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Fueling Stations Tackle Credit Card Counterfeiting

Because I’ve worked in the ever-in-flux payments industry for three years, whenever I see industry changes and security measures in action, it intrigues me.

I recently made a purchase at Home Depot, and instinctively swiped at the self checkout. Noticing that I had an EMV chip credit card, the POS device prompted me to insert instead of swipe. How cool, I thought.

In July, I bought guitar strings at a Guitar Center for about $17. Upon credit card payment, the employee asked for the last four digits of my card, and my ID to match. Outstanding security, I thought, and I let him know.

Credit Card Counterfeiting: A Simple Step

My family and I recently drove from our home north of Boston to upstate New York to celebrate a belated Christmas with my side of the family. On the way back to Massachusetts, I stopped to fill the tank. I swiped my card, waited and was prompted for my home zip code.

Does Mobil want to know where their consumers are coming from? Maybe.

OK, am I going to start getting a deluge of e-mails to join a loyalty program? Probably not. Not enough information.

Is this another layer of security? Likely, to prevent credit card counterfeiting.

I obliged and entered the code. I had never seen this before, but in thinking while pumping, it was most likely Mobil’s way of ascertaining the zip code I entered matched the zip code according to the address I had on file with this card.

What if I had entered a different zip code? Would the transaction have gone through? I didn’t want to find out. Earlier this week I posted a question about it on Reddit, and apparently fueling stations have been doing this for years.

Perhaps I just don’t travel enough.

When Will Fueling Stations Migrate to EMV?

U.S. consumer migration to EMV chip-enabled credit cards began roughly three years ago, but U.S. businesses were expected to have the software in place to process EMV credit card transactions by Oct. 1, 2015. As of that date, just over 20 percent of U.S. businesses were prepared.

Gas stations in the U.S. were given a later deadline – Oct. 1, 2017 – to have EMV credit card software in place. Replacing such at the pump is far more costly, particularly for independent fuel stations.

It begs the question: How many fueling stations will be compliant by 2017?

#EMV #creditcardcounterfeiting #credit card #gas station

Defending Yourself From eWallet Fraud

Online fraud is a real, legitimate threat. More and more money is being stolen from consumers with each year, prompting shoppers worldwide to be more cautious when spending money online. Although most fraud occurs when credit card numbers are stolen, eWallets can often be targets as well. If a consumer stores money on an electronic wallet, it could be an easy target for hackers. However, eWallet fraud is meeting its match with advanced security tactics.

eWallets at an Unprecedented Risk

With the development and widespread use of eWallets, fraudulent activity has increased respectively. According to Emirates247, a joint study conducted by B2B International and Kaspersky Lab found that 43% of surveyed individuals experienced an attack that targeted financial information. Of those who lost money through online fraud, 43% were unable to get that money back.

eWallets are a particularly easy target given their simple security measures and online locations. Bitcoin eWallets are extremely easy targets, since digital currencies are largely untraceable. Thus, the importance of defending any type of eWallet from fraud is paramount.

Stopping eWallet Fraud Before it Starts

Most cybercrimes—such as credit card fraud and eWallet fraud—will likely never go away. This is why it’s important to take the necessary steps to stop fraud before it happens. For eWallets, this can be easy.

Start by finding a wallet service that is secure. Your eWallet should feature 128-bit encryption codes, and should absolutely be password-protected. Whichever service you choose should also have basic security features on their website, such as SSL certificates.

The convenience of maintaining an eWallet can be the perfect shadow for hackers to commit fraud. Remember to check your eWallet balances regularly, and compare those numbers with your bank accounts. Any irregularities should be reported immediately. Remember, if you’re being targeted for fraud, there are likely thousands, maybe millions of other consumers being targeted as well.

Instabill’s eWallet

Among our range of merchant services, our eWallet is an incredibly convenient way to send or receive money. Our eWallet solution is tested and proven, and will keep your money secure while online. The personal eWallet from Instabill is a great solution for anyone looking to conduct online transactions. Additionally, if you’re looking for an eWallet for business use, the Instabill eWallet can be a great complement to one of our merchant accounts.

To learn more about the eWallet or any one of our particular services, contact a live representative today.

#eWallet fraud #instabill #merchant accounts #bitcoin

Game Changes for Payday Lenders

In a series of sweeping policy changes, the Consumer Financial Protection Bureau (CFPB) has imposed new rules on “predatory lenders,” including payday lenders and high cost installment loans. Lenders that provide small dollar loans will now have to adhere to the same laws as regular lenders, which will help shield consumers from predatory lending tactics. What does this all mean for the payday lending industry?

