Variable payment recurring billing is easy and fast using CenPOS token billing solutions. Video shows how to retrieve a stored token to charge a credit card again. Tokens replace sensitive card data with random alpha numeric characters. Merchants can then charge the card again, with customer permission, by retrieving the token.

A Christine Speedy, CenPOS global sales, training video. This video uses ZOOM so you can watch as is, or enlarge as it was recorded in larger 1280 width. If you have trouble viewing, watch it on youtube: #33 How to use a stored token for credit card payment: CenPOS training video .

Tokens replace sensitive payment information with the last 4 digits of the card only, and the random alpha numeric token ID that replaced the full card number. CVV can never be stored, per card association rules, but merchants can perform a zero dollar authorization before creating a token.

Click on the credit and debit tab.

Select USE TOKEN. If the ‘use token’ icon is not visible, contact the merchant administrator to update user permissions, either by moving the user to a new role that has the use token permission, or by updating the existing role to add the permission to all users in the role.

If you don’t know the token ID, search for it.

Select the token by clicking on it.

Then enter the sale details. If the merchant has set up additional information fields, enter now. If the credit card type qualifies for special interchange rates that require additional information, such as a purchasing card, CenPOS will automatically prompt for it.

A receipt is automatically delivered to the customer email address put on file when the card was originally stored and the token was created. As a reminder, full credit card data is never accessible to anyone after a token is created.

The same process applies for stored checking account information via the Checks tab. By regulation, merchants cannot initiate repeat sales creating an ACH on business checks. Customers must initiate business ACH transactions. CenPOS supports that via the Electronic bill presentment and payment, or EBPP electonic invoicing solution.

About the author: Christine specializes in providing merchants with innovative technology to create efficiencies and ease the burden of PCI compliance. With a primary focus on “card not present” payment processing solutions for mid-size companies, including manufacturers and wholesale distributors, merchants improve PCI Compliance and streamline the payment experience for both their company and their customers. It’s fast, easy to use, and requires no capital investment to implement. For sales call Christine Speedy at 954-942-0483 or click here for more information.

Credit card processing is complicated. It doesn’t matter how good your deal is if you don’t have the best base price plan to start with. Your merchant statement has the critical evidence of whether or not you are even in the game, including qualifying for low regulated debit interchange rates (Durbin Amendment, part of Dodd-Frank).

Above image is example of one type of credit card processing rate structures.

This video uses ZOOM so it is not necessary to blow it up.

About the author: Christine specializes in providing merchants with innovative technology to manage the cost of accepting credit cards, without changing merchant accounts.  With a primary focus on “card not present” payment processing solutions for mid-size companies, including manufacturers and wholesale distributors,  merchants improve PCI Compliance and streamline the payment experience for both their company and their customers. It’s fast, easy to use, and requires no capital investment to implement. For sales call Christine at 954-942-0483 or click here for more information.

To convert a paper sales order form, with credit card authorization, from paper to electronic, including securely collecting an online payment, there are multiple options. This article addresses the business to business need for a quick solution to become PCI Compliant. PCI is short for PCI DSS or Payment Card Industry Data Security Standards, the mandatory standards for all merchants accepting credit cards.

Image shows example of a custom secure payment page on a law firm web site. Fully configurable for your specific needs,

How critical is the security of the data being collected? What will be done with the information after? The simplest solution is to create a quick script that collects the data and sends it to an email address. After the form is submitted, the return URL (the page that appears after the form data is submitted)  contains a link to secure pay page hosted by a third party. I like having a link on the return URL instead of immediately redirecting because it provides an opportunity to assure the payer the link is to a trusted web page.  Because the form data is not in a spreadsheet that can be imported into a database, or collected automatically in a database, some manual work will be needed after. However, don’t get hung up on this! If the current process is faxing back and forth credit card authorization forms, the entire process is already manual. At a minimum, staff will save time key entering credit card data, plus this process is more secure for business owners and their customers. Additionally, the back office for the pay page will have an export feature making it possible to import transaction information into accounting programs.

