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myServiceCC and Credit Card Processing Primer

Field Collections and Credit Card Processing

Q.  Why do service businesses collect fees in the field?

A.  There are 4 major benefits to collecting fees in the field:

1. Improved Cash Flow – quick access to cash (usually 2 business days) helps to eliminate the cost of buying parts and paying salaries before collecting sales revenue.  This directly impacts the need to borrow money to fund operations.
2. Lower Cost of Invoicing and Collections – Using an automated field invoicing process eliminates the labor costs associated with billing, re-billing for errors, and collections.
3. Reduced loss of revenue from utilized parts and hours by collecting all information at the time that it is utilized.
4. Improved Customer Experience by providing a vehicle for clients to manage the cost of unanticipated service calls or costly parts.
   

Q.  What Collections Programs does myServiceCC and TransFirst support?

A.  Our wide selection of secure and dependable, Web-based payment processing solutions and merchant programs include:

• Accept Visa®, MasterCard®, Discover®, JCB®, American Express®, Diners Club® and private label cards.
• Debit card acceptance
• Check verification and guarantee services
• Electronic check conversion (convert checks to cash electronically)
• Gift and loyalty card programs
• Wireless, handheld solutions for smart phones and laptops
  

Q.  What does it cost to process credit cards?  Are all companies the same?

A.  Let’s start with identifying what is involved in processing a credit or debit transaction.  

Credit cards are processed by companies specializing in collecting the data on the credit card, verifying with the issuing card company that it is accurate, and that the account has sufficient funds to meet the demand being presented.  If everything checks out, it then sends a cash request to the card holder’s account and once the transfer is made, sends the funds to your account.  All of this has to happen at the speed of light and with a very high degree of accuracy.

Processing companies charge fees to vendors that want to use their services.  There are no set standards for what can be charged and it is very important to carefully evaluate the cost structure of any processor to avoid “hidden” fees.  Typical fees include:

• Set up fees
• Card Issuer Fees (Visa, MasterCard, and American Express) vary by company.  They also have different rates based upon the type of card that it is.  For example, the cards that are issued by an airline that earns you flight credits, also cost more to process.  In other words, you the vendor are paying for those miles too.
• Card Processing Fees vary based upon how the card is process.  A card that is electronically processed “in hand” e.g., a card swiped at a point of sale, has the lowest risk and therefore the lowest cost.  Other fees that can be charged by processing companies include:
• Monthly Statement Fees
• Minimum Month Charge
• Chargeback fees for corrections
• Etc.
  

Last, all processing companies are not the same.  We chose to partner with TransFirst based for three reasons.  First is personal experience.  They have been our credit card processing company for 2 years before we began this program.  Second, they offer total transparency to their rates and have no hidden fees and do not “nickel and dime” their customers.  They even offer a rate comparison program to insure you are getting the best program.  Third, they are the only credit card processing company we know of that have an AAA rating by the Better Business Bureau.

Q.  What should I expect to pay with myServiceCC and TransFirst?

A.  There are no charges added by myServiceForce to your processing fees and electronic card swiping is included as a standard feature of myServicePro. 

If you use TransFirst and myServicePro with a swiped card you can expect your total charges to be 1.7%-3.5% of the total amount processed.  As we explained above, TransFirst doesn’t mess around with hidden fees.  Even if these rates sound higher than what you pay now take 10 minutes and let them perform a rate comparison.  Worst case, you stick with your current provider.  So, a thousand invoice paid by credit card will result in about $980 going to your bank account within 2 days.  Put another way, that’s about 1 hour of billing and collections time per thousand dollars to pay for this service.

Q.  What are my choices of programs with TransFirst?

A.  There are many.   They include:

• myServiceCC, the full automation product integrated with myServicePro
• Office processing via Transaction Central.  Capabilities include:
• Real-time reporting
• Batch processing
• Multi-location networking
• Recurring payments
• Integrated shopping cart
• ACH service
• Managed services
• Stand alone field processing of credit cards (manual or swiped via Transaction Central)
  

Q.  Why choose myServiceCC?

A. myServiceCC provides the lowest cost, safest method of processing credit cards with the added benefit of automating the entire work order process through myServicePro. 

It totally eliminates the need for paper as everything can be done electronically including invoicing, credit card processing, signature capture, even receipt transmission to the customer.  It also provides the most enhanced customer experience right down to photos of work done right on the customer’s statement.