Are You Paying Too Much In Credit Card Processing Fees

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					                                                                                                    September/October 2008

         Are You Paying Too Much In
        Credit Card Processing Fees?
                                             By Sean Jones, Metro Merchant Services

       or years, retailers and merchants have been waging a         These fees can easily be eliminated or reduced by working with a
       quiet war with the financial industry over “interchange       payment-processing specialist who is familiar with not only inter-
       fees” — the hidden costs of processing credit and debit      change, but the requirements needed for transactions to process
       card transactions that can wipe out a store’s profits         as efficiently as possible.
while earning banks a pretty penny.
                                                                    My name is Sean Jones and I work with Metro Merchant Services
Although interchange is a significant part of this equation,         and manage the Maryland-Delaware Independent Auto Dealers As-
almost half of a company’s credit card processing fees/down-        sociation endorsed credit card processing program.
grades can be attributed to working with a sales rep or company
that may not be properly trained or have a true understanding       We are offering a NO obligation cost savings analysis with your
of how your business operates.                                      current payment-processing program.

It’s a scary thought, but there is no regulation in our industry;   Metro provides cost + to all our merchants. This is a program that
anyone can sell payment processing with no formal training.         until recently was only provided to fortune 500 companies. We make
Sam’s Club and Costco are now offering payment-processing           sure ALL of your transactions qualify as efficiently as possible.
services. I can’t tell you the number of merchants whom we          You can fax your last month’s statement to Sean Jones at 301-790-
have worked with that are using one of these programs. They         1998 or call me direct at 888- 790-3450.
were quoted one rate, but because they key in transactions,
process commercial, business, purchasing and government
cards, they ended up paying 3.50% or more.

Visa and MasterCard have special programs for business that
process commercial, business, purchasing and government
cards, but because most processors/sales associates lack the
training and expertise related to the acceptance of these
types of transactions, merchants are set up improperly and
have an abundance of unwarranted and unnecessary fees and

You may see some of these on your statement: MID-QUALIFIED,
                             Important                                                                            Maryland/Delaware Independent
                                                                                                                  Automobile Dealers Association
                           Reminder!!!                                                                                            2008 Board of Directors

                                                                                                             PRESIDENT                                   VICE PRESIDENT

                               As of January 1, 2008,                                                        Mr. Mark Frostrom
                                                                                                             Frostrom & Sons, Inc.
                                                                                                                                                         Mr. Joe Eikenberg, Jr.
                                                                                                                                                         Aero Motors, Inc.
                                                                                                             1727 Market Street                          50 Eastern Blvd.
                                        sales tax has                                                        Pocomoke City, MD 21851
                                                                                                             Phone: 410-957-1414
                                                                                                                                                         Baltimore, MD 21221
                                                                                                                                                         Phone: 410-686-3444

                                      increased from
                                                                                                             Fax: 410-957-1426                           Fax: 410-686-8168
                                                                                                             Email:                   Email:

                                           5% to 6%.                                                         CHAIRMAN OF THE BOARD
                                                                                                             Ms. Irene Turnage
                                                                                                             M&M Auto Sales of Waldorf
                                                                                                                                                         VICE PRESIDENT – WHOLESALE
                                                                                                                                                         Mr. Jody Palmisano
                                                                                                                                                         Jody Palmisano, Auto Broker
                                                                                                             3188 Crain Highway                          416-B Benninghaus Road
                                                                                                             Waldorf, MD 20603                           Baltimore, MD 21212
                                                                                                             Phone: 301-843-7660                         Phone: 410-532-5639
                                                                                                             Fax: 301-843-5916                           Fax: 410-433-6904
                                                                                                             Email:                       Email:

                                                                                                             SENIOR VICE PRESIDENT                       SECRETARY/TREASURER
                                                                                                             Mr. Bob Lawrence                            Mr. Wayne K. Avery, Sr.
                             • DISCLAIMER •                                                                  Bob Lawrence Pre-Owned Cars & Trucks        Tommy’s Auto Sales
Please be advised that the information contained in this newsletter is, to the best of our knowledge, cur-   1610 North Salisbury Blvd.                   .O.
                                                                                                                                                         P Box 359
rent and correct. However, we caution our membership not to use this publication as the final authority.      Salisbury, MD 21801                         Upper Marlboro, MD 20773
Its purpose is to be a guide.
The MIADA/DIADA is a publication of the Maryland/Delaware Independent Automobile Dealers Associa-
                                                                                                             Phone: 410-543-2277                         Phone: 301-627-4700
tion, 12 Francis Street, Annapolis, Maryland 21401, which is published bi-monthly. The MIADA/DIADA           Fax: 410-546-3346                           Fax: 301-627-8526
was established in 1948, a non-profit corporation affiliated with the National Independent Automobile
Dealers Association.                                                                                         Email:                     Email:
The appearance of advertisers or their identification as members of the MIADA/DIADA does not constitute
an endorsement of the products or services featured.                                                         LEGISLATIVE CONTACT
The statements and opinions expressed herein are those of the individual authors and do not necessarily
represent the views of the MIADA/DIADA.                                                                      Mr. Brian Puckett
                                                                                                             Oldtown Motorcars
                                                                                                             4614 Baltimore Avenue
                        For advertising information contact:
                                                                                                             Hyattsville, MD 20781
                         Newsletters Ink 1-800-639-0465
                                                                                                             Phone: 301-864-4578
                                                                                                             Fax: 301-864-1012
                             2008 District Directors                                                         Email :

