Why aren’t your merchant account discount rates available?
We look at each business that wants to accept credit cards individually. Unlike other companies who post “teaser" rates, usually preceded by words like "as low as" we pre-qualify our merchants for credit card processing. We answer each inquiry with a detailed quote on both rate and investment. There are no blanket merchant account discount rates which cover all business types. All businesses that wish to accept credit cards are different. Some pose higher and lesser risk.
Our merchant account PRE-application is free and there is no obligation. NO SALESPERSON WILL CALL.
We will only call if you ask us to call. If you fill out our merchant account PRE-application form we will get back to you with a quote. By whatever method you choose.
Why do you have a merchant account PRE application?
Since all businesses looking for credit card processing solutions are different, and we look at all applications individually there are no “blanket” or standard merchant account discount rates for all business types. Some businesses pose a higher risk than others. By filling out the merchant account PRE-application we are able to give you a qualified quote for your specific business type. Once you agree with our assessment we can either fax or e-mail the merchant account application to you for your authorization. We will also be able to fill out the application for you with the information provided by you.
What does my personal credit history have to do with getting a merchant account, credit card processing, and my ability to accept credit cards?
This is the probably the least understood aspect of credit card processing. If you are a retail or traditional face to face merchant looking to accept credit cards, the simple answer is, very little.
However if you are a mail order, phone order, Internet or other non face to face merchant seeking a merchant account and/or credit card processing solutions, your personal credit history may play an important role. If you are a smaller volume merchant your credit history shouldn’t be an obstacle. If you are a high volume merchant it can affect the merchant account approval process.
Here’s how: Non face to face merchants who accept credit cards usually ship products to their customers within a given time period. Some deliver within a few days after the credit card processing or in some cases even a few weeks. Our banks will fund the merchant’s bank account within 48 to 72 hours after the credit card processing. As a merchant you have literally been paid for goods or services before the customer or cardholder has taken delivery of the goods or services. It is quite literally a line of credit and more than just the ability to accept credit cards.
Cardholders have a specified time period in which to dispute charges for goods or services. This means they can literally call their credit card issuing bank and deny or dispute the charge. Unresolved disputes can result in a chargeback. If the merchant does not have available funds in their merchant account to credit the cardholder(s) our bank (acquirer) has to credit the card holder(s) regardless.
If we feel your credit history is going to be a factor in the approval process to accept credit cards with a merchant account we will let you know. If you have current credit problems, had serious credit problems or even a discharged Bankruptcy we can in most cases work out a credit card processing solution. We may ask you, the merchant account holder, to share the risk with us. We are not here to waste your time or ours. Our banks have a very liberal credit underwriting criteria. We can in most cases work credit issues out. The ability to accept credit cards is good for everyone.
What is a chargeback?
A Chargeback is the end result when the merchant account holder’s credit card customer successfully disputes a transaction that appears on their credit card bill after the credit card processing takes place. Customer disputes typically arise from dissatisfaction with the quality of merchandise or services received, merchandise or services not received, or a questionable transaction.
A dispute creates a Retrieval, the process of gathering transaction proof of the credit card processing. When a cardholder disputes a charge, the merchant account owner is debited for the funds in question while the transaction is investigated. An unfavorable outcome for the merchant account holder results in a chargeback.
Needless to say, this is a time-consuming and potentially costly process for small businesses who accept credit cards. Fortunately, you can take a number of actions to prevent or at least minimize chargebacks. The first step is to make sure you fully comply with the transaction requirements issued annually by the major credit cards.
How can I avoid a Chargeback on my merchant account?
Having a toll free number is of supreme importance in credit card processing if you are going to accept credit cards using non-face-to-face credit card transactions. It is not necessary to post this number on your website or to use it for normal contact reasons unless you wish to do so, but it is critical that it be furnished to your credit card possessing solutions provider so that it may be posted on your clients' billing statements. By having a toll free number listed on your merchant account and included next to your company name on the billing statement, when there is a problem with the credit card processing the client will be inclined to contact you the merchant account holder first, rather than the card issuer, if there is some sort of dispute regarding the charge. Supplying a toll free number on your merchant account will prevent a chargeback from occurring much of the time, as you the merchant will have a chance to rectify the situation or to issue a refund to the client before they attempt a chargeback dispute. Utilizing AVS (address verification service) and CVV2 (card verification value) will help verify the cardholder information when you accept credit cards. We support these services. For more useful information regarding these and other issues involving a merchant account, credit card processing, and helpful information when you choose to accept credit cards, please go here:
http://usa.visa.com/business/merchants/fraud_basics_cardnotpresent.html
What are AVS and CVV2?
Address Verification Service
Address Verification Service (AVS) is a risk management tool for merchant account holders who accept credit cards transactions when neither the card nor the cardholder are present, or when the card is present but its magnetic stripe cannot be read by a terminal at the point of sale. Provided by the major card associations, AVS helps reduce the risk of fraudulent transactions by verifying the cardholder's billing address on file at the card issuer. Merchant account holders submit the AVS request through the processor directly to the specific credit card association during credit card processing for address comparison.
Card Security Verification
Card security verification collects the non-embossed 3- or 4-digit numeric code on the credit card provided at the time of purchase. Statistics prove that individuals, who possess the account number, but not the actual credit card, perpetrate much of the non-face-to-face fraud. Merchant account holders that fully support card security verification when you accept credit cards can expect fewer fraudulent transactions, reduced cardholder disputes, and improved customer satisfaction. The processor routes the card verification request from the merchant account holder directly to the specific credit card association. The card security value is then compared to the card issuer's value on file. Credit card processing verification programs are offered by the major card associations and are known as CVV2 (Visa), CVC2 (MasterCard), CID (American Express) and CID (Discover Card).
What is an aggregator?
An aggregator is a company with a “Master” or “Nano” merchant account for credit card processing. They will allow you to accept credit cards by using their merchant account. In almost every case they will charge the individual merchants a higher discount rate for credit card processing then they are required to pay thereby making a profit on other people’s sales. Some require reserves and do not pay out in a standard 48 to 72 hour basis. So in theory they are accruing interest on your money from credit card processing as well. Furthermore they will not get involved in any disputes when they accept credit cards on your behalf and generally credit the cardholder back without verifying what the dispute is about. If a cardholder purchases from company “A” and sees company ”B” on their credit card statement. This is known as a “descriptor”. They may dispute the charge simply because they did not recognize the name of the merchant account owner. It could have easily been resolved but the cardholder didn’t have the phone number or descriptor of the actual merchant that did the credit card processing. It is easier for a merchant account aggregator to refund the cardholder’s money rather than answer a dispute. Most still charge you the credit card processing fee so you lose twice.
Why should I get my own merchant account?
By getting your own merchant account you are lending credibility to your business. You owe it to yourself to accept credit cards and all forms of payment. You as a merchant should stand behind your own business. The credit card companies are not only there to make life more convenient they also act as consumer protection agencies. When you display their logos you are telling the public that you stand behind what you sell. You are a legitimate enterprise.