Mar 28, 2014

POS Makers Prep for 2015 Card Changes

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With as many as 5 million mobile point-of-sale readers in circulation in the United States, mobile POS companies will have their hands full following the liability shift set for October 2015 when the nation’s payment card networks step up the migration to the MasterCard-Visa chip and pin system. While this change is fantastic for security reasons, there are sure to be glitches along the way for those vendors who are not equipped to take the new chip and pin cards.

Certainly, any security-conscious merchant likely will be among the first to switch to chip-compatible mobile card readers, however these switches may come with a high cost for portable readers. While processors such as Square charge monthly fees that are currently affordable, these fees are liable to jump when new software and new readers are to be doled out to vendors. Of course, vendors could easily raise their prices a bit to offset the cost, but that could push even the loyalist of consumers away.

Merchants using mobile readers are more likely than those using traditional POS systems to wait until the October 2015 deadline to purchase new materials, as portable readers have a shorter lifespan. Now, very few systems are affordable to start-up companies. One, such as For example, an MX860 payment terminal from VeriFone Systems Inc. lists for $606.30 on BarcodesInc.com. At MagTek Inc., a Seal Beach, Calif.-based manufacturer that sells a Bluetooth-enabled mobile card reader that works with chip and pin and mag-stripe cards that are in use now. However, many vendors are still liable to wait until the deadline to purchase new tools. This wait could be potentially dangerous to companies that wait too long, as a shortage of chip and pin readers are possible. When technology changes and everyone wants in at one time, a shortage usually occurs. This is damaging to the economy.

The wait in purchase could be a good thing, as the release dates for chip and pin cards have been changed many times in the past. However, since the Target data theft in December 2013, both consumers and vendors have begged for more advanced security – and the chip and pin method provides it. It is not 100% new technology to the market; Europe has used chip and pin cards for many years, and have a very low theft amount because of it.

Regardless of when a company chooses to switch their POS system reader, there are likely to be some type of fee associated with the change. However, this fee is nominal compared to the updated security features that chip and pin cards offer consumers and vendors. While the change to chip and pin cards are set for October 2015, there is always a risk of date change. Nevertheless, for the consumers and vendors at risk of hackers, everyone is hopeful that this changeover is effortless, and comes on time.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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