Posted by Lisa Hephner

You’ve surely heard it 1000 times before…follow the rules! When it comes to ACH Transactions—transfers of money from your customers’ bank accounts into yours—following the rules for proper authorizations is critical to ensuring that you can defend yourself in the event that one of your customers disputes a charge.

The good new is that with ACH, unlike with credit cards, as long as you have the proper authorization you will prevail.

There are only three reasons an ACH transaction can be disputed:
1. It was not authorized by the account holder
2. It was for an amount different that the amount authorized by the account holder
3. It was executed on a date prior to the date authorized by the account holder

In order to dispute a charge, the account holder must file a signed complaint with his/her bank that states, under penalty of perjury, that at least one of the above conditions is true.

Disputes around amount and transaction date are generally clear cut. Where merchants typically find themselves with problems is understanding and obtaining proper authorization for the ACH transactions they process.

NACHA, the organization governing all ACH transactions, has created a number of transaction types and authorization processes around each one that are commensurate with the risk associated with each type. Thus, there are more onerous requirements for processing transactions authorized over the phone than for electronically processing paper checks. These authorization processes are designed to protect both the business and the consumer, and have resulted in ACH being more secure for both parties than traditional paper check processing—as a consumer’s account information actually passes through fewer hands with ACH.

The following are the most common ACH transaction types (or entry classes, to use NACHA’s language) used by small businesses:

• PPD—written permission for the ach debit required (a paper check does not constitute written permission for a PPD transaction)

• TEL—permission given over the phone, requires specific authorization language that is recorded or is emailed/faxed/mailed before the transaction is processed

• WEB—permission given over the web, requires specific authorization language that is actively acknowledged by the customer

• ARC and BOC—paper checks converted to ACH, requires notice to customers that checks may be converted

The key to processing properly is to submit the transaction using the entry class for which you have authorization. If you do not, and the transaction is disputed, you will not be able to defend the transaction. For example, if you have a paper check that a customer mailed to you, but you processed the transaction as PPD instead of as ARC, and the customer disputes the charge, the customer will get his money back—even though he sent you a perfectly valid check.

If your head is now spinning, and you’re more confused than ever about ACH payment processing, take a deep breath and relax—not only can your payment processing system help you navigate the maze, it can even prevent you from making potentially costly mistakes.

This was not always the case—in fact, many older systems are actually designed in a way that puts your business at risk, because they assigning a single entry class to all of your transactions. The best new systems, like PaySimple Solution 2.0, not only enable you to process multiple transaction entry classes they also include programming that actually prevents you from selecting the wrong one, as well as features that make using appropriate authorization language automatic.

A few examples from PaySimple 2.0:

• All ACH payments processed from a PaySimple web payment forms are automatically coded WEB by the system.

• NACHA rules prohibit authorizing recurring payment schedules over the phone, thus TEL is not an option on the PaySimple recurring payment entry page.

• Email receipts contain required NACHA language based on entry class selected

Web payment forms automatically include NACHA required components

Additionally, PaySimple provides authorization form and telephone script samples, suggested invoice and office signage language, training materials for your staff, and education materials for your customers—to help all involved easily and comfortably transition to ACH processing.

Ultimately, it’s up to the business to ensure that proper authorizations are obtained for all transactions. But that doesn’t mean that technology can’t make it easier. So, as a small business owner, take a look at the ACH payment processing system you are using and ask yourself:

• Is it helping my business operate more efficiently?

• Does it help me avoid common mistakes and pitfalls?

• Do its limitations put my business at risk?

If you don’t like the answers, its time to upgrade—properly implemented ACH payment processing is a win-win for both your business and your customers. Doing it right is easy, with a little help from the right electronic payment processing solution.

Popularity: 14% [?]

Technorati Tags: ACH, credit cards, check, NACHA, payment processing, business, electronic payment

Posted by Sarah Jordan

It’s easy for small businesses to get lost in or ignored by the media. Small businesses don’t have the extensive ad budgets, celebrity spokespersons, or brand recognition that large corporations do. And although they are innately involved in our communities, make charitable contributions, and even volunteer employees to participate in fundraisers, they don’t make billion dollar donations (think Warren Buffett and Bill Gates), sponsor rock concert benefits, or make the cover of TIME.

