high rates on merchant accounts hurting your margins?


New rules allow merchants to add a fee for the use of credit cards. Merchants are not permitted to add a fee to debit cards.

This patent-pending technology ensures regulatory compliance by determining whether a given card is a credit card or a debit card before the transaction is processed. Zero-Cost Credit automatically applies a fee whenever a credit card is swiped or entered so that you receive 100% of the amount of your sale.

Zero-Cost Credit increases consumer fairness.

Credit cards cost more to accept than cash or debit cards. Under the old rules, merchants were not able to add fees for the use of credit cards, so they passed on this cost to all customers.

When all customers bear the cost of credit cards, the average credit card user receives a subsidy of $1,133 each year from customers who choose cash or debit. 1

1 The Federal Reserve Bank of Boston, “Who Gains and Who Loses from Credit Card Payments” Public Policy Discussion Paper No. 10-03-2010.


For more information please visit www.CardX.com

Zero-Cost Credit is a trademark of Noble Payment Technologies, LLC, D/B/A CardX. Zero-Cost Credit and the copyrighted text on this page are used under license from CardX.

Consumer Spending in November

U.S. Consumer Spending in November Boosts Economy

U.S. consumer spending accelerated in November at the start of the holiday shopping season, raising prospects for economic growth in the fourth quarter. Spending climbed 0.3 percent after remaining level in October, according to Commerce Department data. Consumer spending encompasses more than 66 percent of U.S. economic activity, and the gain dovetailed with economists’ predictions. The October reading was revised downward from a previously disclosed 0.1-percent increase, while September spending was slightly stronger than reported earlier. The spending resurgence in November was likely tempered by unseasonably mild weather causing a decline in demand for utilities, but rising wages from a tightening labor market lifted spending. Outlays on long-lasting durable products, non-durable items, and services, all rose in November. Economists could be encouraged to slightly raise their estimates of fourth-quarter GDP on the strength of the November spending boost, which has been hovering around 2 percent.

From “U.S. Consumers Lend Economy a Boost in November”
Reuters (12/22/15) Mutikani, Lucia; Saphir, Ann

Why Are Electronic Payments Important?

The Strawhecker Group, in coordination with the Electronic Transactions Association (ETA), has developed a new infographic entitled, “Why Are Electronic Payments Important?


Visa Account Updater & MasterCard’s Automatic Billing Updater

Visa and MasterCard recently released similar products: Visa’s Account Updater (VAU) and MasterCard’s Automatic Billing Updater. These products enable the electronic exchange of updated account information among participating merchants, acquirers and Visa/MasterCard card issuers.

By automatically maintaining the accuracy of customer account data, these products prevent disruptions due to account changes. They extend the life of online and offline automatic payment arrangements by helping to secure these ongoing, revenue-generating relationships, all while helping to lock in revenue, reducing processing costs, maintaining service continuity, and strengthening cardholder satisfaction.

Merchant Benefits

• Simplifies and secures account-on-file transactions

• Increases authorization approvals

• Helps increase sales and retain customers

• Reduces the costs associated with contacting customers to obtain updated information

• Cuts customer service expenses by preventing interruption of payment relationship

• Reduces opportunity for service cancellation

Cardholder Benefits

• Offers a seamless account update process

• Provides uninterrupted service from participating merchants

• Reduces negative experiences caused by declines


Visa Account Updater

BCMS Check 180


MasterCard Automatic Billing Updater

BCMS Check 180

Read more about the Visa Account Updater and the MasterCard Automatic Billing Updater to learn how they work.

For additional details and how you can enroll, please contact BCMS at (877) 861-8008.

Can You Benefit from B2B/B2G Level III Processing?

Do you currently accept payments from other businesses or Government agencies? Are you a manufacturer or distributor? If so, your account should be established as a Level III Processing account, not as a retail merchant account. Nearly 100% of businesses are set up as “retail,” which results in 30 to 50% higher costs to process commercial and purchasing cards.

Why do retail merchants pay higher fees than B2B/B2G merchants to process the exact same credit card and transaction?

Level 3 Processing for B2B and B2G BusinessesThe average storefront retail merchant processes credit cards by swiping the card at the point-of-sale.  This payment processing environment is referred to as card present or swiped.  Swiping a credit card is considered a low risk transaction. Because the physical credit card is there, you can request ID and compare signatures if you choose (less risk).

When a retail merchant types in a credit card number (like a B2B/B2G, manufacturer or distributor typically does), it’s processed as a keyed or card-not-present transaction. The cost to process keyed/card-not-present transactions goes up significantly. The cost to process credit cards increases along with the risk and/or costly programs associated with specific card types (rewards, detailed procurement reporting, etc.).

MasterCard, Visa, American Express, and Discover all provide drastically lower interchange rates (for substantial savings) for merchants properly set up as B2B and processing Commercial Cards.

How do I know if  I am processing as a retail or a B2B/B2G account?  

Contact Banc Certified Merchant Services to get a FREE ANALYSIS of your current processing rates. We guarantee that we can lower your rates or else we will give you $1,000!