EMV Chip Cards – Are They More Secure?

emv-chip-credit-card-y2payments

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

card not present transactions y2payments

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 Difference Between Credit Card and Debit Processing

credit card debit card y2payments

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

credit card invoicing y2payments

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

credit card processing signatures y2payments

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!

Streamline For Better Payment Processing

better payment processing y2payments

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

different types of credit card processing y2payment systems

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.

Y2Payments Secure Payment Solution Processes Six Unique Payment Channels

Y2Payments Conduit Payment Processing payment channels

There are numerous issues for companies with today’s payment processing options. From excessive fees to slow processing time, it’s tough for many businesses to keep up with card payments, and that can mean real budget difficulties. Y2Payment Systems, though, is offering a better solution – Conduit 3.0.

Conduit 3.0 simplifies the entire transactional life cycle. With the ability to run transactions multiple payment channels and turn them into one concise report, businesses get the help they need to make credit, debit and ACH/EFT payment processing virtually seamless.

“The real benefit here is that Conduit translates practice management systems output file data into the format of the gateway provider, executes absolutely all of the transactions, and coverts it back to the native file format in just a few seconds. It takes other systems hours to do the same, and that’s lost time you could be using elsewhere,” said Ron Viemont, Exec Chair of Y2Payment Systems.

With real time payment processing, the speed involved here is the major selling point, but there are a number of other advantages to this system as well. You can either process bulk/batch transactions or one-at-a-time transactions in both HTTPS format and FTP submission format. There’s built in support for the software used across industry lines, and it interfaces with absolutely any credit card processor. The reporting features in this are amazing as well. Available reports are extensive, customizable, easy to download, and they include robust research tools to help companies do more.

Here’s a payment industry first—Conduit 3.0 now captures and reverses credit card chargebacks before they are debited from the merchants bank account. The system effectively becomes a revenue enhancement to our clients—and it’s an exclusive feature of Y2Payments.

As expected, it is 100% secure and PCI DSS compliant, helping to protect businesses from fraud and the hefty fines that come with noncompliance. Moreover, there’s no IT implementation expense, and companies don’t have to change their current job functions. With a minimized learning curve thanks to the intuitive interface, this is easily the best way to change the way you process transactions and simplify your life now.

Y2Payments is working to ensure customers have access to an easy to use payment system that cuts transaction fees, and the Conduit system certainly demonstrates that.