New York SBDC Research Network

by Ben Luthi From NAV If you’ve ever applied for a business credit card, you probably noticed that the application asked for a Social Security number, even if you have an employer identification number. This is primarily because most business credit cards require a personal guarantee. In other words, if your business can’t repay the debt you incur on the card, you’ll be responsible as the guarantor to pay it with your personal assets. As such, even small business credit cards for bad and fair credit require a credit check, because the card issuer needs to know how likely you are to repay the debt if your business can’t. In general, there’s only one type of business credit card that you can get without a personal credit check, and that’s a corporate credit card.

From eMarketer.Retail According to a March 2018 survey of US B2C retail executives by 451 Research, commissioned by Adyen, 78% of respondents said they're considering cashless stores that only accept credit cards and other digital payment options. In contrast, 36% of operations managers, essentially those that are more involved with the customer journey day to day, were in agreement. And their differing views don't stop there. Retail executives were more likely (81%) to say they saw an increase in customers using their mobile devices while shopping in-store—either for coupons, payments or product information—than operations managers (53%). In theory, cashless stores may reduce friction at checkout, which is often caused by long lines

From:   U.S News Access to credit can be difficult to come by and expensive for small businesses. Small business credit cards can be flexible, invaluable tools for business owners facing short-term cash crunches. Interest rates can be lower than they are for other convenient sources of credit, such as advances against accounts receivable or credit card receipts and unsecured loans available from small business lenders on the Internet. Thanks to credit card incentive and rewards programs, it may make sense for business owners to route as much of their normal expenses as possible through their business credit card. If you spend a significant amount on business expenses each month, you should consider applying for a business credit card. However, it’s important to understand the benefits and drawbacks of business credit cards as well as the wide array of offerings on the market. Business credit cards provide business owners and entrepreneurs instant and convenient capital th...

From:  eMarketer.Retail The rollout of EMV chip cards in recent years may have deterred criminals from making fraudulent in-store purchases, but it hasn’t stopped them dead in their tracks. They simply found a new target: call centers. Call center fraud rates have increased steadily every year since at least 2013 and more than doubled between 2015 and 2016, according to an annual call center fraud study by the research lab of Pindrop, which helps financial institutions and retailers battle call-center fraud. It counts among its investors Google Capital and Citi Ventures. For retailers, so-called chargeback fraud is the most common: Criminals call a retailer, make a fraudulent purchase using someone else’s identity and credit card number, and have the product sent to another address. Loyalty cards also have surfaced as a major area of attack as criminals use them to cash out reward points, said David Dewey, director of research at Pindrop Labs, in an interview. The report...

From MarketingProfs When businesses accept credit cards as a payment option, they run the risk of being faced with chargebacks: when credit card users dispute charges on their accounts and demand to be reimbursed for the purchases. Chargebacks were designed to help credit card customers protect their accounts, and they still do, but they can also become a nuisance for businesses: Dealing with chargebacks can take valuable time away from employees, and it can be costly. Moreover, frequent chargebacks can affect a company's ability to maintain a merchant account and accept credit card or ACH payments. Also, merchant account providers can impose steep fines associated with high chargeback rates, or they can put funds on hold. All of that makes reducing the occurrence of chargebacks crucial. The first step in doing so is to determine the causes of chargebacks. Sometimes, unhappy customers issue chargebacks in an attempt to get their money back without having to communicate wi...

Did you know that an important shift is occurring with card payment technology that might impact your business? Keeping up with the newest, most secure card payment technology is very important for small business owners. SBA has teamed up with Square to help small businesses navigate the upcoming transition from magnetic stripe to chip card technology. Webinar | What Small Businesses Need to Know About The Switch to Chip Card Technology Wednesday, August 26, 2015 | 2:00 pm ET REGISTER NOW !

As an entrepreneur, you’ve got 100 things to check off your list before you can open for business. Among the most important, but often overlooked, is providing a means through which your customers can pay you. Given that over 75% of transactions involve either a debit, credit, prepaid, or gift card, that means finding a credit card processor. For most entrepreneurs, the search for merchant services starts with their bank, as most banks either offer their own credit card processing service, or have a relationship with a provider that they recommend. Although you may love your banking services or trust the brand name you’ve seen over the years, those credit card processing companies generally aren’t the best solution for startups, because they are expensive and because they don’t offer the flexibility or services provided by startup-oriented providers. While compared to choices that startups face like where to sign a lease, or what equipment to buy, choosing your credit card proces...

From Credit Card Forum : Before he got a credit card for his cellphone repair and parts wholesale business iPhillyfixit, founder Corey Bates used PayPal’s small business funding services. Unsatisfied with the delays in getting money, he got a credit card from Citizens Bank. Getting a credit card for his business was a good move, Bates says, and a smart way to keep on top of his finances as his business grew from an eBay-based side gig he started in 2010 as a high school student to a venture that allowed him to quit his restaurant job, join forces with a new partner and open up a shop in Drexel Hill, Pennsylvania. In addition to letting him redeem reward points for cash back, helping him keep track of his businesses expenses and soothing tax headaches, the card gives him financing flexibility. “If you do need to buy something and don’t have the money at the moment, you can buy it and pay it off within the month,” Bates says. Indeed, business credit cards have much to offer smal...

Most chargeback situations arise at the point of transaction—at the time the transaction is completed—and most can be prevented with a little training. Consider these 16 tips to avoid potential chargebacks .

The first thing you should know is that there are a series of what are called interchange levels which affect the cost of a charge at every stage, depending on a number of factors—including the type of card presented, specific information contained in the transaction and how/when the transaction is processed. Here are tips on how you can prevent being assessed higher processing fees .

