SUPPORT IS A PHONE CALL AWAY

Even the best POS systems go down. It is not a matter of if, but when. Preparation and practice for this type of event is key. The best thing a business can do is to get ahead of the situation to mitigate the damage and reduce the financial impact.

Rather than business coming to a halt, it is best for the management team to have a plan in place. Management and staff should be aware of the backup process in the event they are left without a POS system. Below are some ideas one may want to cover if they are ever affected by a system down situation.

TROUBLESHOOTING THE INTERNET

Before contacting the point of sale or merchant processing company, the first thing the business will want to determine if it is it a network or POS issue. Some things to consider while troubleshooting:

1. Determine if the issue is internet or POS/server related? More times than not, an internet outage can be the culprit of major POS problems. A simple way to check the internet would be to simply try to open a website on a computer using the same network as your POS system. If the site has trouble opening, some steps for troubleshooting would be:
   1. Plug a laptop/computer directly into the modem provided by your Internet Service Provider (ISP).
      1. If internet issues still persist, try restarting the modem or contacting your ISP for resolution.
      2. If internet is available at the modem, try to access websites from a computer plugged into the router/switch provided by your POS provider or network specialist. A simple power cycle of the router/switch can correct a network issue, however it is highly recommended that this is done with the POS company on the phone.
2. If internet is available throughout the business, the next thing to determine if all terminals are affected or just one?
   1. If one terminal is affected, it may be something as simple as a loose cable either at the POS switch/router or at the terminal itself.
   2. If all terminals are affected and it is determined that it is not an internet issue, it would be best to involve the POS company at this point as it may be an issue involving the POS server or the router itself.

PUT A BACKUP PLAN IN PLACE

Not only should the business have a WRITTEN backup plan in place if it ever finds itself without a POS system, it also helps to make sure the entire staff is trained on how to handle a system-down situation. Some things to consider in your system-down procedures are:

Have a Handwritten System Documented and Put in Place

It is best to develop and have a handwritten ticket system documented before any major catastrophe hits. Management and employees should also periodically be trained on how to use this system.

• For restaurants, this will include steps for a manual ticket process. The staff should know how to create a ticket at the table, turned it into the kitchen, and total the check amount to bill the customer. It would be a good idea to have an inventory of manual tickets in stock that are numbered so all payments/orders can be accounted for at the end of the shift.
• For retail, it will help to record every sale with UPC/Skew number and cross reference these items on the credit card/cash slip provided to the customer.

Ask Your POS Company and Learn How to Use Offline Mode

Many POS systems support an offline mode for accepting credit cards while the internet or server is down. This allows the business to continue to run normally (including running credit cards through the system), however cards are only being stored in the system until the internet comes back online. The business does run the risk of accepting a card that declines at a later time, however the risk may outweigh the reward of not having to go to a manual process.

Alternative Sources for Accepting Credit Cards

Many merchant processing companies offer mobile payment/gateway solutions (For Example: MX Express) that will allow businesses to still authorize credit cards outside of the POS system. It would be a good idea to preemptively create all of the user accounts needed, log into each device, and record these usernames/passwords in a secure location. Businesses should also know which phone(s) will have the mobile payment app on them. Be sure to login and test the system periodically to make sure there are no surprises when the system is needed. Aside from the mobile payment piece, many merchant processors also provide a gateway (For Example: MX Merchant) that can be used online if mobile phones are not available.

Keep in mind that if payments are recorded in another application, such as authorizations on a mobile phone, they will need to be recorded in the POS system. It is best to have a payment method button on the POS system that will still close the table/check, record the order number, and track the payment type.

If a mobile payment or gateway option is not available from the merchant processor, the next best option is to have “knuckle busters” and payment slips available. Similar to offline mode, the merchant will run the risk of accepting a card that may be declined later.

Know Who to Call and for What

It is also a good idea to have a document available with important phone numbers for management to call in a system down situation. Resources to consider are:

• The point-of-sale company
  • Sales Rep Contact Info
  • Support Phone Number
  • Escalation (if available)
• Credit Card Company
  • Sales Rep Contact Info
  • Support Phone Number
  • Escalation (if available)
• Networking company
  • If available, company that installed the network system
• Voice Authorizations phone numbers for VISA, Mastercard, Discover, and American Express

Look into Failover/Backup Internet

Many companies offer internet over 4G that can be installed near the router/modem. In the event of an internet outage, the system will automatically detect the internet is down and rollover to the back up 4G signal. This is ideal as it will have minimum disruption to the operation and the merchant can continue to authorize credit cards.

