Credit Cards » Credit Card News » Unrivaled Convenience With iPhone Credit Card Processing
Date June 8, 2009

Unrivaled Convenience With iPhone Credit Card Processing

iPhone find one more reason to enjoy their smart phones with iPhone credit card processing.

Unrivaled Convenience With iPhone Credit Card ProcessingCellCharge, specialists in enabling cellphones for credit card processing, offers iPhone owners the most convenient way to process credit card transactions for merchants. The service is a great way for small businesses to add credit card transactions to their payment options without having to invest a large amount. They can also process payments anytime and anywhere, as long as they have their iPhone with them.

Setting up an account with CellCharge is also quite easy. First, merchants have to have the proper iPhone software to do CellCharge credit card transactions. The iTunes store has the CCTerminal and the ProcessAway iPhone application available for just this purpose. These two are also the recommended software applications of CellCharge. The two iPhone applications are low priced and are very user friendly, even for beginner-level users. For merchants, ProcessAway is a much better application because of its inclusion of a “tip” feature.

Merchants who want to get ahead of the competition should really consider CellCharge’s service. It is a well known fact in th industry that credit cardholders are spend much more than those who pay with cash or checks. They are also more prone to impulse buying and are more generous tippers as well. With the ease and convenience of paying through an iPhone application, merchants can receive payments anywhere and anytime.
With the current economy the way it is, merchants are also going to appreciate the fact that CellCharge does not charge hidden fees. This is something that merchants should be aware of about credit card processing through cellphones. Some credit card companies who offer this kind of service actually have a hidden service fee which merchants are rarely aware of. The only fee that merchants will have to worry about are the interchange fees which are dependent on Visa and Mastercard. Of course, should these companies raise the interchange fee, then merchants using the CellCharge’s service will see a rise in their transaction fees, but that is hardly company’s fault.

The service being offered by Cellcharge is also quite flexible. Unlike other companies which charge extra for transactions which are called in through phone, Cellcharge has a toll-free number that merchants can call to run transactions through. The number of users doing transactions through phone is also not limited to only a single user. Thus, three or four merchants could run transactions through the phone. Even better, the merchant can also run transactions through his or her iPhone at the same time as well. Merchants who are interested in the service that CellCharge offers can do a search online and visit their website to see what they have to offer and to sign up.

Date June 7, 2009

Interchange Fees Finally Getting Some Attention From Legislators

When the credit card bill was released, merchants were less than pleased that they had been left out.

Interchange Fees Finally Getting Some Attention From LegislatorsWhile addressing many unfair credit industry practices such as unfairly high interest rates and fees and obfuscated business practices, the credit car bill left out merchant’s pet credit industry peeve: interchange fees.

Merchants pay an interchange fee every time their customers buy from them using credit cards. These fees average at about 1.75 percent of a credit cardholder’s purchase fees. Depending on the credit card company, interchange fees can range from 1.6 percent to more than 2 percent. Interchange fees end up being quite a burden for merchants. Part of the fees also are also being passed on to consumers which end up increasing merchandise prices.

A new measure being focused on in Washington called the Credit Card Fair Fee Act is expected to address the issue of interchange fees. The legislation will focus on giving negotiation powers to merchants so that they can arrange for reduced costs with their banks regarding credit card purchases. Currently, the legislation has just been introduced in the House of Representatives of the U.S. If it turns out to be successful, it will lighten the burden of interchange fees from a whole range of merchants such as restaurants, shops and service stations.

Currently, Mastercard and Visa, the two major payment networks, have power over setting the fee structure for credit card payments. They also control around three fourths of the total number of transactions for general purpose cards. American Express and Discover use their own system.

Complaints about the system have been coming from merchants for a long time and lawmakers have recently joined in. The major complaint is that merchants are blocked from negotiating a more advantageous fee structure for themselves with the Mastercard and Visa payment networks. There have also been complaints about collusion among banks to control the fee structure to their advantage and to block negotiations for lower fees from merchants.

If this new interchange fee bill is enacted, merchants will have more power to negotiate with banks for terms and rates. The Department of Justice will also have an antitrust attorney present during these negotiations.

When the credit card bill was passed recently, the credit industry heaved a sigh of relief over the fact that did not touch interchange fees, at least. However, with this new Credit Card Fair Fee Act making the rounds in the House, the industry may be facing another challenge as credit card companies seek to minimize their losses and restore profits amidst increasing defaults and declining spending.

Date May 31, 2009

Interchange Fees May Be Next Target for Legislation

The recent passage of the credit card bill from Congress was cause for celebration for credit cardholders, though the legislation itself won’t become active until nine months have passed. Now, the government is looking into other credit card practices that seem unfair to consumers and how best to legislate them.

Interchange Fees May Be Next Target for LegislationCurrently, the Government Accountability Office is studying credit card usage among American consumers. They are interested in one particular practice and its effect on merchants and credit cardholders: interchange fees.

Interchange fees are fees that merchants pay whenever a customer uses a credit card. Essentially, when a merchant’s customer uses his or her plastic to purchase an item, the bank of the merchant pays an interchange fee to the bank of the credit cardholder so that the transaction goes through. This is true not only for credit cards but also for debit cards as well. The interchange fee for every transaction is usually at 1% to 2% of the total amount of the credit cardholders’ purchase. Thus, for a transaction of $100, the merchant has to pay anywhere from $1 to $2.

Most people take interchange fees for granted, as they are often buried within their transactions. However, some are taking keen interest in them. Consumer advocates are very much aware of how much interchange fees affect daily purchases of credit cardholders. Merchants are also quite aware of them, being the group who has to shoulder the payment or pass it on to their customers. The credit card companies are also very much aware of the profits that they are getting from interchange fees. Although a 1% charge may seem minimal to the regular consumer, it can mean millions to a credit card company that sees profit from it from thousands of credit card transactions every day.

The recently passed Credit CARD bill (Credit Card Accountability, Responsibility and Disclosure Act) actually has a provision that can be used to address interchange fees. The provision requires investigation on fees that merchants have to pay so that their customers can use credit cards. The main thrust of the provision is to provide disclosure to consumers on the credit card industry’s practices.

Some have noted, however, that disclosure is not enough for change to happen. Although informing credit cardholders of credit card industry practices seems like a good first step, there is still a need for stronger legislation. It ultimately depends on whether there is a change in the way credit cardholders use their credit.