popular in the realm of online shopping, but they no longer dominate the field. They account for 42 percent of online shopping payments. Electronic payments are just behind at 39 percent. The remainder is taken up by debit cards, but you can see just how much electronic payments have narrowed the gap with credit cards.

Third Parties

Younger shoppers continue to support third parties. They have more knowledge about how to protect their bank account information in online payment services settings. This makes them better equipped to identify safe ways of doing this, which makes them more flexible and more intelligent spenders online than older generations.

Interchange Pass Through

 Interchange pass through pricing has clearly become the most transparent form of credit card processing pricing. Interchange pass through allows the actual processing cost to be passed directly to your business.

Cryptocurrency & Blockchain

You’ll continue to see cryptocurrency normalized as a form of payment. Be careful with how and when you accept these forms of payment. Cryptocurrency values are extremely volatile and represent a high risk. Many online payment systems will still decline their use, but cryptocurrencies will only continue to expand into the realm of online payment methods.

When new technologies enable new approaches to online payment systems and online payment methods, they really do take hold fast. Expect blockchain technology, the digital ledger in which cryptocurrency exchanges are recorded, to reshape much of the field in the next five years. It’s estimated it will reduce the cost of accounting reconciliation up to 70 percent in that time.

There are a number of online payment processing trends that you’ll see coming. You also need the flexibility to adapt quickly to the ones you don’t see coming. Ensure that you trust reliable online payment systems that offer interchange pass through, accountability, and provide thorough service.

For more information on payment processing, contact Y2Payments today.

Streamline For Better Payment Processing

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Credit card processing fees aren’t always fair. Payment processing can seem limited, and built to punish small businesses, low volume sellers, and the business-to-business industry. These businesses need better payment processing options that can fully cover a range of payments, including ACH/EFT payments.

Better Credit Card Processing

The solution is interchange plus pricing. This model is less complicated and more straightforward than traditional credit card processing. It’s also more flexible in terms of satisfying many modern requirements that businesses have.

The best approach is to compare the two options. For many large volume sellers or large franchises, they see beneficial credit card processing deals with friendly rates. Their payment processing options are beneficial to them because processors want to secure their business long-term.

Even Footing for Small Businesses

For most businesses outside this range, they just don’t see the same benefits offered to them. Processors are less confident in these businesses and so they look to make more money out of them in the short-term, unconcerned with the impact on a long-term partnership. This benefits them, but not your business.

Interchange plus pricing is an approach to credit card processing that relies on giving you the information you need to make a decision up-front. You can even see an audit of your current fees and compare these to what they’d look like under Y2Payments.

Y2Payments Conduit

Our platform is called the Y2P Conduit, manages these payments. It’s fully PCI DSS compliant. You can securely run transactions across six payment channels. This includes payments made by internet or phone, by mail, or at point-of-purchase, whether it’s through credit, debit, or ACH. Reporting according to your organizational structure is rolled into this. This allows you the benefit of increased analytics and reduced risk on purchases, transactions, and chargebacks.

With the Y2P Conduit, you don’t have IT implementation expenses or changes in how your staff performs their jobs. Other credit card processors aren’t concerned with your quality of service.

The Y2Payments method of better payment processing, payment structures and the Y2P Conduit’s ability to quickly reduce transaction fees, gives you more control over your business and gives your business a better deal than with other processors.

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

The Different Types of Credit Card Processing

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No matter what the industry, you need a fast, convenient way to accept credit card payments. These days, almost everyone carries a credit or debit card, and whether you’re working online or you have a brick and mortar location, customers expect the ability to pay with their cards.

Businesses that don’t accept cads lose a huge chunk of the market. Nearly half of all transactions last year involved a card, and those are sales numbers you don’t want to ignore.

For example, Visa has done studies where they conclude a merchant will experience a 30-40% sales increase merely by accepting cards as payment. When it comes to credit card processing, though, what are your options?

Take a look:
– A Standard Terminal:  This is the type of credit card processing almost everyone considers. It’s typically a cash register with a credit card machine build into it. The payments industry refers to this as the Card Present environment. This is the best option for business owners who have a physical location and do plenty of credit card sales each day. Most of them are equipped with swipe and chip capabilities. This means additional payment options for customers. The technology can be an expensive investment, but it can also be worth it if you know you’re going to have customers who need your services and products, and you know they’re coming to you to get it.
– A Mobile POS System:  Mobile phone technology has been nothing short of amazing for business owners, and it’s developed to the point where you can now use your phone to process payments. If you have a smaller business, or you do quite a bit of trade show business, this is the best option for your company. It’s small, inexpensive, and you can literally turn any of your devices into a credit card processor instantly.
–  E-Commerce Processing:  Doing quite a bit of business online? You’ll still need to accept credit cards, but you’ll need to do it virtually instead of swiping the card. E-commerce is a great way to reach customers who can’t make it to your location, but they’re still interested in your goods and services. Here the industry identifies this as Card-Not-Present (CNP) since your sales staff does not make visual contact with the cardholder. As one would expect, CNP fees are more expensive than their Card Present cousins. The best credit card processor will often help you navigate the murky waters of privacy legislation, even if you’re accepting cards online.

No matter what type of credit card processing you want to do, we can help. Contact us today to learn more about our merchant services and payment Conduit.