CenPOS increases debit network conversions

CenPOS, a payment processing engine, is pushing debit transactions through the debit network instead of the Visa and MasterCard networks at impressive rates. Mid-tier companies seeking a solution to lower their credit card processing costs are achieving dramatically lower costs with CenPOS.

Visa and MasterCard average swiped debit interchange is 1.03%, plus $.15 per transaction (there are some variances). Other fees include but are not limited to dues and assessments and and the new include the MasterCard network branding fee. Processing via the debit networks is under a $0.90 per transaction on every network at this time. The cost of a $220 average ticket drops from $2.43 and up to less than $1. If you saved $1.50 for every transaction, how much would you save per month? per year?

How do you get debit network pricing? In a retail environment, the consumer must enter their pin number when using a debit card. What is debit conversion? When the consumer enters their pin number, we call that debit conversion. The transaction has converted from the Visa & Mastercard payment processing network to the debit network. Most retailers hover in the 10-25% range for debit conversion. A very, very small group achieves over 70% pin debit success. CenPOS customer beat all the averages.

Debit conversion is only one benefit of CenPOS, which also delivers end-to-end transaction security with comprehensive fraud management, and much more. At this writing, we recommend the Ingenico i6550 signature capture terminal or i6580 (same unit but with a color screen) to interface with CenPOS for maximum benefits in a card present, retail environment.

For more information, Call 954-942-0483 or read this article on CenPOS.

Banks discouraging pin-based debit hurts merchants

Where does all the money go for your credit card processing costs?

We’ve answered this before. Most of it goes to the banks. In a few moments, you’ll read about their blatant promotions to make more money at your expense.

If you process a transaction at the best interchange qualification, they make a little money. If you process a transaction that downgrades to a higher interchange qualification, they make more money. In fact, the worse you qualify, the more money they make.

This is a key reason why banks may not be the best choice for your credit card processing. With their inherent conflict of interest, will your bank help you hit the best interchange? You can influence your interchange qualification. It’s complicated. It’s more than what customers can do, it’s up to professionals like us to not only spot problem areas, but to take the corrective actions to fix the underlying causes- either behind the scenes, through programming changes or by contacting you and providing tips for staff.

Today I received a direct mail piece from a bank. The promotion rewards me for SIGNATURE BASED gold debit mastercard purchases. Pin based debit transactions are ineligible. That’s right. The bank is strongly encouraging consumers not to enter their pin number. They make more money that way.

How can you combat this kind of promotion and encourage pin based debit?
1. Do you have a pin pad? Consumer oriented businesses processing $1M annually, will almost always benefit. Call us for a free analysis.
2. Are you processing $1,000,000+ per MONTH (all card type transactions), please call me regarding new technology that will dramatically lower your debit processing costs.