The Consumer Financial Protection Bureau’s Plan

The CFPB has set a plan in motion to limit payday lenders’ ability to impose extraordinarily high interest rates on consumers. Annual averages for these interest rates can reach as high as 391%, according to American Banker.

While the government typically regulates lenders and requires them to establish a borrower’s ability to repay their loans, some states lift these regulations for small-time lenders. This allows payday lenders to profit solely on the massive amounts of interest they charge, often putting consumers at risk of financial turmoil.

The Future for Payday

Unfortunately for most payday lenders, the business model of relying solely on issuing loans that people cannot repay is done. Many businesses will have to adapt to the changes set forth by the CFPB. The change in policy isn’t radical, just overdue; and payday lenders should be wary of future changes that could impact their business.

Predatory lenders will now have to take the steps required of many other loan services and ensure their customers are able to repay their loans fairly. While some loopholes may still remain for lenders to take advantage of, a new business model—even a new product entirely—may be necessary for many merchants in this industry.

Instabill Merchant Accounts

Instabill is a merchant services provider based in the United States. We help merchants from all over the world obtain retail merchant accounts and online merchant accounts for their businesses. We maintain a wide list of acceptable industries that we can work with, including loan services, debt consolidation, andfinancial services.

To learn more about our merchant accounts or another part of our services, contact us using the live chat feature at the bottom of your screen, or by calling a representative directly at 1-800-318-2713.

#payday lenders #Instabill #merchant accounts #loan services #debt consolidation

Lower Chargeback Rates Can Lower Risk Profile

Among the seminars at the Transact 15 Conference and Trade Show was one entitled High Risk: What it is, How to Handle it and What the Label Really Means, which drew an intense discussion on the definition of high risk. Payment processors, banks and the card associations each define it differently. Chargeback rates, however, play a huge role in the definition of risk, particularly by acquiring banks and card associations.

Can Low Chargeback Rates Lower Risk Profile?

Absolutely. The higher the chargeback rate, the more a bank or credit card issuer views you as a risk. Some merchants accept chargebacks as just another business expense -- they are content to cut their losses. But there is no better time for merchants than the present to lower their chargeback rates.

Now is the Time to Take Chargebacks Seriously

A few weeks ago, Instabill copywriters blogged about how some major banks are beginning to rid their portfolios of high risk merchants. In recent months, Instabill merchant account managers have had to find credit card processing options for more than 30 merchants who were abruptly closed down by their banks.

“Are some industries going to have higher chargeback rates than others? Absolutely,” said Wendy Jacques, Sales Manager at Instabill. “Banks get nervous when they see a merchant with a chargeback rate over 2 percent.”

Acceptable chargeback rates differ according to the card brand. For example, Visa mandates that chargeback rates not exceed 2 percent or 200 transactions in a month while MasterCard’s chargeback rate is 1.5 percent and 100 chargebacks a month. When merchants exceed their rate, they face stiff fees from the card brand and their payment processor.

Which Industries are Known for Chargebacks?

There are several industries plagued by chargeback rates:

Tech Support: Consumers are often given an estimate for a repair, yet the cost of the repair exceeds the estimate, resulting in a consumer filing a chargeback with their credit card issuer.

Travel/Hospitality: Consumers book flights and hotel stays months in advance, then cancel their plans for whatever reason. When their credit card statements list the airfare and hotel cost, they file a chargeback instead of the preferred refund.

Nutraceutical: Nutraceutical products sometimes come with a 30-day free trial. The consumer forgets to cancel the trial after the month and disputes the charge on their credit card statement.

Magazine Subscriptions: Similar to nutraceuticals, consumers are often offered a free trial and, if dissatisfied, forget to unsubscribe after the trial is over. A phone call to their card issuer usually follows.

Keep Chargeback Rates Low With Instabill

As a resource to its network of merchants, Instabill offers its Instabill.org website to merchants as the ultimate guide to avoiding and mitigating chargebacks. Merchants can learn about the entire chargeback process in simple terms, learn to encourage refunds instead of chargebacks and how to handle chargeback retrievals. Our merchant account managers also serve as chargeback experts and are reachable by selecting the live chat option below.

#chargeback rates #chargebacks #merchant account #Instabill

Rating Success at #Transact15

Can Instabill call Transact 15 a success? We think so, but hold that thought.

