Welcome to Fast Transact

Payment Fraud Protection in an Electronic Age

2008-03-06T07:28:00.000-08:00

By Mary Schaeffer, courtesy of CPA Insider

Whether your smaller business makes payments electronically or not, it's still vulnerable to electronic payment fraud. You need to know how to protect your business' account. From tools to best practices, here's how:

Do you think that because you pay electronically your smaller business no longer has to worry about payment fraud? Or do you believe that just because your smaller business doesn't make payments electronically, you don't have to be concerned about electronic payment fraud? The reality is, if you answered yes to either of these statements your smaller business is in for a rude awakening.

Background
Electronic fraud covers both automatic clearinghouse (ACH) credits and debits. In fact, it's the debits that can cause the problem. With the right information, it's very easy to commit electronic payment fraud. And getting that requisite information isn't difficult. Luckily, for now, crooks have not caught on and they still focus primarily on check fraud. This is not to say that electronic payment fraud doesn't occur today. It most definitely does -- just not as frequently as check fraud.

Many smaller businesses don't take the appropriate steps to protect their bank accounts because they don't make electronic payments. This is a big mistake. Everyone is vulnerable, whether they make electronic payments or not.

Protecting Your Bank Accounts
Whether you make electronic payments or not, you can use the following tools to protect your accounts:

ACH blocks are the simplest of all the products to use. They allow companies to notify their banks that ACH debits should not be allowed on certain accounts. With a block in place, no ACH debit, even one that is authorized, will be able to get through on a given account. Everyone is advised to put blocks in place on all accounts where ACH activity is not likely to be used.

An ACH filter allows businesses to give their banks a list of companies authorized to debit their accounts. The banks will then "filter" incoming debits and allow through only those that are on the list submitted earlier. This filter does not check for dollar amounts or whether the particular transaction has been authorized, only that the company doing the debiting is on the approved list.

What About Positive Pay for ACH
A robust positive pay product for the ACH environment is not universally available today, but it's on its way. The issue is complicated because some banks match the identities of those attempting to debit an account with those on the list provided by the company, and exceptions are reported to the customer to review before payment. Only authorized electronic transactions are allowed to be withdrawn from your account.

Best Practices
Managing your bank accounts in an electronic payment environment requires special consideration. If you are using ACH blocks, keep track of which accounts you have put blocks on. Otherwise, you could end up with egg on your face when a vendor is given authorization to use an ACH debit and everyone has forgotten that a block was put on the account a year or two earlier. Many companies put ACH blocks on all accounts but one, thus enabling them to accommodate a few vendors that insisted on using an ACH debit.

In Conclusion
As payment activity moves away from paper checks and regulators work to make it harder for crooks to profit from check fraud, it's only a matter of time before the fraudsters focus on the ACH world. By putting the appropriate controls in place in your small or midsize business, these thieves will need to look elsewhere for a target to defraud.

Manifest Destiny: Small Business Remote Deposit Capture

2008-03-06T07:23:00.000-08:00

Report Published by Celent: Checks are central to small business finances and will remain so for the foreseeable future. However, meaningful adoption of RDC solutions by small businesses is inevitable. Highly predictable market forces will produce escalating competition as more deployers enter the market, driving down solution costs and spurring adoption.

Like the US North American expansion in the nineteenth century, remote deposit capture (RDC) is rapidly gaining territory. But just how far and how fast will it expand? In a new report, Manifest Destiny: Small Business Remote Deposit Capture, based on three separate quantitative surveys, Celent concludes that broad-based adoption by small and micro businesses (SMBs) is indeed the manifest destiny for RDC, and will come about in large measure over the next three years. Banks with large branch footprints have long had a stranglehold on small business financial services. For those willing to think and act differently, remote deposit capture will change that.

