B2B credit card processing mistakes

Uncovering Profits
that Lie Hidden in the
B2B company
Cenpos Innovative Payment Technology
Impacts EBITDA, Reducing Costs,
Controlling Risk, Creating Efficiencies
© No part of this document may be copied or altered.

Christine Speedy, 954-942-0483

“A
disruptive
innovation
is
a

technological
innovation
that
improves

a
product
or
service
in
ways
that
the

market
does
not
expect.

When
this
type
of
technology
is

introduced,
it
radically
transforms

markets,
creates
totally
new
markets
or

enhances
the
existing
market
within
its

space. Clayton M. Christensen
Harvard Business School


In a January 2009, CenPOS
launched a hosted, universal
payment processing platform to the
automotive industry, improving
processes from payment
acceptance to reconciliation and
risk management.
In 2010, we launched the B2B market.
Our Goal: Improve EBITDA

Nearly 100% of B2B companies who
learn about CenPOS request
immediate implementation. Why?
•  LOWER FEES: CenPOS automates management of credit card
processing fees, removing employees from the process.
•  RESEARCH: 7 years of receipt storage by customer name,
invoice, and more.
•  REDUCE FLOAT: Web pay page and Electronic invoices with
pay link enable businesses to collect money faster.
•  BOOST EMPLOYEE OUTPUT: CenPOS Improves employee
efficiency so they can do more in less time; boosts morale by
eliminating laborious tasks.
•  REPORTING: From research to reconciliation, the graphical and
text data, plus automated email alerts provides actionable data
without more work.


Employee actions and software
limitations largely control costs
associated with electronic payments.
Without CenPOS employees directly impact:
•  Hidden cost of higher credit and debit card
fees due to ‘non-qualified’ interchange that
costs up to .92% more on every transaction.
•  Losses from external and internal fraud.
•  Losses from check guarantee claims denied.
•  Internal identity theft and associated costs.

Four Mistakes that Cost Companies
Thousands Annually and How CenPOS
Fixes Them
1.  Relying on dumb terminals and
gateways.
2.  Relying on their payment processor to
help them reduce fees.
3.  Relying on employee’s to do the right
thing at the point of sale.
4.  Avoiding automation due to fear.

Mistake #1: Relying on dumb terminals.
Dumb terminals and gateways are
the de facto standard, including all
other virtual terminals. They pass
along limited payment data.
•  Desktop terminals are generally programmed once and never again,
yet fees and related rules are updated a minimum of twice per year.
They’re almost out of date from the moment they’re delivered.
•  Gateways can collect more information than they pass to the
processor, leaving merchants unaware they have a problem unless
they study their merchant statements.
•  The CenPOS hosted payment processing platform is the only
solution with dynamic intelligence, automatically delivering data
needed based on merchant created risk rules, federal regulations, and
interchange rules.

Mistake #2: Relying on credit card
processors for help to reduce fees.
•  Over decades processors have done little
more than offer to cut merchant discounts
when pressured. This doesn’t help when over
95% of fees are interchange, not merchant
discounts.
•  If the processor is also the bank, is there a
conflict of interest since card issuing banks
make more money on interchange
downgrades?

Mistake #2 cont’d. CenPOS reduces processing
fees automatically.
•  Automatically optimizes interchange for the
lowest qualified rate. This is absolutely
crucial for B2B, where failing to optimize
results in additional fees up to .92% per
transaction.


Mistake #3 Relying on employee’s to do
the right thing at the point of sale.
•  It’s virtually impossible to train employees
how to reduce risk and reduce costs because
the subject is too complex and constantly
changing. The MasterCard Interchange
Qualification book is over 140 pages long.
•  CenPOS prompts employee actions to the
merchants advantage.


Mistake #3 cont’d: Example- Why Relying on
Employee’s Doesn’t Work.
Manual processes don’t work. The proof is in merchant statement
interchange details: BUSINESS CARD STD, EIRF, SIGNATURE
PREFERRED CRP S, and COMML STANDARD, are all examples of
interchange qualification downgrades, transactions that could
have qualified at a lower rate, but the ‘presentation’ of data did
not match requirements so a higher rate was applied.

B2B companies typically have 20-100% nonqualified transactions, costing up to .92%*
extra, vs 0-5% non-qualified if using CenPOS.
*Based on 2011 Fall Interchange


Mistake #4: Avoiding Automation Due to
Fear of Increased Risk.
•  Nearly all B2B companies store payment data
in file drawers, or on computers, or they
manually enter every transaction. This
creates either huge risk or wasted labor.
•  The biggest identity theft growth category in 2010
was internal, in 10-100 employee companies,
often “because it was easy”.
•  Merchants used to buy their way out of trouble
from a data breach (this includes file drawer data).
Now executives can be held criminally liable
and charged with a felony.

Mistake #4: cont’d.

