how2it12.htm
Credit Card issues in general
Is activating credit cards in InfoTouch all I need to do? No. Before you can process credit cards through your business you need to talk to your bank and secure the proper merchant ID information so that the credit card and banking systems know about your business. You'll sign documents and will lock in at a credit card transaction fee schedule. There's a cost to using credit cards and you'll want to negotiate the lowest fees that you can, especially if your profit margins are very close.
What equipment do I need? If your credit card needs are rare, you can probably get by with a manual system where you insert a multi-part paper form into a card imprinter, slide the roller to print the form, fill it out manually and have the customer sign it. Another method is to use a small, Tranz-300 type terminal that includes a built-in card swiper, keypad and display. You can purchase these through your bank (cost is around $300) and they hook up to a telephone line. Lastly, you can set up your InfoTouch system to process credit cards. You computer will likely need a modem to perform the verification information over the telephone line, but as most computers come with modems pre-installed these days, you may already have the hardware you need.
Do I need a special telephone line? No, but it's a good idea to have one dedicated to your credit cards. Phone companies normally charge a bit less for lines that are going to be used only for credit card processing, and having a dedicated line means that you'll never have to wait for somebody else to get off the phone so you can sell your merchandise.
What's the difference between "authorize only" and "draft capture"? "Authorize only" merely verifies that the credit card is a valid number and that there is sufficient credit available to conduct the transaction. At the end of the day (or the next morning) you must make a manual deposit to your bank using the manual, paper credit card receipts as your source for the deposit. "Draft capture" performs the functions of authorize plus has the added benefit at the end of the day of "settling" the day's credit card transactions which triggers the banking system to automatically transfer money from the cardholders' accounts into your bank account. The money typically is transferred within 48 hours or less and you don't have to present manual transaction deposits to your bank because it's all been done electronically. "Draft capture" is the preferred method to use.
What's the difference between CES, ICVerify and PCCharge? These are the three methods InfoTouch uses to process credit card transactions, and which method you choose is usually determined by what credit card processing services you use through your bank. So be sure to find out what "card processor" your bank uses! CES CardNet (First Merchant Data Services) is one popular card processor and this capability is built into the InfoTouch software; all your computer needs is a modem to be able to process credit cards with CES. If your bank does not use CES, then ICVerify and PCCharge are other options that you can use. These are third-party software applications that can be configured for virtually any card processor on the planet, and can often be purchased right through your bank. Both products have single-register and multi-register versions (be sure to get the right one!), and their purchase prices range from $300-$900. For more information on these products, click one of these links: www.pccharge.com or www.icverify.com.
How does InfoTouch work with ICVerify or PCCharge? It uses a "handshaking" mechanism that generally works like this (we'll use PCCharge as the example here). The whole process is quite efficient, although it may look complicated:
- Both InfoTouch and PCCharge must be running simultaneously. They don't have to be on the same computer, although if they're not, then the computers must be connected through a network.
- The transaction is tendered with the credit card in InfoTouch.
- InfoTouch sends a small "request" data file to a shared workspace on the computer's hard disk where both InfoTouch and PCCharge share information with one another. The "request" data file has the credit card information and the dollar value of the sale. After InfoTouch sends the "request," it goes into a "wait" mode while it waits for an answer.
- As soon as it sees a "request," PCCharge grabs it, evaluates it, dials the card processor, transmits the card information and receives the authorization code (or rejection) from the card processor. PCCharge then writes a small "answer" data file into the shared workspace. The answer contains the authorization code. After it sends the "answer" it deletes the original request and goes into a "wait" mode for the next request.
- As soon as it sees an "answer," InfoTouch grabs it and finishes the transaction, prints the receipt, and deletes the "answer" from the shared workspace.
- After the receipt is printed, both InfoTouch and PCCharge are idle again, waiting for the next sale to occur.
Are there any other special things I need to know? Yes. You will want to adjust your daily operating procedures to accommodate credit card transactions. You will want to train your staff in how to do them, as well as develop end-of-day procedures for reconciling the cash drawer and credit card transactions. You also should know how to balance your checkbook, because the transactions will appear as deposits yet there will be card transaction service fees (often called "discount fees") that apply, so when you process $1000 in card transactions, you'll need to know why the full $1000 wasn't deposited. You should also have good rapport with the merchant service representative at your bank because he or she is your first call for help when you have a question about credit card processing.