3D Merchant News September 2012: fraud, Apple card swiper, mobile, interchange

TODAYS BULLETINS:

  • Fraud costs
  • Mobile Payments- as easy as Apple
  • Historic $7.2 Billon dollar settlement may result in consumers paying swipe fees
  • Interchange qualification question of the day: sales tax exempt and corporate cards

Retail Fraud Taking a Greater Financial Toll According to LexisNexis® 4th Annual True Cost of Fraud Study. This year’s cost of $2.70 per $1.00 in merchandise is up $0.40 from last year’s level of $2.30. One of the areas of major fraud growth is the mobile sector. This year, mobile merchants paid $2.83 for every $1.00 lost compared to just $2.00 for 2011, an increase of more than 40 percent. If you have losses due to fraud, call me to discuss prevention options.

One mobile payment solution that really stands out you may have seen in an APPLE STORE. I recently blogged about the Linea Pro hardware Apple uses. It’s more expensive than other options, but it also can help solve more problems. A recent client meeting uncovered a desire to collect donor information at special events for auction items. One option is to combine the Linea Pro hardware with CenPOS mobile; merchants can swipe the drivers license and collect just the name & address to append the payment file. If permitted by local law, full drivers license data can be swiped as well. For the Linea Pro, or any other mobile payment need, contact me for assistance to help choose the best solution for your needs.

Payment networks Visa and MasterCard, as well as a number of large retailers, agreed to a $7.25 billion settlement that may allow merchants to impose a “checkout fee” on consumers for credit card transactions and end a seven-year battle over credit card swipe fees.

INTERCHANGE QUESTION OF THE DAY: If a customer is tax exempt, how can the transaction qualify for lower interchange rates? If a customer is tax exempt, the merchant cannot qualify the business/purchasing card transaction with level 2 data for preferred corporate card rates, which requires a sales tax other than 0. Merchants rarely know what kind of card a customer has, and have no way of knowing what the rules are for that card. CenPOS solves this problem by identifying the card issuer in real time, and automatically prompting for the right extra data ONLY when needed. For example, when using alternative payment gateways or terminals, the merchant is usually stuck with 2.65% interchange rate. With CenPOS, a processor that supports level 3 data, and the CenPOS level 3 data prompt turned on, the merchant can qualify certain MasterCard transactions as low as 1.80%, a .85% savings. Look for CORP DATA RATE I (US) PUR, CORP DATA RATE I (US) BUS, EIRF or STD on your merchant statement for examples of transactions that may have been eligible for better rates.

Warm regards,
Christine  Speedy