What is a Merchant Account?
A merchant account is a relationship with a credit card processing bank, that allows a merchant to accept and process credit cards. The merchant account will allow the merchant to swipe their customer's credit or debit cards through a credit card terminal, or will allow the merchant to manually key in transactions. Merchant accounts can be set up in the name of an individual or by a corporation. Each location of a business with a single ownership must have its own merchant account.And, each website set up by a merchant that either has a different name or sells different products needs to have its own merchant account.
When setting up a merchant account, the merchant will specify what method they plan to use for obtaining information from their customers credit or debit cards. This determined method will also determine the cost that the merchant must pay to process their customers credit cards. The lowest cost for processing would be swiping customer's cards through a credit card terminal. Keying in transactions or processing over the internet has a higher cost than swiping through a credit card terminal due to the higher risk associated with this method.
What are the requirements to setup a merchant account?
To setup a domestic based merchant account a merchant must have a physical location within the country domiciled and a checking account. Once these conditions are met a merchant can apply for a domestic merchant account. If these conditions cannot be met a merchant must use an offshore merchant account.
Application Requirements for all businesses:
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Physical Location in the local town.
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Checking account with a commercial bank in the name of the business or the merchant account signer.
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Explanation of business type (ie: LLC, Corporation, Sole Proprietorship, etc.).
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National ID Number .
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Owner or Merchant Account signers SSN.
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Owner or Merchant Account signers address information. Product or Services being sold information.
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Exchange and Refund policies. Intended method of accepting transactions (ie: swipe, internet, keyed, etc.). General business location type (ie: Shopping Center, Home Based, etc.).
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Copy of a voided check from merchants checking account.
Additional Requirements for some businesses:
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Marketing material (ie: business card, brochure, advertisement, etc.). Business License.
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Proof of business existence (ie: phone bill, utility bill, etc.).
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Proof or financial stability (ie: profit and loss statements, bank statements, etc.).
Requirements for all internet businesses:
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Active website with DBA of website listed on application.
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Product delivery methods and timeframe clearly stated on website.
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Product prices in US dollars.
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Privacy Policy listed on website.
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Customer Service telephone number listed.
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Secure checkout system.
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Domain name registered to merchant.
How long does it take to get approved and setup?
The time that it takes to get approved depends on the type of business and the intended method of processing that the merchant is planning on doing. The times listed are based from when our company receives an application.
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Retail Businesses (Swiped Transaction): For retail businesses it is common to get an approval within 24 hours or even on the same day. Including programming the terminal and shipping to the business, the total setup time is around 3 - 4 days.
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Internet and Keyed Entry Businesses: Internet businesses usually take 2 - 3 days to get approved and an extra day to get the payment gateway system programmed. This is also assuming that the merchant's website meets all requirements, otherwise a conditional approval may be granted until the website is fully setup. The total setup time is around 3 - 4 days.
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Wireless Processing Businesses: Wireless businesses are considered the same as a retail business except the terminal will take an extra 1 - 2 days to setup the terminal on the wireless network. The total time to be setup is 5 - 6 days.
**These times do not include any pending issues or the requesting of additional information, which is uncommon but does happen for some applications. **
Do I need to have great credit to get approved?
Personal and business credit are factors that are used to qualify a business or individual for a merchant account. Every merchant account application will include a credit check of the business and the person signing for the merchant account. Perfect credit is not a requirement for opening a merchant account, but a better credit rating can help speed up the application process. The only time that credit becomes an issue when opening a merchant account, is if a merchant has an open bankruptcy, or has been terminated from processing in the past.
What is CVV?
CVV is a card verification system that verifies that a cardholder is in possession of a credit card by verifying a set of numbers that is embossed on the credit card and not encoded in the magnetic strip. This way even if the card number is stolen, a transaction cannot be processed if the purchaser cannot verify the cvv number on the card. Requiring CVV in addition to AVS can help to eliminate most fraudulent orders for internet and keyed entry businesses.
Each card issuer has a different name for the CVV system, but all are essentially the same thing. Visa refers to it as CVV2, Mastercard is called CVC2, Amex is CID.
The CVV number is located on the back of the card except for most Amex cards where it is on the front. Amex also uses a 4 digit verification code whereas all other card makers use a 3 digit number.
What if my business is not locally based?
We cannot accept non local businesses for our domestic merchant account services.
The requirements for a business to be able to process through a domestic merchant account are a local bank checking account and a physical location in the locale.. Once these requirements are met, a business can apply for a domestic merchant account.
How much does wireless processing cost?
Wireless processing uses that most advanced processing terminals available. With this advanced technology comes a higher price tag than land line processing terminals.
These fees are in addition to your merchant account fees. Wireless terminals operate on cellular networks similar to cell phones, and thus require an additional cellular fee for using the wireless network.
