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Key Things to Avoid
Please Take Caution and Avoid These ItemsThere are numerous fees, terms, requirements, deceptive sales practices, and other aspects you as a merchant must avoid in order to protect your business and perhaps your own personal credit worthiness. The “MerchantFeeSavers Guide” goes into great detail on the steps to needed select the right merchant account provider and avoid the pitfalls that have cost some merchants thousands of dollars. Below are some of the most common ones. Termination FeesLiquidated Damages – We recommend that you NEVER sign a merchant agreement that has a Liquidated Damages clause or a Liquidated Termination clause in the accompanying Terms and Conditions. Some merchant account providers charge the merchant liquidated damages should the merchant terminate the agreement early. Liquidated damages are calculated based on a formula used by the individual merchant account provider and may include risk they took on the account, transaction cost, lost revenue, etc. What does this mean? Say you signed a 3-year contract (3-years is the most typical length in the industry). Also say the merchant account provider’s formula states they deserve to make $2000 per month on your account should you terminate early. If you terminate after 12 months, the merchant account provider will…
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What Is PCI?
What is PCI? The Payment Card Industry Data Security Standard (PCI DSS) consists of requirements designed to ensure that all businesses that process, store or transmit credit card information maintain a secure environment. All merchants who accept credit, debit, or card association labeled pre-pay cards, regardless of size or number of transactions, must be PCI compliant. PCI compliance is to be taken very seriously. In fact small merchants and home business may be the most susceptible to hackers.Where to find specific information on PCI compliance? The Payment Card Industry Security Standards Council (PCI SSC) was launched to manage the ongoing evolution of the Payment Card Industry (PCI) security standards. Its primary focus is on improving cardholder data security throughout the transaction process. The PCI DSS is administered and managed by the PCI SSC (www.pcisecuritystandards.org), an independent body that was created by the major card associations (Visa, MasterCard, American Express, Discover and JCB.). The PCI SSC is where a merchant can go to find what he needs to know about the PCI Security Standards. Merchants can also find out why and how to become compliant with PCI Security Standards. To access the standards go to (www.pcisecuritystandards.org/security_standards/pci_dss.shtml)What are the penalties for noncompliance? The…
Glossary of Credit Card Processing Terms
A:Account Number: A unique sequence of numbers assigned to a Cardholder account that identifies the Issuing Bank and type of financial transaction card.ACH: Automated Clearing House – An electronic network for financial transactions in the United States. ACH processes large volumes of credit and debit transactions in batches and transfers electronic funds into and out of the merchant’s bank account.Acquirer (or acquiring bank): A member of a Card Association, for example MasterCard and/or Visa, which maintains merchant relationships and receives all bankcard transactions from the merchant.Acquirer Processing Fee (APF): A Visa per-item fee since July 2009. The fee is on all Visa branded authorizations acquired in the U.S. regardless of where the issuer/cardholder is located. Currently this fee is 1.95 cents per authorizationAddress Verification Service (AVS): When a card is not swiped, the address must be verified to combat possible fraud. This feature is used primarily by mail or telephone order and ecommerce merchants but can be used by retail merchants when a card cannot be swiped. A prompt appears on the software or terminal asking the merchant to enter the numerical value of the cardholders billing address, the Zip Code and, on occasion the CVV / CID code of…
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