All of the above can be done with no html programming experience. There’s plenty of free and low cost options to create custom forms. I’ve personally used wufuu, jotform, Logiforms, SugarCRM forms, and custom made forms over the years. Here’s a link to form reviews.  It’s a bit dated, however, the table may help to identify what’s important to look for when choosing a form builder.

With a little bit of html work, elements of the information filled into the order form, can be transferred automatically to the matching payment fields. For budgeting outsourced help, plan on an hour for the programmer to review what to do, what URL’s to link to, and reviewing the API. Budget another hour to implement and test.

In summary, payments can be securely accepted online with an update to your web site navigation, and single line of html linked to a secure hosted pay page. This process is more secure than credit card information exposed on paper, and provides an easily retrievable record in the event of a dispute, that can occur up to 120 days later. To convert a sales order form to electronic, an online form builder is a low cost option that saves both merchants and customers time.

Disclaimer: The information above does not replace a merchants obligation to follow all rules associated with their merchant account, card acceptance guidelines and payment card industry data security standards. Many additional options

For more information about this and other solutions to streamline payment acceptance for your business to business company with card not present customer transactions, contact us.

Is your credit card authorization template worthless? Card absent transactions have a heavier burden of proof to prevent charge-backs, and the methods businesses use often create other risks, such as identity theft.  Here are steps to protect your business to business company.

1. Never store CVV security code data; it’s against card association rules. Stored forms containing CVV, represent substantial financial risk in the event of identity theft, and potentially even jail time for failing to protect sensitive data.
2. Fax or email the sales invoice, which must include the merchant name (matching the merchant account either as company name or dba), merchant address, merchant phone, customer bill to, customer ship to, product or service details with quantity, price and description. Add a checkbox for customer to acknowledge refund and cancellation policies. Add a fill-in line with title “Cardholder Authorization”.
3. Do not ask customers to fax back a credit card authorization form. That’s right, chuck the credit card authorization fax form into the trash can. Tell customers that for security reasons, payment must made on a secure online pay page. The pay page form should include fields for the cardholder name, address, email, phone, and invoice number. Additionally, have a checkbox for the cardholder to acknowledge receipt and acceptance of refund/cancellation policy and of the invoice terms. For example, I use this: “I accept the return policy and all other terms as stated on my invoice.”
   

   Image shows example of a custom secure payment page on a law firm web site. Fully configurable for your specific needs,

4. Request customers print the receipt from the online payment and the invoice. Fill in fields, sign both, and fax them back. Store the proof of delivery with the signed papers.
5. If the Cardholder address and ship to address are different, and this is not indicated on specifically on the invoice, have the cardholder send a supplemental document on letterhead (of the cardholder) that specifically states they’re authorizing shipping to a different address. For business to business, different addresses are common. Be aware that without acknowledged authorization of some sort, there is virtually no defense for sending product to an address different than the cardholder.

In lieu of signed papers via fax, customer replies via company email that acknowledge receipt of the invoice, and of the sales receipt with authorization code, can be used as proof to defend against charge-backs in future disputes.

Another solution which facilitates future dispute protection is electronic bill presentment & payment. In this case, the merchant invoice is delivered to a customer’s company email address, and the customer clicks and pays the specific invoice securely online. This creates a paper trail of proof that terms were presented and the customer received them since they self-initiated payment tagged specifically to the invoice. Merchants may also want to create rules that transactions over a certain amount are reviewed by an internal audit team to verify if cardholder address matches the invoice.

click through landing page for secure payment from an e-invoice

According to a recent survey, the second highest identity theft concern of customers is credit card information on paper. Eliminate the paper to reduce risk, improve customer relations, and create efficiencies for both customers and merchants. All above are guidelines which can be modified dependent upon the risk associated with the customer. For example, new customers and recurring customers may carry different risks. Domestic customers with verifiable AVS (address verification) have lower risk than international with no AVS verification capability.

Disclaimer: The information above does not replace a merchants obligation to follow all rules associated with their merchant account, card acceptance guidelines and payment card industry data security standards.

For more information about solutions to streamline payment acceptance for your business to business company with card not present customer transactions, contact us.

There are many ways we can help business owners improve profitability via payment processing technology, for both checks and credit cards. Frequently the customer makes the first payment in the office, and then they may or may not pay in person again later. This presents multiple potential efficiency and profit problems.

