Hi,

This was sent to me by someone in the army so it is valid. I think it’s a fantastic idea and will be doing it.

http://www.gratitudecampaign.org/shortmovie.php

Bill

Hi,

Contrary to what other processors will tell you I am here to tell you there are things you can do especially if your business is experiencing chargebacks frequently or high dollar volume chargebacks. I have recommended TransMedia for a few years and their expertise which was good to start with is getting better and better.

Winning by the rules

When it comes to chargebacks, it is typically merchants versus cardholders. And it’s tempting for ISOs and merchant level salespeople (MLSs) to take sides – favoring their clients, naturally. But there is another approach: relying on the rules.

The payments industry implemented rules and regulations so ISOs, MLSs and merchants would all understand proper procedures and adhere to them – or face the consequences of not doing so.

Even with the rules in place, however, some feel cheated or treated unfairly once fines are handed down. If people are unhappy with a policy or a decision, there are channels to go through to change or appeal it. But navigating the channels isn’t easy; who can they turn to for guidance?

Transmedia Payment Services Ltd. is a credit card chargeback loss prevention consulting firm that works with merchants, acquirers and issuers to help them understand the rules and navigate the often murky chargeback waters.

When a business is challenged with a disputed transaction, Transmedia steps in to ensure the chargeback laws and policies are properly explored and exercised. It handles approximately $5 million in chargeback case volume each month.

Start of something different

Transmedia is made up of loss prevention experts and self-proclaimed “dispute gurus.” “Our mission is to make card transactions secure by appropriately providing recourse to remedy disputed transaction for merchants, acquirers and issuers,” said Sam Neuman, Transmedia’s Director of Sales.

The company was founded in 2003 by Bernard Klein and is currently headed by Klein, Isaac Klar and Neuman. It employs a staff of 19, operating from its Brooklyn, N.Y., headquarters.

The investigative team works aggressively to find the people behind fraudulent transactions or locate missing merchandise. The team can either find the individual who will pay for the transactions or reverse chargebacks.

Transmedia started its business with just a handful of merchant clients. Over the years, many acquirers, issuers and merchants have been added to the company’s portfolio.

In fact, Transmedia has had more than 100 percent growth for four consecutive years.

Neuman attributed the business increase, in part, to the company’s uniqueness. “It’s a brand new idea,” he said.

“There are maybe two other companies that have a similar service, but they are more tailored as a basic outsourcing service and not focused or capable to handle lost chargebacks. It’s a very exciting opportunity that we bring to merchants or acquirers. They can’t lose. It’s a win-win situation.”

Transmedia provides other services, including:

* Identifying fraudulent transactions
* Disputing defective claims
* Disputing shipping and restocking fees
* Professional advice to prevent chargeback
* Professional consulting on how to meet the credit card chargeback regulations
* Merchant educational seminars

Transmedia also has two programs in pilot phases, with hopes of launching them in the summer of 2008. One trial ensures merchants for all chargeback reason codes, while the other purchases merchant chargebacks, similar to when collection firms buy debt.

Always room to improve

Transmedia is focused on the areas of card Association dispute resolution guidelines, regulations and extensive fraud investigation.

“With the expertise in these areas, we have developed procedures and methods to effectively recover and prevent definite losses to merchants, acquirers or issuers,” Neuman said. The company also serves law enforcement agencies.

Transmedia investigates all types of card-not-present transaction scams. “When we look at the pattern of a fraud claim and order, we will very easily determine what type of fraud scenario that will fall under, and whether merchandise may still be retrievable,” Neuman said.

The company stays on course with payments industry rules because it knows policies were created to better serve all payments professionals.

“Our research and practice finds the federal credit acts, as well as the bank card Association rules, to be well constructed programs with fine streamlined resolutions to assure that the most reasonable and fair results are achieved by those rules,” Neuman said.

However, Neuman pointed out that this does not mean the system is perfect. Over time, many of the rules have either been ignored or forgotten. “The only problem is that over the years, most of the useful detailed rules have been undermined, unstudied and unknown to the communities for which they were created,” he said.