Preparation for trade shows begins months in advance and success cannot be measured until long after. Entering the show, Instabill CEO Jason Field scheduled more than 30 meetings and drew around the same figure in walk-up visitors to the Instabill stand. And meetings are not just limited to a booth at a trade show. Instabill has forged partnerships in unlikely places, such as at airport baggage claims, restaurants and in the lines of coffee shops.

If success at a trade show can be measured by the number of meetings, amount of business cards dispersed and literature not on the return flight home, then Transact 15 did not disappoint.

“I thought we prepped ourselves very well for Transact 15,” said Instabill Founder and CEO Jason Field, who was accompanied by Administrative Assistant Sally Punch and Senior Copywriter Chris O’Donnell. “Both the first and second day, it was non-stop at our stand, which is good. We came back to Portsmouth with many prospective reselling partners.”

What Happens After Transact 15?

The Instabill stand was consistently active with visitors for good reason. With a large network of domestic, international and offshore banking partners, Instabill has the resources to find credit card processing options for high risk, hard-to-place merchants.

So what happens now? A series of e-mails and conference calls with each prospective partner follow to discuss further where we can help one another. Terms are discussed, such as revenue shares and use of our banking partner’s payment gateway.

Comodo Partnership Very Timely

One of the many highlights of Transact 15 was Instabill’s benchmark partnership with Comodo, deliberately announced just prior to the show.

The timing of the partnership could not have worked out better: It enabled us to showcase Comodo’s services at a time when PCI compliance among e-commerce merchants, in which Comodo specializes, is more critical than ever. Transact 15 also served as the consummate venue.

Transact 15 the Latest Stop

Transact 15 was the perfect venue for Instabill to showcase its Partner Program, which has helped agents and ISOs find payment options for high risk, hard-to-place merchants. High risk banking options are available with us by calling 1-800-318-2713 or by e-mailing [email protected].

#Transact15 #highrisk #e-commerce merchants #instabill

CNP Precautions for E-Commerce Merchants

When the major card brands and banks in Canada, Brazil and Europe rolled out EMV chip technology, card not present (CNP) fraud rose dramatically thereafter. Payments industry officials in the US are bracing for the same scenario over the next few years with credit cards migrating from the magstripe "swipe" to EMV chip technology.

The EMV liability shift, a hot button issue at Transact 15, is sixth months away. Fraudsters and hackers are expected to be vigilant over the next few years, making the most of their chances as credit cards in the US become increasingly secure. But CNP merchants are not defenseless — there are several specific CNP precautions to which merchants should adhere to ward off fraudsters.

US EMV Chip Migration Update

The Transact 15 seminar entitled US Chip Migration Update and Best Practices underscored that CNP fraud will escalate over the next 3-5 years (as it did in Canada, Brazil and Europe). “CNP fraud is the largest type of fraud that Visa sees,” Stephanie Ericksen, Vice President of Risk Products with Visa, noted in her presentation.

Ms. Ericksen offered Visa’s Card Acceptance Guidelines for Visa Merchants as a tool for e-commerce merchants as a defense against CNP fraud. She also recommended Visachip.com as another key resource.

2 Simple CNP Precautions

In a CNP transaction, it is common practice for e-commerce merchants to ask for the card account number, the name as it appears on the card and the expiration date. There are two other CNP precautions that can significantly reduce fraud.

Ask for the CVV2 (Card Verification Value) number: The CVV2 is the three-digit number on the reverse of a credit card that verifies that a consumer is in possession of a credit card. Visa has studies to prove that CVV2 validation is a proven, simple fraud reduction step.

Ask for Address Verification: Address Verification Service (AVS) allows CNP merchants to verify the consumer’s address. It can be done in real time online and over the phone.

Instabill Has CNP Merchants Covered

Instabill copywriters are particularly paying attention to the Oct. 1 liability shift as a service to the many CNP merchants for which it processes payments. Instabill merchant accounts are protected by fraud prevention tools such as 3D Secure technology, MaxMind, SSL certificates as well as PCI DSS 3.0 compliance. To find out more about more about Instabill anti-fraud measures, speak with a merchant account manager at 1-800-318-2713.

#CNP precautions #Instabill #merchant accounts #3D Secure #EMV

Instabill Incentive Program

This is how we do it at Instabill, folks. Need ways of keeping your sales staff happy, motivated and hungry? Look no further!

3 Reasons for Merchants to Fight Chargebacks

Chargebacks are too often pushed aside as just another business expense or the cost of doing business. Too many chargebacks can land a merchant and his/her business in dire straits: from initial money and product losses to the acquiring bank placing the merchant on the terminated merchant file (TMF) list, a label that is very hard to shed.

