DELTA PAYMENT COOPERATIVE

What is a cooperative?

A cooperative is an autonomous association of organizations (or persons) united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise. 

What are the benefit of Cooperative?

A cooperative business is formed and operated to meet the needs of its members. Cooperatives can leverage the buying power of membership to purchase products or services. They can also organize the marketing and sales activities of its members under a unified strategy and brand.

How does the price of my share vary?

We have a set price for the share that is required to be purchased upon a company’s acceptance into Delta Payment Cooperative. The value of this share does not change and will be refunded at the time a company exits the cooperative.

Why do you require that potential members agree to change processors if you can save 20% of the processing fee?

We believe that if we can save merchants and other organizations at least 20% on their credit card processing fees (not including interchange rates), that we should be awarded the processing business and not be used as a “stalking horse” to lower the rates of the incumbent processor. It is our view that if the current processor can lower rates when presented with a competitive situation, then why should they be rewarded for taking advantage of their client for so long in the past.

CREDIT AND DEBIT CARD PROCESSING

What is a merchant account?

Merchant accounts are special agreements made with certain banks that provide merchants with the ability to process credit and debit cards. Merchant accounts are essential for online payment processing and mobile payment acceptance. Specific documentation and revenue information is required when applying for a new merchant account.

Will accepting credit cards really boost my sales?

According to a 2014 survey, 80% of Americans carry less than $50 in their pockets! Most customers want the flexibility to pay by plastic, even in person. And that's not to mention the sales you're missing out on if your customers can't buy online.

What is the average period to process my application?

Some applications for a merchant account with a credit card processer are instant, while others take two days or more. Depending on the information that is sent to the underwriter, the actual waiting period to process an application can be shorter or longer. Once all documentation is received, merchants can expect their application to be approved within two business days.

How do I know if I should buy or lease equipment?

it's really up to you. The pros of leasing equipment is that you are not responsible for repairs if anything goes wrong. However, bear in mind that due to maintenance costs that the company is taking on, your payments might be slightly higher with leasing than purchasing your own equipment.

What types of terminals are there?

The three main types of terminals are Dial-up, IP Terminals and Wireless. While Dial-up manages payments directly via a telephone line, IP terminals use the internet to transmit the data to the processor. Wireless is great for merchant services which move around and allow them to transmit data completely wirelessly.

What is an EMV terminal?

EMV stands for Europay, Mastercard and Visa, the three companies which created the standard for 'chip and pin'. A EMV payment system is one in which you use the microprocessor chip inside your card to pay with credit or debit cards.

What are the benefits of EMV?

EMV creates a far safer payment system, with less likelihood for fraudulent activity. using your card and it's unique pin number, the need for signing for payments is removed. This can also make it easier to take payments using a mobile device.

Do I have to have an EMV terminal?

No. You don't have to upgrade to an EMV terminal. However, new legislation from Oct 2015 suggests that you may be liable for some types of credit card fraud which originate from your venue if you do not have an EMV terminal.

What are Value Added Services?

Many merchant services may offer VAS, or Value Added Services. These are extra tools and services which can help you save money, improve customer experience or streamline your business.

Which VAS should I look out for?

Some Value Added Services can make a real difference to your business and help streamline your payment processing. Some examples which companies offer are, check processing, business management reports and shipping refunds.

Can I export data to my accounting software?

Many credit card processing companies provide software that integrates with most accounting software. Certain payment processor companies state on their website if the payment data can be exported to popular accounting software such as QuickBooks. Merchants should inquire of the payment processing software’s capability to export data prior to applying for a merchant account.

Will my employees receive training for new terminals?

Training availability varies and depends on the payment processor the merchant has selected. Most payment processors will provide free training for merchants and their employees. They may also provide additional support whenever you or your employees have questions regarding your payment processor terminal.

What are cash advances?

A huge benefit of merchant accounts is the ability to take advantage of cash advances. You can choose between receiving a loan without tapping into your receivables account, or you can take money as a cash advance against your future credit card sales.

What are the pros and cons of cash advances?

Obviously, if you choose to use cash advances, your income will be less. However, it will enable you to have cash available to put into your business, and the repayment is automatic so you don't have to worry about running into debt.

What are my contactless options for taking payments?

Contactless seems to be the buzz word of the moment. The two main options currently are credit or debit cards with a chip which is 'read' via an encrypted signal when the card is placed near a machine designed to read it, and QR codes, usually provided to the vendor via a mobile device, which can be read directly from the screen.

