Merchant Account Credit Card Processing Outlook for 2011

Companies that take credit cards at retail establishments, e-commerce sites or over the phone, should anticipate changes in 2011, according to Robert Livingstone, president of idealcost.com, a national advising firm that reduces credit card acceptance fees for merchants.

"Some of the changes to the credit card processing industry will benefit merchants, but we also predict some harmful trends that may be disastrous to American companies," said Livingstone, an advocate for merchants rights.

During 2010 Livingstone has expressed his anxiety about the current state of the credit card processing industry. "On behalf of all merchants, I hope to see vast improvements in transparency and accountability when it comes to credit card acceptance."

Livingstone's list of merchant account credit card processing forecasts for 2011

Large Cell Phone Providers Will Attempt to Break into the Market

AT&T, Verizon, and T-Mobile have been in negotiations to provide technology that will allow customers to utilize their cell phones in front of a accordant card reader rather than swiping a credit card. Analogues technology is already in place in Europe and Asia. It s unknown the price merchants will be charged for these transactions, but these cell phone providers will obviously attempt to increase their market share by vastly undercutting the current merchant services system.

Merchants Will Continue to Suffer From Unfair Chargebacks and Data Breaches

In 2010 many clients have ripped off merchants by contacting their credit card company to argue valid transactions after the fact. While the client is often supported by the credit card company, it is usually at the cost of the merchant. The merchant services industry has not shown any legitimate strategies to alter this trend or to retribution from cardholders calling in wrongful disputes.