PROFIT BUSTERS FOR CREDIT CARD PROCESSING

• If you have a retail merchant account, all transactions key entered after the initial swipe will not ‘qualify’ for the lowest rates.
• Not entering all the information needed for different types of cards and transaction types, cost up to 1.05% extra, even if you have wholesale interchange plus rates.
• If the customer agrees to storing credit card information, is your method PCI Compliant?
• How many steps does it take you to charge customers on future invoices?
• If  you do not comply with card acceptance rules, you’ll lose customer disputes. For example, if you key enter or electronically submit a recurring sale, without the MOTO (mail order, telephone order) or ecommerce and without the ‘recurring sale’, you’ll have a tough time defending chargebacks.
• Chasing customers for expired card data on recurring sales.
• Mailing invoices.

PROFIT GAINERS FOR CREDIT CARD PROCESSING

• Intelligent system automatically identifies transaction and sends it with all the proper warranties and representments so you always hit qualified rates on both types transactions.
• The above also impacts losses from disputes.
• Never store payment data on your servers.
• Payment platform doesn’t let employees impact costs- using rules, employees cannot override requirements.
• Automate processes, including expiring card notifications and retries after failed transactions due to insufficient funds .
• Deliver electronic invoices to email or mobile device via text.
• Automated pin debit conversion- when it’s most economical- reduces cost of debit, even in the current Durbin Amendment era.

Example savings detail:

No Visa and Mastercard dues and assessments on pin debit. This isn’t much for the one store location, but if you have a big volume, it’s tens of thousands annually.

Commercial card transactions as low as 1.8% for MasterCard vs 2.65% with level 3 data at the Point of Sale and with the virtual terminal. A .8% savings just by sending the additional information needed.

Do you accept fax order forms from your customers? Are you a business to business company needing to store credit card data on file for recurring billing of variable amounts? The typical fax authorization form does not meet Visa requirements.

Card Acceptance Guidelines for Visa Merchants (2012) PDF download from Visa.com

You won’t find a “fax authorization form” in the guidelines, however, there is much information about receipt requirements.

Transaction Receipt Requirements are referenced on page 495 and Recurring Transactions starts on pg 585. The guidelines vary depending on whether your recurring billing order is from an ecommerce or other method.

Sample of a receipt for a sale from a stored card transaction:

A fax order form for a one time purchase should comply with the  standard receipt requirements. The invoice detail is generally accepted on  a separate page for B2B; the invoice number should be on the receipt.

A recurring billing order form should comply with the recurring rules and standard receipt requirements.

Chargeback prevention tips for business to business, card not present:

• Deliver a receipt via email to the cardholder immediately upon charging the card. If there is going to be a dispute, resolve the issue quickly.
• Send an invoice detail.
• Use EBPP.  If you send an electronic invoice to the cardholder and they click and pay, it’s pretty hard to dispute someone else ordered the items.
• Bill to and ship to addresses should match unless you have something in writing from the cardholder that they authorize shipping to another address.
• Get a signed recurring billing authorization form if you’re storing card data.
• Make sure your receipts have ‘recurring’ or ‘repeat sale’ for recurring billing.

Sample of stored card data authorization to pay form, replacing a fax form.

There are too many variables to address all the options for a compliant fax authorization form in this article. For PCI DSS compliance, we recommend you replace all traditional forms with exposed credit card or check data with one that references tokens, an alpha numeric string that replaces the card data and is useless outside your payment processing system, even if stolen.

CenPOS is a universal payment processing platform that provides efficiencies for merchants and their customers, reduces PCI DSS compliance burden, and many other benefits.

WHERE TO BUY

CenPOS is sold through direct agents and resellers. There is also a referral program. Click here to become a CenPOS agent, reseller, or referral partner.  Click here to become a customer or call the hotline at the top of this web page.

What happens when you key enter a credit card on a retail merchant account? Most merchants and even merchant services sales agents don’t really understand the consequences of how this impacts what you pay in credit card processing fees, specifically how you qualify for different INTERCHANGE rates.

