This issue will not go away and merchants must embrace reality. This means, even if you don’t fully understand PCI, you can still be held liable for data security breaches.

Click on the link below for a great article on this topic.

The Merchant Maven

http://www.internetretailing.net/2010/03/57-of-retailers-are-failing-to-comply-with-pci-dss-requirements/

Right off the bat, you can tell that cool people work here and that the owner has the good sense to hire a designer that’s hip, cool and doesn’t take him/herself so seriously.

WONDERFUL!
http://www.limefreshmexicangrill.com/#wet-your-appetite-1e8828

To figure out what is the  best possible credit card processing solution for you and your business it is important to identify some key information that will help to guide you in the process of setting your business up with a new merchant account.

1. What types of business are you?

Not all businesses are the same. Many businesses are considered “high risk” by banks and therefore are required to setup special merchant services accounts. You might be a retail store, Online ecommerce website store, Phone sales or Snail Mail sales type of business.

Determining what type of business you operate will determine what type of merchant account you need and what costs are associated. And don’t try to conceal what type of business you are. Many processors will not take adult sites or certain types of  ”entertainment”  private clubs.

2. How do I determine the best option and credit card processing rates for merchant services?

One of the most confusing things for business owners is trying to determine if they are getting a fair rate for credit card processing and merchant services.

Many companies hide fees and flash a lot of great offers in your face but then pack fees and mark-ups into the inner workings of the interchange rates or fees section of your contract.  Do your homework and compare prices.

3. How much money does it take to get setup with a merchant account to accept credit card payments from customers?

Some companies say that it’s “FREE” if you sign up today!. Again, do your homework.  If you don’t pay now, you’ll pay later. Be careful when it comes to cancellation fees, PCI fees or other things you don’t understand. Get with a friend or neighbor who has experience dealing with such matters. Take your time and plan ahead.

Enrollment in an equipment leasing program can fund your needs and eliminate any up front costs . The reality is that in today’s business environment, it is folly not to accept credit cards. ……

What to do with twitter, Facebook and Social Media.

As the chart above lucidly shows, this is utterly confusing. Does the small business owner or brand builder use twitter, join Facebook, Google Buzz, Linkedin, U Tube?

The answer is: Start out with one or two, get familiar with it and then move on. Sir Edmund Hillary did not scale Mt. Everest in one day. He trained, he strategized, he conditioned himself physically, emotionally and financially. Then he conquered the mountain that is Everest. In other words, take it slow, don’t rush, don’t get overwhelmed. Start with Facebook and then move on with care. Hiring  a seasoned sherpa guide is not a bad idea, either. ………in fact, it’s mandatory for your survival.

The Merchant Maven.

The Social Web Flattens B2B Product Distribution

by Fred Cavazza.net

Depending on your industry, you are likely all too familiar with product distribution processes that involves multiple distributors, sales reps, independent sales reps, etc. All of these people used to be very important steps in a distribution process to get the product from a manufacturer to the end-user. A large and powerful world of spiffs and agreements have been created to buttress these channels of distribution.

While these powerful supply chains still exist, many are on their way to extinction. the distribution networks were created when it took a major commitment of money and man hours to have an infrastructure to sell B2B products. the Internet has greatly reduced the cost and commitment to bring a product from development to market for distribution. B2B companies are now in the process of understanding what many major retailers have known for years now. that direct sales and fulfillment through the Internet means better margins and increased efficiencies.

First Movers will Determine Industry Changes

Something I have frequently said, is that the web rewards individuals and companies who take action first. This will be no different for this issue. If companies sit back and allow distributors and independent sales reps to build the preferred online customer acquisition methods for a given industry, then companies will again lose the leverage they gained when e-commerce began on the web and will exist in an online version of the current product distribution pipeline.

Ideas For Evolving B2B Distribution

One thing that I love so much about the Internet is that it provides opportunities and solutions that haven’t been possible before. It is an easy jump to say that some manufacturers will likely sell products directly especially to certain markets like small business owners.

What is next? If that is the easy jump, then what is the hard one that likely only some elite business owners will achieve?