Neuman wants payments professionals to know there is a problem with the way chargebacks are handled, and it is costing money. But, he also wants to inform them that something can be done about it. “ISOs and merchants are so used to the idea that a chargeback has to be paid and there is no way to reverse it,” Neuman said. “ISOs can reduce their liability. There is money out there.”

Chargebacks are, in fact, reversible and winnable. “Often you need help to initiate a chargeback, and often you need help to fight a chargeback,” Neuman said. “We are here to get into the driver’s seat to assure that reasonable justice is accomplished and to assure that all technical requirements are properly met.”

All merchants need chargeback guidance, not just those who are high risk. “Every retailer has a 5 percent return,” Neuman said. “Every card-not-present merchant has at least one-tenth of a percentage of chargebacks. There are always some instances that can’t be resolved in good faith.”

ISOs, MLSs and merchants can hire Transmedia on a case by case basis or on retainer to train staff on chargeback guidelines. Merchants don’t need to face a chargeback issue to benefit from education. The company works with merchants to help them learn procedures to prevent and fight future chargebacks.

Breaking bad habits

The company believes card issuer chargeback programs have been running out of control. “Just because a chargeback can physically be initiated by the push of a button, chargebacks should not be a dictating mechanism unless it has met appropriate and reasonable requirements before initiated,” Neuman said.

According to Neuman, the habits of cardholders and issuers have allowed such programs to be misused, and both sides are responsible. “It’s the same with the opposing side of the table,” he said. “Credit card transactions are often inappropriately initiated, causing losses for issuers and cardholders in the billions of dollars, all because the merchant was trusted with a merchant account.”

Neuman noted that in many cases, a chargeback arises when a cardholder claims the merchandise received was defective, while the merchant insists the item is adequate. In instances such as this, the issue becomes more about making a point and being right, which is not helpful for winning the dispute.

“We would typically never argue that merchandise was not defective,” Neuman said. “That’s useless. That is not going to make you win that case. You have to look into other causes.”

There are many requirements to make a chargeback valid, and it must be proved that all the rules necessary for a chargeback were followed. “If you don’t raise the appropriate cause, you are going to lose the case,” he said.

One of Transmedia’s key service features is the minimal involvement of merchants. The company can usually resolve half of its cases without merchant participation: In issues that do not involve fraud, it resolves more than 90 percent of the chargebacks; in issues of fraud, the rate is approximately 74 percent.

Referrals worth making

Transmedia works with referrals from acquirers, ISOs, MLSs and others. ISOs earn revenue by recommending the service to their merchants. Transmedia staff closes the sales, but ISOs must perform the initial introductions and offer personal recommendations.

“After we close the sale, there is nothing that we require from the ISOs to keep up, except if they stop giving us the chargeback, we may ask the ISO to call the merchant and refresh them about us,” Neuman said. Transmedia also “locks” merchants to the ISO by not servicing merchants if they decide to switch. ISOs can choose one of two compensation programs: a flat referral fee, or a 10 percent residual for the life of the account. “Depending on the frequency and the number of leads, we have different commission-based programs to sales partners,” Neuman said. “These programs can start as little as just a one-time bonus and as high as lifetime residuals.”

Whenever there is a dispute or disagreement, it can be difficult to see who is right or wrong; there is plenty of room for shades of gray. It can be helpful to have a set of rules nearby to transform those areas to black and white. But those rules are only helpful if they are properly understood and implemented.

Transmedia can help merchants, acquirers and issuers do just that. And when regulations are known and enforced, everyone wins in the long run.

—
Bill Hoidas
Sales Manager
Larger B2B/MOTO/Internet Accounts
Product Development Manager
Matrix Payment Systems
(847) 381-3482 office
(847) 381-4289 fax
http://paymentconsulting.net
http://chicago.citysearch.com/profile/44659273/barrington_il/matrix_payment_systems.html
John 3:16 For God so loved the world, that he gave his only begotten
Son, that whosoever believeth in him should not perish, but have
everlasting life.

Hi,

Here’s your chance to tell your U.S. representatives that you’ve had enough of MC/Visa raising their rates twice every year. Time is of the essence however. So instead of just complaining about cc rate increases send this email or your own version to your congressional representative. It’s easy to find their contact info. Just go to http://www.visi.com/juan/congress/index.html and scroll down just a little bit and type in your address on the left hand side.

