Payments Directions - January 2022
Joseph Zahaitis
President, Bankcard International Group | Payments Expert | Speaker | Radio Station Owner | Bringing Truth, Transparency, and Fairness to the Table in the Credit Card Industry | Visionary Sales Leader
TL:DR (Too Long: Didn’t Read)
This will be our Newsletter Format:
?TL:DR (this) Do you even want to read this edition? This is the super short version of what is enclosed in the edition that follows.
Topics for 2022: 80% Payments Industry / 10% Sales / 5% woodworking / 5% Internet media (mostly radio)
Summary (the top line “exec summary” that follows below) briefing about the topics, think “CLIFF NOTES” for those that only have a few moments.
The Details (for when you need them or want to know and take a “dive deeper”) – ?information and thoughts on each topic as well as links to various websites and other properties for even more detail, but more on that as we build this bad boy out.
and now - my NEWSLETTER
Summary
This is a newsletter (like many other newsletters) that is about my passions and career, with a twist.?It will be irreverent at least, controversial at most, but always honest and based on facts and my long history in all the spaces I’ll cover (except the radio thing, that’s new).
Payments – most of our time
This edition: Pricing 101 – Card Brand 201 (VISA, MasterCard and others) – High Risk 301
Payments 101 – Effective rate – Total volume divided by total fees = effective rate
Payments 201 – Card Brand updates – Issuers to be able to stop recurring payments – MAG strip being “retired” – Card Not Present (CNP) qualification changes – “NON-Qual” criteria changing
Payments 301 – High risk payment processing – it’s not for everyone but it’s for more than many realize
Sales - I’d be remiss if we didn’t cover
Building a strong pipeline early in the year makes the whole year go better. Invest the time now before people get back from vacations and the year kicks into full “sales” mode.
Woodworking – my soul requires I spend some “FUN” time too
I love working with (and only) solid woods. In addition, I have been focused for some time on “air dried” lumber that I have milled from timber myself.
Radio – because . . . ?you know, the INTERNET
We’ve got shows coming up (live DJ’s with music) and we broadcast classic rock hits 24/7 in the USA. Schedule of our upcoming shows are on our website – and how YOU can join us broadcasting on the station with your OWN show.
DETAILS - HERE COMES THE MEAT
Payments – www.BigHqs.com / www.monerepay.com
Topics: Pricing 101 – Card Brands Update 201 - High Risk 301
PRICING 101
Effective rate = total volume for a period (month) divided by total fees paid for that period (for that month)
Your effective rate – do you know yours? – you should calculate it every month – You should compare them month over month and on an annual basis – What should the rates look like?
Depending on the payment model (face to face or online – and the mix of them if both) – the ranges should be between 2.35% on the low side for pure face to face retail transactions to 3.15% on the high side for pure internet only payments, ask your provider for an analysis, if they can’t / won’t give you one, get in touch with me, we can find you someone who WILL be happy to help you.
CARD BRAND UPDATES 201
1 - We kind of did it to ourselves (as merchants) – VISA has had to put in a rule that allows issuers to stop future payments and future recurring transactions. (Read: gone are the days where recurring billers can just do “card account updater” to get the new card from the person who is trying to get OFF their model).
2 - The Card Brands are RETIRING the mag stripe – effective dates are – Mostly April of 2024 EVERYWHERE ELSE, but 2027 in the US (Read: if your terminal is not ready, or your POS can’t handle the new chip based cards, then you are in for further pain as card issuers will most likely begin to make cards that don’t have “MAG” strips on them at all starting soon if not already)
3 - Card not present (CNP) interchange prices changing (guess which direction) for a variety of categories
4 - “Non-Qualified” requirements are changing – making some categories more difficult to reach – if not then EIRF (higher price) applies.
o???CPS identifies required criteria for various interchange programs
领英推荐
o???Transaction data and information, processing standards
o???Rules vary based on type of transaction processed, merchant segment
o???If transaction does not meet CPS requirements, qualify at EIRF, Standard
o???Applies to those transactions qualifying for EIRF and Standard consumer credit
o Applies to those transactions qualifying for Commercial Standard
HIGH RISK 301
“High Risk” covers more than just the “grayer” side of the payment’s world. It also includes owners and companies that have had BUSINESS credit issues in the past or PERSONAL credit challenges that might preclude them from getting a standard merchant account.
Bankcard International Group (BIG) has provided solutions for a wide range of clients who need to take card-based payments but because of their credit history, or business model, or in some cases just because, they have challenges getting a payment provider to work with them.
BIG educates potential clients on the industry and how they can manage their costs and fees by modifying their model or by the provider they work with to get the best possible “price to functionality” mix. For BIG it's all about the client.
Sales – www.Zahaitis.com
Building your pipeline:
The post-holiday weeks are the perfect time to build your pipeline. For the most part few businesses are buying new services right after the holidays.?Most are trying to close their year, figure out what just happened and where they stand on inventory, and many are beginning to implement new products and services into their business model from their holiday learning.
What IS huge at this time of year is NETWORKING.?This is the PERFECT time to reach out and make new contacts, BUILD A PIPELINE of NEW people to talk to going into the new year.
THIS is the time to start new outreach and the sooner you develop your “pool” of possible clients to start a long tail discussion with the sooner you will help them achieve their goals, and possibly yours as well.
Joe Does Wood - (site coming soon)
I mill much of my own lumber for the pieces I create. I’ve found over the years that “air dried” lumber has a much more vibrant depth of grain and color than “kiln dried” lumber does.?Building beautiful pieces is what I’m about so using the BEST possible materials is where it starts.
I mill with a Stihl MS 880 on a Granberg Alaska Mill - weighs a ton, but does awesome work.
RADIO - www.BasixBroadcasting.com
We are Basix Broadcasting – we’re a fully licensed internet radio station. Based out of Chicago IL (USA) and broadcasting CLASSIC ROCK HITS and so much more 24/7 on our platform. We have an IOS listening ap for your phone, an ANDROID application as well, and ALEXA SKILL ALL AVAILABLE FOR FREE on our website.
Why don’t YOU get on the air:
Do YOU have a show you’d like to do live? Even if you record it and then post it to the “other” platforms later we’d love to discuss getting you a timeslot for the LIVE portion of your show. There is no cost to being on our station because we’re about helping each other. Reach out to me and let’s setup a quick chat about how easy it is to get on the air.
Schedule:
See the website – www.basixbroadcasting.com
No reason to waste space with it here, but – January will be a “James Bond” focus – see the site for details and remember it’s LIVE not pre-recorded and you CANNOT binge listen later, we don’t record them that's why it’s LIVE radio, even though it is the internet.
Longer than I expected - it will be shorter next month
Thanks for making it this far,
Joe