 District I                                                   District V
 Vacant                                                       Vacant
                                                                                                             MR. JOSEPH HALL                             MR. BILL WESTERLUND
 District II                                                  District VI                                    Silver Star Service Center, Inc.            Auto Wholesale Supermarket
 Mr. Bill Feuerstein                                          Vacant                                         240 West Street                             14800-B Old Gunpowder Road
 Salem Avenue Auto Exchange                                                                                  Annapolis, MD 21401                         Laurel, MD 20707
 1433 Salem Avenue                                                                                           Phone: 410-263-7444                         Phone: 301-604-5500
 Hagerstown, MD 21740
 Phone: 301-791-1317                                                                                         Fax: 410-263-7827                           Fax : 301-604-0176
 Fax: 301-791-0974                                                                                           Email:          Email :
                                                                                                             MR. GUS KURTZ                               MR. LEE ZORN
 District III                                                 District VII                                   Sports and Imports, Inc.                    Accurate Auto Service, Inc.
 Mr. Wayne K. Avery, Sr.                                      Mr. Anthony Trout                              8890 Ft. Smallwood Road                     400 Chinquapin Round RoadPasa-
 Tommy’s Auto Sales                                           Delaware Auto Sales
 P Box 359
  .O.                                                         319 West Division Street                       Pasadena, MD 21122                          Annapolis, MD 21401
 Upper Marlboro, MD 20773                                     Dover, DE 19901                                Phone: 410-360-8600                         Phone: 410-268-2228
 Phone: 301-627-4700                                          Phone: 302-678-1800                            Fax: 410-360-8686                           Fax: 410-267-1310
 Fax: 301-627-8526                                            Fax: 302-678-8151                              Email:                     Email:
 Email:                              Email :

 District IV
 Mr. Joe Eikenberg, Jr.                                                                                                       Executive Director – George N. Manis, Esquire
 Aero Motors, Inc.                                                                                                                Deputy Director – Nicholas G. Manis
 50 Eastern Blvd.                                                                                                                            12 Francis Street
 Baltimore, MD 21221                                                                                                                      Annapolis, MD 21401
 Phone: 410-686-3444                                                                                                                      Phone: 410-263-7882
 Fax: 410-686-8168                                                                                                                         Fax: 410-269-7523

An Inc. 500 Company Winner of the Northeastern PA Better Business Bureau’s Torch Award for Marketplace Ethics

                                                                                            To speak with a customer service rep,
                                                                                               don’t press a darn thing except
                                                                                            Preferred Warranties’ phone number.

                                                                                                         Free “Street Smarts”
                                                                                                            Training DVD!
                                                                                               Just meet with us and you’ll get this sales training DVD
                                                                                                   from Paul Webb’s popular NIADA TV program.
                                                                                                              No obligation to sign up.
                                                                                                                            (LIMITED TIME OFFER.)

                  Preferred Warranties has the best customer ser vice
                             in the business. Ben says so.
Since your future depends on repeat business, it makes sense to                                   We can make this generous offer because we have such faith in
treat your customers to the best service reps in the aftermarket                                  our customer service team that, frankly, our automated phone
warranty industry. So here’s the deal:                                                            system is seldom used. But don’t let that stop you from seeing
   If you call Preferred Warranties during our normal business                                    how Preferred Warranties plans and service are so good that
   hours* and get our voice mail directory machine, we’ll give                                    they can actually help you sell more cars and get more repeat
   you $100.                                                                                      business.
                                                                                                  *Normal business hours are weekdays, 8:30AM - 6:00PM, Saturday 9:00AM - 12:30PM,
   If your call is answered by a friendly customer service rep,                                    Eastern Time. Holidays & emergency conditions excluded.
   you have to give us some contact information.