Startup Rates Where are the jobs created? New or existing businesses? What is the level of availability and coverage of health insurance in small firms? Do economic or industry factors affect business survival? What is the difference between self-employment nonemployer businesses and sole proprietors? Credit Card Financing and Small Business Read all about these topics HERE .

You might have heard about MasterCard and Visa agreeing to pay more than $6 billion to settle accusations that they engaged in anticompetitive practices in payment processing . The tricky side effect, though, is that, assuming a judge approves the settlement, merchants can now "charge higher prices to consumers who decide to pay for their purchases with credit cards...Until now, the card companies banned merchants from adding such a surcharge, although gas stations and other retailers sometimes offered a discount for customers who paid in cash." Frank Keating, the president of the American Bankers Association said: "Let’s be clear — retailers, not consumers, benefit from today’s resolution." And it apparently didn't hurt MasterCard and Visa . On the stock exchange Friday, "Visa rose 2.3 percent to $126.91 in extended trading in New York. MasterCard advanced 2.9 percent to $442." "Defendants in the case include Bank of America Corp., Citigroup ...

One of our counselors asked: "I have a client who is looking for ways to cut her credit card processing expenses and is considering charging her credit card customers a $1 fee per transaction. I looked into this a couple years back when another client had a similar question and now can’t seem to find that information again. But, I recall that I had discovered that charging such a fee is against the merchant’s agreement with the credit card companies." This led to a vigorous online discussion. As it turned out, I did address this in the second half of this post , but that was five years ago. Has anything changed? I went to the sources, and included some related issues. MasterCard Rules (PDF) 5.8 Card Acceptance Requirements (start on p 122) 5.8.1 Honor All Cards A Merchant must honor all valid Cards without discrimination when properly presented for payment. A Merchant must maintain a policy that does not discriminate among customers seeking to make purchases wit...

This page contains credit card statistics -- including statistics on credit card debt, credit card delinquencies, credit scores, credit card interest rates, bankruptcies, average credit card debt and more -- compiled by the CreditCards.com staff.

Building good financial credit is important. It can affect your ability to make large purchases and qualify for a loan or mortgage. Learn more about credit: How Credit Works Why Credit Scores Matter Build a Better Credit Report General Credit Tips

How to accept credit card payments on your site without a merchant account Why Do It? Credit card payments allow you to take advantage of the following types of customers: 1.Impulse buyers. 2.International customers. Methods of Accepting Credit Card Payments There are actually two ways in which you can accept credit cards on your site. 1.Using Your Own Merchant Account. 2.Through a Third Party Merchant. Which Method Should You Use?

In answer to a question about websites or other resources that offer free credit score information, as opposed to just free credit reports , a colleague pointed out a Wall Street Journal article, Credit Scores: Can You Get Them Free? If you are curious about your credit scores, you may have tried one of the plethora of Web sites and services that offer some free credit information, then lure you into paying for your scores, usually as part of a credit-monitoring package. Consumers are entitled by law to a free credit report— which is simply a record of your borrowing and repayment history — but the numerical scores derived from these reports will cost you, in part because credit-reporting agencies aren't required by law to provide them for free to consumers along with the reports. Now, a handful of companies are launching services that give consumers at least a glimpse at their credit scores free of charge. The sites— Credit.com Inc., Credit Karma Inc.'s CreditKarma.com and Qu...

The NYS SBDC Central office has been getting an inordinate number of pre-recorded phone calls lately. Many of them are apparently random-number generated and have messages that start: "We're pleased to let you know that you are eligible for our debt reduction service..." Quoting Simon & Garfunkel: "And blah, blah, blah." Since someone has recently asked us about how to build their credit, here are some do's and don'ts. DO establish credit by getting at least one credit card. DO choose a credit card wisely . DON'T, if you do get into credit difficulty, hide the overdue bills in a drawer, but rather talk with your creditors. DO get your credit report . You can get it for free . DO dispute credit report errors - yes, they do make mistakes, especially if your name is common. DON'T believe claims such as "We can erase your bad credit — 100% guaranteed" . DON'T try to hide unfavorable credit information by establishing a new credit ...

The National Small Business Association's 2009 Small Business Credit Card Survey (12 pp PDF) "provides a detailed view of how small businesses are utilizing their credit cards , how their credit-card companies are treating them, and the impacts of deteriorating credit-card terms on their business. Small business credit-card usage is on the rise..." SMALL BUSINESSES Using credit cards in the past 12 months to finance their firms December 2008-49 percent April 2009-59 percent. Reporting worsening credit-card terms December 2008-69 percent April 2009-79 percent reported worsening terms Experiencing credit-card issuers reducing credit lines December 2008-28 percent April 2009-33 percent Paying off their credit cards each month December 2008-50 percent April 2009-40 percent "In past recessions , economic recovery has been led by the creation of millions of new, small businesses. However, unlike previous periods of economic uncertainty, today’s entrepreneurs are severel...

Goodbye Credit Card Rate Hikes? The good news: The Federal Reserve passed new rules to improve disclosure and prohibit unfair interest rate hikes among card companies in December 2008. Specifically, the new rules will: --Require that consumers receive a reasonable amount of time to make their card payments --Forbid the use of payment allocation methods that unfairly maximize interest charges --Provide consumers protection from unexpected interest charges, including increases in the rate during the first year after account opening and increases in the rate charged on pre-existing credit card balances. --and more The bad news: the new rules don’t go into effect until July 1, 2010. In the meantime, go to this page to find credit card-related statistics -- including statistics on credit card debt, credit card delinquencies, credit scores, credit card interest rates, bankruptcies and more -- compiled by the CreditCards.com staff.