What Are The Requirements for Opening Merchant Accounts?

One you have decided which processing solution is right for your business and have chosen the merchant service provider that best suits your business needs, you can prepare yourself for the application process ahead of time by getting the necessary information together. Although the required documentation may vary depending on the provider, the following is a general list of what is typically required to obtain a merchant account:

1) Name and social security number of the owner or an authorized signer of your business
2) Copy of drivers’ license
3) Copy of voided check (Check must be commercially imprinted, not temporary or provide a bank letter)
4) Bank disclosure page
5) Articles of incorporation, business license or reseller license: used to ensure you are a legitimate
    business
6) Copy of your recent tax returns (provide 2 years for high processing volumes)
7) Estimated total monthly sales and average sale (transaction) amount
8) Statements from previous processor (if you’ve processed before)
9) Pictures of your business locale or office
10) Web site, marketing materials, price list – documentation of products/ services offered with prices)
11) Photocopy of your return policy information
12) Trade references (2-3 required)

The application and approval process goes very quickly. Call EPS at 800-863-5995 to get started today!

What Are The Different Types of Credit Card Processing Companies?

Although there a literally thousands of different companies that offer credit card processing services, there are really only two types of Merchant Service Providers (MSP’s): Acquirers and Resellers.

Acquirers
Acquirers, also known as Processors, are distinguished by their ability to process sales transactions. A Processor has the technical capability and high level security protocols to receive the transaction data, communicate with the appropriate financial institution, approve or decline the specifiic transaction, settle the completed transactions with the financial institution and deposit the funds into the merchants account. In short, they are the ones that actually process the sale, charging a discount rate and/or processing fee
for handling the transactions. Acquirers are registered members of the Visa and MasterCard Associations, soliciting, screening and accepting merchants in their processing programs. Processors acquire their merchant base through direct marketing to merchants, independent sales agents and utilizing resellers. For example, EPS is an Acquirer (Processor) which provides merchant payment processing solutions and value-added programs to merchants directly through a direct sales force in addition to Independent Sales Organization partnerships (resellers).

Resellers
Resellers, also known as Independent Sales Organizations (ISO’s), resell the products and services of one or multiple Processors. They are "Third-Party Processors" in addition to sometimes offering their own value-added products. There are basically two types of ISO’s: banks and non-banks.

Banks – banks of all kinds, local community banks, large regional banks, national banks and credit unions have entered into the merchant service provider business as it seemed like an easy vertical expansion to give them another way to increase revenue of their customers. Most banks are ISO’s although they usually private label their services so that it is difficult to tell whether or not they are the actual the Processor.

Non-banks - this group of ISO’s ranges greatly from top-notch, competent and capable providers to less than honorable people just out to make a quick buck. As there is not any regulatory agency enforcing acceptable and ethical business practices in the industry, the most serious problems merchants encounter are usually from dealing with an unscrupulous, rogue sales agent rather than the Processor. Unfortunately, this has given the industry as a whole a bad reputation.
Both Processors and ISO’s offer payment and processing solutions such as credit/debit/prepaid credit card processing, check verification/ conversion/ guaranty services, online transactions, gift/ loyalty cards, and cash advances with very little, if any, difference in pricing.

Whatever the industry or business size, it is vital that you find a merchant service provider that can focus on your specific area, whether its ecommerce, retail, service, catalog, restaurant, telephone/mail order, wireless, or a home based business. It is equally important to choose a provider that also has the level of infrastructure needed to provide the best system for your needs, from software and terminal plug-in’s to repayment gateways and real time account access. EPS is a full service merchant service provider which means it can handle all of your processing needs and employs a dedicated team for each individual area of merchant accounts including customer service, sales and technical support 24 hours a day, 7 days a
week.

Should My Business Accept Credit Cards? The Many Benefits of Merchant Services

Today's fast moving, technological driven world is quickly moving us towards a cashless society making the acceptance of electronic payment options practically a necessity as it is the preferred method for many. Not doing so can hinder your business' growth and may even cause you to lose customers.

Consider this scenario, a customer comes into your business to shop and when they go to check out, they find out that you don't accept credit and debit cards. What happens next?

A) No problem, they have enough cash (don't most people?)
B) They scramble for enough cash and/or may have to put some items back (not completely satisfied)
C) They don't have any cash, you just lost the sale.

This customer has left with a feeling of frustration rather than with a good experience. Now, where is that customer most likely to go the next time they need that product or service? If you had accepted electronic payments, not only would you have had a satisfied customer at the time, but the more likely they are to return in the future rather than going elsewhere. Therefore, the more payment options you offer, the more competitive your business remains.