However, once a year—as occurred last week—small businesses are thrown into the spotlight. This year it’s important to note that National Small Business Week took place while the economy is taking a downturn—when it seems the nation was already looking to small businesses to pull it back up. And it doesn’t take a celebrity endorsement from Bono to see why:

Each year, the 26 million small businesses in the United States:*

• Generate two-thirds of all new jobs
• Employ over half of the country’s private sector workforce
• Represent 97 percent of exporters
• Represent almost 100 percent of all employer firms
• Generate a majority of the innovations that come from US companies

Of course, if you’re a small business owner, you probably already know all of this and thinking, if the nation thinks we’re so important, then why not throw us a freakin’ bone. The good news is, it may be coming closer to happening. There have been small steps taken since 2000, but here is a list of some current proposed legislation that could lend some support to small business success:

• Small Business Expensing: Now businesses with up to $325,000 in new investments (rather than $200,000) can immediately expense the first $40,000 (currently $25,000), rather than depreciate it.
• Simplified Taxes: The final rules will be announced shortly by the Treasury Department that will allow businesses with less than $10 million in gross receipts to use cash accounting rather than accrual accounting—greatly reducing the amount of paperwork and time required to file taxes.
• Death Tax Repeal: The tax burden for family-owned businesses passed down through generations would be greatly reduced.
• Association Health Plans: The theory is that by pooling together small businesses into “associations,” they would have the same purchasing power health insurance benefits as large organizations.
• Improve Medical Savings Accounts (MSAs): By removing the cap on the volume of MSAs and lowering the required deductible for both individuals and families, small businesses and their employees can take advantage of more of the benefits of these tax-free health insurance savings accounts. See full legislation details

Now, whether this legislation passes and is implemented is still to be seen. But we the employees and owners of small businesses can all hope that perhaps the focus on nationwide small business success will last for more than just the duration of a week or a recession.

*Stats from http://www.score.org

Popularity: 13% [?]

Technorati Tags: large corporations, National Small Business Week, small business, legislation, recession

Posted by Elissa Beckman

Yesterday I experienced a situation straight out of the movie Pretty Woman (not in the way you’re thinking). Similar to the scene in which Vivian is snubbed in a Rodeo Drive store because her appearance did not fit one of a “Beverly Hills Shopper,” I was told I had to leave a networking event…all because I was not wearing a business suit.

As the Empowerment Director of PaySimple (empowerment = an innovative and uplifting spin on human resources), I was invited to attend a networking event at a local university’s business school. I immediately saw this as a great opportunity to meet potential candidates to fill the approximately 10 positions that we are currently hiring for, and also an opportunity to tell the Denver business community about how PaySimple is, in my opinion, the best company to work for in Denver.

One of the very convenient perks of working at PaySimple is our attire is as casual as our atmosphere. For the most part we wear jeans and performance outerwear that we acquire at the Patagonia store across the street on sale days. (Other perks include Yoga Tuesdays; Kickball Wednesdays; catered lunch on Fridays; reimbursements for gym memberships; RTD Ecopasses; and our loft office downtown with a basketball hoop, foosball table, and hockey net). So I didn’t think twice when I left work for the day to attend the networking event in my jeans. However, the event greeter took one look at what I was wearing, and told me immediately that I could not go in because I wasn’t wearing a suit. I must say that I was initially shocked, since I am thankfully so far removed from the idea of having to actually wear a suit. Because of this, I am sure the look that I gave her was priceless.

As I walked out the door, I felt slightly awkward and embarrassed, but the more I thought about it, I started to chuckle. What is the actual point of wearing a suit to work anyway? To me, suits are just an uncomfortable way of conforming to corporate America. And why would I wear a suit to a recruiting event, especially since I feel it is a misrepresentation of PaySimple’s culture? PaySimple strives to make our customers comfortable by simplifying the process of accepting payments and getting set up with a merchant account. Similarly, we strive to make our team members comfortable, and a great way to do this is allowing them to wear clothes that they are comfortable in. I can speak for PaySimple when I say that we genuinely appreciate this luxury, as do candidates that come to our office to interview, and that brought a smile to my face.

So just as the salesperson missed out on the commission for dissing Vivian, the university business students and alumni missed out on an opportunity to learn about an amazing, growing Denver company. And all because I wasn’t wearing a business suit.

Popularity: 12% [?]

