Artisan Economics : A Frank Discussion On Credit Card Processing, Data Systems Security and The PCI Mandate of 2010

The Impending PAYMENT COMPLIANCE MANDATE of 2010 for ARTISANS , CRAFTS PEOPLE and Small Businesses: A REALITY CHECK Payment Compliance Mandates that by 2010 all artisans and small businesses on the WorldWideWeb accepting credit cards ensure that not only are they protecting the security of their customers and clients but that they are meeting Federal and in some cases State mandates in the USA for payment processing through a third party source or agency, or directly through a bank card processing center. The following article edited by myself gives a brief summation of the terms of the mandate and what artisans should receive in return for their payment processing budget. Though very brief, it is a start and for more information I recommend you check out the Federal Trade Commission's Web site as well as your states trade center's sites too. Then read white pages from reputable publications like Internet Retailer for some options as to who's who among the companies offering these services. I have personally used Mal's E-Commerce for years and then PayPal, for international sales as the buyers are verified before you stamp the parcels and post them so everyone is protected.I also make certain that I have a clearly written Privacy Policy statement on every site I own and on all corporate paper systems, documentation, in every blog, etc. in which people use my sites, services, etc, so that they are assured that any data I collect is first : Secured and second: remains in the possession of my corporation or any partner corporate structures I may be engaged in unless otherwise specified, and then, how it will be used is spelled out so that a first grade student could clearly understand the ramifications of submitting data of a personal nature on any form I create or that I use in a business context.. Some budgets and sales however demand more from a shopping cart Scalability and conversion rates alone dictate that your best ROI may be by dealing directly with a bankcard center for the most services and protection in return for for the fees you have paid out. It is up to each individual to assure their business is working for them, and again, I always advise good consumerism- that is why I bring up Internet Retailer as a condensed source of models for payment processing: their "2009 Buying Guide" is a good place to start if you are just beginning to examine your options as a viable business and investigating your The artisan community is facing a changing landscape - with government regulation, varying price points, higher costs for traveling for self-promotion and other economically impacting factors that ultimately decrease one's bottom line if they do not realistically value their work. Lowering price points is not the answer. In fact as the costs rise , and one gains more experience and transitions from novice to jeweler and from hobbyist to a business organization of some sort, one's art or craft must reflect that acquired skill level and materials choices. Artists must then evaluate whether or not they can stay in business at their current level or invest in a bona fide Marketing Consultant ( like myself) to help them make reasonable transitions from unknown to branded and to stand out in the crowd of faddist jewelry makers, specific to this site, or get lost in the pack without real planning and a realistic assessment of their talents, production capacity and the amount of work the individual artisan or craftsman is willing to do to make the level they wish to operate at a reality, or rather realized, or simply existing in a dream state somewhere in almost- making- ends-meet relative to making art jewelry for a living..Deciding whether to operate a brick and mortar store or representation by galleries is one example of the decisions that you are faced with with pending regulation: all of this is due to the PCI Mandate and government forcing one's hand in facing profitability or losses and ultimately having to close shop or relegate oneself to traveling to shows for months out of the year to make it as an artist in the current and impending markets. For any artist that accepts credit cards, PCI (Payment Card Industry) and DSS (Data Security Standards) Compliance that MasterCard and Visa are mandating all merchants must comply with in 2010 should be assessed now and a viable plan to meet those standards and ensure a return on your investment in kind and that is in your favour is in place , by the time that the major credit granting agencies implement the mandate to anyone who participates in credit acceptance. MasterCard and Visa established the compliance standards to improve credit card holder information security.Legislation is following this movement to insure personal information remains secure. The most important thing to know about the compliance program your processor offers is: are you receiving a valuable service for the increased cost - if you are now paying for it how does it benefit you? Unfortunately for far too many credit card processors the business, has become nothing more than a cash cow: another way to make money offering little or no services in return to the artisan trying to make a living by diversifying payment options for their customers. What Does Viable PCI Compliance Mean? It will vary