Dear Valued Merchant,

As a business owner, you likely know about chargebacks and how refunding transactions can affect your profits. But did you know that there are things you can do — such as making sure your "Doing Business As" (DBA) name and address are the same on your credit card account, banking account, business sign and website — to save time, frustration and money associated with chargebacks?

This issue of Payments Insider provides helpful tips for reducing chargebacks. Read on to learn more about how to evaluate payroll providers if you're considering outsourcing and why you might want to offer Heartland's PayAdvantage Visa® Prepaid Card to your employees.

And, find out how to go green with Heartland by signing up for paperless statements and using Heartland's Online Merchant Center — so you can access your account wherever and whenever it's easiest for you.

As always, if you have any questions about payments — including chargebacks and payroll — please call your relationship manager, account manager or your Heartland servicing team at 888.963.3600. Feel free to also email us at Heartland@e-hps.com.

Best regards,

Heartland Payment Systems

Do you spend a lot of time on the phone with banks or credit card companies disputing charges to your business? Are you sorting through paperwork because of chargebacks — credit-card transactions that eventually get "charged back" to your business — looking for information supporting the charges? If the answer is "yes," there are some simple steps you can take to reduce the revenue — and time — you lose due to chargebacks.

You're at risk for chargebacks anytime you accept a credit card to complete a transaction. A chargeback is simply a dispute from a cardholder or his/her issuing bank requesting a refund for reasons as varied as the charge was fraudulent to the quality of service was poor. One easy way to reduce chargebacks to your business is to make sure your employees are trained on these card transaction tips:

1. Be sure your "Doing Business As" (DBA) name and address are the same on your credit card account, banking account, business sign and website. If a customer doesn't recognize your business name, they likely won't recognize the charge on their bill.
2. Process transactions for your business only. You may be tempted to help a friend or process personal online sales — such as eBay® — with your merchant account, but you are financially and legally responsible for all transactions on your system, and liable for any chargebacks. Processing transactions for another business is considered fraud.
3. Make sure customers sign and return the merchant receipt copy.
4. Always verify the customer's signature matches the signature on the credit card.
5. Keep a record of delivered and pick-up orders. Be sure customers sign when they receive the product or service, and use delivery confirmation and tracking whenever possible.
6. Don't complete a "declined" transaction. Instead, ask your customer for another credit card to complete the purchase.
7. If a card can't be swiped and you need to key enter the transaction (for example, because the magnetic stripe is damaged), always take a manual imprint of the card and make sure the customer signs the receipt.
8. If you need to redo a transaction, write "VOID" on the sales receipt and inform your customer the transaction was voided, no charge was made and it needs to be re-done.
9. Keep your terminal or point-of-sale (POS) system in proper working order to avoid malfunction or illegible receipts. Issuing banks will not accept illegible copies of receipts as proof of transaction, so keep a supply of extra printer ribbons on hand. If your POS system isn't working and you can't swipe the card, make sure you have a manual imprinter, sales drafts and pens handy so you can take a manual imprint of the card to prove it was present during the transaction to avoid a fraudulent-transaction dispute.
10. Never give cash or issue checks as refunds for transactions that were paid by credit card. When issuing a return for merchandise, refund the same card that was used for the transaction.
11. Deposit all of your sales receipts on the same day, if possible, to avoid "late presentment" chargebacks. A "late presentment" chargeback is initiated by the cardholder's bank for a settlement processed more than seven days after the transaction date. If, in fact, the transaction was settled before the seven day limit, you — with your payments processor's assistance — can dispute this chargeback, a process known as representment. However, if the transaction in question was settled more than seven days after it was conducted, your payments processor won't be able to assist you in fighting this chargeback. That's why it's important to batch your transactions daily, so late presentment chargebacks don't result in a loss of revenue for your business.

Following these simple steps can save you time, frustration and money so you can focus on running your business — instead of dealing with chargebacks.

It's "tax season" and you may be thinking about tax reporting, year-end calculations or payroll planning — and the to-do lists associated with each of them. You may even be considering outsourcing your payroll, since keeping track of employees who have had life changes — such as marriage, divorce or a change in the number of dependants — as well as distributing, collecting and recording forms can be time-consuming and complicated. Here are tips to consider if you're thinking about outsourcing your payroll.

1. Do your homework. If you're part of a business or community organization — such as a chamber of commerce or trade association — ask other members if they use a payroll service provider. If so, find out what services they receive and if their provider meets their needs.
2. Determine what your business needs are. Consult your payroll manager, human resources department, accounting personnel and IT staff to understand the functionalities they need.
3. Evaluate features and benefits. Meet with several payroll service providers to determine how they work. Be sure they can provide all the services you need. For example, you might need help with
   401(k) or worker's compensation — so be sure your chosen provider can handle those services as well as basic payroll.
4. Compare costs. Many processors nickel and dime you. For example, they charge for additions or deletions of employees, while others offer fixed rates for the length of the contract without incremental fees.
5. Look for a payroll service provider that guarantees confidentiality and information security. For example, there are different payroll submission methods — such as by phone, fax, email or completely electronic — so be sure you're comfortable with how you transmit your data. You'll want to work with a payroll service provider that protects your employees' data.
6. Check if the payroll service provider can assume your tax filing responsibility. The payroll service provider should prepare your company's quarterly and annual employee tax filing and assume liability for accurate and timely submission*.
7. Be sure the payroll products and services are user-friendly. In addition to making sure the program is easy to use, investigate what type of support is available — such as a help desk and professionals who can assist with program troubleshooting. Ideally, your payroll service provider should offer 24/7/365 support.

Following these tips can help you choose a payroll service provider and alleviate your payroll and tax filing burdens. Be sure to work with a company with experience in the payroll industry — such as Heartland Payment Systems — so you can run your business without worrying about your payroll.

__________________________

*A payroll service provider can assume responsibility and liability based on accurate numbers and reporting information from the client/business.

Are you looking for a payroll option that reduces traffic outside your manager's office on payday … and saves you money by minimizing the need for paper checks and check replacement fees? You may want to offer your employees the option of using Heartland's new PayAdvantage Visa® Prepaid Card, a secure, flexible payroll option that allows them to access their money and pay bills easily, budget effectively and eliminate check cashing fees. Your employees can use the new PayAdvantage card for direct deposit of some — or all — of their pay and receive:

• Online card account access
• Online bill pay
• Free text alert on balances (standard carrier fees may apply)
• Surcharge-free Allpoint ATM access
• Companion cards available
• No monthly maintenance fees

To learn more about Heartland's PayAdvantage Visa® Prepaid Card, call 877.729.2968 ext 4327.

Payments Insider is published by Heartland Payment Systems.

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© 2009 Heartland Payment Systems, Inc., 90 Nassau Street, Princeton, NJ 08542.