Another fraud prevention measure for Card Not Present merchants

Card security verification collects the non-embossed 3- or 4-digit numeric code on the credit card provided at the time of purchase. Statistics prove that individuals who possess the account number, but not the actual credit card, perpetrate much of the non-face-to-face fraud.

Merchants that fully support card security verification can expect fewer fraudulent transactions reduced card-holder disputes, and improved customer satisfaction. Marathon routes the card verification request from the merchant directly to the specific credit card association. The card security value is then compared to the card issuer's value on file. Credit card verification programs are offered by the major card associations and are known as CVV2 (Visa), CVC2 (MasterCard), CID (American Express) and CID (Discover Card).

Best credit cards for big spenders

If you are a big spender, the best credit card for you might be one that offers tiered reward rates based on spending level. That is, they pay larger cash-back percentages once you reach an annual spending threshold.

Seven credit cards offer tiered reward rates. For instance, the Capital One No Hassle Cash Rewards Credit Card for excellent credit gives you 3 percent cash back on gas and grocery purchases after spending $6,000 per year. Until you hit that threshold, you'd earn the standard 1 percent cash-back rate.

Blue Cash from American Express offers the biggest possible return. After $6,500 in spending, the rebate percentage for "everyday purchases" jumps to 5 percent from 1 percent, and the cash-back rate for all other purchases goes from 0.5 percent to 1.25 percent. You'd have to spend almost $1,100 a month to reach the higher cash-back rate mid-year.

Not all reward tiers go higher than the 1 percent baseline. With the Discover Motiva Card, you would start earning 1 percent cash back after $3,000 in total annual purchases, but until then you would make 0.25 percent back.

To determine if these credit cards make sense, figure out how long it would take you to earn the higher return rate using your typical monthly balance. If you can't hit the threshold quickly without an increase in spending, consider other no-fee cards that offer at least 1 percent cash back.

Source: Bankrate.com

Tips for boosting your credit score

If you're thinking about buying a house or a car, your credit score is a very important number. The interest rate you'll pay for the money you borrow will be determined, in large part, by this three-digit number that's generated from the information in your credit report.

Most lenders have carved-in-stone rules about handing out the best terms, and those rules almost always place a major emphasis on your credit score. If their best rates are offered to borrowers with a score of 700 or higher and yours is a 698, those two points could cost you thousands of dollars.

According to www.myfico.com, the consumer Web site of the Fair Isaac Corp. that created the FICO score (the most commonly used credit score), the interest rate difference between those two scores is about one-third of a percentage point.

On a $165,000 30-year fixed rate mortgage, that third of a point could cost you more than $11,172 in interest charges, assuming 629 percent is the lowest rate available (see Bankrate's calculators). Fall below a 660 and the rate goes up another .81 percent.

Keep in mind that these are averages. Most lenders today practice tiered pricing, with interest rates rising as scores go down. Each lender chooses its own "break points" between tiers. Lender A may bump up the interest rate if a score falls below 700, while Lender B doesn't charge higher rates until the score is 690 or below. So if you stick with one lender, and that lender's break point is 700, raising your score from 698 to 701 can be vital.

This underscores the importance of not only doing all you can to improve your score, but shopping thoroughly when looking for a mortgage. From the perspective of a mortgage broker, who can choose among a sea of many lenders, there are no sharp break points. Consumers should do what a good broker does -- look for a lender that offers the best rate for a specific score.

But that's jumping ahead of ourselves. First things first: You can take steps to improve your credit score. The number of variables that play into an individual score make it impossible to say that one particular action will increase a given score by a certain number of points. But there are some good guidelines.

"The mantra for getting a great score is pay your bills on time, keep account balances low, and take out new credit only when you need it," says Craig Watts, consumer affairs manager for Fair Isaac Corp.

"People who do that faithfully have very high scores. It usually means you're being conservative and cautious about credit. It's not a toy and it shouldn't be a hobby."

Speedy Upgrade

That's good advice, to be sure, but these actions take a long time. What if you're house hunting and you just need a few extra points to bump you over the line to the great rates?

Start by pulling your credit report and your credit score to see where you are. To get an estimate of your credit score, check out our Credit Score Estimator. If your score is above a 760, you're golden. Improving your score from 760 to 800 won't get you better terms. READ MORE....

