Author: Arash Singh

Recently, payments and commerce news platform PYMNTS.com conducted an interview with Sanjay Gupta, who is the vice president of computer software company Mitek Systems.

The interview focused on the rise of the “device biometric,” which is a measure that goes beyond traditionally physical biometrics such as facial recognition features and fingerprints. Instead, this particular biometric is linked to the behaviours of individuals as they interact with their mobile devices. 

In the context of the coronavirus (COVID-19) pandemic, consumers around the world have opted for shopping online. Social distancing measures have encouraged them to make purchases via digital shopping carts as opposed to visiting a physical retail location. Merchants, therefore, have been prompted to make the transition to ecommerce.

In the interview, Gupta also touched upon this. He noted that amid COVID-19, individuals have avoided visiting stores. Meanwhile, merchants have been onboarding customers who they have never seen in the past. Many of such individuals have also been supplying documents and selfies in order to prove their identity. According to Gupta, that is an “area that has been growing over the past several years.”

Additionally, in more recent times, biometrics have become a significant part of the verification process. The measure has been used to determine whether or not a user is “live.” An example of this would be detecting if a user is wearing a mask to bypass security efforts. 

When it comes to “device biometrics” in particular, Gupta said that many companies are beginning to use the technology for user authentication. “The device is acting as the proxy for the individual,” he added. 

The manner in which individuals hold their devices, type on them, or even share their location using them can aid in the authentication process, Gupta explained. Once an individual’s identity has been verified, then their transactions may follow suit. 

Such technology allows businesses to change the way they process transactions, however, it should also be noted that the process of data collection can become complicated. Gupta noted that such is the case in a “fragmented regulatory landscape.” Depending on the jurisdiction, there are different laws that govern the way who can save a selfie taken for an onboarding process. 

There is a long way to go before reaching a global standard on the matter of data collection, and merchants may be challenged by the nuances when navigating unfamiliar territory. This is in addition to the issue of consumer adoption when it comes to interacting with technology. While younger users may be more accepting to new technology, older users may find it daunting. 

“If you have too much friction, the individual is not going to adopt it. If you have too little friction, that’s also a scary proposition,” Gupta said in the interview. He then noted that finding the right balance has always been an issue. 

As technology continues to change the way businesses and consumers interact, it is important for merchants to stay up-to-date in terms of payment processing solutions. PayFrame is here to provide clients with the best rates on the market. Business leaders who wish to receive further information may contact a PayFrame representative at either 1-888-668-0733 or info@payframe.com.

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The 2020 year for merchants is marked by the strife as industries in terms of customer retention and sales. The coronavirus (COVID-19) pandemic not only changed consumer behaviours, but also pushed businesses to transform their operations in order to suit the digital needs of their customers.  

Social distancing procedures have become prevalent this year, which resulted in restaurants adapting to new revenue streams and payment options. With mobile applications such as Uber Eats, SkipTheDishes, and DoorDash, many businesses have converted their menus to suit the needs of their customers and for the sake of their employees’ health and safety. 

Meanwhile, the travel industry is facing difficulties in terms of employment and the number of cancelled plans. According to Reuters, United Airlines is in preparation for cutting approximately 16,370 jobs once its federal aid expires on October 1, 2020. Prior to COVID-19 and its negative effect on the airline, it had over 90,000 employees. In July 2020, it was also noted that about 36,000 jobs were at risk due low flight demands. 

As for small and medium-sized businesses, they have been affected by the worldwide pandemic as well. According to Kevin Phalen, who is the global head of business solutions at Visa, 2020 highlights what makes these businesses the backbone of the worldwide economy. 

For instance, Stephanie Vitori, who operates Miami’s Cheeseburger Baby, has embraced creative solutions for the sake of sales growth. One solution includes figuring out ways to take her food truck to locations where customers, such as frontline and essential workers, require food support. 

Vitori is not alone in this endeavour. One of Visa’s hopes is that others will see the creativeness and resilience of such business — especially around the holiday season and beyond it. 