1. Add service-based revenue streams – Service-based businesses are hard to run, because they are completely dependent on talent and they often operate on low margins. In the future, it is likely that as B2B companies begin to rely less on distributors and current distribution models that a side benefit will be the discovery of new revenue streams. Some of the most successful web companies and open source software companies have already discovered that it can be lucrative to charge for support and additional features for free or low cost products. B2B companies will likely find that the Internet is a strong catalyst for launching these new types of revenue streams cost effectively.

2. Data will Become Even More Important – I read many conversations on the web each day about marketing and growing businesses. It is often scary to me how many of those discussions fail to mention the importance of data. When it comes to product development and distribution for B2B companies, the future is about data. the internet and the social web have turned on a firehouse of data that has the potential to empower business decisions like never before. Data will help discover emerging markets and provide direct feedback from customers on the best methods of product distribution.

3. Efficiencies Offer New Customer Acquisition Opportunities – the Internet has lowered the cost dramatically in many cases when it comes to cost of distribution. these reduced costs provide B2B companies with new decisions. This lower barrier of entry may entice some B2B business owners to diversify target markets in an effort to reach a new customer base. This will mean more competition in some industries.

CBS Financial Contributor Ray Martin discusses the pros and cons of using credit cards less. Debit card usage surged in 2009 as credit usage decreased nearly 50 percent.

Paper or plastic? The latest studies show many consumers are putting away their credit cards and relying more on cash. Conventional wisdom says that’s the thing to do. But is it always? In this column, ”Early Show” financial contributor Ray Martin has the lowdown, and points out that always using cash may not always be advisable. It could hurt your credit rating, and has other issues. So, he suggests, don’t just dump credit cards willy-nilly.

TO TOSS, OR NOT TO TOSS: THAT IS THE QUESTION

The average consumer has about five credit cards. Since the first charge card was issued in 1958, credit card use has surged. In 2008, the average credit card debt for card-using households reached over $10,600.

Credit Card Use Declines

But consumers’ reliance on credit cards appears to be at a turning point. According to data released by the Federal Reserve Bpoard, credit use is slowing. Revolving credit — which is mostly credit card debt — fell by about 20 percent late last year. That was the largest drop on record, according the Fed. Also, through October 2009, the number of credit cards issued was down 46 percent from the same period in 2008, according to Equifax.

It appears that more folks are in pay-down mode and are making the decision to go without using or even keeping any credit cards at all. According to reports across the country, the reasons for that are no surprise: People are fed up with high fees, credit card cancellations and restrictions. There is also a general distrust of credit card companies and their gimmicks. Then, there’s the other reason: After having their confidence shaken by a deep and long recession, there is a strong reluctance to get into debt, because consumers fear they will struggle financially to get out.

Debit and Cash Are King

Many folks are turning away from using credit cards and are choosing to pay with debit cards, checks and cash. According to a consulting group survey last year, 28 percent of consumers shifted the way they pay for purchases with an increase in debit cards and a decrease in credit card usage. Almost half of consumers surveyed said they believed debit cards helped control their spending.

It’s hard to argue with someone who decides to stop using a credit card. I say more power to you! But if you decide to ditch your card, know what you could be giving up and be prepared to deal with the limitations and risks of using other forms of payment. Here are a few things to consider:

• Transaction Protection: When you make a purchase with a credit card, there is a firewall between your bank account and the vendor. The bank issuing the credit card makes the payment to the vendor. You are obligated to pay the bank only after you are in agreement that the charge is legit and that the item or service you bought was delivered as agreed. But make a transaction with a debit card, and the payment is immediately deducted from YOUR bank account. Federal laws and banks’ policies include protections from fraudulent or unauthorized transactions due to debit card theft. But before a questionable transaction is sorted out, the money is taken from your bank account. In the meantime, if your account is depleted because of this, any checks written could bounce.

In a real-life story, here is an example of this important feature: A person paid for furniture from a furniture business in another state. She used her credit card. After several weeks passed, the furniture hadn’t arrived. She called the store and learned that, as a result of financial difficulties, the business had filed for bankruptcy. Since she used her credit card and never received the furniture, she disputed the charge and it was removed from her account. But if she had paid by check, she would have had to file a claim as a general creditor, and would have had to wait for a refund of her money. Depending on the bankruptcy laws and process of the other state, she may have waited a long time and only received a part of what she paid!