If a situation ever comes up where the merchant finds themself without a point-of-sale, preparation and training will be key. Make sure everyone knows who is responsible for what and that the process is clearly documented and available. While hoping or the best is good, it is always best to prepare for the worst.

As expected, Visa and Mastercard have confirmed an April 2019 increase in interchange rates, the fee charged by banks that covers the cost of handling and credit risk inherent in a bank credit or debit card transaction. While they have not announced the amount of the increase, your merchants should expect to pay slightly more for their merchant processing in the coming months.

HOW INTERCHANGE FLUCTUATION AFFECTS YOUR MERCHANTS

The increase of interchange rates is not uncommon in the merchant processing industry, and the impact can be different from one merchant to the next depending on their ticket size and type of transactions they run. Some processors/partners, depending on the pricing structure they use for their merchants, can choose to eat the increased fees, while others pass the higher fees off to the merchants. Below are some examples of merchant pricing structures and how an increase in interchange can affect them:

1. Flat Rate Pricing– Flat rate pricing is one rate provided by the merchant processor/partner for all transaction types (manually keyed, swiped, moto, etc) and usually does not change when interchange fluctuates. Unless the merchant processor/partner decides to increase the merchant fees to offset the cost, a merchant on flat rate pricing will feel no effect of a rise in interchange rates.
2. 3 and 4 Tier Pricing– A merchant paying rates based on tiers will also not feel the effect of a rise in interchange. In this scenario, a merchant processor has given the merchant 3-4 rates based on the transaction type (i.e.- the merchant will experience a higher rate when a transaction is manually keyed as opposed to swiped/dipped). As interchange fluctuates, the tiers remain the same.
3. Interchange/Cost Plus Pricing- The most common rate structure offered by merchant processors, Cost Plus Pricing is based solely on the rate of interchange with an additional markup for the merchant processor. In this scenario, the merchant’s rate will fluctuate with interchange while the fees to the processor remain the same.

WHAT YOU AND YOUR MERCHANTS CAN DO

For merchants priced with Flat Rate and Tier Pricing, it is up to the merchant processor/partner to determine if they will eat the cost of the increase in interchange or pass the fees off to the merchant. Rather than a blanket rate increase, it is smart to adjust rates on a merchant by merchant basis.

For merchants on Interchange/Cost Plus Pricing, it is important to be upfront with the merchant about the change in rates and what it might mean for them. Make sure they understand that their fees (the merchant processor/partner fees) will remain the same, however the rate of Visa Mastercard will adjust.

PROACTIVE OPTIONS FOR THE MERCHANTS

If you sense aggravation about the inconsistency of rates, the good news is that there are available solutions for your merchants. For example, Cash Discounting has become a very popular solution. A Cash Discount Program is not a convenience fee or a surcharge. Merchant’s simply price their items at cash discount prices. When a customer chooses to pay with a credit or debit card, a non-cash price adjustment will be passed through to the customer and deposited in the merchant’s bank account the following day.

Here’s How it Works

For the sake of simplicity, let’s say the customer makes a $100 purchase and the merchant totals $50,000 in sales for the month. Below is an example of what to expect if the merchant were to charge a 4% Customer Service Fee.

Cash Discounting is not as simple as tacking on fees at the time of checkout. There are rules and regulations that must be followed, and it is important to use a processor that is familiar with the subject. To learn more about how to implement cash discount for your merchant, visit boldpayments.io/cash-discounting.

Chargebacks…the bane of many small to medium size businesses. Chargebacks have run rampant in the merchant processing industry. Many business owners feel helpless as the chargeback process has evolved into an unwinnable process to fight a form of fraudulent disputes. The best course of action? Prevention.

Definition

Before we get started, let’s look into what a dispute is. As defined by Visa:

A “dispute” provides an issuer (cardholder’s bank) with a way to return a disputed transaction. When a cardholder disputes a transaction, the issuer may request a detailed explanation of the problem from the cardholder. Once the issuer receives this information, the first step is to determine whether a dispute situation exists. There are many reasons for disputes—those reasons that may be of assistance in an investigation include the following:

Merchant failed to get an authorizationMerchant failed to obtain card imprint (electronic or manual)Merchant accepted an expired card

When a dispute right applies, the issuer sends the transaction back to the acquirer (Processor) and disputes the dollar amount of the disputed sale. The acquirer then researches the transaction. If the dispute is valid, the acquirer deducts the amount of the dispute from the merchant account and informs the merchant. Under certain circumstances, a merchant may respond to a dispute to its acquirer. If the merchant cannot remedy the dispute, it is the merchant’s loss.

PREVENTION

The best attack to the chargeback dilemma is prevention. There are steps business owners can take to make sure the issuer never advances the dispute beyond the cardholders request.