For “Main Street” small to medium-sized businesses, Phalen said there is hope for them as consumers have indicated that they plan to purchase gifts this holiday season. Additionally, Visa’s Back to Business Holiday report found that 88% of consumers plan to shop for gifts despite the pandemic both online and offline. 

As businesses continue to navigate the upcoming holiday season, it is imperative that they keep different payment processing solutions in mind. The shift towards ecommerce indicates a need to streamline the online checkout process, and PayFrame is here to provide businesses with that support. 

To receive the best payment processing rates, contact PayFrame at either 1-888-668-0733 or info@payframe.com.

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As the coronavirus (COVID-19) situation continues to evolve, businesses are being negatively affected in terms of revenue. This is especially true for brick-and-mortar stores. Since these locations rely on in-store visits from customers, the health and safety practices of social distancing and isolation have decreased brick-and-mortar store traffic and business. 

According to a Coresight Research report, 47.2% of U.S. individuals are currently avoiding shopping centres and malls. Meanwhile, shops in general are at 32.7%. As the coronavirus pandemic worsens, 74.6% of those surveyed stated they will avoid shopping malls. For shops in general, it amounted to 52.7%.

When the U.S. Centers for Disease Control and Prevention (CDC) issued guidelines for mass gatherings and large events, restaurants also responded with updated delivery options and services. Data from OpenTable indicates that the percentage of restaurant reservations within the U.S. between March 8 and 15 sunk from -2% to -48%. By March 21, it was at -100%.  

Research conducted by CivicScience also indicates the steep decline for in-store visits. The research suggests that there is a correlation between the increase of online grocery shopping and the avoidance of restaurants. 

In terms of age groups, Coresight Research predicts that 85.6% of those who are 61 and over are likely to avoid shopping centres and malls as the pandemic worsens. This age group is also likely to avoid shops in general at 61.1%. 

The next leading group to avoid shopping centres pertains to individuals between ages 45 and 60 at 79.3%. Meanwhile, those between 30 and 44, as well as 18 to 29, are at 67.8% and 67.9% respectively. 

Taking each age group into account, this avoidance of malls and shops in general can be attributed to each cohort’s level of vulnerability. Older individuals, for instance, have a higher risk of fatality. Given this decrease in brick-and-mortar store visits, online solutions are on the rise. 

With the proliferation of online shopping due to the avoidance of in-person visits to brick-and-mortar stores, merchants who deal with brick-and-mortar businesses must learn to adapt quickly.  

Visa Checkout is one of such solutions where a merchant’s customers can quickly and easily make online purchases. According to Visa’s research, customers who use the payment method make 30% more transactions online. In addition, those using this method are more frequent visitors of online shopping pages. Merchants can continue to benefit from this payment method via Visa Checkout promotions, as the technique grants a 46% net in new customers. 

Along with this payment method, Merchants can also look to create their own online business. Corinne Pohlmann, who is the senior vice-president of national affairs and partnerships at the Canadian Federation of Independent Businesses, noted in Yahoo Finance that it is easier today compared to five years ago when it comes to opening an online store. 

Pohlmann added that opening an e-commerce store can have high costs, however. “It’s also the distribution costs, which all add up,” she said. “The situation we are finding ourselves in today is probably going to encourage some of those [businesses] to look at other options.”

Despite this, Pohlmann noted that if a business is able to find success in e-commerce, then it may continue with an online store after the coronavirus passes. This would depend on how merchants manage these businesses, as well as if the transition would continue to be a right fit afterwards.  

“It will be interesting to see how many do make that flip and how many feel that it’s something they won’t keep doing,” Pohlmann said. 

As merchants keep up with the demand for online shopping and work to optimize their e-commerce stores, it is integral to have reliable payment processors. PayFrame takes pride in its ability to deliver more working capital to businesses across the globe. Coupled with a personalized approach when it comes to working closely with new and current clients, PayFrame is always ready to take businesses to the next level.  

To contact PayFrame, call 1-888-668-0733. Merchants may also send an email to info@payframe.com.