For this example, let’s assume you have a RETAIL merchant account. This means when you signed up for a merchant account, you signed an agreement that most of the time your customers are present and will swipe their credit card. As a result your account is coded in such a way that it’s expected you’ll transmit data from the magnetic stripe on the back of the card, or embedded chip. You’re also required to get a signature from the customer. For interchange qualification, the assumption is that if you key enter a transaction, it’s due to a misread of the magnetic stripe, not because your customer is placing a phone or fax order.

For a MOTO merchant account, the opposite is true. Your account is coded so that you are NOT expected to send the data that comes from the magnetic stripe, nor are you expected to have a signature. Instead different information is required. For example, Visa requires the address.

What happens when you key enter a transaction on a retail merchant account? The expected data is not received, and therefore the transactions does not QUALIFY for the associated ‘best’ interchange rate for the specific card.

EXAMPLE RATES FOR A RETAIL STORE with a RETAIL MERCHANT ACCOUNT and the customer uses a traditional rewards card:

Visa CPS/Rewards 1 1.65% + $0.10. The customer is present and the magnetic stripe data is sent. This is called the Qualified rate.

Visa Electronic Interchange Reimbursement Fee (EIRF) 2.30% + $0.10. The customer is NOT present and no magnetic stripe data is sent. The transaction is key entered. If you do not enter address on a key entered transaction, EIRF is the result. Let’s face it- your cashiers are not going to know when they need to enter an address and unless they are forced to, they will skip entering it anyway.

Visa Standard Interchange Reimbursement Fee 2.70% + $0.10. The customer is NOT present and no magnetic stripe data is sent. This transaction was key entered and additional required information was not present. How do your cashiers know what additional data is needed on a transaction by transaction basis?

Do you see how even if you have a great merchant discount rate, it doesn’t mean you’re paying the lowest rates possible? There are a number of reasons why EIRF and standard can occur, though I’ve discussed only one above.

EXAMPLE FOR A RETAIL STORE, with a RETAIL MERCHANT ACCOUNT USING CENPOS, and automated switching is on.

Visa CPS/Rewards 1 1.65% + $0.10. The customer is present and the magnetic stripe data is sent.

Visa CPS/Card Not Present CPS/Rewards 2 1.95% + $0.10.  The customer is NOT present and no magnetic stripe data is sent. This transaction is key entered, and CenPOS automatically prompts for the address and any other information required to qualify the transaction for the best card not present rate, or per merchant custom settings.

Using the CenPOS virtual terminal solution, the merchant qualifies for the best rate under both types of transactions, swiped and key-entered. Savings using CenPOS on this transaction= .45% or .75%, the difference between qualified key entered and EIRF or Standard.

The illustration shows part of the payment cycle that applies to interchange qualification.

Plus risk is mitigated:

• The merchant is not expected to have a signature on the key entered transaction, which will be required to defend against disputes.
• A common retail fraud check is the last 4 digits, but for key entered, that is useless. Instead, address is automatically prompted for by CenPOS.

How does CenPOS compare with other internet based credit card processing solutions and virtual terminals? The vast majority do not have the switching technology and intelligence required to automatically force the desired transaction as described above. They either don’t do it, or leave it up to the cashier to make the right decision at the point of sale. The evidence that other solutions don’t work are in your merchant statement detail. Just look for EIRF, standard, stnd, std or non-qualified in any of the interchange or fee descriptors.

TIP: Are you thinking about mobile payments to your CARD NOT PRESENT or MOTO merchant account? The same logic will apply. The CenPOS switching technology will enable you to qualify for retail card present rates on you MOTO merchant account. Will you qualify for retail rates with any other solution? The proof will be if you see CPS Retail 1.51% and $.10,  Visa CPS/Rewards 1 1.65% + $0.10, and other card present interchange rates.

About CenPOS: “Creating efficiencies through payment innovation”
CenPOS, based in Miami, is an intelligent payment processing network that streamlines the payment experience for businesses and consumers by using state-of-the-art technology to replace inefficient, outdated payment systems. The network reflects the core values that drive the experienced and innovative CenPOS team: Simplicity, Scalability, Security and a holistic approach to payment processing strategies.
CenPOS provides solutions to a range of organizations including but not limited to retail, card not present merchants, automotive dealers, professional services and academic institutions; special programs are also available for non-profits.

