Card Payments

Roughly 35 percent of credit cardholders pay late or extended limit fee's
(U.S Government Accountablility Offices)

Minimum Payments

35 Million credit cardholders can only afford to make minimum payments on their outbalances every month
(the Federal Reserve)

Massive Data Breach

Portland Maine (March 17, 2008)
A security breach at an East Coast Supermarket chain reported they a massive data breach when a estimated 4.2 million credit debit card numbers were exposed over a several month period. So far about 1,800 cases of fraud have been reported so far relating to the breach. No personal data such as names, address or telephone numbers were divulged, just account numbers.
The U.S. Secret Services has confirmed they are investigating, but to comment on the scope of the crime
The case ranks among the largest breaches on record involving retailers, but far fewer cards were exposed than in the largest hack. Over 45 million cars were exposed by the breach at TJ Max and Marshall's that began in 2005 and was disclosed last year.

Receipts reveal too much information

Merchants need to make sure their credit card terminals are not making life easy for card thief's. Take a look at a customers receipt is it showing more then the last 5 digits of the cardholders account number? If it is your in violation of the Fair and Accurate Transactioions Act of 2003 or FACTA. Why with FACTA being assed, which prohibits mechants from printing full card numbers on receipts beginning Jan 1, 2008 still appearing on receipts? If you think that you will require the full card number in the event of a chargeback your mistaken. This is what the merchants needs in the event of a chargeback. A expiration date, a transaction ID, the last four digits of the card number and an authorization code, according to VISA nothing else. So if your receipts are showing full account numbers get in touch wih your processor and change that printer quick, or better yet contact Preferred Merchant Services and we will provide a compliant unit to your business.

No more Gift Card Leftovers in Califorinia

On Jan 1 2008, California Senat Bill 250 went into effect. The bill requires merchans to reimburse consumers for the unused remainder of gift cards wit a balance of 10 dollars or less. In SB 250, an unredeemed gift card is any private label gift card purchased after Jan. 1, 1997. The indivdual purchaser, not the retailer, controls if and when the gift card will be redeemed. In California there are no expiration dates on gift cards. Policies regarding unredeemed gift cards vary from state to state. Watch for more states to follow California new law.

lost revenue contracts

I have run across a new type of contract in the Merchant Services industry, it is called a lost revenue contract, and it works like this. When a Merchant signs with a Credit Card Processing Company, the usual agreement in the past was a 36 month auto renew contract with a 295.00 cancel fee. Now I'm starting to see a new penalty in the contract, a lost revenue fee, which works this way if you wish to cancel your contract you will be charged the amount of money which the processor is making from your monthly charges and will charge you that amount times the number of months remaining on your contract. Say the processor makes 50.00 dollars monthly off your account, and you have 12 month remaining on the contract, they would charge you the Merchant 600.00 dollars to cancel. Preferred has no long term contract.
This information brought to you by Bruce Bryen vist us at cards4merchants.com