American Express was Costco’s processing standby for years, and now it’s switched to the more appealing Visa/Citi. This isn’t a quick transition, as the new deal takes effect in April 2016. While it’s nearly a year away, merchants and customers should pay attention to this deal. Many in the industry blame backdoor business tactics for the switch, while Costco and Visa/Citi both deny. Regardless, this new changeover could bring forth issues with the new processing scheme.
Not all PIN processors are created equal, and with changes come issues. Fraudulent claims and hackings are on the rise everywhere, and it is not only up to merchants to keep their customers information safe. While Visa/Citi is a big name, and a reputable processor, merchants need to pay attention to what happens next. Costco is a multi-billion dollar business, and thanks to 2013’s mass hackings at Target, TJ Maxx, and Panda Express among others, any little glitch can wreak havoc for millions of customers. Even so, all merchants need to make sure that their high risk credit card processing accounts are adequately secure. This means that you need to check with your processor, and there will be cases where merchants need to switch.
While the thought of switching to a new high risk credit card processing account can be horrifying, it can be easy if you choose the right processor. While some leave you in the dark about a new account for weeks, others, like EMB, can let you know in just a few business days. High risk credit card processing accounts are tough to find, so when you can switch to a reputable company effortlessly, you should consider it.
High risk credit card processing accounts can be finicky, and usually come with sky-high processing rates. These high rates are not feasible for any high risk business, and yet the majority of processors still charge them. You need to make sure that whichever high risk credit card processing account you possess charges fair rates, and work with you to make your company the best that it can be.