The Payment Technology Newsletter

August 2022 Edition?

Welcome to Payment Technology Newsletter, where business meets technology and where business owners share views, knowledge and insights on the everchanging world of payments, financial services, B2B and B2C commerce trends. We’re seeing a comeback of conferences, concerts, summer fairs and sporting events this summer. And speaking of conferences, Allen will be taking the stage this month at the MPC conference in Atlanta.?

Allen and other experts will explore point of sale technology on Tuesday, Aug. 23, in a panel discussion moderated by David Lott of the Federal Reserve Bank of Atlanta. MPC: The Digital Commerce Event, will be held Aug. 22-24 at the Westin Atlanta Perimeter North.?

Here’s some encouraging news: bankruptcies are down 13 percent compared to the same period last year, according to Epiq Bankruptcy and ABI Research. The global companies have recorded a slowdown in new bankruptcy filings during July, including chapter 13 cases. Let’s hope these trends continue.??

In this issue, we share highlights from popular podcasts focused on cash discounting, inflation and high-risk merchant accounts, topics that are top of mind for many small business owners.?

We appreciate having you with us and thank you for your feedback and support. Please continue to be part of our discussions and reach out with any questions or suggestions on future podcast topics.?

Until next time, follow us on LinkedIn, Facebook and Twitter and we wish you an enjoyable, profitable summer season.

Carpe Diem!?

Dave Burney ??Allen Kopelman

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FEATURED YOUTUBE VIDEO

At B2B Vault, we continue to bring relevant information and breaking news to business owners about trends in business, payments, fintech, technology, DeFi, and more - everything you need to know about business and payments. As we all know, just as we began to recover from the pandemic, inflation began putting the squeeze on the small business community. Episode 76 of our podcast looks at how Cash Discount and Surcharge programs are bringing much-needed relief from high prices and shrinking margins.?

As businesses get hit with higher fees on everything, goods, services, credit card fees, gas prices, they are switching to cash discount programs to protect their businesses and pay their rent, bills, and employees. Many merchants are using Cash Discount Program and Surcharge Programs to save some money on credit card fees. We give examples of how this is being used.?

You can also find more info on this at https://nationwidecashdiscount.com. Cash discounting has been around for years. Gas stations have offered one price for cash and one price for credit and surcharge programs have also been around for a long time. We’ve covered these topics in previous episodes but recently we began getting more inquiries from merchants who are looking for ways to offset inflation.?Check out this episode and learn how you can save money on your merchant account.??LEARN MORE

FEATURED PODCAST EPISODE

Applying for a merchant accounts is similar in many ways to getting a mortgage: you go through a vetting process and sometimes you just need to find the right bank. Banks sometimes place an account in a high-risk business category if they don’t fully understand the nature of an applicant’s business.?

Here at Nationwide Payment Systems, we work with all types of businesses and a wide variety of banks, processors, and solutions, so we can bypass misunderstandings and quickly get you approved and processing. We begin by learning all we can about your business and gathering the necessary documentation to get your account approved. We review your website, policies, procedures, chargebacks, fraud controls and more. Bottom line, we focus on more than just getting your account approved. We want to protect our partnership and keep you processing for a long time.??

High-Risk businesses sometimes fall into niche categories that mainstream banks do not fully understand or have the appropriate knowledge to support. For example, some banks avoid Adult Entertainment, Gaming, E Sports, Ticket Sales, Travel, Nutraceuticals, and Pharmacies. While these businesses are legal, banks view them as high risk, but some banks and processors are comfortable working with these companies and have controls and procedures in place to help them grow and scale while mitigating risk.?

We take a consultative approach with our clients, which ensures our high-risk merchants are matched with the best technology solutions, fraud solutions, and pricing. We also have access to alternative payment solutions that allow our clients to accept different payment methods. We offer domestic and global solutions. To find out more, listen to Episode 75 of the B2B Vault: The Payment Technology Podcast, visit https://nationwidepaymentsystems.com or call us directly at 954-478-7714.??

Commenting on a bill called the Competition in Credit Card Act, Allen Kopelman, cofounder and CEO of Nationwide Payment Systems, warned that this bill, if passed, could have far-reaching impact on small business owners and merchant service providers. "This bill is very dangerous on many levels, there was already an antitrust ruling on this, and Congress wants to help banks and big business and let the small guys suffer in the process," he said.?