Although as many as 60% of US financial institutions have remote deposit solutions, two-thirds offer the same product to large and small businesses alike. But 30% of retail banks are planning separate remote deposit initiatives aimed specifically at small businesses. Historically, such initiatives have been rare, due to high solution cost and back office infrastructures that weren’t ready to efficiently process incoming check images. This trend should continue as a number of factors align to foster significant small business adoption through simultaneously improving client demand and eroding historic financial institution barriers.

“Two things jump out of this research,” says Bob Meara, author of the report and senior analyst with Celent’s Banking group. “The first is just how important checks are to small businesses. In our survey, checks represent 75% or more of total receivables for over two-thirds of small businesses. Second is the terrific opportunity for remote deposit among the smallest businesses, 20 million of them with annual revenues of less than US$1 million. Banks haven’t focused there yet, but new, low-cost scanners coupled with thin client applications will open up a whole new market for banks.”

This report begins by suggesting the manifest opportunity small business RDC represents as a vehicle for low cost deposit growth, particularly given today’s challenging lending and interest rate picture. The report also presents an overview of the small business landscape, highlighting the significant opportunity among businesses with revenues of less than US$1 million.
The report details the centrality of checks to SMBs, demonstrating RDC's tangible value both for customers and deploying financial institutions. It then offers a forecast for SMB RDC adoption along with key variables that will impact client adoption. Finally, the report presents a number of practical suggestions for seizing the SMB remote deposit opportunity based on interviews with highly effective financial institutions.

This 43-page report contains 33 figures and seven tables. It borrows from three separate surveys: one conducted among small businesses in June 2007, and two conducted among financial institutions conducted in June and December. Contact info@celent.com for more information.

Chicago Fed Conference - Payments Fraud: Perception versus Reality

2008-02-22T07:14:00.000-08:00

The Federal Reserve Bank of Chicago has announced it will host its eighth payments conference, Payments Fraud: Perception versus Reality, June 5–6, 2008 at the Chicago Fed. The conference will highlight threats to the security of the payments system and explore solutions to those challenges.

Pew Study of Online Shopping

2008-02-15T07:06:00.000-08:00

The Pew Internet & American Life Project has released a new report on online shopping - finding that Internet users like the convenience but worry about the security of their financial information. "Most online Americans view online shopping as a way to save time and a convenient way to buy products. At the same time, most internet users express discomfort over a key step in online shopping -- sending personal or credit card information over the internet."

Remote Deposit Capture

2008-02-11T07:32:00.000-08:00

Soon you will be able to deposit checks by scanning them at home and sending them electronically to your bank. No need to visit a branch or even an ATM. This is possible because of the Check Clearing for the 21st Century Act, passed in 2003, which allows banks to exchange electronic images of checks. Already about half of all checks are scanned by businesses or the banks they are deposited into and not shipped in bags back to the banks on which they were drawn.

Fiserv, the big transaction services company, has announced new software that will enable banks to let home users deposit checks by scanning them. It already has a similar service for small and medium businesses. USAA, the financial services company that serves the military, has offered deposits through scanners for two years, but the idea has not yet caught on.

The technology has been debugged through several years of working with businesses, and meanwhile consumers increasingly have scanners at home, largely in the form of all-in-one printer units. To use the service, consumers would sign onto their bank’s Web site, activate a piece of software, type in the amount, and then scan the front and back side of each check they want to deposit. The bank has the option of immediately sending the check image to be cleared or to have a human review it first.
Some banks may charge an extra fee for this service, but others may give it free to customers.

Fraud, of course, is an issue. Where there are scanners, there may be Photoshop. And a scanner can’t detect all the anti-fraud features now built into paper checks, such as special stock and watermarks. Banking groups are developing new anti-fraud technologies that can be detected by scanners, but these have not been widely deployed. Unlike credit cards, which have strict federal anti-fraud rules, each bank sets its own policies for check fraud. Still, there are ways to combat fraud. Fiserv and others do have software meant to analyze images for signs of fakery. And there are other models that look for suspicious patterns of behavior that may indicate fraud.

In the electronic age, there really isn’t a need to use paper at all to get money from one bank’s computer to another bank’s computer.

