Why aren’t your merchant account discount rates available on this website?
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 that cover all business types. Every business that wishes to accept credit cards is different. For example, some pose a higher risk than others.
Why do you have a merchant account Pre-application?
When you fill out the merchant account PRE-application, we are able to give you a qualified quote for your specific business. Once you agree with our assessment, we can either fax or e-mail the merchant account application to you for your authorization. We can also fill out the application for you based on the information that you provide.
What does my personal credit history have to do with getting a merchant account and my ability to accept credit cards?
This is probably the least understood aspect of credit card processing. If you are a 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 card-not-present merchant seeking a merchant account, 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: Card-not-present merchants who accept credit cards usually ship products to their customers within a given time period. Some deliver within a few days, others a few weeks. Our banks will fund the merchant’s bank account within 48 to 72 hours after a credit card sale is approved. As a merchant, you have literally been paid for goods or services before they have been delivered. In this case, tour merchant account is more than just a way to accept credit cards; it’s also a line of credit.
Cardholders have a specified time period in which to dispute charges for goods or services. This means they can call their credit card issuing bank and deny or dispute a charge. An unresolved dispute may 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 cardholder(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, have had serious credit problems in the past or even have a discharged bankruptcy, we can (in most cases) work out a credit card processing solution. For example, we may ask you to share the risk with us. We are not here to waste your time or ours. Our banks have very liberal credit underwriting criteria. In most cases, we can work credit issues out.
What is a chargeback?
A chargeback is the end result when a credit card customer successfully disputes a transaction after the sale is complete. 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 proof of the credit card transaction. 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 an I avoid a chargeback on my merchant account?
Having a toll-free number is of supreme importance if you are going to accept card-not-present transactions. It is not necessary to post this number on your website or to use it for normal contact reasons, 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. If there is a problem with a credit card transaction, the client will be inclined to contact you first, rather than the card issuer. 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 to engage in a chargeback dispute. Utilizing AVS (address verification service) and CVV2 (card verification value) will help verify 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 click on the following link;
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 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. Provided by the major card associations, AVS helps reduce the risk of fraudulent transactions by verifying the cardholder’s billing address (which is on file with 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 Verification Values
Card Verification Values are the non-embossed 3- or 4-digit numeric code on a credit card, recorded at the time of purchase. Statistics prove that individuals who possess the account number, but not the actual credit card, perpetrate the majority of card-not-present fraud. Merchant account holders who fully support the use of card verification values 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. 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. 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. As a merchant, you should stand behind your 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.
START ACCEPTING CREDIT CARDS TODAY! Fill out the simple form to the above right or call 1-877-305-4943 to start accepting credit cards today with MerchantAccount.com.