Technorati Tags: business suit, human resources, networking event, merchant account

Posted by David Sharp

Have you ever slowed down to ask what comprises the cost of accepting a credit card, better known as the Discount Rate? Why does this cost vary from one transaction to the next? To understand best, I encourage you to step into the shoes of your valued customer, the consumer. The average American carries 4-5 bank issued cards in his or her wallet and utilizes them to finance transactions, expedite the transaction at the point of sale, and in many cases, to take advantage of the benefits these plastic cards give back.

The consumer’s choice as to which card to draw from his or her wallet is generally based upon the answer to one key question…”What’s in it for me?” The list of incentives made available to the consumer by the card issuing banks is extensive. Ranging from signup bonuses and teaser introductory rates to cash back incentives and airline miles, consumers receive tremendous benefit from the issuing banks for their day to day purchases. Financing these incentives sounds like the issuing banks’ problem, right? Not exactly.

The largest component to PaySimple’s competitive discount rate and merchant account is the cost of Interchange, which we collect from you via our discount rate and pay to the issuing banks, in large part to fund the consumer incentives I’ve mentioned. At the end of the day, there is very little that you can do as a small business owner to reduce your cost of credit card acceptance while continuing to satisfy your customers’ need for choice.

Just as you provide a breadth of products and services for your customers to choose from, I would encourage you to provide equal choice to them for their form of payment. The PaySimple Solution accepts all of the major card types and allows for alternative payment methods, such as ACH direct-debit, helping you to minimize your overall cost of payment processing.

By allowing your customers to make payment with the credit card or other remittance type of their choosing, you’re increasing their convenience. You will attract new customers to your business, build customer loyalty, and potentially increase your customers’ average purchase amount. The impact on your net revenue growth will likely offset the variance in Interchange expense and yield maximum growth to your enterprise.

Popularity: 13% [?]

Technorati Tags: credit card, point of sale, signup bonuses, Interchange, small business, customers, ACH, payment processing, net revenue

Posted by Eric Remer

There is a line in the middle of everything we do, in the middle of every decision, in the middle of every action. The line is really a question: Is this selfless or selfish?

It is my belief that all selfless actions ultimately yield the highest of selfish returns. We are by nature selfish beings, as whatever we want for ourselves is by virtue of wanting it, selfish. Which, in my view, is neither a good or bad thing, it just is. With that said, how do we shift our daily focus of our true intentions on selfless actions that are focused on much more than fulfilling some innate desire, and provide platforms of empowerment for those we come in contact with?

More importantly, how does this relate to business? Business is just a platform for our daily lives; all actions that empower our lives empower our businesses. However, the questions that most of us have are, “How does this really help my business? How does this bring in more customers, increase revenue, generate greater overall business success?”

Below are examples that can best demonstrate the power of selfless intention:

Team: We all know that businesses are all about the people. The collective energy that the team brings every day is the number one factor of success in any business. A business cannot really thrive without great talent that is motivated, validated, and excited to be a part of something that empowers their personal and professional growth.

Selfishly, I am very aware that when I focus my selfless true intention on these developments in my own business, with no ulterior motives, that I will be surrounded by a group of people that empowers me, our customers, and their fellow team members to the highest level of success. This atmosphere attracts more great team members, more customers, more business partners, increased revenue, and ultimately greater overall business success.

Customers: I am sure many people are reading this and saying, “That’s great, but how does that help grow my customer base and pay the bills?” The answer is, if your authentic intention is truly focused on helping your customers succeed. Then selfishly, customers will flock to you.

Selflessly, we focus all of our intentions on genuinely helping to simplify and empower the lives of small business owners. Disclaimer: I’m not here to say that we are perfect, don’t make mistakes, or don’t drop the ball at times. But from the design of our electronic payments technology, to the way we answer the phones, fill out applications, and provide support, our core focus is directed at helping small businesses succeed—which is not always the case for small business marketers.

Each and every person we touch on a daily basis should feel our true intent to help him or her. Selfishly, I am very confident that if we are able to execute on that intention, we will accomplish tremendous growth.

The reality is you can always have selfish when you are focused on selfless, but it never works when you start on the other side of the line.

What side of the line do you operate your business?

Popularity: 14% [?]

Technorati Tags: selfless, selfish, Business, small business, technology