Interchange act coming back stronger

hey’re angry, they’re organized and they’re being heard. No, it’s not some hardscrabble, anti-this-or-that protesters. It’s a group of merchants who have come together through such organizations as the Merchant Payments Coalition, National Association of Convenience Stores (NACS) and the National Retail Federation. They want interchange reform – yesterday. And the U.S. Congress is bowing to the pressure.

U.S. House Judiciary Chairman John Conyers, D-Mich., and Rep. Chris Cannon, R-Utah, planned to introduce the Credit Card Fair Fee Act the week of Feb. 25, 2008. The bill will ostensibly provide a mechanism by which merchants can negotiate interchange fees with MasterCard Worldwide and Visa Inc.

The legislation will also establish a panel to decide on proper interchange rates should negotiating parties be unable to reach an agreement. The panel’s decisions will be legally binding, if the act becomes law.

Congress held hearings on interchange in 2007. Retailers claimed the fees are arbitrary and exorbitant, costing merchants and consumers $40 billion per year. Visa and MasterCard assert that interchange fees are a necessary and fair cost for the services they provide. They also claim that merchants already have the right to negotiate interchange fees; merchants counter that they are completely out of the rate-setting loop.

However, the bill, which was first drafted in 2007, has been delayed, not due to lack of support, but because retailers and their representatives have swayed Congress to such a degree that interested legislators need an additional week or two to review the legislation and sign on as original cosponsors, according to John Eichberger, NACS Vice President, Government Relations. When was the last time you called Congress?

—
Bill Hoidas
Sales Manager
Larger B2B/MOTO/Internet Accounts
Product Development Manager
Matrix Payment Systems
(847) 381-3482 office
(847) 381-4289 fax
http://paymentconsulting.net
http://chicago.citysearch.com/profile/44659273/barrington_il/matrix_payment_systems.html
John 3:16 For God so loved the world, that he gave his only begotten
Son, that whosoever believeth in him should not perish, but have
everlasting life.

Due to new security requirements in Vital/Tysys files if you are key entering a transaction you MUST press the 4th button down on the left side BEFORE entering the card #.. It will say either “EFT” or “MAIL/PH” and is right under the “reports” key.

Remember this is for Hypercom terminals only.

However no matter what type of terminal you have if it doesn’t ask you for AVS info EVERY time you key enter an order let me know.

file:///C:/Documents%20and%20Settings/Bill%20Hoidas/Desktop/y_key_5d3fdf309292e61f.html

The amount of caution you use in avoiding fraud with phone, fax and internet orders is a function of your historical track record and time you want to spend. If you only get one fraud attempt and/or chargeback per year you may not want to spend a lot of time on fraud prevention especially with repeat customers. The one exception is you would of course always want to be cautious with any large order. In order to protect yourself as much as possible you’ll want an AVS match on the billing street address and zip code. Than if you get this form (attached) signed and faxed back to you with a picture state issued id you are in great shape to fight any chargeback.

—
Bill Hoidas
District Sales Manager
Larger B2B/MOTO/Internet Accounts
Product Development Manager
Matrix Payment Systems
(847) 381-3482 office
(847) 381-4289 fax
http://paymentconsulting.net
John 3:16 For God so loved the world, that he gave his only begotten
Son, that whosoever believeth in him should not perish, but have
everlasting life.

Requirement 10: PCI’s Everest

By Michael Petitti
Trustwave

omplying with the Payment Card Industry (PCI) Data Security Standard (DSS) is a mandate for all merchants, regardless of acceptance channel and transaction volume. However, some requirements of the PCI DSS are more difficult to comply with than others.

In fact, my investigation of payment card compromises and PCI DSS audits of various merchants demonstrate that requirement 10 – track and monitor all access to network resources and cardholder data – proves especially difficult for merchants involved.

In my research of 350 card compromise cases, more than half of the merchants involved failed to comply with requirement 10. Also, during initial PCI DSS audits of Trustwave’s customers, 70% of them needed to remediate deficiencies within their network environment to comply with the 10th rule.