Following are some of the benefits you should expect with merchant services:
1.  Builds Trust and Increases Your Credibility - By displaying acceptance of the familiar brands and logos of Visa, MasterCard, Amex and Discover cards in your window or at your cash register, you are essentially building credibility with your customers since they already trust and use those  brands.
2. Boosts Your Sales - Credit and debit cards are the ultimate in shopping convenience for customers.  Studies show businesses that accept credit cards see a huge increase in volume... often doubling or even tripling current sales. Not only will you gain more customers through acceptance, but you'll also grab impulse buyers, and have the opportunity to increase the total ticket sale through up-selling as people tend to spend more when using credit cards. The average order size of someone paying via credit card tends to be larger than someone who is paying by cash or check. More customers plus larger orders equals greater profits!
3.  Improves Your Cash Flow - Accepting electronic payments has a huge positive effect on   businesses cash flow. Even if sales didn't increase (and they almost always do) your business    will benefit by having the money from the instantly delivered to your bank account. Unlike accepting    paper checks where you have to physically go to the bank to deposit and then wait for it to clear   (sometimes a week  or more), accepting credit/debit cards improves cash flow by guaranteeing timely      and automatic deposits into your business account.
4.  Enlarges Your Customer Base - Many merchant service providers have a variety of value-added programs they offer such as rewards programs and gift/loyalty cards. We've even created an alternate payment option which helps merchants bring in new customers and increase the sales of     their existing customers. It's EPS90 No Credit Check EZ Payment Plan, which offers consumers up to $5k over a 90 day period without a credit check.

5.  Enables Globalization - Processing payments electronically extends the companies geographic reach far beyond its brick-and-mortar storefront to anywhere in the world. And credit card acceptance makes expanding your business to remote venues or online easy as well.

6.  Provides Customer Support - If a customer's credit card fails to process correctly, your business cannot only lose a sale but will most likely lose that customer as well. Providers usually offer customer services that deal with issues in a timely and efficient manner. As there are many third-party providers in the industry, it's important to use one that has 24/7 customer service and technical support departments to ensure prompt resolution of any problems that may arise.

7.  Minimizes Fraud - With today's stringent PCI DSS (Payment Card Industry Data Security      Standards) compliance requirements, exposure to security breaches and fraud can be minimized.     Most merchant service providers have security protocols in place to keep data safe and secure   including the best technology for encrypting and transferring sensitive information. Make sure the    provider is PCI Compliant before contracting with them for merchant services.
8.  Helps Manage Records - Having a merchant account increases a business' record keeping  capabilities, enabling an easy way to track financial transactions and cash flow. As you can see, utilizing merchant services not only helps your business remain competitve, but can also provide options to help your business grow.

As you can see, providing electronic payment options to your customers not only enables your business to remain competitve, but can also actually help your business grow.   

Background of the Payments Industry

Payment processing is very confusing for most merchants as the involvement of so many different players makes it a somewhat complex industry to understand. Many think the industry is fairly new beginning in the 1950’s when credit cards were first issued. It actually began in the early 1800’s with merchants extending credit to their customers for the goods and services they needed immediately but couldn’t pay for at the time.

Following is a brief overview of the timeline: 

• Early 1900’s department stores and hotels began issuing paper credit cards to valued customers.
• In 1949 Diners Club issued the first merchandise credit card for travel and entertainment expenses for wealthy consumers. They soon after expanded across the nation, charging merchants a 7% per transaction fee, rather large for that time period.
• In the 1950’s, Bank of America (now known as Visa) issued the first general credit card. As banking regulations limited nationwide reach of individual banks, Bank of America began licensing the card to other banks in order to compete with Diners Club nationwide reach.
• In 1958, American Express entered the market and began issuing credit cards.
• In 1966, a network of banks formed together to get in on this successful money maker and initiated a third network (evolving into MasterCard).
• Last but not least, Sears Roebuck and Company launched the Discover Card network in 1986.

Since its infancy, the issuing of credit has been an extremely proftable business. The issuing bank makes its profits through various ways including annual fees, late payment fees, over balance fees and of course the interest rate charged.

Is Credit Card Processing Important for Your Business?

For all types of business, whether large or small, service or retail, brick and mortar or online, having various payment options such as credit card processing available to consumers is an essential part of business. It is quickly becoming a cashless society and providing electronic payment options and payment plan options allows customers to make purchases now that they may otherwise not be able to make. In todays economy, people either do not have the necessary cash available at the time they want to make a purchase or would simply rather use their electronic cards (credit or debit) for convenience reasons. The more payment options you have available, the less likely you are to lose an opportunity to upsell a product or lose the sale altogether. 

Welcome to the Official Electronic Payment Systems (EPS) Blog

Hello Everyone!

As we start of our new venture into blogging, EPS is thrilled to welcome you to join us as we discuss all things payments related. First and foremost, our goal for this blog is to communicate useful, helpful and pertinent information to our valued clients, merchants and business owners. We'll provide updates on industry related changes or issues that may affect your business, as well as updates about our products and services that will help you grow your business.

We look forward to providing all the information you need in regards to the various electronic payment options available and discussing the latest news and trends in the processing industry. Please visit us at http://www.eps-na.com/ or call us at 800-863-5995 with any questions, we are to help you make the most informed decision with your payment needs.