What is a Merchant Account?
A merchant account is an account at a financial institution that allows you to directly accept credit cards from your customers.
Can’t I use someone else’s merchant account to do my transactions?
No, this practice is known as “credit card laundering” or “factoring” and it is against the VISA/MasterCard agreement. If convicted, heavy fines are enforced. You’ll also put that merchant’s credit card processing account in jeopardy.Are all Merchant Accounts the same?
Not at all. Merchant accounts are not the same because merchants are not the same. Processing Solutions will work with you to design the most favorable Merchant Account for your business’ credit card processing needs.How is Processing Solutions different?
Our goal is to build our company one customer at a time. We want to be known for our top-notch service and affordable rates. We want our merchants to be so satisfied with our company it will make them recommend us to family and friends.What are the rates you charge?
Each business is uniquely different. Each business processes in a different way. Because of these factors, and more, Processing Solutions works closely with you to determine what the best structure will be for your Merchant Account. Anyone that has a “one-size-fits-all” attitude concerning your account is not looking out for your business’ best interests.What credit cards will I be able to accept?
Your Merchant Account is automatically designed to accept VISA, MasterCard, Discover and Diners Club. You may choose to add American Express at no extra charge during the set-up of your account.Can I accept debit cards?
You can accept debit cards from financial institutions based in the United States that have a VISA or MasterCard logo on it.What information is needed to apply for a Merchant Account with Processing Solutions?
The Merchant Application is a simple, three-page document. We also need a copy of your Driver’s License. So that your funds can be directly deposited into your account, we also need a copy of a voided check. Depending on your business’ Monthly Volume and Average Ticket Sale, some additional information may be required. If your business is not a Sole Proprietorship, then Articles of Incorporation, Partnership Agreement or your Business License will be required.What support can I expect once my account is opened?
We treat our Merchants like royalty. You will get contact numbers for the Issuing Bank, the Gateway Company and all contact numbers for your Processing Solutions Representative. You will be given all associated email addresses as well. An informative welcome packet is sent out to all of our Merchants.Do I have to change or open a new bank account?
Not at all. Processing Solutions will set-up your Merchant Account so that the funds are deposited into the checking account you choose.How will I receive payment on each of my transactions?
AAfter the transaction has been initiated by your customer, it goes through the review process for fraud protection and then is directly deposited from the processor to the linked checking account at your bank. Average times for funds to be deposited are 48-72 hours.What is a Discount Rate?
Every credit card company charges a discount rate. The discount rate is the percentage of each transaction that the processing company charges to handle the transaction for you.What is a Transaction Fee?
Every credit card company charges a transaction fee (though it may be named something different). A transaction fee is the flat fee taken out of every transaction.Why is the Discount Rate higher for Internet, Mail and Telephone transactions?
Face-to-face transactions, where the credit card information is physically swiped off the credit card, has less risk involved. Therefore, rates are a bit lower as the instances of fraud and chargebacks are a lot less.What are my monthly fees?
Monthly fees vary based on the type of Merchant Account you open. All merchants pay a Statement Fee. With most active accounts, that will be the only monthly fee a merchant is charged.How are my monthly fees paid?
Monthly fees are automatically debited from the checking account you provide at the time of set-up during the first week of each month for the previous month’s transactions.What is a Virtual Terminal?
A Virtual Terminal (VT) is a web-based terminal used by businesses to authorize, process and manage credit card transactions from any computer that has internet access and a web browser. This eliminates the need to purchase or lease point-of-sale equipment. A Virtual Terminal suits businesses of all sizes because it reduces the complexity and expense normally associated with authorizing and processing credit card purchases.What is Address Verification Service?
Address Verification Service (AVS) verifies that the address and ZIP code you are given match the records the issuing credit card company has on file for that customer. This is a great tool to use to reduce the risk associated with non face-to-face transactions. Utilizing this tool also helps you achieve a better Discount Rate for that transaction.What is Card Security Verification?
Card security verification collects the non-embossed 3- or 4- digit numeric code on the back of the credit card your customer used to make the transaction. Merchants that utilize card security verification can expect fewer fraudulent transactions, reduced chargebacks and increased customer satisfaction. Card security verification programs are offered by the major credit card associations and are known as CVV2 (VISA), CVC2 (MasterCard) and CID (American Express and Discover).What is a Gateway?
A Gateway allows merchants the ability to perform secure real-time credit card transactions over the internet. This can be done with the use of a Virtual Terminal, a Shopping Cart System, a Credit Card Swiper or other ePayment options.What is a Chargeback?
A Chargeback is when a customer disputes a credit card charge by contacting their credit card company. If the customer does not recognize the charge on their statement, or if they believe the amount was wrong, they may ask their credit card company to investigate the charge. With a Merchant Account, your direct contact information will appear on your customer’s statement. This is important, as it means your customers can contact you directly to verify the charge. In most cases they will recognize your business information and realize the charge is valid.How Does a Merchant get their money?
There are four steps to getting your money:
1. Initiating
2. Authorizing
3. Completing the Transaction
4. Receiving the Funds
Step 1- IInitiating the transaction to verify that a card is active and with the approved spending limit Card is swiped or information is keyed in.
Step 2- The transaction is authorized in real-time, which reduces chargebacks and catches card-entry errors your customer’s card number. Expiration date and sales total is sent to the bank. The bank transmits data to your customer’s credit card issuing bank your customer’s issuing bank approves or denies transaction.
Step 3- The merchant’s terminal or software transmits transaction details to their bank in a batch at the close of the business day the transactions are forwarded to each credit card company, which redirects the transactions to appropriate banks each bank debits their credit card cardholder’s account and credits the merchant’s bank.
Step 4- The bank credits the funds from the transactions into your merchant account, usually within two business days.