It is understandable why merchants think this way – some feel it is part and parcel of their business – but deciding not to fight chargebacks is enabling fraudsters to continue.

3 Reasons to Fight Chargebacks

Shocking Figures: A recent article in PaymentsSource.com via Monica Eaton-Cardone, CIO of Global Technologies, revealed some disturbing figures about chargebacks: Friendly fraud has increased 41 percent since 2012 while merchants lost $11.8 billion in friendly fraud in 2013.

Fraudsters Will Persist: Ms. Eaton-Cardone told PaymentSource.com that 40 percent of consumers who do not face repercussions for friendly fraud will commit it again within three months; and yet again within another three months. When fraudsters know they can get away with it, the frequency rises.

Stay Under Your Limit: Banks and payment service providers set chargeback thresholds for each merchant. Crossing that threshold is dangerous, but if your bank or PSP is aware of efforts to curb chargebacks, it should work in your favor. They all count

What’s the Answer? Communication

Thievery comes in many different forms – and it will always exist. But most chargebacks are filed without the consumer knowing that a refund is the best course of action for both parties. With a refund, the merchant and consumer exchange the product/service for the cost, and the dispute is over with.

With a chargeback, the consumer phones his or her credit card issuer to stop or reverse payment on the goods. It’s a black mark for the merchant, but consumers are learning they too can be penalized from excessive chargebacks.

Being Proactive Against Chargebacks

When the situation presents itself, merchants can be proactive in persuading the consumer to ask for a refund rather than filing a chargeback.

1. Make your return policies and your contact information prominent on your business’ website.

2. Update or upgrade your billing descriptor. A merchant’s billing descriptor describes the details of the purchase on a receipt and/or credit card bill.

3. Send confirmation e-mails of the sale. Even better, more and more businesses are sending receipts via e-mail.

4. Another precaution is to get familiar with the chargeback guidelines set by Visa and MasterCard, who detail the common reasons and courses of action.

Fight Chargebacks With Instabill

Instabill created the website, Instabill.org, solely to help its network of merchants to prevent and fight chargebacks. Instabill provides merchants the education they need to understand the chargeback process – from the merchant and the consumer’s point of view.

#chargebacks #fight chargebacks #Instabill

Credit Card Fraud Relief Will Extend Past EMV

EMV chip technology, long heralded as the perfect solution to fighting credit card fraud, could take more time than expected to reduce fraud rates in the U.S. As American credit card issuers, banks, and retailers prepare to make the shift to EMV cards, experts believe that the way in which they are rolling out the new cards could still leave room for millions of consumer dollars to be stolen.

EMV chip technology, long heralded as the perfect solution to fight credit card fraud, could take more time than expected to reduce fraud rates in the U.S.

EMV in the USA

The newest addition to credit card technology has seen great success in European and Asian markets, leaving the United States as the last developed nation on Earth to adopt EMV technology. The problem with launching EMV has always been tied to time and money—experts and banks agree that it is necessary, but getting merchants and consumers ready is proving to take millions of dollars and several years.

Preventing Credit Card Fraud

EMV credit cards incorporate advanced security features to significantly reduce the risk of fraud when making purchases. Studies have shown that EMV cards are extremely effective, making it nearly impossible for cyber criminals and hackers to exploit payment data.

However, American Banker reports that the way in which EMV technology is being introduced in the United States leaves room for those criminals to find other ways to scam consumers. The old magnetic strip cards will still be around for some years to come in order to ease the transition to chip cards. This will allow criminals to steal data like they’ve always done—by hacking into merchants’ databases.

Fraudsters Will Have to Seek Alternatives

Despite the news that credit card fraud will still be a threat in the immediate future, those seeking to steal consumer credit card data will have to come up with an alternative. Once the U.S. is fully adapted to the EMV system, it will be nearly impossible to steal data and use it to commit financial fraud.

American Banker suggests that consumer bank accounts could be subjected to a larger risk of fraud because of EMV. When a hacker sees a consumer’s credit card information, it is often enough to open a bank account or access existing ones. Moving forward, American consumers will likely have to keep a closer eye on their checking and savings accounts, as well as their credit reports.

More on Credit Card Fraud

Instabill often reports on the latest develops in credit card fraud and EMV technology on its company websites. It is our goal to keep merchants and consumers alike informed about the latest trends in the payment processing world. To learn more about credit card fraud news or one of our merchant services, simply contact a live representative today.

