Visa and MasterCard Released October 2015 Interchange Update

Just like in previous year the card association has updated or added some the interchange categories. See below.  This is all we could find that was changed.  What will almost certainly happen as in years past, many ISO and service providers will use this as a reason to charge you more.  With our interchange plus pricing arrangement, we do not charge you more for our processing.  Do you know how your processing company handles these changes?  Maybe it is time to let us help you with a rate review.  Call us today, to save for tomorrow.

Miscellaneous Changes
• Business Standard transactions are now broken down into 3 categories based off of dollar amount.

MasterCard
New Categories
• Business Debit/Business Prepaid/Large Market-Healthcare (1.00% + $0.00)
• Business Debit/Business Prepaid/Large Market-Healthcare Maximum (0.00% + $5.00)

If you have any question about this, please feel free to contact  us at 888-506-9225 or visit our website at: www.firstcoastpayments.com

Everything Too Good To Be True CAN For A Short Time

SCRAPPED AFTER ONE YEAR- AMAZON REGISTER:

http://www.paymenteye.com/2015/11/03/amazon-feels-the-squeeze-in-mpos-market/

Our thoughts on this:

Subsidized pricing might work for a short time, but not forever. This is way Visa and MC work! There's no secrets, no special rates or double secret Interchange. You either make money or you do not. You cannot get any work-around to the pricing that they charge. Square will be the next to increase rates (after IPO).

If you have any question about this, please feel free to contact us at 888-506-9225 option 103 or visit our website at: www.firstcoastpayments.com

Why Can’t I Get a Small Business Loan from a Bank?

Having trouble getting financing from a bank? You’re not alone. So far in 2015, big banks have approved only 21.7% of small business loans. Despite a recovering economy and an increasing demand for small business credit, banks have become less and less inclined to lend to small businesses.

But why? The answer isn’t as simple as low credit scores. While it’s true that small business owner credit scores are still suffering from the effects of the Recession, other factors are at play as to why banks are suddenly shunning small to medium sized businesses from their portfolios. Let’s take a look at some of them:

Riskier: Small businesses are riskier lending propositions than larger businesses for a variety reasons. For one, small businesses are more sensitive to the ebbs and flows of the economy. Because big businesses are generally more self-sustainable than small ones, larger businesses can weather a dip in the economy. However, any prolonged economic downturn can have lasting consequences on a small business and may even cause them to default on a loan.

Decline of community banks: Historically, community banks have always been more willing to give microloans (generally loans of $50k or less), the amount that small businesses often seek. However, many of these banks have either been consolidated by big banks or have closed completely. According to the Federal Reserve Bank of Richmond, the number of community banks dropped 41% between 2007 and 2013, a bad sign for small business owners looking for loans.

Not as profitable for banks: Perhaps the biggest reason bank lending to small businesses has slowed down is that it’s just simply not as profitable for banks as it used to be. Lending to small businesses in the lower dollar range is too costly and risky for banks. For instance, the cost to process a $50k loan is comparable to a $500k loan, and with 51% of small business owners looking for loans below $100k, you can see the problem.

So with banks not lending to small businesses the way they used to, where can owners turn for small business credit?

We Can Help
We specialize working with small businesses by partnering with companies that provide lending to businesses like yours.  Whether a restaurant owner is in the market for a quick $25k or a beauty salon owner wants $15k to cover sudden expenses, we can help.

What we can offer is different from a bank in that we completely eliminate the mountain of paperwork, long waiting times, and stringent payback policies. Bad credit or low credit score is not a problem.  Whether it’s our Merchant Cash Advance or Business Loan, these  financing programs are an easy and fast solution for small business owners looking for credit.
If you have any question about this, please feel free to contact  us at 888-506-9225 or visit our website at: www.firstcoastpayments.com

Change The Time On Your Credit Card Terminal

We have tried to cover the most common terminals in use. Every effort has been made to give accurate directions. There can be slight variations based on processor programming. If yours is not listed or if you do not wish to attempt to do this yourself, please call me and I will be glad to assist.

VerifoneVX520  VX510 VX 3750


From Main or credit sale account screen

Press the green button or enter

This should bring you to a Configuration Screen

Press the set up key normally the F2 button

Enter pass word:  One, then the Alpha Key twice then 66831, then enter or green button.
(The Alpha key is just below the screen middle button.)

