Northern Payment Systems | Payment Processing Online & Offline

Security is a BIG deal

Tue, 05 May 2009 06:00:00 -0800

In 2008 electronic fraud passed all other form of organized crime, totaling nearly $50 Billion. That’s more than drugs, guns, and tangible theft combined. Needless to say we take security seriously. And quite honestly it’s one of the most complicated issues to navigate intelligently. That’s why we have some of the best advisors looking over our shoulders at all times. Meet one of Northern’s most highly esteemed advisors.

Peter H. Gregory, CISA, CISSP, DRCE, is a career technologist, published author, public speaker, and commentator in the fields of data security, business security, and business use of technology. He is an expert on a wide variety of business and technology issues including:

Protection of corporate assets, both physical and information-based
Compliance with U.S. laws including Sarbanes Oxley 404, CA SB 1386, and HIPAA
Compliance with international standards such as ISO17799, ISO27001, and PCI
Management of SAS70 service provider audits
Security policy, controls, education, and business process
Key business processes that support security, including change and configuration management, vulnerability management, identity management, access management, and the software development life cycle
Business continuity planning and disaster recovery planning, including pandemic contingency planning
Lead instructor, University of Washington certificate program on Information Security.

He is currently employed as a security and risk manager in a U.S. based financial services management organization.
Industry Certifications

CISSP (Certified Information Systems Security Professional), 2000
CISA (Certified Information Systems Auditor), 2002
DRCE (Disaster Recovery Certified Expert), 2008

Published Author

IT Disaster Recovery Planning for Dummies
Solaris Security
Blocking Spam and Spyware for Dummies
Securing the Vista Environment
Computer Viruses for Dummies
Biometrics for Dummies
VoIP Security for Dummies

Advisory Boards

InfraGard, the Evergreen State (Washington) Chapter
University of Washington certification program for Information Assurance and Cyber Security, one of the first such programs certified by the National Security Agency
University of Washington certificate program for Information Security
SecureWorld Expo Conference
SearchSecurity, a TechTarget property
Northern Payment Systems, Incorporated.

Northern Payment Systems is also overseen and supported by First Data and is 100% PCI Level compliant, which is the highest level of accreditation by industry security standards.

Why should PCI Compliance be important to you?

WATCH THE PCI COMPLIANCE VIDEO & THE FRAUD PREVENTION VIDEO BELOW

To learn more about Peter Gregory visit www.Peterhgregory.com.

For further information please contact us at info(at)nothernpaymentsystems.com or 877.774.9847. An experienced Account Manager will contact you personally within one business day.

What's My Rate Anyway?

Mon, 09 Feb 2009 08:00:00 -0800

Visa & MasterCard have several dozen rate categories known as Interchange, which determines the rate a merchant must pay for a particular transaction. The applicable rate is determined by various circumstances, such as the card being swiped, keyed‐in with(out) without AVS, called in, the type of card (business, corporate or reward), and whether it was batched out within 24 hours. So any given business will hit multiple interchange categories within the processing month, depending on the card type and how it is accepted.

The standard method of pricing that 90% of all merchants pay is known as 3 Tier Pricing. This consists of three separate prices called Qualified, Mid‐Qualified & Non‐Qualified. The Qualified discount rate is the base percentage you pay on all transactions and only covers a few Interchange rates. When a merchant processes a transaction that goes through one of the more expensive Interchange rates, providers add the Mid‐Qualified or Non‐Qualified rate to the merchant's Qualified rate. There is no industry standard pricing, but an additional 1% for the Mid and 1.60% for the Non is quite common. To elaborate, when a merchant is setup under a 3‐tier pricing schedule, they will pay one of the following three rates on each transaction:

1. Qualified Discount Rate

2. Qualified + Mid‐qualified

3. Qualified + Non‐Qualified

For retail merchants, the non‐qualified will apply to any keyed‐in transactions. For Internet & Mail/Phone order merchants, the mid‐qualified generally only applies to rewards cards.

Another way of talking about these rate structures is simply, Card Present or Card Not Present. Essentially this translates as Qualified or Non-Qualified.

Lastly, if you want the most transparent pricing plan possible, then you want what is referred to as Over Interchange or Interchange Plus Cost. These pricing plans take the actual Interchange category costs & tack on a small percentage. An industry average can range from 0.50% - 0.30% over Interchange, depending on your volume and business type.

