Restrict Access to Cardholder Data

Merchants you must implement strong access control measures to cardholder data, this is written in requirment 7 of PCI security requirements. If you have several people who have access to card holder data you must have a formal security policy that lays out a statement of least privilege. You can write your own in simple terms that everyone will understand.

Unauthorized access to cardholder data is punishable up to immediate termination. You as a manager must let your staff know this is as serious as losing employment.
Let everyone know fines up to 500,000 dollars can be levied against the company for a breech.

Consumers Cutting Back

U.S. consumers are cutting back on borrowing like never before, according to the Federal Reserve.With banks and card issuers cutting credit, and with unemployment rising, housing prices still falling, and generally poor economic news, consumers are hesitant to borrow. Credit card balances, auto loans and other forms of consumer credit fell by by $21.6 billion in July, the biggest decline on record.
That's equivalent to an annual decline of 10.4 percent, the Federal Reserve said. It's the sixth consecutive month the measure of consumer credit has contracted. In June, it fell by a revised 7.5 percent.Both Visa and MasterCard say the proportion of debit transactions on their networks is growing. At Visa, the world's largest payment network, they've surpassed credit card purchases.Revolving credit, comprising mostly credit card balances, fell eight percent in July. Meanwhile, non-revolving credit fell 11.7 percent

No More Checks

Two grocery chains have stopped taking personal checks, Fresh and Easy Market has stopped accepting personal checks at it's 70 stores in California. Whole Food is testing a check free policy at two of it's LA stores. It will be interesting to see if they lose customers or they just switch to debit cards which is what this is all about. Taking a debit card and accepting a check is like night and day with the check you have to make a deposit, meaning someone has to go to the bank, then waiting for the check to clear or use a check service.
Accepting a debit card all electronic you treat it just like a credit card transaction which it is in reality. This could be the start of no checks at major stores, we will keep you informed

Thanks

Bruce Bryen
Preferred Merchant Services

PCI Rules

PCI (Payment Card Industry) has new rules and fee's going into effect in the near future in a effort to make merchants more responsible for protecting card holder data. Fine's to the merchant can go up to 50 thousand dollars. You as a merchant should not be storing card holder account information, if you must use your processors storage through a virtual terminal where you hold data on your processors servers.

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

Credit Card Interchange Fees Spark Disputes Among Small Business Merchants

Pittsburgh Tribune-Review (05/27/07) Leonard, Kim
With interchange fees rising, merchants are increasingly putting pressure on state and federal governments to take action on the issue. The Senate Banking, Housing, and Urban Affairs Committee is planning to hold a hearing on interchange practices sometime this year. Meanwhile, the Senate Homeland Security and Government Affairs committee is considering examining the issue as part of a look at alleged abusive practices in the credit card industry. At the state level, legislation has been introduced in nine states to control interchange fees or disclose what the fees are paying for, according to the Merchants Payment Coalition. However, some merchants are not challenging interchange fees because they see them as a necessary business expense. Consumers also appear to be indifferent to the issue of interchange fees. Though a new survey by Javelin Strategy and Research found that most consumers know about interchange fees and believe they affect prices, most say they will not stop using plastic to lower a merchant's costs. (Web Link)

Testimonial

"I still can't believe you are not charging for Gateway Access Before my webmaster told me about Preferred Merchant Services I was ready to sign up with my local bank. Get this the bank wanted 299.00 to get my account setup. ($199 for Gateway Set-up, plus a $100 Application Charge. I sent Robert, my webmaster a Good Job Done E-mail. Your Company did save me money, Thanks again."

James DeMarco. 6-18-07