Make sure your business has a sufficient volume that justifies the extra cost of wireless processing. We recommend that your business processes a minimum of $1500.00 / month or over 100 wireless transactions / month before you look at a wireless solution.
Do I have to use a wireless terminal?
There are several options that we offer for mobile businesses other than wireless terminals, but for true wireless point of sale processing, you must use a wireless credit card terminal.
The other options are an ARU account, using a manual imprinter, or calling back to a central location where the credit card information is keyed into a terminal
Can I process over my IP connection?
Many merchants have broadband connections for their business and would like to utilize this connection for their credit card processing. The terminal that we offer for use with this type of connection is the Omni 3750 with the ethernet adapter.
PC Charge can also be used through a broadband connection, in conjunction with a PC card swiper. Either of these options will provide a lightning fast method for processing your electronic transactions.
Will my terminal work with a VOIP connection?
Since the emergence of VOIP phone systems in the business world, this has been a common question.
Most credit card terminals will not work with a VOIP telephone connection. A VOIP connection uses a digital phone network which involves switches and multiplexing to transfer data. Most credit card machines use an analog type connection that is incompatible with a digital circuit.
The easiest way to use a broadband connection is to use a Verifone Omni 3750 with the ethernet adapter. These terminals in conjunction with a router will allow you to connect all of your electronics easily through the same internet connection.
It may be possible to use an analog to digital converter, but since this is a very expensive and technically advanced process it is not documented or recommended.
What is a Chargeback?
A chargeback is where a customer is disputing a charge listed on their credit card statement. A chargeback may get the customer their money refunded, but it is not a refund. Avoid chargeback’s at all costs because they can ultimately end up in a merchant loosing the ability to process credit cards completely.
The customer will contact their credit card issuing bank to notify them that they want to dispute a charge. The card issuing bank requests a chargeback from the processor who takes the amount of the purchase from the merchants bank account. The merchant will then be sent a letter that notifies them of the chargeback and requests further information from the merchant. The merchant will need to provide the requested information to the processor who will then make a decision on whether the customer deserves to get a refund.
Chargebacks can be initiated for a variety of reasons. The most common reason is that a customer doesn't recognize or doesn't remember the name of a merchant listed on their credit card statement.
A chargeback can be initiated 6 months after the completion of the sale. This means that if you provide a service that lasts 1 year the customer can chargeback the transaction 6 months after the service is completed, one and a half years after the sale itself is made. This is why chargebacks are more common with long term or custom services.
Common Chargeback Reasons:
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Not recognizing merchant's name on credit card statement.
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Customer charged more than once for the same purchase.
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Merchant did not deliver the agreed upon service.
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Customer unsatisfied with product or service.
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Fraudulent orders (mainly internet businesses).
The best way to challenge a chargeback is to first contact the merchant to try and figure out why there was a chargeback. Many times the merchant will withdraw the chargeback. Other times the merchant only asked their bank if they knew what the charge was, and the bank initiated the chargeback without the merchant even knowing. Next, get the required paperwork together and send it to the processor. This information must reach the processor within 10 days of receiving the chargeback letter. The required documents will be listed on the chargeback letter.
It is important to cooperate fully with the processor to resolve the chargeback. Remember, it is not the processor that is issuing the chargeback, it is the card issuing bank or the customer. Getting angry at the processor, who is trying to help your business, will only further complicate the process.
You may not win every chargeback and your business may never get a chargeback, but operating your business under good standards and having good customer relations will improve your chances of not getting a chargeback in the first place. Also make sure your customers know your business name and return and refund policies, to avoid simple misunderstandings.
How long does it take for funds to be available?
Funds will be available in your bank account normally between 24 to 48 business hours from the time that a batch is received by the processing bank. It is a common misconception that funds will be available 24 to 48 hours after a transaction, but this time is actually measured from the time of the batch.
Once a batch is received by the processing bank, the funds transfer is initiated. The funds are withdrawn from the customers account almost immediately, and the merchant's bank will hold the funds for 24 to 48 hours until the transfer is finalized. This wait period is also a fraud prevention measure. Sometimes a merchant's bank will have a policy to hold the funds for longer than 48 hours.
There is nothing that the processor can do to speed up the transaction. If this delay is a problem, the merchant should talk to the bank and see if they can stop the transfer hold. If they cannot, the merchant should find a new bank for their checking account. Changing processing companies will do nothing to help eliminate this delay in the funds transfer.
When transactions are processed on the weekend or holiday, the funds will take extra time for the transfer. The banking systems are closed on the weekends, which causes the delay. Again, changing processing companies will not speed up the transfer of funds for transactions processed on the weekend or on holidays.
Countertop Wireless Payment Solutions. 