• Credit Rating: Responsible use of credit cards is one of the most effective ways to build a good credit record. Consumers who don’t carry a credit card have an average credit score of 563, as opposed to 689 for those with at least one card who carry a monthly balance, according to Credit Karma, a consumer Web site that provides free credit scores. The numbers were were based on TransUnion credit scores. The fact is, many folks will need credit when it comes time to buy a house or a car. So you want to have a good credit history and score. And you can only get them by having some responsible usage of credit. According to credit experts, debit cards — which are simply a card substitute for paying by check — have zero impact on your credit score.

• Convenience: Also, it can be difficult to rent a car without a credit card. Some hotels may not book a reservation on a debit card, and those that do often place a hold of several hundred dollars, which freezes that money in your bank account, making your available balance lower, which can cause incoming checks to bounce.

• Benefits and Rewards: Finally, there are the additional befits and rewards programs that come with credit cards, which include frequent flyer miles, gift card rewards, college savings and other programs. Some credit cards provide good rates on foreign currency conversions, so are a good option to use when traveling in a foreign country. Many credit cards also double the manufacturer’s warranty when the item is purchased on the card, making credit cards a good payment option when buying and shipping gifts in the consumer electronics category.

But when folks get into credit card debt and cannot pay off their balances in a very short period of time, the fees and interest they pay will almost always outweigh these rewards and benefits.

© MMX, CBS Interactive Inc. All Rights Reserved.

written by CBS Financial Contributor Ray Martin

Posted by Marianne Rocco on February 4th, 2010

During its review of the current PCI compliance regulations, the PCI Security Standards Council will begin considering new card data security technologies that help merchants protect sensitive cardholder information. Although no revisions to PCI DSS are expected in 2010, Mark Lobel, principal at PricewaterhouseCoopers, suggests there will be a strong push for end-to-end data encryption, tokenization, magnetic-stripe imaging and virtual terminals (payment gateways).

Fortunately, Merchant Warehouse combines all of these features in its MerchantWARE® SECR™ (Secure Encrypted Card Reader) solution to help its merchants achieve PCI compliance and better protect consumer card data. If MerchantWARE SECR’s features are deemed adequate for securing payment data, wouldn’t it be worth it for every business to use this solution in their store?

Direct Technology Innovations (DTI) has been a proven leader within the credit card processing niche since 2001. DTI’s client roster includes some of the nation’s top brands including Subway, Taco Bell, City Mattress, GO Airport Shuttles, Gray Line and over 5,000 others. DTI has created and implemented many innovative merchant programs, including Click to Go Online Ordering ® which was developed to cater to small and medium sized restaurants, as well as national chains and franchises. Other successful programs include the Swipe N Go ® Program and Mobile Ticketing Solutions. ®

To add a little spice to its corporate branding and to increase interest in its merchant programs, DTI is offering a free Caribbean cruise to any qualified merchant that signs up with their processing services. According to DTI’s Director of Strategic Alliances, Jordi De Joseph: “ We have developed a special landing page :http://www.directtec.com/offer.php

The new landing page entices visitors to fill out a simple merchant application and offers a free cruise (valued at $1,000) once they have processed for a period of three months.” The landing page is being promoted on Google Adwords as well as Yahoo.com

Michael Thomas Kirner, DTI’s Director of Marketing says the free cruise offer will generate more web traffic and add an element of fun to the often conservative credit card industry. “ If a merchant is seeking a solid, proven and dependable merchant card program they are invariably presented with thousands of online choices. The free cruise is just a simple, palpable benefit to choosing DTI over the competition.”

“DTI continues to provide an arsenal of credit card processing services and first-class customer service. With this new free cruise offer, we’re giving merchants an unexpected benefit of sending their processing business to us,” said Michael Slominski, DTI vice president, Portfolio Management.

