credit card processing fee strategies post US EMV 10/1/15 liability shift


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Give your clients valuable credit card processing advice this holiday season:

RETAIL
  1. Although EMV chip card acceptance was not mandated, penalties are coming for those who do nothing. On 10/16/2015, the card brands published hefty penalties to acquirers that don't get their merchants on board; there's a phase in period, but businesses need to get moving now. Acquirer Vantiv announced EMV non-compliance fees for not supporting chip card acceptance (applies to card present only) effective 1/1/2016. Others will follow.
  2. For business to business companies (B2B), ALWAYS implement certified EMV terminal solution with level 3 processing. B2B merchants that use terminals with level 3 processing can potentially save an average of 30 basis points by qualifying for lower interchange rates. The average business is told there is no such solution available; that's not true.
CARD NOT PRESENT
  1. Fraud is shifting to online. Experts expect double digit increases annually for years to come. 3-D Secure refers to the XML security protocol called “3 Domain Secure,” (3DS), a program designed to reduce card fraud and shift liability for fraud from online merchants to the card issuing banks. Each card brand has their own name including Verified by Visa, MasterCard SecureCode, etc. Merchants that use 3-D Secure can also qualify transactions for lower interchange rates, typically saving 10-20 basis points.
  2. For B2B companies, ALWAYS implement a payment gateway that supports level 3 processing and 3-D Secure. Equally important, businesses need a technology solution to help qualify transactions properly because the initial authorization and settlement must match, a common problem for b2b ecommerce.
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