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#credit card fraud #instabill #payment processing #EMV

Major Banks Closing High Risk Merchant Accounts

Recently, Instabill was alerted to a major bank’s announcement that it would no longer offer solutions for certain high risk industries. As a result, our merchant account managers have less than 30 days to find new homes for a good amount of high risk merchants, but they are considering it a challenge.

It happens for a number of reasons — excessive chargebacks, refunds or simply just because. Banks close high risk merchant accounts without notice, leaving merchants scrambling to find payment processing solutions.

“It’s just part of the industry,” said Wendy Jacques, Instabill Sales Manager. “Banks can decide on a whim to no longer process for a particular industry. I compare it to mortgages. Banks will sell off mortgages because they don’t want to carry a certain portfolio anymore.”

The Good News for High Risk Merchants

When banks decide to close high risk merchant accounts, merchants still have options with Instabill. With more than 10 domestic banking partners and 15 partners overseas, Instabill merchant account managers can find credit card processing options at competitive rates.

Refer Merchants, Split the Commission

With the Instabill Partner Program, we offer levels of commissions — as high as 30-70 for qualifiers — for referrals for difficult to place merchants. Instabill has several offshore banking solutions which tend to be more liberal than our domestic solutions, enabling us to secure more options.

3 Common Reasons Merchants Are Shut Down

There are several reasons high risk merchant accounts get shut down, but we tend to see these three most often:

Undesirable Portfolio: A bank can decide that it no longer wants to process payments because of a certain industry or business type.

Excessive Chargebacks/Refunds: The merchant consistently exceeds their chargeback quota set by the bank. Usually, banks tend to be more lenient with refunds. This is common with industries such as online pharmaceuticals, nutraceuticals with free trials and tech support.

Fraud: Sometimes merchants will add products to their offerings after they gain approval for a merchant account. Banks see this as fraud.

High Risk Merchant Account Managers a Phone Call Away

At Instabill, we never guarantee high risk merchant accounts, but we do guarantee our merchant account managers will listen. A free quote, available by clicking the button on the right, is simple and easy to complete. And, we are always up for a conversation at 1-800-318-2713.

#high risk merchant accounts #instabill #partnerprogram #merchant accounts

Exploring the Chargeback Lifecycle

Chargebacks are an important part of doing business in the online world. Many banks, merchants, and special organizations devote much of their time to understanding and preventing chargebacks, but many still don’t fully comprehend how or why chargebacks occur. In this post, we’ve outlined the general chargeback lifecycle, from dispute to resolution.

1. Initial Dispute

A chargeback begins with a consumer contacting their credit card issuer to dispute a charge on their billing statement. Most often, the consumer won’t recognize the charge or the purchase it came from. With credit card fraud leaving consumers more cautious than ever, chargebacks have become increasingly common.

2. Card Issuer Contacts Merchant’s Acquirer

Following up on their cardholder’s dispute, the credit card issuer will file the chargeback claim with the merchant’s acquiring bank. Since the consumer’s funds were deposited to a merchant account, responsibility is passed to the acquirer’s institution.

3. Acquirer Receives the Chargeback

Once the acquirer has been notified of the chargeback, they can attempt to resolve it themselves. If nothing can be done, it will be presented to the merchant who processed the transaction.

4. Merchant Receives the Chargeback

For merchants, this is the most important step in the chargeback lifecycle. Once the chargeback is presented to the merchant, they have two options—they can either accept the chargeback or attempt to reverse it. Accepting a chargeback means you accept the responsibility for the dispute and lose the funds gained from the original purchase, as well as processing fees for the chargeback.

However, if you have evidence that the consumer agreed to the purchase fairly and your business is without blame, the chargeback can be reversed. See our page on how to prevent chargebacks for more information.

5. Merchant Represents Chargeback to Acquirer

Whether the merchant accepts the chargeback or attempts to reverse it, the dispute is handed back to the acquirer for processing.

6. Acquirer Submits Representation

At this point in the process, the acquirer submits the dispute back into the Credit Card Network, where it will ultimately be forwarded to the issuer.

7. Issuer Finalizes Chargeback Process

The credit card issuer will either post the funds back to the cardholder’s account, or review the evidence of the reversed chargeback once they receive it through the Credit Card Network. The cardholder will be informed of the dispute’s results and the chargeback lifecycle will be complete.