Source: Pat Curry • Bankrate.com

Preventing Chargebacks

In order to protect yourself against frivolous charge-backs, have your return policy pre-printed on the credit card sales draft and signed by the cardholder at the time of the original sale. The refund policy must be close to the cardholder's signature to be recognized by Visa or MasterCard.

6 tips for traveling with credit cards

In some ways, credit cards make traveling abroad easier than ever. With plastic in hand, you won't have to deal with pesky traveler's checks or carry wads of cash to exchange. If you want to track purchases, simply log in to check your online accounts from nearly anywhere on the globe.

But with ease of travel comes a number of reasons to be cautious, especially when traveling with credit cards. Here are six ways to prepare the plastic in your wallet for a trip abroad.

1. CALL AHEAD:

"Our primary tip is for our customers to contact us in advance of any travel outside of the United States," says Paul Hartwick, spokesman for JPMorgan Chase. If you don't, the company could put a hold on your card when you try to use it in a different place. When customers call the credit card company ahead of time, "we can make a notation on their account and they can continue to use their cards as they always do," he says.

As long as the card company knows where you're headed, it will allow internal transactions to be processed. It will also warn you if any unauthorized charges show up from a country that is not on your itinerary.

2. KNOW YOUR CREDIT CARD'S FEES:

Some credit cards charge a foreign transaction fee, which can run around 3 percent. This can add up quickly, especially when you factor in hotel costs, restaurants and other expenses you might be paying for in a different currency.

While you may expect to pay a foreign transaction fee for a purchase made in euros, be aware of buying items in countries that accept U.S. currency as payment. "In some cases, card issuers are assessing the fee for transactions conducted on foreign soil or with foreign entities, even if the transaction takes place in U.S. dollars," says Greg McBride, CFA, senior financial analyst at Bankrate.com.

So if your next trip takes you to the Caribbean, you could still be charged foreign transaction fees during your stay there, even if your purchases are made in dollars. To avoid these charges in places that accept dollars, consider taking a couple of extra trips to the ATM before leaving on vacation. Then pay with U.S. dollars for as many of your transactions as possible to save on credit card transaction fees, advises McBride.

3. CONSIDER ENCRYPTION:

You can carry credit card information and other important documents in digital form while you travel. Some USB flash drives let you encrypt data, thereby protecting your information from prying eyes. If you lose your credit card while on the road, simply decrypt the file on a computer. You'll be able to see a copy of your card and access important information.

4. WATCH OUT FOR PIN'S OR SMART CARDS:

Read more...

By Rachel Hartman • Bankrate.com

Why use an AVS (Address Verification Service)

Using AVS (address verification service) is a good fraud prevention measure for Card Not Present merchants. Address Verification Service.

Address Verification Service (AVS) is a risk management tool for merchant accounts accepting transactions when neither the card nor the cardholder are present, or when the card is present but its magnetic stripe cannot be read by a terminal at the point of sale. Provided by the major card associations, AVS helps reduce the risk of fraudulent transactions by verifying the cardholder's billing address on file at the card issuer. Merchants submit the AVS request to the specific credit card association for address comparison.

Credit Card Fraud: How to Protect Your Business

More people than ever are shopping online, using their credit cards to buy everything from business and consumer products and services.

That's great news for small and big ecommerce sites alike. More people using their credit cards to buy more gifts, should mean more profits for most online businesses if they aren't victims of credit card fraud.

Credit card fraud, unfortunately, can quickly turn a prosperous holiday season into a nightmare for a small business. The owner of a small mail order business located in California had to borrow from friends and family to make good on $14,000 worth of fraudulent charges made on stolen cards one year. The following year, the owner implemented procedures to screen out possible fraudulent orders and refused to ship $25,000 in orders that seemed suspicious.

Spotting fraudulent orders

Fortunately, if you sell online or over the telephone there are a number of steps you can take to minimize the occurrence of fraud.

First and foremost, be on the look out for suspicious sales. These include:

*Unusually large orders placed through the Internet without any contact from the customer.

*Rush orders for large quantities or high-priced goods. Crooks may ask to have an order shipped overnight so they know exactly what day the order will arrive and they can be waiting to pick it up.

*Missing information, or information the customer refuses to give such as a day-time phone number.

