Cyber Liability and Merchant Credit Card Issues

Cyber Liability and Merchant Credit Card Issues

Featuring Jennifer Woodruff and Chuck McEnroe

 “Are You Protected from Cyber Havoc?”

 Everyone in business today recognizes the security threats and risks inherent in living in a digital world.  But, do you know that you can protect yourself with “Cyber Liability Insurance?”  This new form of insurance is pushing its way through the market as more and more need for this kind of protection presents itself.  Just ask Jennifer Woodruff, an independent insurance agent and consultant with more than thirty years of experience.  If you attended the June AMRCON Partner meeting, you heard Jennifer present a case for cyber liability insurance.

 “The landscape has changed in the business world,” Jennifer explained.  “We correspond through e-mail, transfer information through the internet, and hold webinars, training and business meetings online.  Many companies are even completely paperless, so it’s very important that our data and information are protected,” Jennifer said.

 But, is your data protected?  Probably not.  “The current business insurance that most people carry does not cover what’s going on in the digital world,” she added.  “The only thing that might be covered with current insurance is if a lightning storm damages your computer system.”

What about hacker attacks, viruses, and worms that steal or destroy your data?  Or e-mail or social networking harassment and discrimination claims?  How about trademark and copyright infringement?    “Not covered,” said Jennifer.  “But, if you purchase ‘Cyber Liability’ insurance you will have special protection against digital issues.  “The new cyber insurance products available today can absolutely protect your company from cyber problems that could cause tremendous hardships.”

“Any company that takes names, social security numbers, and other sensitive customer information, is required by law to provide all the necessary steps to protect this data from loss and theft,” Jennifer said.  “If they do not take these steps and there is a breach, the company is subject to huge fines.”  And, if there is a breach, companies are also required by law to notify the authorities and all of their customers, which can cause reputation problems.  

So, what does Jennifer suggest you do to avoid digital theft and loss? 

1)      Hire a company like AMRCON who can install and maintain all the latest security measures to protect your data, and handle back-up and storage needs to protect from a complete loss.  If you have these systems in place and can show that you did everything in your power to protect your data, it will help with the authorities. 

2)      Transfer your risk by purchasing a “Cyber Liability” policy.  According to Jennifer, there are many different policies available.  Every business should have some kind of cyber liability insurance. 

“This is a new issue, but it’s a real issue for the future,” said Jennifer.  “We’re no longer worried so much about buildings burning down, but we are really concerned about what’s on that computer.”

For more information on Cyber Liability insurance, please call Jennifer Woodruff at 732-290-9300, or e-mail her at info@businessinsure.com.  Or, visit her website at businessinsure.com.

What merchant credit card processors will not tell you.

If you are a business that accepts credit cards, you’re going to be interested in what Chuck McEnroe has to say.  Chuck, a business consultant who provides a number of services including merchant credit card processing, gave a credit card overview and told a few secrets at the AMRCON partner meeting that the credit card processors don’t want us to know. 

First, Chuck recommends if you are a business that can accept cash instead of credit cards, then go ahead and do it.  “Cash is still king,” Chuck says.  “The only reason to accept credit cards is if it will increase your business.  If not, then don’t bother.”

But, if you do decide to take credit cards, there are a few secrets that can save you money.  “All credit card merchants pay a fixed assessment fee of .11%,” Chuck said.  “But, Visa and Mastercard, and the member banks that process credit card transactions have a fee structure called “Interchange” that varies.  There are Independent Sales Organizations and Member Service Providers, and each offer a variety of pricing for their services.  But, how do you know if you’re getting the best service at a good rate? 

“There are certain merchant credit card service providers that you’ll want to avoid,” said Chuck.  Here are his reasons why:

Top reasons to avoid some merchant credit card service providers

1. If they don’t disclose their rates.
2. If they sell proprietary software or equipment.
3. If they obfuscate their fees.
4. If they have a chart comparing their rates to the industry standard.  There is no standard.
5. If they charge fees that only serve to make them rich.
6. If your agent disappears after you sing a contract.

 Signs you’re being overcharged

1. Tiered pricing
2. Batching charges
3. Reporting charges
4. Miscellaneous charges
5. Processing fee for American Express charges
6. Codes on your statement like STND, or ERIF.  These are indications the charges are not being processed correctly.

 “You want to talk to the service provider and find out how quickly you can have access to your funds,” said Chuck.  “You should have funds available the next day, or soon after,” warns Chuck. 

 For more information on merchant credit card processing, call Chuck McEnroe of New Jersey Business Service Group at 609-610-6357, or email him at CTMcEnroe@NJBSG.com