What is the benefits of Contactless?

Mainly, speed and convenience. No pins to enter, nothing to sign, and with mobile devices you often don't even need to remember to take your wallet out with you. For businesses, contactless has a very shallow learning curve and offers enhanced security features such as unique codes for each individual transaction.

What is the average waiting period for monetary deposits?

For most monetary deposits, funds take one to three days to deposit to the merchant’s dedicated bank account. The average deposit is often two days from the time the transaction occurred. Merchants should check with the credit card processor to verify the correct waiting period for monetary deposits.

How long will it take for me to get my payment?

Merchant services offer extremely quick turnaround from payment by your customer to money in your pocket. Once the credit card payment has been authorized, you should have the money in your account within 2-4 business days.

Which kind of support should I expect from my provider?

Generally speaking, the more options you have for support, the better! Having said that, if you are working in a bricks and mortar store, open from 9-5, you may not need someone physically at the end of the phone at 3am. If you are working online, it is far more important that you have 24/7 access to experts.

Whom do I contact if I need assistance?

Most credit card processing companies offer support and easy contact methods to their merchants. Support is provided to merchants 24 hours a day, seven days a week. Options to contact support provided by credit card processing companies include email, phone and live chat. Merchants should review the customer support options for each company prior to applying for a merchant account.

E-COMMERCE SOLUTIONS

Can merchant services help with getting my business started with ecommerce?

if your customers can't shop online, you are currently missing out on the opportunity to make a lot more money. Yes, some merchant services offer ecommerce solutions, for example integration with website builders such as Shopify, which handles the whole ecommerce experience for you from inventory to shipping methods and tax.

What are e-checks?

E-checks or Electronic Checks is the method of using the account number and the routing number at the bottom of a real paper check to deduct funds electronically. Funds are transferred from the customer’s account and to the merchant’s bank account via the use of an Automatic Clearing House (ACH). There is no need to take a paper check to the bank. With e-checks, transaction information is conducted online and is deposited to the merchant’s account within days.

Do I need to accept online payments?

Accepting online payments gives customers the chance to choose different payment options and it also increases a business’s cash flow. Waiting for days or weeks for physical checks to clear can become tiresome. It can also lead to delayed payments causing standstills within a business. Online payments are quick, easy and money is usually available immediately. Clients get the product or services they require, and merchants receive the money owed to them.

How do I know if I need a website shopping cart?

A virtual terminal can eliminate the need for a shopping cart. For example if you process mail order or telephone transactions you will not need one. If however, you store a large number of products you may find it easier to incorporate a shopping cart.

What does MOTO mean?

MOTO stands for Mail Order/Telephone Order. This kind of business has different needs to one with a bricks and mortar storefront or services for example. One difference is that you will not need a shopping cart.

What is a Payment Gateway?

Payment Gateways provide merchants with the ability to process payments and accept credit cards securely. Payment gateways are setup with a simple process and used by the company that provides merchant accounts. These gateways also authorize transactions and monitor specific card usage that can prohibit the use of false or stolen credit card information.

What is a mobile card reader?

A mobile card reader is a small, physical device that attaches to a smartphone through the headphone jack. This mobile card reader is used in conjunction with a mobile application. After the card is swiped, funds will be deducted from the customer’s credit or debit card, and deposited into the merchant’s bank account.

Do I need a Virtual Terminal?

Extremely cost effective and inexpensive, virtual terminals assist the merchant with processing payment transactions such as e-checks, or credit and debit cards. Virtual terminals reside on the merchant’s website and provide easy access for customers to make their payments. The merchant or the payment processor can set up these terminals. Virtual terminals are essential for many online stores and individual merchants selling their online services.

What are my portable options for merchant services?

Many small or even large businesses don't have a physical storefront any more, and merchant services have adapted to the changing trends. You can now manage all your credit card payments from anywhere, simply by using your mobile phone.

What do I need to use my mobile device for credit card payments?

Without any technical knowledge whatsoever, many merchant services offer easy to use apps which you can download from the app store. You can also buy credit card swiping devices which attach via USB.

Will all mobile phones work with all merchant service apps?

No. Take a look at the requirements that your company needs. It might be that you need to be on a particular operating system to download the right app, or your device is not compatible with the service. If taking payments via mobile is very important to you, make sure to do your research before you sign up.

If I use my mobile device, where will my records be kept?

This is another element that your merchant service account will cover. They keep track of all transactions and you can access your account from a laptop or desktop to print your records if necessary.