WHERE TO BUY

• CenPOS  is sold through limited authorized resellers and agents.
• Keep your existing merchant account.
• Contact Christine for CenPOS for your business and for reseller opportunities.

How could this business to business vendor error have been prevented? How could everyone have saved time? Let’s review what happened, the resolution, and the repercussions for all parties, both time and money.

SCENARIO:

• Business “A”, an equipment seller for business to business only,  issued a PO to a vendor, a wholesale distributor for the trade only.
• The vendor, “merchant”, created an invoice.
• The accounting department uses the invoice and pulls the credit card information to charge the card. Business A credit card information is on file with the merchant, sent via fax some years ago. Where is that information stored?
• The business asked that the equipment ship in 2 days, which is also when the card will be charged.

WHAT HAPPENED NEXT:

• Two days later, merchant called business A to report that the card declined.
• The Business reviews their credit card account online and does not see any pending transactions or any reason for a decline and calls back the vendor to report same.
• Vendor runs the card again, and again declines.
• Business calls the credit card issuer, pressing voice prompt keys, finally gets ‘press 3 now’ to be connected to an operator, and then is promptly disconnected. DON’T YOU HATE IT WHEN THAT HAPPENS?
• Business calls card company back and spends 5 minutes reviewing what they already checked online- the account is in good standing and there is a sufficient credit line.
• After further review, it’s determined there is a large charge from the vendor that is pending, but not yet funded. It would be 5-7 days to remove the hold if the transaction is disputed.
• Business does not want to dispute – this should be worked out with the vendor.
• Business calls back vendor, who realizes they made an error and had charged someone elses invoice to that account.
• Vendor issues a refund to the business for the difference between the original charge and the amount that is really owed. (Difference between actual invoice and some other customers invoice. )

REPERCUSSIONS:

• LOST TIME. How much time did everyone waste?  At least 15 minutes for each party. Both operations were disrupted.
• NO ACCESS TO FUNDS. The business does not have access to credit card funds availability until the refund goes through.
• EXTRA FEES. The merchant pays multiple transaction fees.

HOW THIS TRANSACTION COULD HAVE BEEN MORE EFFICIENT:

• ERROR FREE. The vendor could send the business an email confirmation the PO total is correct and the business self-pays via a secure online payment page.
• ERROR FREE AND SAVE TIME. The vendor could have used electronic bill payment and the business would click and pay the invoice.
• ERROR IDENTIFIED FASTER. The vendor could have sent a copy of the transaction receipt immediately. The business could recognize there was an issue and notify the vendor. The transaction could then be voided, or preferably a reverse authorization could have been requested, if their credit card processing vendor supports that transaction type.

HOW CENPOS PAYMENT WOULD HELP THIS MERCHANT:

EFFICIENCY

1. AUTOMATE TO SAVE MAXIMUM TIME FOR BOTH PARTIES AND ELIMINATE ERRORS. EBPP- CenPOS automatically email the invoice for payment. Business clicks the email link, chooses how they want to pay, and the merchant ships upon payment completion.
2. ERROR FREE, SAVE A LITTLE TIME. Merchant sends email with their invoice or other method to confirm bill amount owed. CenPOS Free online payment page and business would have self paid with their payment of choice.
3. ERRORS FOUND FASTER. Merchant could have key entered the transaction in the virtual terminal and emailed a receipt. The cardholder would have known instantly of the mistake.
4. SAVE TIME. Merchant could have securely stored payment data with the business saving keystrokes to process the transaction.

 HARD DOLLAR SAVINGS

• I know that this merchant uses a desktop terminal and a virtual terminal (authorize.net). Neither of those requires the user to enter data into fields that could qualify transactions for lower interchange rates. Additionally, neither of them support enhanced or “level III data”, required to qualify certain transactions for extra low purchasing card rates. Sending the right data could save a merchant up to almost 1%, a big deal when margins are tight.
• The merchant will pay auth fees for one sale, two declines and a refund, 3 more than they should have.

See something relevant to your business? Contact us for more information.