By now all merchants should understand the importance of securing cardholder data.  Like other industry leaders, Vantage has been communicating constantly the need for merchants, particularly those using any type of PC based point of sale payment system connected to the internet to accept credit and debit cards, to secure their systems and networks and comply with the Payment Card Industry Data Security Standards.  

Our intent with this blog entry is to make clear to the merchant community the full financial risk of a breach.  If mag-stripe data is stored on your system's hard drive or log files and this data is stolen from your system, criminals can manufacturer counterfeit cards and use these counterfeit cards at stores to buy electronics, jewelry, etc., and you are responsible for these fraudulent card sales performed at other stores!   These compliance chargebacks can quickly add up in the tens, even hundreds, of thousands of dollars.  So until the card acceptance rules change (which Vantage is strongly lobbying for) your business is not only responsible for chargebacks on sales you make but for chargebacks on fraudulent sales made at other merchants with stolen card data from your system! 

A hacker can mine cardholder data from your system for days, weeks, or months, then wait a year or more before using the stolen data. Once the stolen cards are used, a sophisticated “Compromised Account Management System” will track them back to a common place of purchase. As the rules & regulations now stand, once your business has been identified as the compromised location, you are responsible for the costs of a POS forensics exam, remediation, mandated security monitoring, fines and chargebacks!

Protect yourself…

• Upgrade to a secure Payment Application immediately. Validate your  specific payment application brand and version number.
• In addition to upgrading your payment software, any old storage of prohibited data must be securely deleted from all systems, databases and log files. 
• Enforce network security on your POS. Insecure networks connected to the internet are prime candidates for attacks. 
• Secure remote management applications like PCAnywhere.  Turn on your remote management software ONLY when needed.
• A low tech alternative is to process your card payments using a credit card terminal not tied to your POS network. 

  If your system is connected to the Internet, hackers can compromise computer networks within your location to steal cardholder data!!  Don't think it will not happen to you.  Merchants just like you are getting compromised and it is putting their business at risk.  Please protect yourself, your business and your customer data.

  More resources available at http://www.vantagecard.com/resources/PCI_Data_Secrity.html.

Atlanta, GA, May 20, 2008 – FTRANS Corp., a provider of business-to-business and business-to-government payments processing solutions, announced its partnership with Vantage Card Services, Inc. today. This partnership brings new opportunities for both companies as Vantage Card Services will be offering FTRANS® Trade Credit Express™ to its clients, and FTRANS will be gaining new relationships with businesses and banks through Vantage Card Services.

This partnership between FTRANS and Vantage Card Services, Inc. demonstrates FTRANS’ ability to provide not only one of the newest, highest recurring revenue opportunities available for independent sales organizations (ISOs) that traditionally provide merchants with bank credit card services but also offer ISOs an innovative product that will allow them to differentiate from the competition. By offering a proven, reliable payments processing platform to its business-to-business clients, Vantage Card Services will join FTRANS in providing cost effective, efficient payments solutions to the relatively underserved small-to-medium sized business market.

“We are pleased to announce our partnership with Vantage Card Services, a national provider of payment processing services.” said John B. Hayes, CEO of FTRANS, Corp. “They are focused on providing innovative solutions and a high level of customer service to their clients, and we are happy they selected FTRANS as a preferred partner.”

“After evaluating the market opportunity for providing a payments solution for the business-to-business market, we determined that Trade Credit Express was the best fit for our clients and bank partners.” said Ty Hardison, VP of Business Development for Vantage Card Services, Inc. “We believe this solution will enable businesses to more efficiently process their payments, accelerate their cash flow, and reduce their risk in a very cost effective manner.”

FTRANS Corp., based in Atlanta, GA is the inventor of Trade Credit Express™, a business-to-business payment system that provides sellers with all of the benefits of accepting a bank credit card for payment while still providing their buyers with free and flexible business or trade credit terms. In addition, B2B sellers reduce credit risk, minimize costs, and free their time as FTRANS conducts the tasks associated with customer credit administration. The FTRANS platform allows financial institutions to efficiently and economically assume the funding role for trade credit, which is predominately seller funded– the same as financial institutions accomplished with the bank credit card system for consumer credit. For more information about FTRANS, please visit www.ftrans.net.

