QUESTION:
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Hi Ken,
We just recently got a new alarm customer who wishes us to keep his credit card on file and charge it quarterly for his monthly monitoring. This is a first for our company. We usually get paid by check.
What is involved in keeping a record of his credit card on file and what safeguards do we require?
Thanks,
Denise Cintorino
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ANSWER:
You will need to comply with RED FLAG laws, which basically requires you to have a written policy in place and educate your staff regarding that policy. For prior articles on this topic go to http://www.kirschenbaumesq.com/earticle262.htm or
http://community.icontact.com/p/kenkirschenbaum?tag=red flag
You can purchase the Red Flag policy by contacting Eileen in my office at 516 747 6700 x 212. The cost is $200.00.
Those of you who are not yet accepting credit cards - you're missing the boat. While there is a small fee to pay, getting paid faster and easier makes it well worth it. It also makes good sense to check out different providers of merchant service because they are not all the same. Not only do processing fees differ but the way you input the credit card information and timeliness of payment can vary. Though I rarely promote, except for myself of course, my son Adam is involved with Merchant Service company and you should check out the services offered by that company at http://permasales.com/MerchantAccounts.html or Http://www.MerchantAccountSavings.com. Mention my name; maybe you'll get a discount.