     200 PINEBROOK PLACE • P.O. BOX 278 • ORWIGSBURG, PA 17961 • 1 (800) 548-1121 •                               email: •
Preferred Warranties Inc., a Pennsylvania Corporation, is majority owned by Harbert Private Equity Fund II, LLC, a Delaware Limited Liability Company with $180 million in committed capital.
                  MEMBERSHIP MONEY
                   BACK GUARANTEE!!
                      For $225 You Get More Than $3200 In Discounts Plus
                        Membership in Both MIADA/DIADA and NIADA
                    We Urge You to Join Today and Start Receiving Your Benefits

                 DEALERS ASSOCIATION
               Your Legislative “Watch Dog”               Serving the Industry Since 1948
                                12 Francis Street (Annapolis, Maryland 21401
                                  Phone (410) 263-7882 or (410) 269-4237
                          Fax (410) 269-7523 ( E-mail:


      This is our personal invitation to you to join the State and National
          Independent Automobile Dealers Professional Association
q YES it is important to me to be recognized as a professional!         Enclosed are my annual dues of $225 to
make sure that my business has all the advantages MIADA/DIADA/NIADA provides to put me at the forefront of
my profession. By completing this form, I am consenting to and giving MIADA/DIADA/NIADA, its affiliates and
subsidiaries, my permission to (until I give written notice to discontinue) contact me and provide information
to me at the mailing and email addresses, telephone and fax number(s) I have provided.

Your Name     _____________________________________________________________________________

Dealership Name ___________________________________________________________________________

Address __________________________________________________________________________________

City, State, Zip ____________________________________________________________________________

Phone ___________________________________ Fax ____________________________________________

Email ____________________________________________________________________________________

SIGNATURE : ____________________________________Referred By: ________________________________
                                          Slip Showing?
 Federal Law Requires All Businesses To Truncate Credit Card Information on Receipts

          hat’s on the credit and debit card receipts you give your            with older machines were given until December 1, 2006. So now
          customer? The Federal Trade Commission (FTC), the                    all companies that electronically print credit or debit card receipts
          nation’s consumer protection agency, says it’s time for              must truncate the information on the copy they give their customers.
          companies to check their receipts and make sure they’re              That’s why it’s important to make sure all your equipment complies
complying with a law that’s been in effect for all businesses since            with the law.
December 1, 2006.
                                                                               Several details of the law are worth noting: It applies only to elec-
According to the federal Fair and Accurate Credit Transaction Act              tronically printed receipts, not to handwritten or imprinted ones.
(FACTA), the electronically printed credit and debit card receipts             And it applies only to receipts you give your customer at point of
you give your customers must shorten – or truncate – the account               sale, not to any transaction record you retain. Be aware, however,
information. You may include no more than the last five digits of               that when you keep your customers’ personal information – includ-
the card number, and you must delete the card’s expiration date.               ing account data – you have an obligation to keep it safe. Read
For example, a receipt that truncates the credit card number and               Protecting Personal Information: A Guide for Business, available at
deletes the expiration date could look like this:                    , for tips on safeguarding sensitive data.

                     ACCT: ***********12345                                    The FTC works for the consumer to prevent fraudulent, deceptive,
                             EXP: ****                                         and unfair practices in the marketplace and to provide information
                                                                               to businesses to help them comply with the law. To file a complaint
Why is it important for businesses to make sure they’re complying              or to get free information on consumer issues, visit or call
with this law? Credit card numbers on sales receipts are a “golden             toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261.
ticket” for fraudsters and identity thieves. Savvy businesses appreci-         The FTC enters Internet, telemarketing, identity theft, and other
ate the importance of protecting their customers – and themselves              fraud-related complaints into Consumer Sentinel, a secure, online
– from credit card crime.                                                      database available to hundreds of civil and criminal law enforcement
                                                                               agencies in the U.S. and abroad.
But there are other important reasons to make sure your slips are
ship-shape. Noncompliance could open a company up to an FTC law                The National Small Business Ombudsman and 10 Regional Fair-
enforcement action, including civil penalties and injunctive relief.           ness Boards collect comments from small businesses about federal
In addition, the law allows consumers to sue businesses that don’t             compliance and enforcement activities. Each year, the Ombudsman
comply and to collect damages and attorney’s fees.                             evaluates the conduct of these activities and rates each agency’s
                                                                               responsiveness to small businesses. Small businesses can com-
While Congress passed this provision in December 2003, it has been             ment to the Ombudsman without fear of reprisal. To comment,
phased in gradually, requiring merchants with newer electronic                 call toll-free 1-888-REGFAIR (1-888-734-3247) or go to www.sba.
card processing machines to comply by December 2004. Merchants                 gov/ombudsman.=