Ways to Avoid the Chargeback Process

What we see here is a long, unnecessary process that can likely be avoided through simple merchant-to-consumer communication. Chargebacks can take days, even months, to resolve, and can result in hefty fees for merchants and long periods of waiting for consumers.

When an issue arises between a customer and a merchant, direct refunds and returns are a much more efficient way to get things resolved. Customers should contact merchants through their website or email to ask about purchases or possible refunds. Likewise, merchants should do more to keep in touch with consumers and remind them of their purchases—solutions include optimizing billing descriptors and sending confirmation emails when an order is placed.

To learn more about chargebacks, view our complete online guides:

Chargebacks 101 for Merchants

Chargebacks 101 for Consumers

#Chargebacks #merchant account #Instabill #chargeback

How Merchants Can Prepare for the EMV Liability Shift

With the EMV liability shift just six months away, surveys continue to show that small business merchants either aren’t aware or are ill-prepared. Instabill has found, however, that there are plenty of resources available to help merchants understand, prepare and be able to accept EMV credit cards for transactions. By 2020, swiping a credit card will likely be a thing of the past. Credit card issuers have already begun rolling out chip-enabled credit cards in an effort to stop counterfeiting.

EMV Liability Shift Refresher

The four major card associations – Visa, MasterCard, American Express and Discover – announced in 2014 that they would accelerate rolling out credit cards with computer chips, enabling for more secure payments. The card associations chose October 2015 as the deadline for merchants of all sizes to change their point of sale terminals to accommodate chip-enabled credit cards. After October of 2015, the card associations will no longer assume liability for credit card data breaches suffered by merchants who do not upgrade their point-of-sale terminals to accept EMV chip-enabled credit cards.

Visa in Front on EMV Education

Visa recently announced a 20-city tour to educate merchants and consumers about EMV chip-enabled credit cards, which began in Austin, Texas, Mar. 13. Other cities include Orlando, Fla., on Apr. 3 while the remaining dates will be announced.

Where Else Can I Find Out About EMV?

Instabill has partners in place to assist its network of 10,000-plus merchants in adapting to EMV-friendly point-of-sale terminals. In the meantime, there are a number of educational opportunities merchants can turn to.

Visa Webinars: In addition to its tour, Visa also offers educational webinars about EMV chip-enabled cards on its USA site.

SCIL EMV Academy: Merchants can also turn to the SCIL EMV Academy website to find helpful tools for migration to EMV-ready software. For the merchant who cannot afford new point-of-sale software, SCIL offers its QuickStart EMV platform that allows merchants an upgrade without overhauling their POS technology.

Smart Card Alliance: The Smart Card Alliance offers a series of FAQs for merchants to reference and regular postings of webinars and other events regarding EMV migration.

Instabill is More Than Merchant Services

The migration from mag stripe credit cards to EMV chip technology is short term pain for long term gain. Instabill merchant account managers can assist merchants in acquiring the proper software to enable them to be prepared for the EMV liability shift. Our merchant account managers can be reached by selecting the live chat option at the bottom of the page or by phoning 1-800-318-2713.

#EMV #EMV Liability Shift #merchant account #magstripe #visa

Changes in Medical Collections Forthcoming

It’s going to take a while, but there are changes in store in the medical collections industry in the US. The three credit reporting giants – Equifax, Experian and TransUnion – are changing the way medical collections cases in the US are treated which will undoubtedly result in improved customer support. The changes stem from Eric Schneiderman, New York Attorney General, who spearheaded months of negotiations between the credit reporting firms and angry debtors.

A Change in Judge and Jury

Over the next three years, medical collections debtors can expect several reforms. Firstly, they will have the right to dispute inaccurate information on their credit reports. Credit bureaus will play judge and jury, but the trial is much more consumer friendly: Each of the credit reporting bureaus must use trained employees to review all pertinent information to each case, and make a determination.

It is quite an undertaking for the credit bureaus, who oversee the credit histories of some 200 million consumers in the US.

It is a significant improvement for the debtors. Previously, it was the creditors who played judge and jury. Upon submissions of disputes by debtors to the credit bureaus, creditors were presented with the information to confirm or deny its legitimacy.

The Resulting Changes in Medical Collections

As a result of the credit bureaus acting as the mediators, Equifax, Experian and TransUnion have agreed to wait 180 days before adding overdue medical bills to credit reports, allowing the necessary time for insurance payments to be considered. Once medical debts are paid by the debtor’s insurance, they are removed from the debtor’s credit report instead of remaining for up to seven years.