While the proposed bill, sponsored by Sen. Dick Durbin, D-Ill., and Rep. Roger Marshall, R-Kan.,?purports to expand merchant choice, Kopelman and others claim it reflects a lack of understanding of credit card processing architecture, functionality and interchange pricing.?

In her July 27, 2022 post, "Senate Bill Takes Aim at Visa, Mastercard Credit-Card Fees," Wall Street Journal reporter AnnaMaria Andriotis stated the expected bill reflects growing congressional scrutiny of the credit card industry.?

"Most shoppers don't think twice about how their payments are processed when they buy something with a credit card. But the underlying plumbing and its associated fees represent a fierce source of contention between merchants that pay the fees and big card networks and banks that set or collect them," she wrote.?

The Competition in Credit Card Act attempts to lift what it terms "routing restrictions," which would become effective within a year of the bill's passage. Critics claim this would cause a series of logistical challenges to established payment card networks.?

Recalling Sen. Durbin's previous assault on the debit card rails, in the form of a last-minute amendment to the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, Kopelman said thousands of small businesses got hurt and provided the following example of a coffee shop with a $7 average ticket:?

Pre-Durbin: $7 small ticket interchange 1.65% or 1.55% and .04 cents: interchange cost to merchant/business = .16 cents?

Post Durbin: $7 Durbin Interchange .05% and .22 cents: interchange expense to the merchant/business = .23 cents?

"It is now costing merchants whose average ticket is under $13, 7 cents more just for interchange fees," Kopelman said. "Take a small coffeeshop doing $30,000 a month in sales. $30,000 ÷ $7 = 4,286 sales x .07 cents, which is an increase of $300 in interchange fees."?

Kopelman also noted the 2010 Durbin Amendment allowed businesses to not take debit transactions below $10, but most small businesses could not do that because their customers had already become accustomed to making purchases with debit cards.?

"The Durbin Amendment did not do what it intended to do—it actually made debit card processing more expensive," Kopelman said. "Before Durbin, your debit card would have four or five network symbols on the back and the debit card 'processor' would route the transaction to the least expensive network, which made good business sense. However, Durbin required only two networks, and that drove up the network costs without accomplishing anything."?

Kopelman suggested the card brands, Visa, Mastercard, Discover and American Express, are being blamed for inflation. "These are all public companies traded on the stock exchange," he said. "These companies are owned by you and me, and these stocks are in your stock portfolio in your IRA account, in your 401K, in a mutual fund you own, in an ETF in your portfolio."?

This news story originally appeared July 29, 2022, in The Green Sheet.?

For more thoughts on payments industry technology and trends, visit Episode 96: The Payment Technology Rundown on B2B Vault, The Payment Technology Podcast. Check out B2B vault.info and subscribe to our YouTube channel. Access our recordings on all the podcast networks, including Spotify, Apple, Stitcher, Amazon Music, and Pandora.?

AUGUST'S FEATURED PRODUCT

“Omnichannel” is one of those buzzwords we’ve been hearing a lot, but it’s an important concept for today’s business owners, because no matter what business you’re in, you need to meet your customers wherever they are and on whatever digital platform or channel they happen to be using. Someone may be visiting your website and someone else may be shopping in your store while looking at their phone to compare prices or share images with friends and ask their advice. You want to be everywhere your customers are shopping.?

We cover omnichannel basics in this podcast episode and take the mystery out of setting up an omnichannel merchant account. Process like a pro online, in store, on mobile and even on a mobile app. Nationwide Payment Systems has you covered on every channel. And the best part is, you only need one omnichannel merchant account to cover all channels, not like the old days when you needed a separate account for ecommerce or Mail Order Telephone Order (MOTO). Get more information on Episode 97 of the B2B Vault: The Payment Technology Podcast.??

Magnets: Smart giveaways that stick

If you’ve been to any trade shows lately, you may have noticed that people prefer small giveaways. Colorful magnets with your colors and branding easily fit into travel bags and pass through airport security. Magnet clips or flat signage that attaches to file cabinets and refrigerators can help you stay top of mind with customers. Best of all, they are inexpensive to produce, ship and store.??

Our graphic designers can help you create a slick design with your colors and branding that will stand out and grab attention. When your sign brings new customers inside your business, NPS Printer offers an array of other products designed to keep their attention and give you more time to sell. Here are a few examples:?

Indoor Signs?

Banners?

Direct Mail?

Brochures?

Advertising Specialties?

Post Cards?

Email us at [email protected] or call 954-772-9008 for a custom quote.?