Follow the basics

Tracking and monitoring all access to network components and cardholder data is no easy feat. For example, the PCI DSS requires that audit trails record the following network events:

• Access of cardholder data by individual user
• Actions taken by users with root or administrative privileges
• Access of audit trails
• Invalid access attempts
• User log-in
• Audit log initialization
• Creation and deletion of system-level objects

The PCI DSS also requires that for each of these events, the following information, at the least, be recorded:

• User
• Type
• Date and time
• Success or failure
• Origin
• Name of affected data, component or resource

Any entity that processes, stores or transmits payment card information must comply with the PCI DSS. Thus the standard’s requirements are at the front of many merchants’ minds, but monitoring and logging are basic tenets of any data security plan.

Bulk up on security

Monitoring and logging network events can strain any organization’s resources, but the difference between implementing and not implementing logging measures can determine the severity of a security breach.

Critical files, such as those containing cardholder data or other sensitive information, must be monitored for unauthorized changes. If attackers are able to penetrate a network, they may attempt to add additional user accounts with administrative privileges.

Once attackers have gained administrative privileges, many times they can then access any asset on a network and begin copying sensitive information and sending it off-site.

Regular review of audit logs would alert a merchant or network administrator to foul play. But hackers do not work from 9 a.m. to 5 p.m. It’s more likely that an attack on cardholder data will take place at 3 a.m. – the perfect time to invade a smaller merchant who doesn’t have the resources to maintain a 24/7 security staff. And without continual, real-time monitoring of the logs, an alert may come too late.

Many operating systems provide default software programs that can log this information. However, requirement 10 calls for more than just the recording of events. Merchants must also review firewall, router and wireless access points and authentication server logs at least daily for unauthorized traffic and access attempts.

To complicate matters, depending on the systems running on a merchant’s network, each device may perform its own form of logging. Without information technology (IT) staff expertise, it’s unlikely these logs would make sense to the average merchant.

Even with in-depth IT knowledge, consolidating logs from multiple devices deployed across an entire network and presenting them in a way conducive to analysis would require a full-time IT employee, if not an entire staff.

The complexity of a merchant’s environment also affects the amount of logs that need monitoring.

Without a centralized process by which event logs can be correlated, it becomes increasingly difficult for merchants to gain insight into what’s occurring on their networks. While they may have enabled logging on their network devices, they find themselves buried in log data rather than at a vantage point with actionable information.

Fortunately, a number of information security companies have developed automated solutions to help merchants address the challenges of log tracking and monitoring around the clock. By allowing an outside data security expert to take over the monitoring of logs, a merchant not only saves money, but gains peace of mind.

While merchants may be baffled by the barrage of data streaming from their network devices, an experienced data security company monitoring merchants’ logs can provide insight into the security status of their networks, and maintaining in-house staff becomes unnecessary.

To show that you’re concerned about your merchants’ needs, consider using an information security service, along with your payment solutions. Merchants will know you have their well-being in mind because you will be offering not only secure payment services and technology, but also data security solutions that protect their businesses.

Michael Petitti is Chief Marketing Officer of Trustwave and is responsible for all of the company’s marketing initiatives. He serves on the Merchant Risk Council’s board of advisers and on The Green Sheet Inc. Advisory Board. Call him at 312-873-7291 or e-mail him at mpetitti@atwcorp.com.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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Bill Hoidas
District Sales Manager
Larger B2B/MOTO/Internet Accounts
Product Development Manager
Matrix Payment Systems
(847) 381-3482 office
(847) 381-4289 fax
http://paymentconsulting.net
John 3:16 For God so loved the world, that he gave his only begotten
Son, that whosoever believeth in him should not perish, but have
everlasting life.

February 11, 2008 • Issue 08:02:01

Gift card muscle flex

By Max Sinovoi

ift cards have long been my favorite value added solution. When you mention stored value, gift cards jump to the minds of most merchants. Gift cards store value very well and usually permanently. Name any other product that is purchased and then often goes unused. Go on, I dare you.

The Tower Group Inc. estimated Americans spent $97 billion in gift cards in 2007. Most likely, you received at least one card between your last birthday and the holiday season. And the holidays slightly edged out birthdays for the number one reason for gift card purchases. Mother’s Day, Father’s Day and graduations are also some of the biggest gift card selling days of the year.

