Finance/Capital Access

What is EMV?

EMV is a technical standard that ensures chip-based payment cards (also known as smart cards) and terminals are compatible around the world. A chip-based payment transaction occurs when a microprocessor embedded in a plastic card or mobile phone connects to an EMV-enabled POS terminal (either contact or contactless) in order to execute a payment. The smart card technology provides an additional form of card authentication for the transaction—validating the legitimacy of the payment type being used and helping reduce the use of counterfeit, lost and stolen payment cards at ATMs and retail points of sales.

Implications of Smart Card Adoption

Payment industry experts generally agree that a chip-based standard (i.e., EMV) will come to the U.S., but predictions of when and in what form vary dramatically. Smart card adoption in the U.S. is an industry-wide issue, and there is substantial education required for all participants to understand what chip-based payment enablement means to them. In the face of this uncertainty, merchants should start considering how smart card implementation would affect their businesses, and look into options for accepting chip-based credit and debit cards. (more…)

Most chargeback situations arise at the point of transaction — at the time the transaction is completed — and most can be prevented with a little training.

Consider these 16 tips to avoid potential chargebacks.

1. Do not complete a transaction if the authorization request was declined. Do not repeat the authorization request after receiving a decline.

2. If you receive a “Call” message in response to an authorization request, call your authorization center. Be prepared to answer questions. The operator may ask to speak with the cardholder. If approved, write the authorization code on the sales receipt. If declined, ask the cardholder for another Visa card.

3. If an embossed Visa card is presented for payment, make an imprint for all card-present transactions. If you have a point-of-sale terminal with a magnetic-stripe reader, swipe the card through the reader for every face-to-face transaction. If the terminal isn’t working or a card’s magnetic stripe cannot be read, key-enter the account information and make an imprint of the embossed information onto the sales receipt using a manual imprinter. (more…)

As a merchant it is important to keep abreast and know where the future of credit cards is heading. It is with this in mind that we review four important trends of innovation and technological advancement in the credit card space.

Multi-function Cards

A common challenge faced by the global credit card industry is combating attrition and diminishing wallet share, particularly as the use of debit over credit continues to increase. Historically, rewards programs were used to encourage consumers to choose a particular card over another. As these programs decrease in perceived value, issuers are searching for another tactic to encourage customer loyalty. One way is with a single, multi-function card.

Multi-function cards have the capability of giving the holder access to multiple accounts on a single plastic. The most common multi-function card structure gives consumers the ability to access both a debit and credit account on the same card. While multi-function capability has generally been used to enable consumers to choose between credit and debit accounts, the functionality can also allow different categories of accounts or different modes of credit to be accessed. (more…)

Jargon within the payments industry can be extremely confusing. Have you ever stumbled through a document that mentions ACH, EMV, CVC and MICR all in the same paragraph? We know the payments industry isn’t the friendliest of authors and, while we can’t make all of the financial institutions, processors and authorizers out there toe the line on a new, friendlier way of speaking, we can give you the tools to speak their language.

Have you ever stumbled through a payments industry document? Jargon and abbreviations can be extremely confusing. We know the payments industry isn’t the easiest to understand, but we can give you the tools to speak their language.

A

ACH: Automated Clearing House. A regional organization used by member banks to electronically transfer funds between members.

AMEX: Abbreviation for American Express®, an organization that issues travel and entertainment cards and acquires transactions. (more…)

While crowd-funding sites have opened the door for many entrepreneurs that otherwise couldn’t obtain outside financing, it’s still not the best option for everyone. This would apply to entrepreneurs with a highly confidential business model. However, you shouldn’t always consider the absolute worst case scenario when sharing your ideas with others. A crowd-funding site may provide you with instant market feedback that you may not gain from an individual investor or a consortium of angel investors. So, what are your other options?

Explore Angel Networks

Have you reached out to accredited investors in the angel community? Nowadays, there are many online angel communities such as AngelList and Gust that provide early stage companies with immediate access to accredited investors and vice versa. (more…)