3 Best Methods in Credit Card Acceptance for Small Business Owners

The best means for small business holders to accept credit cards are through PayPal, a merchant account, and via phone service.

An important thought to be kept by small business owners is to catch up with the generation’s ways and trends. Payment through credit cards, otherwise known as plastic money, is all the rage in businesses. The convenience offered to customers who prefer credit cards compel business owners to set up the needed apparatus to run their payment processing in this manner. To those small business owners who are aspiring supporters to the plastic money trend, explore the following methods to cater credit cards:

PayPal

Companies such as PayPal are called third party payment processor in the industry of web-based businesses. Small businesses can really benefit out of this type of service because it is has a trouble-free setup and it doesn’t need special skills to use. Another advantage is that you may open a merchant account to go along with it. In this manner, it doesn’t only accept credit cards, it also process the transaction. It is to be expected that extra services means additional charge but it is all worth it for PayPal deals with the merchant account itself. That’s not even the best of it. Its latest, cutting-edge feature is the virtual terminal that you can install through your mobile phone. With the aid of PayPal’s Website Payment Pro, it is made possible to accept credit cards via phone, email, fax or post.

Merchant account

Another way to accept credit cards is through acquiring a merchant account. This isn’t only widespread for the majority of retailers but also for small business owners. Opening a merchant account also may come with a terminal where a credit card’s magnetic strip is striped. You probably have seen this terminal in brick and mortar depots. This system is rapid in all sense. Swipe a card and it only takes seconds with one client and then you can move on to the next. You are also secured against chargeback and you can receive your earnings in a day or two. You also have control over your account. Through the years, merchant accounts have modernized and allowed credit card payments through mobile devices namely Blackberry, Palm, and iPhone.

Phone service

This method is also called Accept by Phone Service. A traveling merchant who is constantly on the go would surely benefit from this service. Plumbers, door-to-door salesmen, contractors and movers are a few merchants who can run their business in the palm of their hand. It only takes dialing an 800 number, then key in a password and finally, enters the credit card number of your customer with the billing amount. This speedy transaction happens only for seconds and everything is now processed.

With the mentioned alternatives to cash and checks, both merchant and customer will be engaged in a business deal which is not only productive but also convenient. Even if these means of accepting credit cards would involve a fee, it’s more vital to think of gaining more in the near future. PayPal, merchant account and phone service got it all.

2 Reliable Institutions that Regulate Credit Card Processing Entities

Credit card processors are mainly regulated by the Payment Card Industry Security Standards Council or PCI SSC. The Federal Trade Commission (FTC) also plays a vital role in the operations of credit card processors.

Fraudulent activities have evolved their way with the widespread use of credit cards and other electronic forms of payment, affecting both end consumers and retailers accepting these payment forms. With this concern, the fundamental need to regulate the quality of products and services that these credit card processors offer arises. Especially with the increased competition in the credit card processing industry, the following regulators have played an important role in controlling these processors for everyone’s security:

Payment Card Industry Security Standards Council (PCI SSC)

The Payment Card Industry Security Standards Council (PCI SSC) is also known as the Payment Card industry (PCI). This private council was originally developed by Visa International, MasterCard Worldwide, American Express, Discover Financial Services, and JCB to regulate credit card, debit card, ATM and other related companies. It developed the Payment Card Industry Data Security Standard (PCI DSS) and PIN Transaction Security (PTS), which both aim to address security-related problems associated with the use of credit cards and other electronic payments.

• Payment Card Industry Data Security Standard (PCI DSS). This is the main standard created by the PCI SSC in 2006 to uphold consistent security measures in handling account data among credit card processing centers internationally. This standard specifically aims to develop and maintain a secure network by requiring a firewall and non usage of default passwords for the systems used; to protect cardholder data by requiring encrypted keys, such as Secure Sockets Layer (SSL), upon transmitting cardholder information to credit card companies online; to protect credit card processing systems and applications by consistently updating anti-virus software; to employ strict control measures by restricting access to cardholder data; and to uphold security policy by consistently monitoring security systems. All these are required by the PCI SCC to help protect cardholder information entered online from being hacked or destroyed during credit card processing. As an online retailer, you can encourage repeat customers as they are assured of better security for the information they give out upon purchasing.

