Merchant Account Blog & Credit Card Processing Blog

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Understanding Your Merchant Account Responsibities !!!!

If you are shopping for a new merchant account, you need to understand what you are getting into. Many times business owners are in a rush to set-up credit card processing for their business, they overlook the fact that they are entering into a contract that has many responsibilities and rules to abide by.

Many times merchants will find out the hard way, by being fined or getting their merchant account shut down. In some instances, merchants are “TMF’d” which means they lose their privilege to accept credit cards in the future. It surely make more sense to understand your responsibilities and model your business to conform with the rules set-forth by Visa and Mastercard.

Accepting Credit Cards - A Privilege:

Understand that being accepted to accept credit cards is a privilege, not your right !!!! Should you take this lightly, you could find yourself losing this privilege, permanently. That’s right, permanently !!!! You could personally be banned from ever accepting credit cards, for any business endeavor in the future. 

Unhappy Customers Can Destroy You:

An unhappy customer can create havoc on your business. Credit card holder’s have the right to call their credit card company and dispute a transaction on their credit card. These disputes have the potential of becoming a “Chargeback” to your business. A chargeback is simply a reversal of the charge, from your bank account, back to the customers card. These reversals come with very stiff fines to the business owner and could get your account terminated. Here some key points to avoiding chargebacks.

• Offer A Superior Product Or Service
• Quickly Resolve Customer Service Issues
• 100% Unconditional Return Policy
• Toll Free Customer Support
• Maintain Signatures + Shipping Records

Exceeding Volume Limit’s:

Every merchant account agreement has an “Average Monthly Volume” amount for Visa & Matercard. During your approval process, this amount is underwritten by the processor and is usually based on the credit scores of the merchant. If you are approved for that amount, you must process within the limit.

Should the limit become an issue, you must call in to ask that it be re-evaluated by the underwriting department. If your credit scores are too low, you may not get an increase.

If you simply ignore this limit, at some point your account will be shut-off.

Exceeding Ticket Limit’s:

Every merchant account agreement has an “Average Ticket” amount for Visa & Mastercard. Again, during the approval process, this amount is underwritten based on your credit scores. From an underwriting stand point, the higher the ticket, the higher the risk. If your account is approved for a certain ticket amount, you must process within that limit. Occasional “High Tickets” should be disclosed on the application, prior to underwriting. Contacting your “Risk Department”, prior to running high tickets is advised.

If you simply ignore this limit, your account could be terminated.

Honor All Cards:

Every merchant account agreement has a “Honor All Cards” Claus. This means as a Visa / Mastercard Merchant, you are bound to honor every credit card transaction presented to your business. That tiny sign at your local diner that states, “$10 Credit Card Minimum” is in direct violation of the terms of the merchant account agreement.

You cannot charge a “Surcharge” on credit card transactions either, this would also be in violation of the merchant agreemnet, as well.

Reserve Account:At any time, at the sole discretion of the bank, the bank has the right to place funds on hold in a non-interest barring reserve account. Reserve account is to protect the bank from future losses due to fines, chargebacks, ect that may come through your merchant account. Hold time-frame will be determined by the bank and is usually for long enough time period to cover future customer chargebacks.

In Conclusion:

As you can see, “Your Privilege” to accept Visa & Mastercard comes with many duties and responsibilities. Failure to comply, could prove to be very costly and cause your account to get “Terminated” and potentially lose your credit card processing privilege in future business endeavours. Play it safe, understand the rules and play by them.

If you have any questions, please feel free to give me a call.

MARK SANDS
1st National Processing
http://www.usa-merchantaccount.com
1-866 828-8683

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Saving Money On Your Merchant Account Fee’s !!!!!!!!!!

Saving money on your merchant account & credit card processing fee’s has never been more simple. We have put together a program to save you hundreds, if not thousands of dollars in fees, depending on your current monthly volume. Perfect solution for any business owner looking to cut cost’s.

INTERCHANGE PLUS PRICING - Start Saving Today !!!!!

In the past, this program has been reserved for High Volume Chains, such as Wal-Mart or McDonalds. We have opened the flood gates for any business size to profit from the savings. For those of you who are not familiar with the term “Interchange”, interchange is the cost passed on by Visa & Mastercard which accounts for the majority of your transaction cost’s. Interchange consists of several hundred catagorys which any transaction could fall under. Here and links to the most recent Interchange Schedule’s for Visa and Mastercard, as you will see this is quite complicated.

To simplify matters, most merchant account’s are on a “Tiered System”, consisting of Qualified, Non-Qualified, and maybe Mid-Qualified rate. These tier’s cover any downgrades by Visa or Mastercard in which certain transactions may fall. This simplifies “Interchange”, but alway’s cost’s more in credit card processing fee’s to a merchant on the Tiered System.

BOTTOM LINE - SAVING MONEY LIKE THE BIG BOY’S !!!!!!

We are now offering “Interchange Plus Pricing” to merchants of any size. Previously reserved for large corporations, this pricing schedule will saving you money on your credit card processing fee’s and is available to any merchant account, regardless of size.

Call us immediately for a cost analysis and began saving like the big boy’s.