A merchant statement is a summary of one’s monthly fees, sales, and transactions. Although the format is not regulated with a standard, it usually contains information such as account and business information, reserve and release activity, the statement summary, the amount of funding, dispute information (in the form of chargebacks and reversals), and merchant purchases. This may be in addition to an overview of miscellaneous transactions, interchange costs, transactions such as the total amount of sales, the subscription costs, or currency conversion fees, as well as graphs that showcase sales and purchase-related trends that occur on a monthly basis.

It’s integral for a merchant to take a closer look at their merchant statements, find trends, and identify where their business requires improvement. This ensures that unnecessary costs can be cut, problem areas can be addressed with either new or improved service providers, and the bottom line meets business goals.

A key aspect of a merchant statement is the credit card processing fees section. This is an important section to go over in detail in order to ensure that one is paying the correct rates and that the business is not overpaying in processing fees. By looking over this section on a periodical basis, merchants can save on costs and improve the bottom line in the long run. 

By looking over the credit card processing fees section, a merchant can also calculate their effective rate. The effective rate as a percentage is useful when making sure that one is not overpaying in processing fees. To calculate this, one should divide the total processing fees charged by the total of processed sales and multiply the number by 100. 

Another aspect of merchant statements to think about is the interchange fees. This transaction occurs between one’s bank and their customer’s bank whenever the latter party uses either an issued debit or credit card to make a purchase. If an interchange fee is 3%, then the merchant must pay $3 when a customer makes a $100 purchase. 

As for assessment fees, they are charged by credit card networks. Examples of these networks include American Express, MasterCard, and Visa. Taking one’s interchange and assessment fees into account helps one to better understand the costs associated with their selected payment processor. 

Getting the most cost-effective credit card processing rates is important to the success of a merchant’s business. There are several ways to achieve excellent rates, and one of them is by working with a company that is transparent in their actions and puts a focus on outstanding customer service. PayFrame understands the complexity that comes with selecting the best payment options. Our experts pride themselves with integrity, honesty, the commitment to the long-term success of clients, and intimate knowledge of the credit card processing industry through countless years of experience.

For service of the highest quality and to work with PayFrame experts, contact us at either info@payframe.com or 1-888-668-0733.

Choosing the right payment processor for one’s business would improve the bottom line, as well as increase the trust between a business and its customers. The ideal payment processor should be cost-effective, secure, and transparent when it comes to its associated processing fees. 

What PayFrame does is bring the world’s top tier payment processors together. These companies then compete for a merchant’s business by showcasing their rates and fees. The merchant receives this information in an easy-to-read format, courtesy of the PayFrame team. 

The PayFrame team can provide clients with in-depth information on comparative shopping. This is in addition to walking clients through contracts and tackling questions about the latest industry trends and predictions, as the team is well-versed in the latest news. Investigating particular topics on a client’s behalf is also within PayFrame’s capabilities. The team provides professional advice, keeps information confidential, and is committed to the philosophy of ethical conduct.

If a client has questions about refunds, fraud prevention, or would like chargeback advice, then the PayFrame team is ready to have those conversations with the goal of leaving clients satisfied with answers, new insights, and suggestions. 

By being affiliated with the top processing companies, the team is flexible when working with a wide variety of businesses. 

Ultimately, PayFrame saves clients time and money while working with them side-by-side. The team is happy to walk clients through the entire process of choosing the right payment processor for your business. 

PayFrame takes pride in being able to negotiate the best payment processing rates out there on the market. What makes the team stand out is not only each member’s expertise and experience, but also the speed at which results and comparisons can be given to clients. 

To get started on working with PayFrame, a business owner should answer a few questions that pertain to themselves and their business. After receiving a selection of bids and choosing the one that would best suit the business’ needs, the PayFrame team will be in contact, review the selection, and work with the client from start to finish on completing the application process. 

To further discuss payment processing options and get the best rates possible, interested business owners may also contact PayFrame at either 1-888-668-0733 or info@payframe.com.

As a merchant, it is important to understand what a payment processor is and how it can help the bottom line of your business. A payment processor is a company that works with a merchant in order to ensure that transactions between the involved bank accounts and customers are being processed smoothly, securely, and correctly. 

