How Bitcoin is Impacting Today’s Currency

Jan 7, 2018 by admin

Article submitted by NYC Generation Tech.

Summary: Cryptocurrencies have become a hot topic recently. Continue reading to see how Bitcoin is impacting currency today.

One of the latest trends that has been getting quite a large amount of buzz recently is ‘cryptocurrency.’ A cryptocurrency is a digital form of currency in which encryption techniques are used to generate more units of the currency. The concept of a currency that is decentralized, and thus not bound to a specific country or region of the world, is not new.

BItcoin, arguably the most famous cryptocurrency, was launched in 2008 but has only recently started to transition from the realm of niche communities to a concept the average consumer has at least heard of. Still, the question of how impactful Bitcoin has been on digital currency still stands. Is this a fad or does it have serious potential to change how we handle currency?

More of an Asset

When Satoshi Nakamoto first came up with the idea for Bitcoin, he intended for it to be used as a peer-to-peer electronic currency that did not require regulations from banks or other large institutions. Over the past year, Bitcoin has jumped from $777 to a high of $17,000 and currently sits just above $11,000. The value of a Bitcoin is currently rising and falling by too much for it to be taken seriously as an actual form of currency. Merchant account companies work to offer reliable methods of handling credit card transactions but there aren’t any quick and affordable methods to handle Bitcoin transactions yet. Rather, Bitcoins have mainly been used for investments, quite similar to how someone would invest in a stock in hopes of its value eventually increasing, ultimately yielding him or her a profit.

Not Widely Accepted Yet

In order for Bitcoin to be treated as a currency, it has to have a value that can be conveniently exchanged for goods or services. As it currently stands, a reasonable payment gateway to handle Bitcoin transactions does not exist. Exchanges can be lengthy and expensive, with transaction fees averaging over $11. This could discourage both stores and consumers from using the currency like they would a US dollar. It would seem impractical to buy a pack of gum or a sandwich, for example, if the transaction costs ended up exceeding the actual costs of the goods.

 

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How Merchant Processing Services are Countering Global Transfer Theft

May 11, 2017 by admin

Summary: Transferring money to another country? You’d best carefully select a merchant service that implements the highest security measure available.

One of the most challenging tasks that merchant services must face is the global transfer of money. You’ve heard the stories of fraud, theft, and corruption all over the news, so it’s likely that you’re skeptical when wiring money overseas. And to add fuel to fire, the transfer must stop at multiple points, increasing the risk of it being hijacked by hackers. This guide is designed to showcase the increasing level of security being implemented by merchant services to minimize the risk of transfer hacking.

How Secure is Secure?

When a credit card merchant account first authorizes the transfer, they provide a secure means beforehand. This is done via SSL encryption to help keep the transfer anonymous to others – and with the amount of sensitive data such as account numbers floating around, it’s absolutely mandatory to keep this secure.

When a credit card is swiped or processed, the payment gateway will search for authorization. Once it receives confirmation, it will tag the transaction with a key that matches the user’s bank account. Now, transferring money overseas isn’t much different from this. The fact that it requires travelling through different countries before reaching the destination may require additional days to complete, but more notably, it also presents a security risk if these financial institutions are negligent in their transfer operations.

The Bottom Line

In order to protect global transfers, companies need to ensure that they take the proper security precautions to ensure that the money is kept safe and reaches the destination unscathed. With fraud and theft increasing at an alarming rate, new technologies are being scrambled together to counter these hackers.

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Credit Card Safety Policies for Your Store

Dec 22, 2016 by admin

Credit card machines have evolved to provide better security for the payment information passed to and from your bank to a customer’s account. Behind-the-scenes, you don’t really need to do much other than setup the account properly and test it to make sure it works. Still, it’s important to have good security policies you can use for employees in house.

Limiting Exposure

Your credit card processor will handle of the sensitive data, but your employees should try and limit the amount of times where they have to deal with the full number for a card. Avoid keying things in, or require manager approval when typing a credit card number into the terminal, and never have employees write this information down. If they need to call a customer’s card provider, or leave the terminal for any reason, the customer and card should accompany them.

The less time you spend with sensitive data, and the fewer opportunities you have to record that data, the better for you and the liability your company faces.

Tracking Terminals

Every employee should have some kind of login ID they use to sign into your store’s credit card terminals. That login should tell management who used a terminal, so you can lookup transactions and identify who rung them up if something goes wrong.

Final Thoughts

If you’ve not already done so, upgrade your store’s payment system so you’re utilizing modern technology. Then, enable chip readers at the register so you can take the more secure form of payment instead of the outdated magstrip.

 

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Know the Lingo: Basic Terminology for Merchant Accounts

Jul 12, 2016 by admin

When you’re trying to research something new, like credit card processing, you’re going to need some foundation for the lingo so you understand what is being discussed. There are many terms related to merchant accounts, almost too many to list in a single article, so these terms are some of the most important. After reading this guide, you should have a firm understanding of terminology you can use to help find the best merchant account for your business.

Merchant Bank

The merchant bank is responsible for providing the means to facilitate a transaction, also known as a payment gateway. They may not design that gateway, but they allow customers to utilize it in order to securely send money online or in-store. Aggregators, like PayPal, design their own solutions and allow transaction processing without the “bank” nomenclature.

Processor

The processor is the middleman for your transaction, which routes the credit information. When you slide a card through a credit card machine, the processor passes the information to the gateway that sends the data to the merchant bank.

Issuing Bank

The customer’s bank, or the bank issuing funds to cover the costs of the transaction (including the purchase, and associated taxes). These institutions give credit cards to consumers, and usually pay the costs up front while charging customers interest to pay those costs back.

SSL

Secure Sockets Layer, a form of encryption that helps anonymize and protect financial data as it is passed from the issuing bank to the merchant bank.

 

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What the Truth in Lending Act Does

Jan 6, 2016 by admin

By Phineas Upham

If this were 1965, and you were trying to buy a car you might run into some trouble if you tried to buy a car the way consumers do it today. First and foremost, there is no Internet so pricing a car is very different. If you got talked into a loan you couldn’t pay, banks could garnish your wages with the burden being placed squarely on your shoulders.

Truth in Lending changed some of that.

The Act was designed as a safeguard for consumers, and it helped give prospective buyers options to shop around. It didn’t just apply to the automotive landscape, but the effects were felt most prominently there.

If you’re old enough to remember the beginning of 0% APR financing, you might not be aware that this is an indirect effect of Truth in Lending. Failure to properly differentiate between a finance charge, and the amount financed, meant that a potential lender could just roll the extra interest from a loan into the loan itself. They could package the loan as a 0% APR loan, leading consumers to believe they would save thousands, and reap the rewards.

APR was mandated by Truth in Lending, and it was meant to help consumers gauge how favorable a loan’s terms were to their particular circumstance. However, deals like “0% APR financing or $1,000 cash back” masked what the consumer could potentially get. Which is the better deal?

The Act was passed in 1968, and has helped a great deal in standardizing the costs of lending.

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Phineas Upham is an investor from NYC and SF. You may contact Phin on his Phineas Upham website or Twitter page.

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