For more information on DTI and how your business can receive a FREE Caribbean cruise, please contact Jordi De Joseph at 800.724.7000 ext. 459 or send an email to jordi@directtec.com

The landing page featuring the special offer can be accessed by clicking this url:

http://www.directtec.com/offer.php

About DTI

DTI, a FrontStream Company, was founded in 2001, and operates in all 50 states with regional offices in Fort Lauderdale, Nashville, Dallas and Seattle. DTI has over 90 employees and currently handles an annual processing volume of $2.7 billion. DTI offers a full range of merchant services including Debit Card Processing, Credit Card Processing, EBT Services, Electronic Check Verification, Gift/Loyalty Cards, POS Software integration (all major brands), Internet Processing, Mail/Telephone Orders, Virtual Terminals, Telesales/Call Center Integration, Free Standing Terminal and Wireless Terminal Deployment, Mobile Ticketing Solutions®, Kiosk Integration, Click To Go ® online ordering, Video Surveillance, and Credit Card Terminal Leasing & Rental Programs

By Max Flint

Credit cards being cut up

The UK’s credit card debt has almost quadrupled since 1994

It’s January so it must be time to cut up your credit card. Things that looked shiny and affordable in a shop window at Christmas do not look quite as cheap on your bill. Your flexible friend has just become your worst enemy.

You are not alone in reaching for the scissors. The latest figures suggest over two thirds of UK borrowers fail to pay off their balance every month and the average amount owed on credit cards is £3,175 per person.

We have been given access to money we do not have to buy things we do not really need. Credit cards have given us a thirst for things.

Every month there is a fresh something to buy, made in a factory employing skilled workers applying for more credit for some extra shopping.

Upward mobility

It is not all bad though. This flow of credit has been a key factor in the success of the global economy post World War II. This was also lucky for Frank McNamara, the man who came up with the idea of the modern credit card.

He created the Diners Club Card in 1949, and a year later the club boasted 20,000 members.

This first credit card was actually a piece of paper that would be accepted as payment in some New York restaurants.

FIND OUT MORE…

Flexible Friend or Foe, with Max Flint, is on Saturday 30 January on Radio 4 at 2000 GMT and repeated on Monday 1 February at 1500 GMT

See more details here

By the early 1960s the US had got into the habit and consumers were holding two or three different cards each.

Travelling salesmen loved the convenience of paying for petrol, food and hotels all with one card. It became a symbol and a tool for upward mobility.

Privilege costs

Britain was a bit more reluctant. Barclays launched a credit card in the UK in 1966 but had to conquer negative attitudes to debt and getting things “on tick”.

The bank used cinema adverts showing a girl in a bikini going shopping carrying only a Barclaycard. The advertising strap line was simple – “All a girl needs”.

Barclaycard was right, the credit card was all girls and boys ever needed.

Barclaycard advert in the 1970s

Barclaycard was the first UK credit card to launch in 1966

It gradually replaced cold hard cash to such an extent that paper money stopped being accepted for some transactions. With a card you could buy a car, without one you couldn’t even rent one.

The ease and simplicity of credit cards has never been in doubt. The Barclaycard bikini girl and the “flexible friend” Access card adverts in the 1970s were about the convenience of the card versus old-fashioned money and cheques, but privilege comes at a cost.

Once cards were widely accepted, it was time for the banks to start making money.

Enter the idea of a fee, an annual amount for the privilege of holding a card.

When the fee was imposed, the banks noticed that consumers did not seem to mind.

Charges that were unacceptable on bank accounts passed relatively unnoticed on cards. It was an important lesson.

Spending binge

As the sharp elbows of supermarkets and even car manufacturers entered the credit card market, getting a card became easier.

Just like in the US, British people started to hold two, three or four cards and with familiarity came complacency. Outstanding balances crept up and people started paying less and less each month.

What the banks call the “low risk revolver” had arrived, customers who did not pay off their cards in full and were happy to pay high rates of interest each month.

The profits from fees were tiny compared to 25% interest charges, so “no fee” cards were rushed in. Banks then bundled up our debts and sold them on as securities, making a fantastic profit merry-go-round.

Diners Clucb Card logo

Frank McNamara created the credit card in 1949 – the Diners Club Card

So we were encouraged to spend, spend, spend, receiving blank credit card cheques in the post and having limits raised every time we hit the credit ceiling.