When a customer makes a credit card purchase from a merchant’s store, the payment must go through a payment processor in order to check for fraud and eventually move the monetary sum from the customer’s bank account to the merchant’s bank account. Having these transactions approved and the rate of fraudulent transactions decreased not only helps with a merchant’s bottom line, but also their customer’s trust in the business. 

There are numerous ways to ensure that the customer buying experience is streamlined and secure. For one, merchants should ensure that their website is secure by using an SSL protocol, which encrypts sensitive information. Websites that are secure helps protect credit and debit card information in addition to personal information. In fact, according to research conducted by security solutions provider GlobalSign, 85% of online shoppers would not make a purchase from a website if they are unsure if their information is protected and secure.

Related to SSL, having one’s website be in HTTPS as opposed to HTTP is another important factor in security. The “S” in HTTPS stands for “secure” and indicates that the data being transferred is encrypted to protect users from theft, fraud, or even hacked accounts. Google itself has been using HTTPS as a means of ranking websites as well. For a merchant to optimize their business and be shown on top of the Google rankings, encryption is a step in the right direction. This is because it helps with driving website traffic, increasing customer trust, and making sales. 

Another method that contributes to secure online payments is the use of 3D Secure, which helps authenticate transactions. When a customer makes a purchase online, they can be prompted to prove their identity and verify the transaction through a personal code request. This may be in the form of a verification code sent to their mobile phone or even a fingerprint. Other methods of authentication and security include Apply Pay and Google Pay, which commonly require users to either enter the correct password or give biometric information. Biometric identification includes a fingerprint or facial recognition. 

This extra step in security ensures that merchants are protected from fraudulent transactions, too. According to LexisNexis’ study, merchants reported a loss of about 1.32% due to fraud and the costs associated with it. Fraud not only has a negative impact on the bottom line, but also the trust in a merchant’s business when sensitive information gets stolen.

According to another study, which was conducted by Javelin Strategy & Research, a total of approximately $112 billion was stolen from customers due to identity fraud within six years. Customers who are often victims of fraud activity neither use email alerts nor monitor their transactions carefully. Therefore, it is integral to have extra layers of security in place integrated within the transaction process.

In a study conducted by Oberlo, it was found that 1.92 billion consumers bought goods and services online in 2019 alone. By 2021, the number of people who shop online is estimated to reach 2.14 billion. In the age of digitalization and the popularization of online shopping, it is integral for merchants to keep up-to-date with the latest customer safety measures by working with secure payment processors. 

PayFrame works with business owners and top tier processors to ensure both customer and merchant security. Clients who work with PayFrame are guaranteed the best payment processing rates on the market. To contact a representative, call 1-888-668-0733 or email info@payframe.com.

As a merchant, there are several key terms that must be understood in order to streamline the transaction process between all involved parties. 

First and foremost, a payment processor is the party that ensures that the transaction process runs smoothly. This requires communicating between a bank and a merchant in order to ensure that the latter party gets their earned monetary sum. A trusted payment processor also ensures that payments are received on time and the transfer of funds between different parties is quick and secure. 

As for an issuer, it refers to a card owner’s bank. The bank is responsible for collecting payments from the customer, as well as approving transactions and sending a merchant’s earnings to their bank account. On this note, an acquirer is a bank that manages a merchant’s account and allows for the acceptance of credit card and debit card transactions. 

For merchants, there is a set of standards to follow in order to ensure the safety and security of the information belonging to all parties involved in the transaction process. This is in the form of Payment Card Industry Data Security Standard (PCI DSS) compliance.

It should be noted that PCI DSS is not a fixed checklist. Rather, it is a standard that changes with the evolving merchant landscape. In fact, on December 4, 2019, the PCI Security Standards Council (PCI SSC) published a new standard to suit the needs of contactless payment methods. This pertains to cardholders who use commercial off-the-shelf (COTS) payment methods such as smartphones and tablets. With this standard, called the PCI Contactless Payments on COTS (CPoC) program, merchants can work with payment processing vendors to get the latest lab-tested technology. 