• The best form of prevention…EMV. EMV is a global standard for credit and debit payment cards based on chip card technology. This makes credit card virtually impossible to reproduce eliminating the claims of fraudulent transactions. This eliminates the vast majority of fraudulent disputes as it proves the card used was a legitimate card. A merchant’s POS company or merchant processor should have simple EMV solutions that can be installed rather quickly.

• Merchants can also prevent chargebacks by collecting the right information at the time of sale. It is important that the correct signature is captured matching the customer’s ID. In a fast paced environment, especially with small ticket items, it is unrealistic to check every transaction against the customer’s ID. However, for larger items, say a catering order, it is important to compare signatures on the customer’s ID to the credit card slip and even make a copy of the license.

• Another method to avoiding chargebacks is to train employees to identify the high risk indicators. Merchant should teach employees to verify signatures on large orders and manually keyed transactions, make sure invoices and delivery receipts are signed, and look for suspicious transactions (i.e.- leaving an abnormally large tip that can be disputed in the future).

• Lastly, merchants should always deal with customer complaints promptly. More times than not, a merchant can avoid a dispute by settling the manner before the cardholder calls the bank. It is important that all servicers are delivered to the customer’s expectations. If not, deal with the issue up front and try to resolve it before it gets to the issuer.

FIGHTING CHARGEBACKS

Before a merchant fights a chargeback, it is good to understand the “Dispute Life Cycle”. Below is Visa’s diagram outlining the steps a chargeback process:

Below are some common dispute categories that can be initiated by the cardholder:

Knowing this information can help merchants take the proper steps when fighting a chargeback. In addition, the following steps might also help during the dispute process:

• Act fast. The sooner a merchant can dispute a chargeback the more time they have to counter any rejection.

• If available, use a chargeback managing software. Many processors offer a tool that can provide the merchant with a faster notification and easier claim submissions.

• Provide as much documentation as possible when handling a dispute. Some merchants even go as far as providing a written outline of the services provided to backup their documentation.

• Merchants should ask their local merchant processor provider for help. Merchant process providers want to see their merchants happy and avoiding chargebacks is a sure fire way to do so. Merchants should take advantage of the merchant processor’s knowledge and contacts to push disputes through.

Unfortunately, chargebacks have become “a part of the business”, but merchants can limit the damage by following the steps needed to prevent and fight this headache.

For more information on handling chargebacks and additional ways to avoid them, please email info@boldpay.io.

**source: https://usa.visa.com/dam/VCOM/download/merchants/chargeback-management-guidelines-for-visa-merchants.pdf

Selecting the merchant processor that’s best for your business is not an easy task. Too many merchants fall into the trap of simply looking for the provider with the lowest quote only to find themselves paying more after exposing hidden processing fees. Over time, this can turn into a very expensive mistake.

So, what makes the difference? When looking for a merchant processor, you want a company that has a firmly established track record of reliability—one that can easily be integrated into your current POS environment, is strong, secure, competitive, and has a commitment to customer service. Do not get too focused on what numbers are on your quote – it’s the overall total cost over time that matters. This includes processing rates, time spent dealing with unknowledgeable support staff, and excessive pricing on equipment.

Aside from pricing, not all merchant accounts provide the same level of service when it comes to supporting your POS. You should always choose a merchant service provider willing to work with your point-of-sale company to make sure your issues quickly get resolved. It is too common for merchant processors to hand the merchant off to the POS company without making an effort to truly understand the issue.

As many processors try to “catch up”, BOLD has lead the industry in their support, pricing, and understanding of the POS industry. BOLD is not simply a merchant processor. BOLD. works closely with point-of-sale companies to resolve issues with some of the fastest resolution times in the industry. It is what they call “They Priority Advantage” which also includes:

• Support That Works WITH your POS company, Not Against. The BOLD teams are dedicated to your business and financial goals. Customer service is more than just a catch phrase to us, and we strive to be the best in the industry.
• Hardware that meets the unique needs of your business. BOLD delivers the right type of equipment to work with the POS system and fit the merchant’s needs.
• Software that keeps track of your business so it can grow. Free Access to the MX Merchant™ Portal for Online Reporting, Email Invoicing, and Mobile Payments.
• Transparent, reasonable, and honest. BOLD’s pledge is to be completely transparent with FAIR pricing and easy to read statements.
• Free PCI-DSS Assistance with ControlScan. BOLD provides the necessary support and tools needed to analyze, remediate, and validate PCI compliance.

Despite all the unscrupulous practices in the processing industry, BOLD is a company that offers high-quality service at a fair, reasonable cost. They offer same day approval and, in most cases, you can be running credit cards within hours.