depending on what your credit card processor chooses to do – without question you should receive highly clarified literature from your credit card processor ,or a third party vendor contracted to administer the PCI Compliance program to small scale businesses. You should not have to request it if the company you are dealing with is in compliance. It should be yet more envelopes you receive in the ocean of privacy statements and other paper you receive weekly as a business person offering slight but perhaps worthwhile service differences for a relatively equal and reasonable amount of money from various service organizations involved in credit card processing and you should receive verification of your businesses compliance in a legalese document or certificate that is issued at least quarterly if not monthly, as the laws of your location dictate that you must be scanned for compliance on the instrument on which you process credit card payments, or through a third party blanket certification issued to paying and in good standing customers, for the service of keeping you in compliance with the mandate by 2010, if not currently.. The basics in any decent programme are: 1.Your participation by Submission of a Form that states your willingness to disclose your payment acceptance methods and have them monitored by the service you hire for processing your credit payments- that is by each one of them if more than one: Any Form you fill out regarding the way you process (store, transmit, take orders, etc.) credit cards THEN your answers to determine if you require a monthly scan on your computer or other processing instrument.The bottom line is that All businesses that have an outbound IP address will be required to have a monthly scan by the processing agency of your choice. 2. Upon completion of any scans, monthly or quarterly, you should receive a Compliance Certificate in some form They are obligated to supply you or your organization with such proof as is legally binding and in order with whatever federal and state legislation may be implemented by 2010 that related specifically to this mandate and credit card processing and Data Securities Systems. .If you have not already procured one and are in compliance, your service should upon your sending or faxing them valid proof positive that you are indeed a business entity and need to deal at all with the PCI Mandate, based on your credit card acceptance policy and options you offer customers, as well as the volume of sales that you receive in a given quarter, (unless you report monthly). 3. Your compliance will need to be submitted to MasterCard/Visa if received from a third party vendor or service. It should be abundantly clear whether you are required to follow up or if your processor is doing it for you. 4. Your business will be required to maintain compliance through the duration of your status as a business .Non-compliance means fines for both you and your credit card processor. It is advisable to be informed of the ramifications of non-compliance as incentive to keep your bookkeepers and C.P.A's on the same proverbial page as you and your organization are relative to processing sensitive data from the public in any capacit Questions to ask your credit card processor about PCI: 1. Is my current service/terminal PCI compliant? 2. How much will it cost me? What are the fees monthly , annually or bi-annually, and what do I receive in return? 3. Am I already being charged for compliance ? 4. Who is responsible for assessing Non-Compliance fees? How much are they? and Do they vary from state to state if I am doing traveling shows, trade events, etc. or just accepting interstate credit cards? Does this mean I will also have to start charging State sales tax to cover my ass or the ass of my business organization so-to-speak? 5. If I have questions about the PCI mandate who can I call at the company that handles my credit card processing ? As you answer these questions you will have to decide if you want to continue accepting credit cards as payment from your customers at all.Ultimately, you must answer for your business whether or not PCI compliance is a feasible cost for the ROI you get back, or from it. When weighing the options, keep in mind the ultimate goal of PCI is to reduce the risk of threat to your customers, and your business via credit card and identity theft.. If your customer knows their credit card information is safe with your company, they will show loyalty to your brand or business and continue the trust relationship with repeat business. Accomplishing this goal may mean you as the artist and a good consumer will hold your credit card processor accountable for providing you a viable compliance program. Additional Resources: The PCI Security Standards Council : https://www.pcisecuritystandards.org

Jewelers Studio In the Woods a div. of Red Tent Design Group, and Global Resources Internationale,Ltd. Serving Artisan Jewelers and Metalsmiths with Resources for Business, Tools, Supplies, Equipment, Education and Start-Up Business Consulting Custom Raw Materials , Specialised Custom and Creative Services and International Business Counsel Presents: "Artisan Economics : A Frank Discussion On Credit Card Processing, Data Systems Security and The PCI Mandate of 2010", by Dr.Ari Roark ,Goldsmith,Consultant- Vieux Carre Jewelers- New Orleans VOTED NATIONAL JEWELER 'S BEST INDEPENDENT -2009