Gartner Says Consumers Prefer PIN-based Debit

2008-02-08T07:14:00.000-08:00

Gartner has announced results of a survey of 4,500 online U.S. adults, conducted in August of 2007 that concludes that while banks and credit card issuers have put significant efforts into marketing contactless and signature-based debit card payments, they have failed to win over consumers. Gartner found that "consumers prefer alternative payment types that earn banks less revenue, but which consumers believe are more secure." In, particular, PIN-based debit and not signature debit. Gartner also found little consumer interest in contactless or mobile payments.

“Despite significant marketing campaigns by banks and card issuers to steer consumers towards using debit cards with a signature — ostensibly so that the banks can earn more interchange revenue — consumers prefer entering their personal identification number (PIN) to pay for groceries with their debit card over all types of signature-based card payments, whether credit or debit,” said Avivah Litan, vice president and distinguished analyst at Gartner.

“Banks promote signature-based debit payments because they earn more fee revenue from card-accepting merchants, on the premise that they are riskier and more prone to theft, so the banks need to earn higher fees to compensate,” Ms. Litan said. “Fraud rates on signature-based debit card payments are at least 10 times higher, and banks usually eat these costs if they are incurred in a card-present (or store) environment. Higher interchange fees paid by merchants to banks and card issuers for signature-based transactions must offset these costs or else banks wouldn’t promote the signature variety.”

When shopping at grocery stories, consumers prefer debit card payments that require entry of a PIN despite the fact that only debit and credit card payments with physically signed receipts typically earn them reward points. Consumers’ least-favorite payment type when shopping for groceries is contactless (wireless) payments, and there is similarly small interest in using mobile phones for making payments.

“Brick-and-mortar businesses who accept electronic consumer payments should promote use of PIN-based debit card payments by steering consumers to them through payment terminal programs and/or by offering store-based incentive programs,” Ms. Litan said. “Businesses pay less to banks for PIN-based payments and since consumers prefer them anyway, this is a win-win strategy for all parties except credit card issuers and banks.”

Consumers who have been affected by the data breaches publicized in recent years are more prone to change their online payment behavior than other online or offline activities, such as shopping and e-mail preferences. These consumers are more likely to call the online store and give them their payment account number over the phone.

“Online businesses should therefore enhance their ability to offer secure automated phone payments,” Ms. Litan said. “For example, businesses can use a transaction number generated during the online shopping season to tie a purchase to an automated phone-based payment. For this customer base, online merchants should also promote alternative payments, such as PayPal and Bill Me Later, where interest in using them increases as age decreases.”

Compilation Copyright © 2002 - 2007 Glenbrook Partners LLC. All Rights Reserved.

Dave Holman Welcomed as the National Sales Manager / Director of Operations for Fast Transact, Inc.

2008-02-07T07:56:00.000-08:00

OLYMPIA, WASH, JANUARY 2008 – Fast Transact, Inc. announced that Dave Holman has joined FAST TRANSACT as National Sales Director and Director of Operations. As an ISO and leading payment processor / merchant services provider, FAST TRANSACT is currently realigning its management structure to move to the next operation level. Holman’s employment is a vital part of that process.

In his new post, Holman will oversee all sales related activities from the company’s corporate headquarters in Olympia, Washington. He will also be responsible for the day-to-day operations with particular emphasis on the coordination of people and processes company-wide. Holman will report to David Solomon, founder and CEO of Fast Transact, Inc. and will work in partnership with all department heads to assure the smooth interaction and utilization of corporate resources.

Holman brings over 30 years of management and entrepreneurial knowledge to FAST TRANSACT, as well as Merchant Service Provider ownership experience. He is a graduate of University of Wisconsin and holds a BS and MBA. His retail sector expertise greatly compliments FAST TRANSACT’s already strong Internet capabilities. Holman’s plan for expansion includes agent offices throughout the United States and Canada, servicing accounts with the personal touch expected by the merchant.