Will I be able to take checks if I use my mobile device?

Yes! Simply go into the app, and you will be prompted to take a photo of the check itself. The phone acts as a scanner, and the check can be processed by your merchant service immediately. Simple.

Is my customer information secure if I use a mobile device?

Completely. smartphone or tablet apps never store any information on the device itself, and the card reader is fully encrypted so that credit and debit card numbers are entirely safeguarded.

DISCOUNT FOR CASH PROGRAMS

The Standard Adjustment seems pretty high?

This adjustment every single fee related to processing. This includes the transaction fee, batch fee, PCI compliance fee, statement fee, interchange fees, etc. You pay virtually NOTHING.
This fee is locked in for a four-year term with no increases. This allows a business to know exactly what their monthly processing cost will be.

What if I sign up and I really don't like the program?

No problem whatsoever!

If at any time you wish to go back to paying all of the fees yourself we will be happy to put you on our standard processing platform. We can’t guarantee what the rate will be at that time as there may be another Visa/Mastercard increase by that time.

Do I have to get a new terminal?

In order to provide this service, we must provide qualified equipment to process payments for the discount. The terminal we provide features unique software that permits the Standard Adjustment to take place. Every customer receipt will show a line item for the Standard Adjustment.

Why am I required to have a sign disclosing the program?

Visa/Mastercard requires that a visible disclosure be present in the business. These rules were established by the card brands in 2013. If you do not properly disclose your participation in the program, you are in violation of Visa/Mastercard guidelines and could be subject to penalties up to and including having your merchant account privileges revoked.

What makes the Discount for Cash program possible?

The flat rate Discount for Cash program has evolved from The Durbin Amendment.

The Durbin Amendment is Section 920 in the Dodd-Frank Wall Street Reform and Consumer Act, which is part of the broader Financial Regulation Reform and Consumer Act passed by the Senate in May 2010.

July 21, 2011, merchants can impose a $10 minimum on credit card transaction and can offer cash discounts at the register for cash purchases. This was previously banned in VISA® and Mastercard® merchant agreements

How do I explain this to my customers?

This is probably the most common question asked. The answer is very simple and not hard to understand.

Explain to your customer that this is not a FEE for paying with a credit card, but rather an incentive to pay with CASH. The 3.5% simply covers the increasingly high cost of credit cards, which is waived when you pay with CASH.

Why don't other processors offer this service?

We pride ourselves on being in the forefront of industry trends and developing strategic partnerships that lead to significant advantages to our valued customers. Our ability to get out ahead of the competition proves helpful in saving our merchants as much money as possible.

Why are reward cards making my processing fees increase?

As big brand stores partner with banks to issue Rewards Cards we continue to see an increase in competition to provide better Reward options. The bottom line is merchants pay for these programs through processing fees. The people use these types of card the more rates will rise.

We are in no way trying to discourage any consumer from using such a card but merchants must at least understand that the more often these are used, the more processing fees they will pay.

The basis of our program strives to create balance and no penalized card paying customers but only make them responsible to share in the increase of cost as they use more of these types of cards.

PROVIDING FOR PAYMENTS OVER TIME

How does Splitit work?

Splitit authorizes purchases by reserving the customer’s available line of credit on their credit card. Then, each month, according to the customer’s payment plan, Splitit collects the installment amount and reissues the authorization request for the remaining balance—before the current authorization expires.
The Splitit service, which takes just seconds to operate, is initiated directly from an e-commerce website. Merchants gets paid in monthly installments (minus processing-fee deductions). In this case, the risk is the same as standard credit card payments; liability stays with the merchant. The merchant has online access to his/her installment transactions for payment tracking, fraud detection or refund monitoring according to his/her current policy.

Isn’t this just a way to get people to buy things they cannot afford?

Splitit provides innovative payment solutions which are designed to support the financial wellbeing of consumers and merchants by make purchases more affordable. With Splitit you can choose to spread out purchase payments without paying interest charges so that you can save money, manage your monthly expenses better and buy items that you might not have been able to afford otherwise.

Who is offering this service? The store, credit card company, someone else?

E-commerce and retail merchants are offering installment payments as a value added service, to improve the shopping experience and improve customer satisfaction. The service is operated by Splitit, a US company solely focused on providing consumers with innovative payment solutions.

Can customers pay off my installments early?

Yes, they can. This option is now available on the Splitit consumer portal. Customers can always call customer care to help with paying off installments early.