Press “More Button” far left button under screen until you see Date/Time

Press F1 button, then setting the date comes up.  Being the date is correct; you can press enter to bring up the time.

Note time should be in military time format. I.E. 1:00 pm is 13:00

After the date & time has been enter correctly, press the red key several times to get you back to the main sale screen.

PAX S80 & S90
If prompted for pass word, it is the current date. Format is mmddyyyy

Select “Menu” Key

System Setting should be showing if so select “5”

Date & Time should be showing if so select “1”

Then you will see a listing of the current date and time

Enter current date if what is showing is correct, press enter / green button

Then enter correct time.  Note it is military time, then press enter / green button


Should bring you back System Setting, press red key to get back to sale screen

FD100 & FD50

From Main or credit sale account screen

Choose “system”, touch the screen

Next screen you should see “date / time”

Choose “date / time” by touching the screen for FD100 for a FD50 choose corresponding number

To take the curser over the time number you want to change use the arrow keys on earthier side of the “zero” of the number pad. Near bottom of terminal

Time should be in military time format. I.E. 1:00 pm is 13:00

Ingenica ICT 220 and ICT 250

Press the Function key, if it prompts for a password the PW is either 123456P (1234567F) or MW9416557
Then go to 0- Tellium Manager, and then to 3- Initialization
Select 1- Parameters and you will see the date and time prompt. Remember that this terminal runs on military time, and that the time zone must be accounted for


Ingenico 5100

From Main or credit sale account screen

Select Admin button (below the 9)

Choose 3 setup menu

Choose 1 quick set up

Clock should come up as your first choice.

Select edit and follow prompt by in putting date and time

Note time should be in military time format. I.E. 1:00 pm is 13:00


Verifone Omni 3730, 3740, 3750


From Main or credit sale account screen

Press the green button or enter

This should bring you to a Configuration Screen

Press the set up key normally the F2 button

Enter pass word:  One, then the Alpha Key twice then 66831, then enter or green button.
(The Alpha key is just below the screen middle button.)

Press “More Button” far left button under screen until you see Date/Time

Press F1 button, then setting the date comes up.  Being the date is correct; you can press enter to bring up the time.

Note time should be in military time format. I.E. 1:00 pm is 13:00

After the date & time has been enter correctly, press the red key several times to get you back to the main sale screen.


Omni 3200

From Main or credit sale account screen

Press “More Button” far left button under screen until you see other set up

Press enter at which time a pass word will be required.

Enter pass word:  One, then the Alpha Key twice then 66831, then enter or green button.
(The Alpha key is just below the screen middle button.)

On next screen press “More Button” far left button under screen until you get to date/time

Time should be in military time format. I.E. 1:00 pm is 13:00



Nurit 2085, 8320, Wireless 8000 & 8020

From Main or credit sale account screen

Choose Menu

Scroll down to “systems options”, normally number 5, press enter

The first option to appear should be “Set Time/Date”, press enter

Current date and time should appear, press enter which will allow you to input new info

Note the format it will allow. Example year will only be 2 digit or “10”

Time should be in military time format. I.E. 1:00 pm is 13:00


Hypercom T7P

From Main or credit sale account screen

Choose Function 11, enter

Note if Function 11 does not allow to change time try Function 10 or 12

Pass Word: 0000, enter

Follow prompts.

Time should be in military time format. I.E. 1:00 pm is 13:00

When completed press cancel to exit and go back to the sale screen



Hypercom T7Plus, T4100, T4210 & T4220

From Main or credit sale account screen

Choose Function 10, enter

Note if Function 10 does not allow to change time try Function 11 or 12

Pass Word: 0000, enter

Follow prompts.

Time should be in military time format. I.E. 1:00 pm is 13:00

When completed press cancel to exit and go back to the sale screen

If you have any question about this, please feel free to contact  us at 888-506-9225 or visit our website at: www.firstcoastpayments.com

Gift Cards Are Gold For The Merchant

The holiday gift card season is here.

Each year, gift card sales go up by about 10% over the previous year. Ever wonder why the big restaurants have the promotion of purchase $100 gift card and receive an extra $20 gift card? Continue reading.

