Swiped vs. Keyed (1)

1

• Choosing the Right Type of Merchant Account for
  Your Business

2

• As a member of the business community, you know
  the importance of keeping lines moving and
  customers happy.
•  
• Creating and maintaining an efficient credit card
  payment process is the key to a smooth merchant
  experience, for both your business and your
  customers.
•  
• By accepting credit card payments for goods and
  services, you are counting on a simple process of
  turning credit into cash flow.

3

• In order for a merchant to get paid when a
  customer uses a credit card, they must have a
  merchant bank to process the transaction.
• The intricacies of processing a credit card are
  not always as simple or transparent as one might
  think. Many factors determine charges accrued by
  the merchant, including
• Business size
• Type of credit card used
• Type of merchant account needed to process the
  payment

4

• Merchant accounts are defined by the way in which
  the merchant bank can process the credit card
  information.
• There are two methods through which credit card
  information is processed
• Swiped the magnetic strip on the back of the
  card is swiped through a terminal
• Keyed the numbers on the card are manually
  entered into a terminal
• However, these two methods are not created
  equally!

5

• When a customer pays with a credit card, the
  merchant is charged a fee this fee is based on
  the variable rate determined by the interaction
  of the customers bank and merchants bank.
• These rates fluctuate based on the amount of risk
  each transaction poses to the banks involved.
• Every card type used in each way possible has a
  unique rate, and merchants are responsible for
  paying the following in order to be able to
  accept credit cards as payment
• Dues
• Fees
• Assessments
• Network charges
• Mark-ups

6

• Due to the fact that a cardholders identity and
  card authenticity cannot be physically verified
  at the time of purchase, there is always an extra
  charge for keyed transactions.
•  
• The easiest way to reduce credit card processing
  risk is by eliminating or minimizing keyed
  transactions.
•  
• The ultimate cost-saving solution is to find the
  best merchant credit card processor for your
  business.

7

• Making the right payment processing choices for
  your business can decrease all of your
  transaction costs.
• There are services available that will take your
  business to the next level. By getting you paid
  faster and minimizing fees, you will be assured
  to increase your business profits.

8

• The benefits of retaining a credit card
  processing service are not just monetary. 
• Finding a service that will take the time to get
  to know you, understand your business, and
  fulfill your credit card processing needs at the
  best rates, will give you invaluable peace of
  mind.

9

• Leap Payments is an industry leader in credit
  card merchant services, taking pride in ensuring
  your payment processing needs are met with cost
  savings in mind. They strive to offer the most
  comprehensive credit card processing solutions,
  with the highest quality customer service, so you
  can run your business with confidence.
• Find more information about their services and
  products at www.leappayments.com or call
  1-800-993-6300.

10
Sources

• www.leappayments.com/about-us/
• http//www.us-banks.net/merchantservices/types.htm
  l 

11
Summary

• Do you know the difference between swiped and
  keyed merchant accounts? This presentation
  explains the basics you need to know for your
  business. As industry veterans, Leap Payments is
  the ultimate resource for all of your credit card
  merchant services, so you can handle your payment
  processing with confidence and maximize your
  profits.