ISO FAST TRANSACT Repeats Accomplishment for Fastest Growing Company

2008-02-07T07:52:00.000-08:00

Fast Transact Inc., generating a revenue change of 64.76%, once again takes it place among the top honorees for the Fastest Growing Company in Washington’s South Puget Sound area.

The recent Business Examiner (BE) award ceremony recognized Fast Transact as the second fastest growing company during 2007 for South Sound businesses. The annual competition is ranked in both revenue and wage expenses for fiscal years 2004 through 2006 and each nominee’s results were collected, calculated and verified by Moss Adams, the 12th largest accounting and consulting firm in the United States.

Fast Transact, a leader in credit card processing services and IP (Internet Protocol) payment solutions, attributes its notable growth over the past few years to having outstanding technology and an extraordinary client service program. In 2006, the company took 1st Place in the BE’s Fastest Growing Company award and was an honoree for the 2007 Top Places to Work recognition program. More recently, Inc. 5,000 ranked Fast Transact as #1058 on its list of fastest-growing private companies in the country and as #53 in the top companies for Financial Services.

David Solomon, CEO of Fast Transact, Inc. noted that growth and industry-wide recognition has come about because of the company’s commitment to provide a total solution for merchant services and a secure processing environment. “For the last five years, our market niche has focused primarily on Internet payment processing, however in the last year we have expanded our focus to include retail point-of-sale software for those businesses that want to upgrade to high speed connectivity.”

“As we continue to concentrate on new product offerings,” added Solomon, “FAST TRANSACT will actively pursue viable strategic partnerships that enhance the processing options for both retail and Internet businesses. We believe that a key ingredient to success is partnering with organizations that have complementary strengths and we look forward to being able to offer a number of other services within the near future.”

Paul Noblett, Founder of N&A Consulting, Appointed to Fast Transact, Inc. Board of Directors

2008-02-07T07:40:00.000-08:00

Fast Transact, Inc., is pleased to announce the appointment of Paul W. Noblett to its Board of Directors.

Mr. Noblett, founder of N&A Consulting, has been a key figure in the transaction services and communications industries for over 30 years. With experience ranging from systems management at what today is MBNA to being the General Manager of MasterCard’s Worldwide Operations, Paul has had hands-on responsibility for many of the systems and operational enhancements developed in the industry. N&A Consulting is a business development, data processing and communication consultancy specializing in the payments industry. Customers include major service organizations and financial institutions, both domestic and international. Additionally, the group specializes in developing new businesses. These efforts have resulted in the creation of six new companies to take advantage of market opportunities. Over 200 people now work for these organizations, generating more than $100 million in annual revenue.

"Fast Transact is committed to providing a total solution for merchant services. The addition of Paul Noblett to our Board of Directors ensures that the company will continue to benefit from a diversity of knowledge and opinions. Paul is a perfect director for Fast Transact because of his strong leadership skills, extensive management experience, and proven record of accomplishment within the credit card industry. We believe Paul’s experience in this arena and overall management and governance acumen will greatly assist Fast Transact’s strategic growth," said David Solomon, founder and Chief Executive Officer, Fast Transact Inc.

“We are very excited to be part of the Fast Transact team,” stated Paul Noblett. “We have always been impressed by what they have accomplished and their customer loyalty. It is our hope to add our industry position and know how to help build a truly unique solutions provider.”

With the appointment of Noblett, the Fast Transact board stands at six directors.

MasterCard's New PCI Educational Webinar for Merchants

2008-02-07T07:26:00.000-08:00

MasterCard has announced the immediate availability of a complimentary educational webinar developed to help merchants better understand the newly available PCI Data Security Standard Self-Assessment Questionnaire (PCI DSS SAQ) version 1.1 that has been updated and released by the PCI Security Standards Council.

