3. MONEY SAVING TIPS

There are little “secrets” of saving money in every line of business.  Here at EMG, we have decided it is time to “spill the beans” and to help ensure that you are receiving the best rates possible.  Here are a few examples of things that you can do in order to get the best possible rates through EMG.

Do you have “AVS” on your processing system?

AVS stands for "Address Verification Service." It is a validation system that determines whether or not the street number and zip code entered by the purchaser is actually a match with the issuing bank's "on file" information for that same cardholder. When you key in a card, try to get the correct street number (ex. If the address is 400 N 100 W, the street number would be 400) and the correct zip code. This may help the transaction to get approved at a lower Visa/MasterCard interchange rate.

Please note that AVS does not work on most foreign cards and the AVS service is not available overseas. This is one of the reasons why foreign transactions are considered "higher risk" by U.S. banks and why such transactions have a higher cost, as well.

How often are you uploading your approved transactions?

When you run one or more sales transactions, you are granted an "authorization code" for all approved transactions. These approved transactions are grouped together into a "batch." However, until the batch is settled or uploaded, you will not receive the money into your bank account.

Your account is set up to settle your approved transactions in one of three ways: 1) All approved transactions remain in your processing system until you manually settle your approved transactions; 2) All approved transactions are automatically sent to the network by your processing system at the end of each day; or 3) All approved transactions are stored on the network (i.e. not in your processing system) and are sent to the network at 5:00 AM EST each day.

Be sure that your transactions are settled EVERY DAY! If the transactions sit in your terminal for more than 24 hours, you run the risk of being “downgraded” by Visa and MasterCard to a higher interchange rate.

Do you currently accept PIN-based debit cards?

Often overlooked as a cost savings measure is the PIN-based debit network. This network permits cardholders to enter in their secure PIN and have their bank account immediately debited for the transaction amount. If your transaction amounts are typically over $50 and you have a retail storefront, then PIN-based debit could be right for you.

How can acquiring the cardholder’s CVV2 code save you money?

The CVV2 code is new technology introduced by VISA in order to improve a transaction’s security. The CVV2 is a three-digit value printed on the signature panel on the back of Visa cards immediately following the Visa card account number.  If you key in card numbers from customers over the phone, this CVV2 code will check with Visa and MasterCard’s customer database to verify a match. If it does not match, the transaction will still be approved but you will receive a “Non-matching CVV2” code on your processing system. Be wary about accepting cards over the phone where the CVV2 does not match because someone may be using a stolen card number and costing you money in chargebacks and revenue losses.

Are you processing under the correct merchant sales profile?

If you are an internet merchant, you do not want to be processing as a retail account, and vice versa.  Processing under the correct sale profile, whether it be Retail, Restaurant, Mail-Order/Telephone Order (MOTO), or Internet, will allow you to have the best rates and correct stipulations on your account.  When you are set up with EMG, we review your business type and set you up with the corresponding account.  If you have changed the method that you run your credit card sales, please contact your local office to be set up with a correct account.

How old is your processing system?

Outdated credit card processing equipment is slow, noisy, and can even be costly. In a recent Visa television commercial, they even went so far as to make fun of a consumer that uses cash. Customers are all about spending money faster and in greater amounts, so if you have a machine that takes even a minute to run a transaction, customers are going to grow impatient. Upgrading to new equipment can actually be cost effective by increasing the speed at which your customers are able to “check out.”