Vantage Card Services, Inc., a Georgia Corporation, markets and manages credit card processing services and payment systems for merchants, businesses, and banks. They currently support thousands of merchants processing millions of transactions on multiple network platforms. Catering to the sophisticated merchant, Vantage Card’s clients’ average processing volume is three times larger than the industry average. For more information, visit www.vantagecard.com/tradecredit.

Contact:
Jim Lester, VP of Marketing
FTRANS, Corp.
jim.lester@ftrans.net
678-268-4039

Effective April 4, 2008, Interlink and Pulse PIN networks dropped the max calculation from their fees for retail merchants. PIN debit has been a low cost alternative to signature debit (check cards) specifically on high ticket items. The primary reason was that the PIN networks capped the costs (ex. $0.65 max). PIN network "Interchange" has continued to increase to compete with signature debit (remember Interchange is paid to the issuers and issuers prefer to issue and promote cards that pay more when used). PIN networks continue to publish more complex Interchange charts with more categories based on type of industry.

While networks like Star continue to have max fee caps in place, the recent removal by Interlink, the largest PIN debit network, will put further pressure on all networks to follow suit to remain competitive. Sales reps that are telling retail merchants that they will offer a "flat transaction fee" or "0% rate" on debit may no longer be able to price merchants this way without marking up rates and fees elsewhere to cover the pricing risk. Keep an eye on the competition in your area and make sure you understand PIN debit pricing.

PARK CITY, UT--( April 22, 2008) - The Aegenis Group and Vantage Card Services have partnered to provide data security eLearning to merchants. The partnership leverages The Aegenis Group’s eLearning materials and data security expertise and combines it with the unique, high-touch approach to merchant services offered by Vantage Card.

“In partnering with The Aegenis Group, we are able to provide our merchants a quality educational experience that is in keeping with our dedication to servicing the merchant,” said Ty Hardison Vice President of Business Development at Vantage Card Services. “We are excited about being able to offer our merchants education that will enable them to increase the security of their customer data.”

Chris Mark, CEO and co-Founder of The Aegenis Group, added, “Vantage Card Services is at the forefront of a growing movement in the industry to empower merchants with respect to data security. By offering their merchants the opportunity to learn more about data security and its impact on the industry as whole, including the consumer, Vantage is enabling their merchants to better their data security measures and The Aegenis Group is very excited to be a part of it.”

The partnership, which launches this week, will allow Vantage Card Services to send their merchants to a unique portal (http://training.vantagecard.com) in which merchants will be able to access eLearning courses and reference material.

About The Aegenis Group

The Aegenis Group is a regulatory compliance and risk management consulting organization specializing in strategic consulting, training, and market development assistance for companies in and around the payment card industry. The Aegenis Group is the worldwide QSA trainer and is contracted with a major card brand to conduct merchant and acquirer PCI DSS training. For more information about The Aegenis Group please contact us at info@aegenis.com.

About Vantage Card Services

Vantage Card Services, Inc., was established in February of 1996 to market and manage card processing services and payment systems for merchants, businesses and banks. Vantage provides clients with payment processing consulting to address specific interchange pricing and regulations in all types of industries. Vantage caters to clients that require value, expertise and personal attention, with a core philosophy focused on merchant education. For more information about Vantage Card Services please contact us at www.vantagecard.com.

Vantage Card Services, is pleased to announce that we now offer Discover Network card acceptance as an integrated processing solution to merchants, which includes one source for settlement on a single statement as well as one source of customer service for your authorization, chargeback processing and risk management needs. Check your Discover rates at MerchantRates.com now.

Tax Bill Could Be Greater Threat Than Interchange Proposal...
Digital Transactions

A proposal, which is still being refined in House and Senate iterations, would force “qualified payment facilitators” to disclose information (file forms similar to current 1099 income forms) about each of their merchant clients’ receipts to the Internal Revenue Service for tax purposes with the idea to help identify taxable but unreported or under-reported sales. 

With this bill, merchants and businesses can simply expect more tax code complexity and higher tax compliance costs.  We would all be better off under the FairTax (www.fairtax.org)!