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Merchant accounts processing with 1st National Processing can put there fears aside with becomming PCI Compliant with the complicated standards recently set-forth by Visa & Mastercard. We have simplified the process, making it quite simple for our merchants who process with us.

First, we have painless online survey which will walk you through each step of completing your Self Assessment Questionaire, required for PCI Compliance. Once the “SAQ” is completed, you will receive an email if you need to perform a “Quarterly PCI Scan” of your website or network. You will then receive instructions by mail for performing any required PCI Scans.

Lastly, if you are required to perform PCI Scans the cost is included in our Annual PCI Compliance Fee of only $30.00. This minimal fee is cheap when compared to other processors, who charge $79-$99 and expect you to become PCI Compliant on your own.

If you are looking for more information on PCI Compliance, here’s a great 10 Minute Video that will educate you on the subject.

1st National Processing Customers can begin the PCI Compliance Process by clicking here.

MARK SANDS
1st National Processing
http://www.usa-merchantaccount.com
1-866 828-8683

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Merchant Account Rates - Credit Card Processing Rates

Merchant account rates and fees can vary from processor to processor. Unerstanding rates are key to finding the best overall merchant account rate for your business. We will look at each variable when searching for the best credit card processing rates.

Swiped Credit Card Rates: Credit card transactions which are “Swiped” through a credit card machine are usually fall around 1.69% - 1.79% depending on the processor. These levels usually bundel both Signatute Debt Transactions and Credit Card Transactions branded with either Visa or Mastercard Logos.

Keyed Credit Card Rates: Transactions where the customers card is not present and the card number is “Keyed” into credit card processing software or ecommerce merchant account where the customer manually inputs credit card information, the rate usually falls around 2.39% - 2.49% keyed.

Mid Qualified Rates: These rates are assessments by Visa & Mastercard and will vary by processors. Usually this tier is for Rewards Cards, branded either Visa or Mastercard.

Non-Quailified Rates: Again, these are assessments by Visa & Mastercard and do vary bt processor. This tier is for International Cards, Business Cards, Corporate Cards, Government Cards, and any keyed transaction that is un-qualified or lacks AVS Fraud Controls. Discount rate tier regulations.

Pin-Based Debt Transactions: These retail transactions require a Pin Number Authorization and usually price at $0.35 + 0.75% of the dollar amount. A PCI-Compliant pin-pad is required and is not
available for phone-order or ecommerce transactions.

Split Signature Debt / Credit Card Rates:  These rates are split into two catagories, seperating Signature Debit and Credit Card transactions. Usually priced at 1.39% Signature Debit and 1.89% Credit Card. Be careful here, as if your business accepts mostly credit cards, you will pay more.

Transaction Fee: Transaction fee’s cover the transmission cost and usually price between $0.20 and $0.30 depending on your processor and transaction processing methood. May include end-of-day batching of the day’s transactions for payment to your account.

Statement Fee: Each month you receive a monthly merchant account statement of transactions forr the previous month and usually prices between $10-$12 per month.

Minimum Fee: This fee is charged to Low-Volume Business doing less than $25 Month in discount rates fees. Often used to off-set free equipment placements to low-volume businesses.

Annual Fee: Merchant’s are usually charged a annual fee on the aniversry of their account. Fee will vary and can usually be waived.

Chargeback Fee: Customer disputes that result in a Chargeback are charged between $25-$35 per instance. Chargeback Prevention is needed as your merchant account can be “Closed” for excessive chargebacks.

Application Fee: This fee has pretty much disappeared, industry-wide.

If you are looking to SAVE MONEY on your credit card processing, please give me a call imediately.

MARK SANDS
1st National Processing
http://www.usa-merchantaccount.com
1-866 828-8683

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Choosing a merchant account provider can be a confusing task. Most merchants are looking a price only, as a deciding factor. This is not always the best factor in the long run for your business. With the recent push towards free credit card terminals many business owners are just jumping in, without looking a the whole picture. You should be analyzing all payment options, rates, equipment cost, contract durations, and level of support provided by your merchant services provider.

Payment options only began with credit card processing. You have many other options to consider, including American Express, Discover-Card, Pin-Based Debt, Check Processing, Gift Card Program, EBT Food Stamps, ect. Most offices focus on putting a credit card terminal in your hands and leave. Our staff is trained to listen to the merchant needs and tailor a payment processing solution that best meets the merchant needs. One size does not fit all. You must find a provider willing to listen to your needs and make sound recommendations based on those needs.

You need to understand the cost of your payment solutions, such as rates, fees, and the duration of the service contract. Don’t just let a salesperson email you a contract to sign, but ask them to go over each item, line-by-line with you before you sign. Don’t accept something that you really don’t need, but don’t overlook a service which makes sense to your business. In short, find a salesperson willing to explain and guide you with your best interest in mind.

Support is the next concern. Look for a company that will be there when you have a problem, ie..broken equipment, credit card supplies, risk-issues, ect. Our customer support team is the best in the business. Weather you have a question at 10:00PM or a broken terminal that needs replacement, we are there to help. Beware of an office that is simply looking to sell you a black box.

In closing, choosing a credit card processing provider can be a hassel. If you have any questions, please feel free to call me to discuss your needs.

MARK SANDS
http://www.usa-merchantaccount.com

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