• PIN Transaction Security (PTS). This standard requires PIN entry devices used in credit card processing, such as point-of-sale (POS) and unattended payment terminals in some kiosks, to undergo the council’s evaluation, testing, and approval. It aims to enhance security of the PIN entered, thus reducing potential risks for fraudulent activities. It ensures you as a retailer that the PIN device you acquire and use in your business is safe for you and your customers. In addition, PCI SSC updates its PTS standard every three years to address the fast-developing technology and the never-ending battle between hackers and security measures, thus letting you operate in a highly secure manner.

The Federal Trade Commission (FTC)

The Federal Trade Commission (FTC) is the US government entity that involves consumer protection and competition among different economic sectors. Its duties include generating and monitoring strict implementation of laws and developing programs to educate and protect consumers as well as industry players, among others. Affecting the credit card processing industry, it instituted the Fair and Accurate Credit Transaction Act (FACTA), primarily addressing the growing problem of identity theft. Credit card processors are regulated in a way that certain requirements must be followed by these companies to ensure that the identity and confidential information of your clients as retailers are protected. For example, FACTA requires that the transaction receipt must not show more than the last five digits of the credit or debit card. It must also not show the expiration date of the card. Both information are very confidential and are used in verifying transactions over the internet and over the phone, thus should not be made visible or known to other people, except the cardholder himself.

FTC also has a relevant control over credit processors with the FTC Act, giving it the authority to perform investigations involving organizations and companies engaged in trade, as well as their management, systems, and practices. In fact, in the past few years, FTC was said to file and win cases against fraudulent credit card processors and even merchant account processors. As a retailer, you are given due protection against these deceitful service providers that can be damaging to your business and your clients. Although FTC can give you support and protection against deceitful providers, it is always good to do a research on customer reviews and feedback to avoid getting into this kind of trouble. It is always wise to go for trusted credit card processors who, at the same time, can give you the best rates.

With the changing technology and persistence of frauds, no one is a hundred percent assured of security against these deceitful activities; but with the strict implementation of security standards in the industry and stringent government acts against fraudulent activities, you could be certain that there will always be enough protection to minimize such risk, as well as due government action when such incidents arise.

Bob Chapman : On a GDP per capita level , We are in the same trouble as Greece

Bob Chapman on the Sovereign Economist 10 Mar 2010

Bob Chapman The International Forecaster is back this week again with the sovereign economist to analyze the economic and political situation of America and the world

Bob Chapman : Get your cash out of the Banks and The Stock Market - we will have Bank Holiday ande the Stock market will crash by the end of this year
Mr. Chapman also known as The International Forecaster is a 74 years old. He was born in Boston, MA and attended Northeastern University majoring in business management. He spent three years in the U. S. Army Counterintelligence, mostly in Europe. He speaks German and French and is conversant in Spanish. He lived in Europe for six years, off and on, three years in Africa, a year in Canada and a year in the Bahamas.

Mr. Chapman became a stockbroker in 1960 and retired in 1988. For 18 of those years he owned his own brokerage firm. He was probably the largest gold and silver stockbroker in the world during that period. When he retired he had over 6,000 clients.

Starting in 1967 Mr. Chapman began writing articles on business, finance, economics and politics having been printed and reprinted over the years in over 200 publications. He owned and wrote the Gary Allen Report, which had 30,000 subscribers. He currently is owner and editor of The International Forecaster, a compendium of information on business, finance, economics and social and political issues worldwide, which reaches 10,000 investors and brokers monthly directly, and parts of his publication are picked up by 60 different websites weekly exposing his ideas to over 10 million investors a week.

In June of 1991, at the request of business associates, and due to retirement boredom, he began writing the International Forecaster.
Bob Chapman : do not expect the government to guarantee your bank account , it is bankrupt