According to an article in Consumer Affairs, the credit bureaus will now distinguish consumer debts. For example, a $25,000 debt for emergency surgery will be distinguished from a $25,000 debt from a shopping spree.

Medical Collections With Instabill

Medical collections merchants have a variety of ways to accept payments from debtors with Instabill. We offer high quality credit card processing, but while not every merchant may qualify, Instabill also has ACH payment options available, which are very popular among collections merchants. Speak one-on-one with a merchant account representative about our features at 1-800-318-2713.

#medical collections #credit card processing #instabill #medical collections merchant account

ACH Payments Growing in a Digital World

When it comes to payment processing, there are many different options to choose from. For e-commerce business owners, the need for online credit card processing abilities is paramount. However, another form of processing is becoming more popular and is emerging as a more fraud-resistant alternative to credit card payments. Yes, ACH payments are making a big splash in the world of e-commerce.

What is ACH?

ACH--or Automated Clearing House--is a network that facilitates financial transactions in the United States. ACH works by processing batches of credit or debit transactions between two bank accounts. Subscription services, payroll administrators, and direct deposit transactions all utilize ACH to seamlessly transfer funds from one bank account to another.

ACH has existed as a good solution for merchants looking to process automated transactions between bank accounts. The network is especially good for merchants who process recurring transactions of the same amount over a given time period, such as magazine subscription merchants. As opposed to processing card information online every time a payment is required, the merchant can set up an ACH processing account to automatically deduct the funds straight from the customer's account. This eliminates the need for excessive checkout processes and reduces the risk of fraud.

How ACH Payments are Improving

ACH is a great way to move money back and forth in large batches. However, one of the drawbacks to ACH payments is that it can take time for purchases to process. Whereas credit and debit card transactions can occur in real time, ACH payments often require 1-2 business days to process.

However, the National Automated Clearing House Association, or NACHA, is working with some of the nation's largest financial institutions on a project that would allow ACH transactions to process the same day they are initiated. This would allow for real-time ACH processing, which would provide a newer, safer and faster way to use money electronically.

Unfortunately, the goal of real-time ACH processing is one that is probably still far off. American Banker reports that this will be a multi-year project, and requires cooperation from many, if not all, major financial institutions in the United States.

How Real-Time ACH Would Affect E-Commerce

Real-time ACH processing would be beneficial to many e-commerce merchants. As stated above, there is generally less fraud with ACH transactions, as no card data is being exchanged or stored online. If NACHA can work with banks to deliver a way in which ACH payments can be processed in real-time, it might transform the way people pay for products online.

ACH Merchant Accounts from Instabill

While the need for a credit card processing merchant account is of the utmost importance, ACH merchant accounts can also help businesses make money. Whether you're looking just for an ACH merchant account, or if you're seeking more than one way to accept payments online, Instabill can help. Contact a live representative by calling 1-800-318-2713 today.

#ACH #ACH Payments #ACH Merchant Account #Instabill #Merchant Account #ACH Processing

Bitcoin Malware Attacks Fall by 50 Percent

While 2014 may have been a rough year for bitcoin in terms of value, it was certainly an improvement for security. Symantec reported thatbitcoin malware attacks fell by more than 50% in 2014, marking a huge advancement for digital currency. As security standards improve, the interest in digital currency is growing higher than ever before.

Improving Bitcoin Security

Bitcoin has had a troubled history of extreme vulnerability when it comes to cyber security. Since bitcoins are untraceable and exist only online, hackers and cyber criminals have taken advantage of investors and traders who hadn’t taken proper precautions. Just last year, the world’s largest bitcoin exchange, Mt. Gox, was hacked and millions of dollars of bitcoins disappeared.

Protecting bitcoins has always been a challenge. However, steps have been taken by consumers, merchants and investors to improve the security of the cryptocurrency. A large security problem has been the inability to trace bitcoins. However, new technology has emerged to record transactions and defeat cyber criminals stealing bitcoins.

The Block Chain

The block chain is an open, searchable ledger that helps to record information about bitcoin transactions and transfers. The New York Times reports that the block chain not only has the ability to transform how bitcoins are regulated, but how the entire financial industry records and monitors transactions. While bitcoin is revolutionizing the way we think about money, the block chain is revolutionizing the way we think about handling it.

This new technology will almost assuredly cut down bitcoin malware attacks and other types of cyber theft. By having a constantly-updating resource that monitors activity and transactions, it will be easier to identify cases of theft and report them to the authorities.