The PCI DSS, which was developed by MasterCard in conjunction with the other founding payment brands that comprise the PCI Security Standards Council, sets forth requirements for enhancing payment account data security and is intended to help companies protect payment account data. The multifaceted security standard includes requirements for security management, policies, procedures, network architecture, software design and other critical protective measures.
A crucial component of PCI compliance is the Self-Assessment Questionnaire, a validation tool intended to assist those merchants and service providers that are not required to have onsite assessments to self- evaluate their compliance with the PCI DSS. There are multiple forms of the SAQ to meet various scenarios, depending on how an organization stores, processes, or transmits cardholder data.
The updated SAQ version 1.1, which is intended to simplify and streamline the assessment process, was released today by the Council.
MasterCard's new Web-based module features actionable advice from MasterCard industry experts to help acquiring banks and merchants better understand the new updated SAQ. The webinar is now available online at http://www.webcasts.com/mastercardpci.
"Educating merchants and encouraging broader adoption of the PCI Data Security Standard are essential steps to better ensure the integrity of payment data," said Bruce Rutherford, Group Head, Fraud Management Solutions, MasterCard Worldwide. "This new program helps merchants effectively manage the SAQ process of the PCI DSS, while complementing our other education initiatives in our collaborative efforts to help protect our customers and cardholders from data theft and fraud."
The webinar will highlight the various SAQ types and discuss how to choose the right SAQ, tips and strategies for compliance as well as other related topics.
The new webinar is the latest component to MasterCard's ongoing commitment to industry education and knowledge sharing. In October 2007, MasterCard launched the PCI Merchant Education Program, an initiative offered to acquiring bank customers that provides practical assistance in educating merchants and encouraging broader adoption of the PCI DSS. The program continues to offer other complimentary education and training for acquiring banks and merchants to better their understanding of PCI DSS through interactive sessions, which are also available online at http://www.webcasts.com/mastercardpci.
In addition to the PCI Merchant Education Program, the MasterCard Academy of Risk Management (ARM) offers a full curriculum of online seminars, global conferences, educational materials and other tools to help secure the payments system and promote secure commerce worldwide. More information on the PCI Merchant Education Program and other ongoing MasterCard security initiatives can be found online at http://www.mastercardsecurity.com, or merchants may contact their MasterCard SDP representative.

Top Ten Finalist for 2007 Fastest Growing Company

2007-10-29T07:48:00.000-07:00

For the second consecutive year, Fast Transact, Inc. takes its place among Washington’s fastest growing businesses. Each year, the Business Examiner (BE) of South Puget Sound recognizes outstanding businesses for their success and growth. The annual event ranks the top 10 finalists by a combined growth in revenue and wage expense and is conducted with the assistance of Moss Adams, the 12th largest accounting and consulting firm in the United States.

In 2006, Fast Transact, Inc. a leader in payment gateway integration and nationwide credit card processing services, received the BE’s top honor of Fastest Growing Company. The company at that time was responsible for processing over $500 million in credit card sales volume annually. Fast Transact was also nominated as a finalist in the BE’s 2007 Top Places to Work award. More recently, Inc. 5,000 ranked Fast Transact as #1058 on its list of fastest-growing private companies in the country and as #53 in the top companies for Financial Services.

This year’s finalists will attend a VIP Reception on December 5, 2007 at the Tacoma Art Museum as the Business Examiner rolls out the red carpet to reveal the rankings and present awards.

Fast Transact, Inc Ranks No. 1058 on the 2007 Inc. 5,000

2007-10-19T09:02:00.000-07:00

Inc. ranked Fast Transact No. 1058 on its first-ever Inc. 5,000 list of the fastest-growing private companies in the country. The Inc. 5,000, an extension of Inc. magazine’s annual Inc. 500 list, catches many businesses that are too big to grow at the pace required to make the Inc. 500, as well as a host of smaller firms. Taken as a whole, these companies represent the backbone of the U.S. economy.