“Contactless, or tap and go, payment adoption is on the rise globally, and merchants want affordable, flexible and safe options for contactless payment acceptance that allow them to best serve their customers,” Troy Leach, the senior vice-president at PCI SSC, said in the press release detailing the contactless standard update.

He added that in addition to the PCI software solutions that allow for contactless payments, the council’s standards and program allows merchants to use tested solutions that do not require additional hardware.

An example of a party that follows PCI DSS compliance is Visa. There are certain types of merchants defined by Visa that help determine compliance levels. The first level pertains to merchants who process over six million transactions using Visa on an annual basis. Meanwhile, level two pertains to merchants who need to process between one to six million transactions annually. As for the third level, it pertains to 20,000 to one million e-commerce transactions. Level four affects merchants who process less than 20,000 Visa transactions annually when it comes to e-commerce.  

Visa also makes a point to inform merchants about customer card data protection through the use of EMV chip technology. According to a study conducted by Visa, the use of cards with EMV chip technology is on the rise, and the use of it has reduced counterfeit fraud by 76% after merchants agreed to a chip upgrade. The study also found that the number of merchants who use the technology has increased by 219% between the start of October 2015 and the end of March 2019. To encourage the move toward chip technology and the continual use of it, Visa has put forth a Technology Innovation Program (TIP). When 75% of a merchant’s yearly transactions are from dual-interface EMV chip-enabled terminals, then the requirement to verify PCI DSS compliance is eliminated. 

Ensuring the security and protection of cardholder information in the form of names, service codes, and expiration dates among other sensitive information is integral to any business. PayFrame has an experienced team that is determined to find the best payment processor for each and every client. The company works with top payment processing companies in North America, and is dedicated to finding the best rates on the market.

To get in touch with the PayFrame team, contact either 1-888-668-0733 or info@payframe.com.

A money service business (MSB) is a financial institution that provides services that deal with foreign exchange, money transferring, dealing with virtual currency, as well as issuing and redeeming traveller’s cheques and money orders. 

MSBs can be useful and integral to communities with a lack of banks, and therefore financial services, or when an individual’s bank account is terminated and they require assistance. MSBs are also a way for individuals to transfer money to and from others both domestically and internationally. 

The speed at which MSBs can process transactions is another advantage over traditional financial institutions. This is due to the level of technology that MSBs can have that are not accessible or used by banks. In addition, working with an MSB can involve less expensive fees compared to using a wire transfer. 

In order for an MSB to operate, it must follow the rules and regulations detailed by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). Much like a bank, MSBs comply with these rules in order to ensure the security and protection of its customers. On top of excellent customer service, an MSB should encompass advantageous acquirer arrangements and a fee structure that is transparent. This ensures that sensitive customer information is well-protected and not abused.

It should be noted that there exist tensions between MSBs and banks, however. In fact, according to the Royal Bank of Canada (RBC), MSBs are part of a high-risk industry. A business owner who wishes to enroll their MSB with the bank may have to pay additional fees and be subjected to additional reviews. 

The reluctance to accept MSBs is not universal. Republic Bank is an example of a bank that is willing to work with MSBs. In fact, the financial institution has a dedicated MSB Division with experts who understand the relationship between the two different financial institutions. 

At the time of writing this article, Republic Bank’s MSB Division serves prepaid card programs, money transmission services, online alternative financial service providers, and retail storefront alternative financial service providers.

Another payment acquirer option is First Midwest Bank. The financial institution has a variety of services that pertain to, for example, operating and ancillary accounts, remote deposit capture, as well as zero balance accounts. This is in addition to financing services like revolving lines of credit sweeps, swamping interest rates, and acquisition funding. Fraud prevention and risk mitigation are other services that First Midwest Bank offers to its MSB clients. 

It is important to note that MSB owners should be prepared with all the necessary information required before setting up a meeting with bank personnel. MSBs are heavily regulated and must comply with the rules and policies outlined by FINTRAC and other legal entities. Therefore, banks are in need of transparency and excellent communication when it comes to the functions of MSBs and the type of point of sale equipment they propose to use. 

To get in touch with an expert and drive your MSB forward, contact PayFrame at either 1-888-668-0733 or info@payframe.com.