Over a billion dollars in gift cards have gone un-redeemed.

More than 10% of gift cards never get redeemed. That's great for a retail store or restaurant. You get the cash, but don't have the expense.

However, make sure you are following the gift card laws of your municipality. Even if not cashed, you have some legal obligations for un-redeemed gift cards.

For accounting purchases, a gift card is not counted as a sale until it is actually redeemed. The money you receive for selling a gift card becomes a liability until the gift card is exchanged for merchandise.

Nearly 85% of people between 25 to 34 years old are giving gift cards this year.

Only 40% of those over 65 will be giving gift cards. I'm in this group. Maybe that's why I don't like gift cards.

22% of those with a gift card make a purchase of an item that they would normally not purchase.

72% will spend more money in your business than the value of the gift card.

On average, gift card users spend 22% more money than the value of the gift card.

77% of all Americans have given out a gift card in the past year.

$25 is the most popular gift card denomination.

55% of those using gift cards need more than one trip to the store in order to redeem their gift card.

Read the statistics at: https://www.cardcash.com/gift-card-statistics/

If you have any question about this, please feel free to contact  us at 888-506-9225 or visit our website at: www.firstcoastpayments.com

Dirty Little Secret Of Equipment Leasing

It is a rarely makes sense to lease a credit card terminal.  If you are dealing with a reputably merchant service company you can purchase credit card terminal for way less than leasing.   The leasing company is not the real problem; it is the merchant service company that “sells” the lease.  What most people / business owners do not realize is that the leasing companies are nothing more than a financing company for the merchant service provider who uses them to help place terminals.  In theory, if a business can not afford or have the capital to out lay for the equipment then the “leasing” company pays the merchant service provider the funds.  The leasing company collects payments to earn back what they paid to the merchant service provider.  In most cases the leases are set up for a 48 month term.  The leasing company could care less if they receive the equipment before the end of the term, because they paid out funds to the merchant service provider.  They cannot resale the equipment for anything close to what they paid merchant service provider.  This is where the problem is, the merchant service provider is who is bring the leasing company to the table.  The merchant service provider in reality earns a big commission from the deal.  The merchant service provider will earn more money if you lease the equipment.  For example let say the lease payment is at $35 (this is a low payment, I seen some as high as $99) for 48 months, that is $1,680 you would pay for the equipment.  The merchant service provider probably paid less than $300 for the equipment and earned a commission for over $1000.  Also the $35 does not include taxes the leasing company will collect from you and insurance that they will mandate and the intangible tax.  To end the lease, you have to make all payments and then return the equipment back to the leasing company.  That right you do not own the equipment. You can keep the equipment if you purchase it from the leasing company after the 48 month.  It called a residual value.  Most of the time the factor is 10% of the aggregate of the payments.  In the above example you will need to fork over around $200 to now own the equipment.  Also one other note, the leasing company will not remind you that you completed the term, because you have not until all payments are made and the equipment is returned.  YOU have to initiate the return to end the lease and payments.  I have seen situation where some were still paying after 8 years.  No one told them.  Beware when you call in the leasing company will try and talk you out of it by saying something like, if the equipment breaks while leasing we will replace it.  Let me tell you from experience you will pay hell getting them to make good on that.  The other thing they might offer is a new lease and equipment.  DON’T DO IT!!!

 

Bottom line you are much better off to purchase the equipment from a reputably source and have a good merchant service provider that offer their insurance.

If you have any question about this, please feel free to contact  us at 888-506-9225 or visit our website at: www.firstcoastpayments.com

Are You Being Charged Junk Fees?

Just like in your business you want and need to make a profit to pay overhead and expenses. This is true in the credit card processing business for the company that is providing the service.  With interchange plus pricing you will see the mark up because of the transparency.  This is what we promote and suggest that any business that is looking for credit card processing insist on. Some companies will give a low ball "show" rate only to make it up somewhere else. Hence the reason why you might see "junk fees". There can be that line that is crossed when too much is too much.  Sometime it is just plan sneaky. One of the worst offenders that I have seen recently is the attached statement.  

If you have any question about this, please feel free to contact  us at 888-506-9225 or visit our website at: www.firstcoastpayments.com