How is Interchange Plus Cost different from 3-Tier? With 3-Tier the payment processor tries to estimate what Interchange Categories you will hit, then comes up with a fixed pricing structure above that average. So the processor may lose on some transactions and win on others. With an Interchange Plus Cost pricing plan, the processor will always make they're margin and you will always know your exact processing fees. However, while you will definitely save money over time, it is much more difficult to accurately budget your exact processing fees on an Interchange Plus Cost rate structure.

WATCH THE VIDEO BELOW TITLED "CREDIT CARD INTERCHANGE" FOR FURTHER INFORMATION

For further information please contact us at info(at)nothernpaymentsystems.com or 877.774.9847. An experienced Account Manager will contact you personally within one business day.

5 Ways to Save on Credit Card Processing

Sat, 10 Jan 2009 08:00:00 -0800

Okay, if you're reading this article, you probably already freely acknowledge that accepting credit cards is critically important to your business. According to the American Bankers Association, credit and debit cards became the primary method of payment accepted for in-store purchases in 2003 over cash and checks. In 2008, debit card and credit card transactions dominated the share of in store payment methods, and of course account for the vast majority of online transactions.

1. But, for the average small business, the cost to accept credit cards is a big burden on the bottom line. Some business like coffee shops have started passing the cost of credit card transactions onto the consumer- which can be a turn-off, especially when larger businesses with corporate merchant rates don¹t have to charge the same fees to their customers. Merchant processing fees have risen in recent years due to the high cost of identity theft being passed onto small businesses. Even though the cost is high, for many types of businesses, not accepting credit cards means no sale. However, by taking some simple steps to optimize your merchant account, small business owners can save big on their merchant account bills:

2. Encourage debit card usage. Debit card processing fees can be much cheaper than accepting credit cards, especially for big ticket items. The cost to process a debit card is typically a flat fee around $.50, whereas credit cards typically cost ~3% of the total transaction plus a ~$.30 fee for each swipe. Any transaction over $8-$10 will save the business on processing fees, and also is less likely to be fraudulent due to PIN verification. For example, a $400 purchase may cost the merchant up to $12.30 to process a credit card, where a debit card would only run $.50!

3. Stick to Visa and Mastercard for the most part. Fees to process American Express in particular can be up to 100% higher than Visa and Mastercard and only about 11% of consumers use American Express (Cardweb). The company claims those consumers are a much more wealthy demographic with more money to spend at your business, which may be true, but nearly every AmEx card holder also carries a Visa/Mastercard. The other thing to remember is that, while you might save more sticking to Visa & Mastercard, there is the potential of a loss sale altogether, if you don't take Amex.

4. Avoid processing through big box banks. You may be surprised to find that processing credit cards through major banks actually costs more than you think. While they offer the convenience of having multiple services like checking accounts, savings, payroll processing, and merchant processing on one statement, their fees tend to be substantially higher than a direct merchant processor. Ironically, many major financial institutions end up opting to outsource their merchant processing accounts to independent merchant processors, then mark up the service. If you currently are processing through a bank, try comparing rates with an independent merchant processor like Northern Payment Systems- you¹ll probably be surprised with the savings.

5. Increase credit card sales through using new technology. Okay, this one doesn't save you money on merchant processing, but it can definitely increase your bottom line which is that goal after all, right? Try looking into new technologies like wireless credit card processing. New remote handheld terminals allow merchants to accept credit cards at trade shows, craft fairs, and farmers markets, opening up new venues for your business to make sales. Now it is also much easier to sell merchandise online with easier ecommerce solutions and online merchant gateways like FirstData’s Global Gateway and USAePay. By accepting payments online you can open up entirely new ways to do business. Non-Profit groups like churches, schools, and charity organizations can even use an online gateway to accept donations right from their website.

6. Compare merchant processing fees regularly. Independent merchant processors tend to offer local service and be very competitive on rates and fees. Any business that is looking to save money on merchant processing should regularly compare their processing statements to current market rates to get the best deals. Because rates are complex (there are over 50 different types of credit card transactions, each with their own rate), it is best to just send over your current statements to a merchant processing company and let them analyze your current costs, and help you determine if they can offer a savings. Make sure not to pay for that service, most good companies should offer to do that for free.

By taking these simple steps, most businesses stand to save hundreds on credit card processing every month without ceasing to accept credit cards or passing fees onto customers. Best of luck this year and enjoy the savings!

For further information please contact us at info(at)nothernpaymentsystems.com or 877.774.9847. An experienced Account Manager will contact you personally within one business day.