Leading the list of the fastest-growing companies in the nation is the Midwest region with 1,046 of the fastest-growing companies, followed by the West with 884 companies. The Southeast comes in a close third, with 872 companies, followed by the Northeast with 782 companies, and the Mid-Atlantic region with 606 companies.

The largest business category is Construction, with 561 of the fastest-growing companies in this category, followed by Manufacturing with 515 companies, IT services in third with 466 companies, Business Services with 377 companies and Advertising & Marketing with 349 companies round out the top five industries ranked on the 2007 Inc. 5,000.

Industries reporting the highest total revenue in 2006 are Construction ($27.1billion), Manufacturing ($18.6 billion), Health ($13.1 billion), Computers & Electronics ($12.7 billion), and Financial Services ($11.8 billion).

About Fast Transact, Inc.
Founded in 1995, and privately owned and operated, Fast Transact, Inc. is a registered ISO/MSP of Bank of America and Wells Fargo Bank. FAST TRANSACT provides nationwide retail and Internet merchant service accounts, integrated payment gateways for processing credit cards and debit bankcards, online check services, affiliate partnership programs, and gift card / loyalty card programs. FAST TRANSACT is a registered trademark of Fast Transact, Inc. For more information, visit www.fasttransact.com

Improve Your Data Security

2007-10-19T08:42:00.000-07:00

Visa has long advocated that every entity that handles payment information is responsible for protecting the security and privacy of its customers. This includes implementing the right combination of supporting hardware and software, as well as corporate security policies . . . more info

Turn-key Services Make Setup a Simple Solution

2007-03-15T09:11:00.000-07:00

FAST TRANSACT's core business is payment processing. We specialize in Internet, retail, and MOTO credit card merchant accounts and merchant services. Our "one-stop" merchant processing solutions and payment gateway options are cost effective and easy to use. Accepting credit cards is very simple process. All it takes is an application, which will get you what is needed to accept credit card payments: (1) a merchant account, if you are a retail merchant or (2) a merchant account plus a payment gateway if you are an online merchant. By integrating FAST TRANSACT's payment product offerings you can accept ALL major credit cards including Visa, MasterCard, Discover, American Express, debit cards. . . as well as gift cards and checks.

Are you looking for a new credit card processing service?

Find out how we can help you maximize your profit when it comes to credit card processing rates and fees. Our merchants enjoy the benefits of unbeatable customer service and technical support, high-level gateway fraud protection, chargeback reduction, 24-hour network and access monitoring, low processing rates, and state-of-the-art equipment.

http://www.fasttransactonline.com/

Who We Are

2007-03-14T07:49:00.000-07:00

Mission Statement: FAST TRANSACT's credo has always governed the way we conduct our business. We are dedicated to developing a safer, secure processing environment for credit cards, check services, gift card and loyalty card programs, and affiliate referral programs for agents, merchants, and consumers.

What We Do: FAST TRANSACT bridges the gap between retail and Internet credit card acceptance, online security and fraud prevention. We possess industry-specific technology for payment processing that you need today and provide merchant account service solutions that you will need tomorrow. Our integrated payment technologies provide nationwide merchant services to thousands of business owners throughout the United States, Canada, Mexico, Europe and South America.

What Makes Us Different: FAST TRANSACT has first-hand knowledge of the credit card payment industry. Our technology, flexibility, and specialization gives us distinct advantages that we pass along to our retail and Internet merchants. As a result, you can offer your customers various payment options for POS retail or online purchases . . . without integration problems often associated with third-party vendors. Our customized merchant service packages give business owners a single point-of-contact for all their credit card acceptance and payment processing needs.

Pledge to Our Clients: We pledge excellence in everything we market and promise to consistently provide accurate, secure and timely electronic payment and credit card processing services at the most competitive rates in the industry.

We pledge an unyielding commitment to be the very best and to have the vision and conscience to respond to the needs of each and every customer that we have the privilege to serve.

We pledge courteous, efficient and ethical behavior and practices; respect for your interests; and to build and uphold the trust and goodwill that are the foundation of successful business relationships.