The Future of Bitcoin

Critics say the plummeting value of bitcoin marked the beginning of the end for digital currency, but others have hope. While the value of one bitcoin roughly equals $275, that is still a considerable amount compared to what it was just a few years ago. And despite the past security flaws, bitcoin still remains a good alternative to using your credit card online, and actually lessens your risk of becoming a victim of large scale fraud.

To learn more about bitcoin and how it is transforming the credit card processing industry, take a look at our bitcoin merchant accounts or call one of our live representatives at 1-800-318-2713.

#bitcoin #bitcoin malware #instabill #bitcoin merchant accounts

The 3 Keys to Pharmacy Merchant Accounts

Credit card processing for the industry of pharmacy – online, MOTO or point of sale (POS) – can be a difficult thing to obtain. The industry has drawn its share of fraud – merchants who aren’t selling what they’re advertising – to the extent that some credit card brands temporarily ceased processing credit card transactions.

But with innovative, ever-improving guidelines from the card associations, payment service providers such as Instabill can provide pharmacy merchant accounts with domestic, international and UK solutions.

Solutions for Pharmacy Merchant Accounts in Place

Instabill merchant account managers take approximately 20 inquiries per week about pharmacy merchant accounts. We attract calls and leads because we offer solutions for both e-commerce and MOTO businesses.

“I think that we think outside the box with pharmacy merchant accounts,” said Wendy Jacques, Sales Manager at Instabill. “We will present these accounts to banks which don’t normally process for pharmacy businesses, but when they see a lengthy processing history and good financials, they will consider it.”

3 Big Keys to Finding Pharmacy Processing

Anyone in the payments industry will attest that obtaining credit card processing for a pharmacy business is difficult to find (but not impossible). An e-commerce or MOTO pharmacy business should have three things going for it:

Above average, lengthy processing history: This is arguably the most important asset to a pharmacy merchant seeking processing.

Seeking a second merchant account: Pharmacy merchants often run into high volume issues – banks will sometimes shut a merchant down. To keep volume at a comfortable level, merchants often open a second merchant account, often offshore, to deal with volume caps imposed by their acquiring bank.

At least $25,000 in volume each month: The monthly volume needs to be worth the acquiring bank’s time and effort. $25,000 per month in volume is arguably the minimum standard.

Contact Instabill Today!

Instabill merchant account managers are on hand to take inquiries about pharmacy merchant accounts. With our free application and fast underwriting process, your pharmacy business could be processing credit cards in as little as five business days. Contact a live merchant account representative by selecting the live chat option below.

#pharmacy merchant accounts #Instabill #merchant account #credit card processing

International Payment Gateway Upgrades Under Way

Instabill web application developers John Kaeuper has completed the initial phase of the Juno Project, the first set of upgrades to improving the performance of Instabill’s international payment gateway. In an effort to enable faster integrations and transactions, Instabill’s Juno Project, is a series of upgrades taking place over the calendar year 2015.

“The main goal of the Juno Project is to provide faster and easier integrations with bank gateways. Having Java back end transaction processing allows that to happen,” said Mr. Kaeuper, who began the international payment gateway upgrades in October of 2014. “Instead of ASP, we are now migrating to Java back end transaction processing. We now have the ASP front end speaking with the Java processing in the back end, so one of the main goals we had for 2015 is accomplished.”

Banking Partnerships Lead to More Options for Merchants

Since Instabill is connected to the payment gateways of several banking partners – both domestic and international – it enables us to offer an abundance of payment options in addition to credit card processing, such as ACH and Check 21 processing. Mr. Kaeuper has already begun the next phase of international payment gateway enhancements expect to complete the Juno Project by the end of 2015.

“We eventually want to have all bank gateway integrations using Java back-end processing, so we are going to roll all of our older ASP integrations into this Java deployment,” Mr. Kaeuper said. “Eventually, we want to completely phase out ASP so that we will be using only Java.”

The Goal of International Payment Gateway Upgrades

When the international payment gateway enhancements are complete, the goal is for quicker and increased transactions. Said Mr. Kaeuper, the multi-threaded input that Java provides will enable just that. “Once we have completed it, we will immediately see better performance and higher transaction through-put,” he said.

Instabill’s Best Feature of All

Instabill prides itself on direct one-on-one customer support with our merchant account managers. This also applies to our technical support team which is also on hand five days a week (8 a.m.-6 p.m. US eastern time). Merchants and banking partners are encouraged to contact Mr. Kaeuper regarding the international payment gateway upgrades.

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#international payment gateway #instabill #ACH processing #Check 21

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