Transcript Jennifer R. Glass CEO Credit Cards, NJ (Teaneck, NJ) “This is by far the most complex industry I have ever been associated with.

Jennifer R. Glass
CEO
Credit Cards, NJ (Teaneck, NJ)
“This is by far the most complex industry I have ever
been associated with. I always tell new employees to give
themselves six to nine months to become comfortable
with the lingo and to understand how the payment
processing system works.”
– David Schwartz, Director of Marketing, Authorize.net (April 2006)
11/6/2015
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Mission Statement
Provide an easy and secure way for
businesses to accept credit and debit
cards along with checks and other
electronic payment programs in their
store, at home, or on the Internet.
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Various Products Available Today
 Merchant Accounts
 ACH Programs
 Check Conversion
 Check Truncation
 Check Verification
 Check Guarantee
 ATM Machines
 Gift & Loyalty Cards
 Business/Merchant Cash Advance
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Merchant Accounts
No two businesses are alike, so they can't
be expected to have the same bankcard
processing needs.
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Merchant Accounts (cont’d)
Industry Jargon
 Qualified transaction
 Mid-Qualified transaction
 Non-Qualified transaction
 Rewards/Points-based card transaction
 Debit/Check Card transaction
 Interchange (Visa, MasterCard & Discover)
 PCI
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Merchant Accounts (cont’d)
 Types of accounts:
 Retail (swiped)
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Countertop devices
POS systems
Wireless devices
 MO/TO (keyed)
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Virtual terminals
 e-Commerce (Internet sales)
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Gateways
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Merchant Accounts (cont’d)
 Typical Costs for Retail (swiped) Accounts (tiered)
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1.39% + for check-card transactions
1.65% + for credit & check-card transactions
1.89% + for credit card transactions
$0.15 + per transaction (plus NABU fees)
$10.00 + for monthly statements & account maintenance
Visa FANF fees ($2-$40,000/mo.)
CCNJ refers all merchant accounts to one or more of the following processors:
Capitol Payment Systems/Wells Fargo Bank N.A, Walnut Creek, CA;
North American Bancard/ HSBC Bank USA, Buffalo, NY
PowerPay/HSBC Bank USA, Buffalo, NY
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Merchant Accounts (cont’d)
 Typical Costs for MO/TO & e-Commerce Accounts
(tiered)
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1.89% + for check-card transactions
2.39% + for credit card transactions
$0.20 + per transaction + $0.10 AVS fee (plus NABU fees)
$10.00 + for monthly statements & account maintenance
$20.00 + for virtual terminal access (monthly)
Visa FANF Fees ($2-$40,000/mo.)
CCNJ refers all merchant accounts to one or more of the following processors:
Capitol Payment Systems/Wells Fargo Bank N.A, Walnut Creek, CA;
North American Bancard/ HSBC Bank USA, Buffalo, NY
PowerPay/HSBC Bank USA, Buffalo, NY
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Merchant Accounts (cont’d)
 Cost Plus Pricing:
 Visa, MasterCard & Discover have published rates that
are updated twice per year (April & October) that dictate
how much all of the players in the industry pay per
transaction. There are hundreds of categories of rates
involved, dependent on industry type, method of
processing and so much more.
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11/6/2015
Visa: http://bit.ly/VisaInterchangeOct12
MasterCard: http://bit.ly/MasterCardInterchange
Discover: http://bit.ly/DiscoverInterchange
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Merchant Accounts (cont’d)
Terminals Available:
 Stand-alone terminals (dial-up,
IP based or dual-comm)

Several models available to fit your needs
 Point-of-Sale terminals (computerized systems)
 Several options available to fit your needs
 Wireless terminals
 Several models & plans available based
on your usage and needs
 Online/Virtual terminals
 Authorize.net and others
??? FREE vs. PURCHASED vs. LEASED vs. RENTED ???
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Understanding your statements
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ACH Programs
 An ACH (Automated Clearing
House) program is an electronic
funds transfer (EFT) service that
enables you to automatically debit
your customers from their checking
or savings account.
 Debited funds are deposited into your business account
the next business day after collection.
 Automatic debits are scheduled on the days you choose.
Preparing and the mailing of invoices and accepting
payment by paper checks and the risks of late payments
are all virtually eliminated. Cash flow becomes
predictable. Accuracy guaranteed. Plus, your customers
will be able to avoid the hassle of writing and mailing
checks. And you enjoy money in the bank on time, every
time.
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Checks
 There are three options for converting
paper-based checks into electronic
transactions:
 Check Truncation
 Check Verification
 Check Guarantee
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ATM
 Store sales increase between 8-12%
by having an ATM inside
 ATM cardholders spend an average
of 20-30% more then none ATM
customers.
 People use their ATM cards in
convenience store more than any other point-of-sale
cash back device by nearly 28 to 1.
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ATM (cont’d)
 Over 90% of the ATM transactions are cash
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withdrawals, as opposed to balance inquires.
Adults use an ATM in a convenience store more than
any other service in the store except pay phones.
The most popular day for ATM's is Friday.
The average withdrawal from an ATM is $43.
Studies show that cash retention among large retailers
is 30-33%. Smaller retailers can be as high as 40%!
Up to 80% of the dispensed cash in nightclubs,
remains there.
Each year ATM's handle nearly 18 million transactions.
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ATM (cont’d)
 Options to get into the ATM market:
 Purchase ($$$)
 Lease ($$$)
 Placement ($)
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Gift & Loyalty Cards
 Myth: Only the large retailers and
chain stores offer gift cards to their
customers
 Fact: Not true! The expenses
to make these programs cost-effective
for small retail and even start-up merchants have been
greatly reduced.
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Gift & Loyalty Cards (cont’d)
 Gift and Loyalty cards generate money
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for merchants.
Gift and Loyalty cards are great
advertising pieces.
Gift and Loyalty cards encourage repeat business.
Gift Cards are the fastest growing form of non-cash
payment in the country.
Gift Cards are great to hand-out for promotional
events.
Gift Cards can be used for store credit in place of cash
or refunds on returned merchandise.
Gift Cards are compatible with almost all existing
terminals.
Gift Cards can replace paper gift certificates for easier
accounting.
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Gift & Loyalty Cards (cont’d)
What types of merchants would benefit from:
 Gift Cards: Small & large retailers,
restaurants and franchises benefit from a gift
card program. Gift cards work well to replace
traditional paper gift certificates and/or store credit slips.
 Loyalty cards: Car washes, delis, restaurants, retailers, dry
cleaners, and other merchants that depend on and reward
repeat business.
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Business/Merchant Cash Advance
 A business/merchant cash advance
allows you to receive money now in
exchange for the purchase of a small
portion of your future Visa®and
MasterCard® sales.
 Cash advances are deposited into your business
checking account giving you immediate access to
needed funds.
 If traditional bank loans are not an option, or you
simply want to borrow against your future sales,
then a Business/Merchant Cash Advance may be
the perfect alternative for you.
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Thank you for your time!
Credit Cards, NJ
Teaneck, NJ 07666
p. 201.645.0132
w. creditcardsnj.com
e. [email protected]
Payments4Business
creditcardsnj
11/6/2015
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