Order of Title Documents Submitted to MVA                                                             CHUCK’S TIPS
                                                                                         Jamie from MVA Dealer Licensing wants us to remind dealers
• Transaction Receipt (Applicable if processed through ERT)
                                                                                         that you can obtain most business forms online any time.
• Registration Card (Applicable if a Tag Transfer)
                                                                                         Along with:
• Application for a Certificate of Title (VR-5)
• Certificate of Origin, Certificate of Title (Maryland or out-of-state) or other           •   new, used & wholesale packets   • verification of residency
                                                                                          •   salesman forms                    forms
ownership documents                                                                       •   adding a franchise              • application for 60 day tem-
• Notice of Security Interest Filing (i.e. lien release properly signed by authorized     •   title service forms               porary permits
individual with capacity)(if applicable)                                                  •   criminal record checks          • AD&R inventory reports
• Dealer Reassignment (if applicable)                                                     •   missing inventory forms         • indemnity agreement
• Bill of Sale                                                                            •   warranty exclusion forms
• Gift Form (if a gift transaction)
                                                                                         Go to:, then click on business services.
• Miscellaneous MVA Forms (i.e. Multipurpose Certification, Power of Attorney,
                                                                                         Thanks Jamie!
• Odometer Mileage Statement
                                                                                         BONUS OFFER!!
• Maryland Safety Inspection Certificate (if used vehicle)
                                                                                         For any MIADA-DIADA member who signs up a new member, Chuck
                                                                                         will deduct an hour fee for any in-dealership consultation.

                                         Salvage Chart
       his chart has been developed to assist customer agents in the proper
       branding of titles for vehicles that have been previously salvaged
       in Maryland or other States. The left column shows brands on
       salvage certificates that may be presented. The right column has
instructions on how to brand (or not brand) the title in each case.

Please be reminded that all salvage vehicles are required to be inspected
by a Police Officer in this state that is authorized to inspect Salvage ve-
hicles. The Police Officer will inspect VIN’s on the vehicle and make sure
the car is roadworthy. An additional Maryland Safety Inspection is needed
if registration is required.

Note: If the document presented is an out of state title that indicates
rebuilt salvage, xsalvage, flood, etc., The POLK or NADA Title and Registra-
tion Textbook is very helpful in determining how each state brands their
title and what that brand means. If the Reference Guides state the brand
is the Rebuilt Salvage Title, these vehicles have already gone through the
rebuilding process in another state and do not need a MD State Police
Salvage inspection. We must enter brands (or similar notations) from other
state titles when transferring to MD regardless of model year.

 SALVAGE CERTIFICATE BRAND TYPE                                               TITLE BRANDING
 Damage to vehicle is greater than 75% of fair market value and the All vehicles will be branded “REBUILT SALVAGE” when converted to
 vehicle is repairable on salvage certificate issued October 1, 2008 or a title. This brand is to be carried through to subsequent titles.
 later. For salvage certificates issued before October 1, 2008 the brand
 will be Damage is greater than fair market value.
 Damage is equal to or less than fair market value salvage certificates All vehicles will not be branded when converted to a title. THE TITLE
 issued prior to October 1, 2008. This brand becomes obsolete Oc- IS NOT TO BE BRANDED.
 tober 1, 2008.
 Parts Only / Not rebuildable                                                 Title “Cannot” be issued.
 Abandoned Vehicle                                                            All vehicles will be branded “REBUILT SALVAGE” when converted to
                                                                              a title. This brand is to be carried through to subsequent titles.
 The Vehicle Has Sustained Flood Damage                                       The title will be branded “FLOOD DAMAGED.” All vehicles will be
                                                                              branded when converted to a title. The brand will carry through to
                                                                              subsequent titles. 1

 Damage to the vehicle is greater than 75% of Fair Market Value and The title will be branded “SUSTAINED COSMETIC DAMAGE”. All
 the damage is cosmetic only.                                       vehicles will be branded when converted to a title. This brand is to
                                                                    be carried through to subsequent titles.
 Recovered Stolen (will be used only when vehicle has been recovered Title “will not” be branded.
 and damage is 75% or less)
 Stolen (Only MVA’s database is branded stolen. Salvage certificate will Once recovered, the Insurance Company may apply for an unbranded
 not be issued until vehicle is recovered)                              title if the Insurance Company makes a statement that the vehicle
                                                                        has sustained 75% damage or less. An application for certificate
                                                                        of title needs to be completed together with the Application for
                                                                        Salvage Certificate with Box 8 checked. A $50.00 title fee must be
                                                                        collected, but transaction is excise tax exempt under 13-810(a)(9).
                                                                        The Salvage Unit in Room 104 Glen Burnie will issue titles produced
                                                                        for recovered theft vehicles.
 Out of State Salvage Certificates                                             Titles will be branded “XSALVG.” The brand is to be carried through
                                                                              to subsequent titles.

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