Imagine what the initial group of merchants must have thought when they first heard of the gift card idea. MLSs gave them the bare facts: The cards are paid for upfront; 20% of consumers never use cards given to them; 50% use their cards only a few times within a year of purchase.

With such extremely favorable statistics, how many of your merchant customers would turn down offering gift cards? Not many, I believe. Gift cards can be one of the best things to ever happen to a merchant’s cash flow. This is why I truly feel that gift cards are an underrated service. They can increase merchants’ sales, while merchants may never have to exchange the value on the cards for merchandise.

Feeling the bulge

Gift cards can generate sizable profits for merchants. Most research shows that two-thirds of all holiday shoppers planned to give someone else a gift card this past holiday season. According to Comdata Corp.’s adult card study, the average amount for a gift card purchase is $45.

The Tower Group’s research placed breakage, the industry’s term for card value that was purchased and never redeemed, at $7.8 billion for 2007. Best Buy Co. Inc. had the highest amount of breakage at $16 million. A recent article in The New York Times stated $3.5 billion in gift cards went unclaimed during the 2007 holiday season alone.

There is also what retailers call up-spending: Most customers who use their gift cards often spend some of their own money to purchase merchandise that is more expensive than the value of their cards. Of those who receive cards, a whopping 51% spend more than the cards’ initial values.

One of my favorite gift card facts is that merchants retain any unused balance, depending on state laws. For example, Vermont consumers can only cash out cards if the value is less than $1. (For more information, see “California chomps on gift card leftovers,” Jan. 14, 2008, issue 08:01:01)

With the older relative of the gift card, the paper certificate, cash was given back if the purchase was under the value of the certificate. There are quite a few states that require the merchant to give back cash if the value on the card is under $5.

Gift cards are also far safer than gift certificates because they are harder to counterfeit. And if a box of gift cards gets lost or stolen, the merchant need not worry: Cards can only be activated at the POS terminal.

According to KeyCorp., switching from paper certificates to plastic can result in two to four times the average revenue growth because plastic cards are more visible and widely publicized. Additionally, carrying around a gift card that has a brand name on it gives merchants another opportunity to advertise.

Holding strong

Gift cards can do an amazing job of enhancing merchant retention. We all know the more value added services your merchant has, the lower your attrition.

Evidence has shown that merchants with gift card programs switch processors with 50% less frequency. And with recent law changes concerning gift cards, many merchants find it difficult to leave their current merchant service provider because gift cards with existing balances must be honored.

The real opportunity to offer gift cards is with your installed base of merchants. It’s fairly cheap and easy to sell to merchants with whom you are already doing business; you can make a case that the value added service will increase their sales.

If they are satisfied with the products you’ve given to them thus far, chances are they’ll take your suggestion and add gift cards to their sales floor. Some companies now offer basic cards in addition to customizable cards – designed with logos, pictures, lights, music and so forth.

Basic cards appeal to mom-and-pop merchants looking for the lowest cost to offer gift cards. These programs are great for merchants who aren’t interested in purchasing a gift card package until completing a trial run.

Some MLSs offer the first bulk of basic cards for free to all merchants as bait. This helps get merchants hooked on the cards’ revenue and benefits. Then MLSs steer them toward investing in gift card packages. This is when they mention that gift cards also capitalize on impulse purchases. Merchants who set up grab items at the POS are more likely to sell a gift card and a small item – maybe a stuffed animal, lip gloss or candy.

Online reporting and many new custom, interactive designs, such as cards that double as kaleidoscopes, have been added recently to give merchants more power and flexibility when choosing what gift cards to sell to their consumers.

If you don’t sell gift cards to your merchants, others will. If that happens, your merchants will likely leave you and take their businesses to competitors with more enticing offers. Why take that chance?

Gift cards pack a punch in the payments industry, especially in the profit margin.

—
Bill Hoidas
District Sales Manager
Larger B2B/MOTO/Internet Accounts
Product Development Manager
Matrix Payment Systems
(847) 381-3482 office
(847) 381-4289 fax
http://paymentconsulting.net
John 3:16 For God so loved the world, that he gave his only begotten
Son, that whosoever believeth in him should not perish, but have
everlasting life.