•  CenPOS stores encrypted checks and
credit/debit payment data for both fixed
variable amount recurring billing.
•  Rather than increasing risk, storing
Encrypted data on remotely hosted
CenPOS servers actually reduces scope
for merchant PCI DSS Compliance.
PCI DSS- Payment Card Industry Data Security Standards


A hot trend for B2B is using a Virtual
Terminal to Process Payments,
primarily authorize.net
•  There is virtually no difference for the average
B2B company, other than eliminating the terminal.
•  The merchant maintains faxed authorization forms
with credit card data for rebilling customers.
•  CenPOS eliminates faxed forms with exposed
card data, creates efficiencies for both check and
credit card processing, and reduces fees through
interchange optimization.
•  There is no comparison!

Using the Internet to Accept Payments is LESS Risky
than Dumb Terminals, but not all VT’s are alike
Other Virtual Terminals

CenPOS Virtual Terminal

Encrypt credit/debit cards only.

Encrypt credit/debit AND checking
account for ACH.

Recurring billing for same amount at
defined time intervals.

Recurring billing for same amount at
defined intervals (any date) AND
VARIABLE amount at ANY interval.

Program a web page to accept
payments on your web site. Payment
is collected on merchant server.

Add a line of html code to any web
page to accept payment. The payment
object resides on CenPOS servers.

Enter all customer billing data for each
card.

Enter multiple payment methods
under a single customer, and enable
payment cascading if auth fails.

CenPOS reduces the scope for PCI DSS Compliance,
more than any other Virtual Terminal, or dial up terminal.

Bonus: Same Benefits for Checks and
Check Guarantee
•  Automatically collects required information to
protect against declined guarantee claims.
•  Automatically steers lower risk transactions to
lower cost check conversion or ACH instead
of expensive guarantee service. Merchants
control what risk they want to self-insure.
•  Encrypt payment data for repeat billing to
corporate accounts.
•  Nobody else offers this!

Bonus: Electronic Bill Presentment &
Payment
•  Push invoices via email for immediate
payment, improving cashflow.
•  Automatically resends invoice if unpaid.
•  No login required, removing barriers for
immediate payment.
•  Pay page hosted on CenPOS servers with your
branding, reduces scope for PCI Compliance.


New Federal laws create opportunities
to reduce payment acceptance fees.
•  New 2011 law enables discounting to steer customers to lower
cost payment methods.*
•  New 10/1/2011 debit interchange rate maximum of .05% and $.21
per transaction*
•  B2B merchants average < 25% debit cards; discounting may be a
good option to try.
•  CenPOS Provides Automated Steering with Discounts. Would you
offer .5% discount to save over 1%? Of course you would!
•  * Rules and restrictions apply. CenPOS is the only fully compliant
solution available immediately for B2B merchants to efficiently
implement.


Risk Management: Nearly 100% of B2B
Companies Interviewed are not fully PCI
Compliant. CenPOS reduces the scope
for Compliance.
•  Eliminates risky practices that could result in fines,
costs exceeding $100,000, business disruption
and even jail time under a new federal law.
•  For example, CenPOS eliminates faxed credit
card authorizations, by empowering merchants
to send an electronic invoice with a payment
object, to direct the customer to a web pay
page, and to encrypt payment data by creating
secure tokens for repeat corporate sales.

The Competition
•  What competition? There is no other
solution for the B2B market today that
delivers the efficiencies, research
capabilities, risk mitigation, interchange
optimization and cost controls as
CenPOS. NONE!


Pricing & Implementation
• 
• 
• 
• 
• 
• 
• 

Easy to set up and easy to use.
No installation fees.
No upgrade fees.
No maintenance contract fees.
No per user fees.
No data storage or retrieval fees.
Pay only a per transaction fee.

Who we are
• 
• 

Christine Speedy, is owner
of 3D Merchant Services, a
leading authorized reseller
for CenPOS, and reports
directly to the CEO.
3D Merchant Services is an
independent company.
Follow my blog for payment
processing insights at
3Dmerchant.com/blog

Privately held, HQ Miami
Fl.
Universal hosted
payments platform is
flexible and scalable for
any enterprise, including
international businesses
using multiple payment
processors.

• 

Reduces internal &
external fraud, credit
card processing costs,
and manpower
associated with finance
tasks.

• 

PCI Compliant

• 

Current Markets: USA,
Canada, Europe
Caribbean (EOCS)

Universal Compatibility
examples:


FAQ
• 

• 

• 
• 

How long will it take to learn to use?
•  Self-paced video clips are 15-30 seconds each. In 15 minutes, you’ll know
all the basics to be up and running. Administrators will learn to use
additional tools and features over time.
Isn’t using computers riskier than paper? NO! The risk of financial
consequences from storing data in file drawers is far greater. No data is ever
stored on your computers when using CenPOS. Merchants should have a
network vulnerability scan in their standard course of business.
Do I have to change credit card processors? No. CenPOS is compatible with
most major credit card processors and several check processors.
Do you offer credit card processing if I want to change? As your
independent reseller, Christine Speedy, has CenPOS compatible options for
you.


Contact and more info
•  Cenpos.com
•  3Dmerchant.com/blog
•  USA/ International Sales:
954-942-0483 direct line, Christine
chrisAT 3Dmerchant.com
3D Merchant Services / Christine Speedy is a
CenPOS Authorized Reseller and independent company.


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