As the late 90s merged into the early noughties it was “shop to drop” time and our credit cards gobbled up the latest TVs and the furthest holidays.

Boom and bust

But when the credit tap was turned off our debts were huge, and currently the total UK outstanding card balance is 383% higher than in 1994.

Our spending spree relied on an expanding economy but when the credit disappeared, our spending shut down and the consumer-based economy started to shrink, which is why so many people are cutting up their cards this month.

The cycle of Christmas boom is always followed by January bust. It is human nature. Next Christmas we will probably be “maxing out” the cards all over again to keep getting what we want.

The lesson from the history of the credit card is quite simple really. We are trapped. If everybody in Britain cut up their cards, the spending-starved economy would die in days.

Yet if we keep splashing out we can keep our economy going and by extension our jobs, houses, cars and holidays.

The last word in this history goes to the inventor of the credit card, Frank McNamara.

A year after he set up Diners Club he sold his stake in the company believing cards were a fad which would never catch on. He died seven years later, flat broke.

Fort Lauderdale, FL (PRWEB)
January 22, 2010:

IFA has named Direct Technology Innovations (DTI) as the association’s preferred vendor for a wide range of merchant service and credit card processing programs. The new service will be launched at IFA’s 50th Annual Convention in San Antonio, Feb. 5-8.

“IFA welcomes our new partnership with DTI to offer a wide range of cost-saving merchant service programs to IFA members,” said Matthew Shay, IFA president and CEO. “This program can help IFA members reduce their operating expenses, streamline their payment processing systems and build brand loyalty.

IFA selected DTI after completing an RFP process last fall. Companies thatresponded were evaluated on 25 specific requirements including –comprehensive services, competitive rates, widest range of equipment options and broadest scope of services, including field support, training and technology.

DTI was founded in 2001, and operates in all 50 states with regional offices in Fort Lauderdale, Nashville, Dallas and Seattle. DTI has over 90 employees and currently handles an annual processing volume of $2.7 billion. DTI offers a full range of merchant services including – Debit Card Processing, Credit Card Processing, EBT Services, Electronic Check Verification, Gift/Loyalty Cards, POS Software integration (all major brands), Internet Processing, Mail/Telephone Orders, Virtual Terminals, Telesales/Call Center Integration, Free Standing Terminal and Wireless Terminal Deployment, Mobile Ticketing Solutions, Kiosk Integration, Click To Go online ordering, Video Surveillance, and Credit Card Terminal Leasing & Rental Programs.

Since 2001, DTI has created and implemented many innovative merchant programs, including Click to Go Online Ordering ® which was developed to cater to small and medium sized restaurants, as well as national chains and franchises. Other successful programs include the Swipe N Go ® Program and Mobile Ticketing Solutions. ®

“DTI is very pleased to make our arsenal of credit card processing services and our first-class customer service available to all IFA members, large and small franchisors and franchisees with one or hundreds of stores,” said Michael Slominski, DTI vice president, Portfolio Management.. “We can demonstrate cost-savings and ‘best practices’ that will improve the bottom line and speed up payment processing for many franchise businesses.”

About The International Franchise Association

The International Franchise Association, the world’s oldest and largest organization representing franchising, is the preeminent voice and acknowledged leader for the industry worldwide. Approaching a half-century of service with a growing membership of more than 1,250 franchise systems, 10,000-plus franchisees and more than 500 firms that supply goods and services to the industry, IFA protects, enhances and promotes franchising by advancing the values of integrity, respect, trust, commitment to excellence, honesty and diversity. For more information, visit the IFA Web site at www.franchise.org.

About DTI

DTI has been a proven leader within the credit card processing niche since 2001. DTI’s client roster includes some of the nation’s top brands including Subway, Taco Bell, City Mattress, GO Airport Shuttles, Gray Line and over 5,000 others. DTI has been regularly featured on the credit card industries most interesting blog, themerchantmaven.com which has an international readership base.

For more information on DTI and innovative merchant payment solutions, please visit directtec.com, clicktogo.com or contact Michael S. Slominski, Vice President, Portfolio Management at (800) 724-7000 Ext. 461 or email him at michael@directtec.com.