Charges fly over shops' credit-card fees
CNNMoney.com - USA

The public debate continues over government regulation of the card payment networks built by MasterCard and Visa. 

With more than a million new merchants signing up to accept payment cards in the past year, it is argued that the network effect balance of setting Interchange high enough to provide the banks an incentive to issue the cards, but not so high that merchants won't accept them, is working. 

A major factor behind retailers' objections is that as consumers use credit and debit cards more frequently and that the fees have also increased as the card companies have upgraded more consumers to rewards cards, which carry higher fees.

We are pleased to announce more ways for merchants to earn rewards in the Vantage Points program, a unique merchant loyalty program. Starting May '08, merchants will earn one Vantage Point for each MasterCard, Visa and Discover sales transaction processed OR one Vantage Point for every $50 in MasterCard, Visa and Discover sales dollar volume processed, whichever is Greater!

Vantage Points are redeemable for over 250 great rewards from distinguished program partners like: American Airlines, Marriott, Hyatt, Staples, The Home Depot®, Starbucks Coffee and more. In addition, Vantage Card Services has teamed up to help support the tremendous efforts of the Atlanta Community Food Bank (ACFB) with a fund raising initiative to donate a percentage of the value of each reward to the ACFB.

If you aren't receiving these benefits with your current processor, then make the easy switch and take advantage of this incentive. How much could you save while racking up the Vantage Points?

http://vantagecard.com/vantagepoints

April 2008 Interchange Overview

Visa and MasterCard have announced Interchange modifications to become effective April 2008.

Visa

Visa is implementing an International Service Assessment (ISA) fee on U.S. acquired transactions when the issuer country is foreign for both international purchase and cash advance transactions except on a U.S. military base, embassy or consulate.

Visa will modify Visa Signature Preferred card Interchange for Card Not Present (CNP), Retail and Corporate Electronic charge types as well are certain credit voucher rates.

Changes to the No Signature Required Program (US issued card transactions less than $25), which provides chargeback protection on eligible transactions for fraudulent transactions in a card present environment, is being expanded to include Supermarket Credit and Debit plus:

• hardware stores
• dairy product stores
• gift, card novelty and souvenir shops
• variety stores
• candy, nut and confection stores
• bakeries
• book stores

PIN Debit

Visa will implement changes to Interlink Supermarket and Interlink Standard rates.

Effective April 1, 2008, the following debit networks will modify their price structures as follows:

• Alaska Option will increase their transaction fee to $0.26 per transaction.
• Jeanie Debit Network will increase retail transactions to $0.20 + 0.75% per transaction, Quick Service Restaurant transactions to $0.17 per transaction, and Supermarket transactions to $0.28 per transaction.

MasterCard

MasterCard is enhancing systems to recognize Puerto Rico and other U.S. territories so transactions between merchants and cardholders will not longer be subject to cross border fees.

In an effort to penetrate growing market segments, MasterCard is introducing new incentive Interchange rates, including Core, Enhanced, World, World Elite and Debit Interchange, to apply to Insurance and Real Estate merchant categories.

To further growth in the Bill Payment market segment, MasterCard is reducing the Interchange rates associated with most consumer credit Utility transactions. Core, Enhanced and World Utilities Interchange will decrease by $0.10 and Debit Utilities will drop by $0.30.

MasterCard is requiring that Vehicle Rental transactions being submitted for Commercial T&E Rate III must include the Rental Rate with their current addendum detail.

MasterCard is requiring that transactions qualifying for Commercial Data Rate II and Commercial Face-to-Face Interchange programs include a non-zero tax amount that is within a range of 1% to 30% of the transaction amount, unless the transaction is presented as 'tax exempt' or as 'tax not collected'. Vantage will populate a 'tax exempt' indictor when tax amount is equal to zero to safe guard against potential downgrades.

Discover

Effective April 4th, Discover is reducing the timeliness for all Prime Submission Level programs by 1 day. Timeliness refers to the number of days from when a transaction is processed until it is submitted through Interchange to Discover (most industries set at 2 days). Your best practice is to settle daily.

Also effective April 4th, Discover is increasing Supermarket rates by +0.05%, decreasing Debit Express Services Interchange by -0.05%, increasing Debit Petroleum by +0.02% and Commercial Electronic by +0.04%.