July, 2012:

Merchants often ask us how to get the best deal on their merchant services processing rates. We always give the same answer interchange plus pricing and a long term contract.

Here is how it works: Visa, MasterCard, American Express and Discover all charge merchant services processors interchange rates to process transactions. There are the exact same costs and everyone who accepts electronic payments has to pay these. Interchange plus pricing allows your merchant services provider to make a very small profit on accepting your transactions, a .05% markup is fine. Then ask your merchant services provider to guarantee no pricing increase on the plus part of your interchange plus pricing for 3 years. Then you are locked in at a great rate for 3 years. This is merchant services rates done right!

2012 is the year of mobile merchant services expansion within the merchant services industry. Mobile merchant services also known as wireless merchant services has overtaken Ecommerce merchant services as the growth engine of merchant services.

In 2012 these mobile payment processing systems have grown to prominence within the industry.

1. Verifone VX670
2. Way Systems
3. Square
4. PayPal’s Mobile Plugin
5. iPhone Mobile App Plugins
6. iPad Mobile App Plugins
7. Droid Mobile App Plugins

At Choice Merchant Services we have noticed that in 2012 1 in 4 of our new merchant services processing requests are for wireless merchant services, in 2011 that number was more like 1 in 10

Financial Transaction Services (FTS), a full-service provider of merchant services announced today that they are acquiring Marathon Solutions, Inc. (MSI), a provider of electronic payment processing solutions based in Mission, Kansas.

Together this will help both companies play a bigger role in the business to business merchant services processing. Now both companies are undergoing the difficult integration of their merchant services processing businesses.

I have been working in the merchant device industry since 2005 and as I think back on it it is funny see how much it has changed since then.

Here are some examples about how the payment processing industry has changed.

1. In 2005 we had requests come in weekly for mail order merchant services. Today, mail order is a thing of the past.

2. In 2005 Smart Phones did not exist. Mobile merchant services was referred to as witless merchant services and the only companies that wanted wirlessless merchant services were charter fishing companies. Back then, people used services like dial pay, or a wireless merchant equipment that was big and bulky by today’s standards. Today, Choice Merchant Services gives our merchants free merchant equipment that plus direcly into a iPhone, iPad, or Droid. We get many new requests for this new form of mobile merchant services weekly.

3. In 2005, most merchants got merchant services pricing that had unique qualified, mid-qualified, and non-qualified rates. Today, most merchants request interchange plus pricing – it is almost always a better deal.

In 2012 we are the only provider that gives away free merchant equipment to ur providers and offers merchant services processing rates that start at 1.05%. In 2005 things were not this good for merchants. It seems that 2012 is better than 2005 for those merchant that do merchant services processing.

Today, Bank of America announced that its Merchant Services division is launching Acculynk’s PaySecure®. It is the only merchant service solution in the United States that enables the use of PIN debit payments over the internet.

This is a significant development for the merchant services processing industry. Internet-based PIN debit enables the 80 million US consumers who own PIN-only debit cards to use their cards to make purchases online. This will enable Ecommerce merchant services sales volume to grow nationally. It should be a short amount of time before other merchant services providers follow suit.

Today Host Merchant Services announced that they have entered into a strategic partnership with cloud hosting services provider ServInt.  This is a smart business alliance because it will give ServInt the ability to provide flexible and customizable credit card processing services to its customers quickly and efficiently.  ServInt, is based just outside Washington D.C. in the beautiful town of McLean, VA.  It has been providing hosting services  since 1995.

Merchant service processing companies can form strategic business partnerships like this and allow for easy integration between their customer base as credit card processing companies like Host Merchant Services can compliment the customer base of ServInt.  Most business analysts would see this as an opportunity for SerVint to make credit card processing royalties off of their customer base, while providing an integrated payment processing solution to their hosting customers.

When you are looking for merchant services processing solutions for your  company you need to understand that if you look for general merchant services you will find a general solution.  Instead, you should narrow your search down to find your best merchant services solution that is specifically related to your business.  Doing so will help you find the best technology that will make running your merchant payments easier and faster and doing so will also result in lower merchant services processing fees.

So use these searches to help you refine your search.

• eCommerce Merchant Services
• High Risk Merchant Services
• Mail Order Merchant Services
• Online Merchant Services
• Office Merchant Services
• Medical Merchant Services/Doctor’s Office Merchant Services
• Petroleum Merchant Services
• Phone Order Merchant Services
• Quickbooks Merchant Serices
• Restaurant Merchant Services
• Retail Merchant Services
• Credit Merchant Services
• Wireless Merchant Services / Mobile Merchant Services