Chip Credit Card Reader

The sweeping change from magnetic strip cards to chip cards has brought about some expected, as well as unexpected, changes.  We wrote about chip cards last October (read it here), detailing some of the benefits and risks behind the change.

While the chip card is designed to protect consumer information and minimize fraud, it seems that the downside for merchants is greater than expected. According to Olga Kharif (Bloomberg) in her article “Chip Cards Slap U.S. Merchants with Unexpected Higher Fees”, just since October some merchants are already seeing a nearly 20% increase in debit transaction fees.

In addition to increased fees, increased fraud liabilities for merchants, and as much as a $600 price tag for required new payment terminals, it turns out that nearly 2/3 of the new readers are incorrectly installed.  This is causing the readers to favor debit payment networks from Visa and MasterCard, rather than other possibly less expensive systems.

The result is increased fees for business owners (mostly small to midsize business owners), fees which could be as much as $7,000 for one small business owner, who is quoted in the article.  But even the world’s largest retailer, Wal-mart, has filed a complaint in New York regarding the questionable processing practice, stating, “Visa stands to make more money processing those transactions.” 

While consumers may not care about added costs to merchants, they should, because if it costs merchants (whether small businesses or Wal-mart) more money, it costs everybody more money.

What our clients are saying:

Excellent Results

"We have been using Credit Service Company since July of 2011.  During this time, I have been nothing but pleased with the service we receive. "

Good Experience

""Our company has had very good luck using Credit Service Co. to collect on past due bills. We have had an all-around good experience." - Ellen S.  "

Great Service

""Great Service!" -Janice L.  "

Always Satisfied

""I have been using Credit Service for my collection needs for over 20 years and have always been well satisfied with their service." - Steve Mcallister, owner, Royal Janitorial "

Friendly and Helpful

""We have been using Credit Service Company for many years and are very happy with their service…so friendly and helpful!" -Leslie S.  "

Always Very Professional

"Have been working with this company for years.  Always VERY professional.  Keep up the great work!"

Great Company and Great People

"Great company and great people!! Thank you for your efficiency and courtesy!" - James K."

Provide Excellent Customer Service

"I am pleased to recommend the services of Credit Service Company.  Our emergency medical clinic has used Credit Service Company for the past 9 years.  During this time, they have always provided excellent customer service to our customers and given us no cause for complaint.  We have found them to be sincere, professional, and efficient in the collection of accounts. ~Emergency Medical Clinic Business Office Manager"

Very Helpful in Advising

"I wholeheartedly recommend Credit Service Company.  They have been instrumental in collecting fees owed that otherwise would have been lost to me.   "

"Proficient at handling large volumes of past-due accounts."

"During my 30+ year tenure as a Business Office Manager for a flagship hospital, a very solid and profitable business relationship was maintained with Credit Service Company. "

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