The year was 1993:

I was the Director of Marketing for a large shopping center owned and operated by the Macerich Company. Macerich was and still is a prominent REIT and owns about 70 malls in the United States.

We received a COMPANY  MEMORANDUM ( remember those?) from our VP of Marketing. The subject was email. ” Email, I bellowed synically?  What the heck is email? “

The memorandum was sent to all Marketing Directors and we were told that email was the wave of the future. Things would be different now. We would become modern communicators. Email would make our lives easier. We would become more efficient.

“Yeah, right. I said to myself. Sounds like another pain in the neck software nonsense I have to learn !”

Grudingly I began to use email communications. My regional director would call me twice a week and ask: “Did you get my email?   I would confidently tell her : ” I only check my email on Fridays.”

Months passed and I grew to like email. I even began to love email and to delight in hearing “You’ve Got Mail.”  ( That was kinda goofy, huh?)

I was proud to feature my email address on my business card. I was hip. I was cool. I was modern. I sent several emails just for the heck of it to John Butler, of Butler, Shine and Stern in Sausalito. Once I told him a design was rejected and he got mad at me for using email….But I was happy becaude I knew how to use email!

I think one of the first people to send me emails regularly was Marty Rubino, the then publisher of the Marin Independent Journal. We would send emails reminding each other what time our golf tee time was and where we would meet for Sushi lunch.

One day a borderline cantakerous  Senior Vp  from corporate paid a visit to our shopping center. He came with the slightly less cantakerous VP of Development. I showed him some of my projects which I often would post on my wall. Marketing people like to post their projects on the wall. It’s kindof, sortof  like putting photos or drawings on your  refrigerator  when you were a  little dorky snot nosed kid.

I told our borderline cantankerous Senior VPs about how we are using email to communicate and that it makes our lives easier and more efficient. I told them how modern and relevant it was.

“Email?!!!” he bellowed.

That’s a big waste of time and not a productive way to do business.”  –   Pick up the phone and talk to people.”

He was not a fan of email. He actually seemed irritated. In fact, he strongly advised me to spend my time more wisely.

One uneventful month passed. I did not use or check email.  Email was not a good thing. I was a team player and did as I was told.

That very summer, our company attended a large conference in San Diego California. It was sponsored by the International Council of Shopping Centers. We mingled with shopping center developers, IT people, Creative People and consultants from all over the world. It was a fabulous event. We attended seminars, luncheons and happy hours. We had delicious rubber chicken dinners served with soft carrots and green peas.

Guess what everyone was raving about at the conference ? Emails. Emails. Emails. We attended a two hour presentation on how to capitalize on email communications and how to use it to benefit  our company.  We were told to  foster and nurture the use email  because we are modern communicators. We  were told to embrace email because it enables us to better promote our company’s brand. We  were told to use email because all of the top brands in the world use email. My marketing agency headed by Leon Altman of Altman Communications concured and insisted that email and the internet are the future!

The aforementioned Senior VP  who had admonished me came to me during a luncheon and looked at me quite sheepishly. He looked like he had devoured a volery of crows.

” I was wrong about email,” he said . ………….. ” We must  embrace new forms of communications.”

Today we are in the year 2010.  17 years later. One and a half decades have come and gone.  Times have changed dramatically.  We no longer receive company memorandums on letterhead. Google’s, Sergey Bryn and the other really, really smart Russian guy are smarter than ever  Billionaires. We conduct Google searches all day long, we Twitter, we check Gmail, we blog about things that mean something to us, we are online journalists even though we can’t write worth a damn. We use Web 2.0 vehicles that include Linkedin, Google Adwords, Facebook and Utube.

Why do we use all of these new forms of communciation?

We use them  because we are modern communicators. We embrace them because it enables us to better promote our company’s brand. We use them because all of the top brands in the world do: American Idol, CNN, Larry King, Mercedes Benz, Google, Armani, BMW, Barack Obama. And as he did in 1993,   Leon Altman of Altman Communications concurs that these new communications tools are the future!

The Merchant Maven