*Orders that are shipped to a different address than the billing address.

*Orders from foreign countries

*Orders on US cards shipped to foreign countries

*Billing addresses that don't match the information on file with the credit card company.

By themselves, no one of these things are a sure sign that a credit card is stolen, but when several factors are present (say, your average ticket amount is $75 and you see an rush order for $5,000 being shipped to a different address than the address of the credit card holder) it's prudent to be suspicious and investigate the sale.

Even if there's only one factor that doesn't pass your "sniff" test, it's useful to err on the cautious side.

by Janet Attard, Founder of the award-winning "Business Know How" small businessweb site and information resource.

What should you look for in a Credit Card Processing company?

Telling your customer that you cannot accept their form of payment is a sale killer. With a credit card processing service, you can accept all forms of payment, from anywhere.

A versatile, reliable credit card processing service can help your business increase sales by enabling you to accept all forms of payment from anywhere at anytime.

So what should you look for in a credit card processing company?

Low Start-Up Costs - Credit card processing companies shouldn't charge you too much to set up a merchant account and a payment gateway.

Account Setup Time - A competent service will expedite your application and get you in business as quickly as possible, some can approve the application and set-up an account within a days time.

Stellar Customer Service - Accessible customer service answers inquires 24 hours a day, seven days a week. The service should offer many avenues of contact including telephone, email or instant messaging and help should be quick to respond and provide useful information.

Internet Based Features - Most companies offer more than one type of virtual terminal as well as an online merchant account and payment gateway or specialized software.

With a good credit card processing service, you can increase your sales and flexibility and give your customers many payment options.

Common Credit Card Processing Questions

1. What is a Merchant Service Provider?
A Merchant Service Provider allows businesses to accept and process credit card transactions. Marathon Solutions is a merchant service provider and we assist merchants by setting them up to accept and process credit cards, providing the necessary equipment and training, and superior customer service along the way.

2. What credit cards can I accept if I use a service like Marathon?
With Marathon Processing you have the ability to accept Visa®, MasterCard®, American Express®, Discover®, Diners Club®, JCB® and Fleet cards.

3. Can I accept credit cards on my computer or online?
You can process your credit card transactions either with software on your computer or through a virtual terminal or an online payment gateway. When you speak with a Marathon representative they can help you decide what the best option for your business is.

4. Is there a transaction fee and are your prices competitive?
Yes, all processors charge a fee for processing transactions; however Marathon Solutions is a wholesaler provider for Visa and MasterCard and has the most competitive rates for your business. Speak to one of our representatives and they will customize a program to meet your businesses needs.

5. Can I purchase or rent equipment?
Yes, you can purchase equipment from Marathon Solutions. We have extremely competitive rates on all of our equipment. Marathon does not offer monthly equipment leases since we do not believe it is in the best interest for your business. With an equipment lease, merchants end up spending thousands of dollars for a terminal when they could have purchased it for a fraction of the cost.

6. What is the process for me to start accepting credit cards?
The first step is to talk to one of Marathon’s representatives so they can understand your business and custom tailor a program to fit your needs. They will then fill out an application with your assistance. Once the application has been signed and received with a copy of a voided business check, we can have you set up to accept credit cards in as little as 2-5 business days.

7. How soon will the money be in my bank after accepting a credit card?
The monies from your Visa® and MasterCard® credit and debit card transactions are deposited through ACH into your bank account within 48 hours.

8. How do I know what my monthly fees and processing transactions total each month?
We mail out your monthly statements on the 3rd of each month. Our detailed statements will break down your fees and your processing totals by day and by card type.

9. What kind of businesses does Marathon Processing work with?
We serve industries such as: Retail, Manufacturing, E-Commerce, Business to Business, Municipalities, Community Banks, and Restaurants. There are a few industries we cannot work with including: airlines, gambling, anything pornography related, telemarketing, and payday loan stores.

10. Who will be my point of contact for support and to help me establish my processing account?
The Sales Representative who sets up your account will be your same point of contact for as long as you process with Marathon Solutions, you can call them at any time if you have questions or concerns. In addition to the Sales Representative, you will also be assigned a Merchant Specialist who will be available to you to answer any transaction or batch questions and terminal or software troubleshooting you may encounter.