How do my customers identify their monthly charge on their credit card statements?

Each installment displays on the credit card statement as a standard purchase, including your business name in the line item description. Splitit stores the same details as a single-payment transaction.

What is the maximum charge amount allowed with Splitit?

As a merchant, you can customize the minimum and maximum charge amounts (total ticket value) and the minimum and maximum number of monthly installments in accordance with Splitit policy.

How do Merchants integrate Splitit into their websites?

Integrating the Splitit platform into an e-commerce site is simple and quick. We offer 5 different free integration tools:
1. Standard Web API: With our API, you can connect to Splitit and maintain your own website marketing look and feel and design the User Interface as you wish
2. Embedded Code: Through our Live Button Embedded Code you are able to connect to Splitit without having to change anything in your website; the embedded code will seamlessly add our button to your checkout page. You will use our checkout form and you don’t have to worry about PCI compliance or additional website development
3. Magento plug-in
4. Shopify plug-in
5. Woo Commerce plug-in

How is the Splitit service connected to my current merchant account?

The connection to your merchant account does not change. To activate the Splitit service and allow secure access to installment information, you need to open a Splitit merchant account.

Is it safe to use the Splitit solution?

Yes! Splitit complies with Visa and MasterCard operating standards. We are PCI – DSS level 1 compliant and we use communication security technology (single-socket layer/ SSL) to keep the information safe.

DATA SECURITY

Is my information secure?

All credit card processing companies should secure customer and payment information. No matter which company the merchant chooses, the payment processor should provide a high level of security for transactions. Security often includes features such as CVV, CVV2, SSL, and Payment Card Industry Data Security Standard Certification (PCI DSS). The chosen payment processor should provide their merchants with all the necessary information regarding their security measures.

What do I need to know about PCI DSS?

The Payment Card Industry Data Security Standards allows for consistent data security measures around the world. This means that you can manage global transactions securely and your customer data is always safe. All merchants are required to be PCI DSS compliant.

How do I go about being PCI compliant?

No matter how small or large your business is, as soon as you handle cardholder data, all merchants are required to be PCI compliant. The minimum requirement involves you filling out a self-assessment questionnaire every year. If your business stores any cardholder data electronically, or your systems connect to the internet, you will also need to allow for an approved scanning vendor to scan your business once a quarter.

What if I decide not to certify myself as PCI compliant?

We wouldn't recommend it! The self-assessment questionnaire is designed to help you to ensure you are dealing with data safety and sensitively. Ignoring the questionnaire only harms you and your customers in the long run. Remember that if you choose not to certify yourself and your business is compromised, fines per brand can be as heavy as $500,000.

How will my customers know I am PCI compliant?

You will receive a certificate of compliance when you have completed the certification, and you can also request a logo to display on your website. This proves you are compliant, and can be a confidence boost and a sign of business legitimacy for customers when they are browsing your site

POINT-OF-SALE (POS) SYSTEMS

What is a POS System?

A Point of Sale system is a computerized network linked to several checkout terminals. It records every sale at the moment it happens so your inventory records are up to date.

What benefits does a POS system offer?

A POS System can help you keep track of your stock and inventory, analyze sales data, maintain a sales history for your business and adjust purchasing and re-order levels.

Can a POS system help with cash flow?

Yes, definitely. Most POS systems come with integrated accounting tools such as general ledger, accounts payable and purchasing, as well as inventory controls. In many ways a POS system can be the best way to keep track of your businesses cash flow.

How is information entered in a POS system?

Most systems will allow for your inventory data to be entered simply via a barcode scanner. The systems will call up the price of the item, and provide a running total. You should also look for a POS system which allows you to enter your data manually, for when you only have a partial merchandise number, or a vendor to search with.

Which sales tracking options can a POS compute?

This varies greatly, which is a good thing as businesses vary greatly too! Do you want the ability to keep invoices open for a long term service? Do you need to provide installment purchases? Are you happy with only sales, or do you need rentals too? Make sure your system offers the right tools for your business needs.

What is the value of POS reports?

Sales data can help you determine what products are selling best and when they are flying off the shelves. If you have a bricks and mortar store, this can help with store design and promotions, and if you are working online, this can determine what times of day visitors are most likely and use this to your advantage.

Is a POS system an expensive outlay for a business?

Not anymore! While POS systems used to run into the tens of thousands, new tablet based solutions can be as little as $1000 annually, with the only investment being the tablet device itself.