Merchant Account Facts & Credit Card Terms A to
Z:
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Accept Credit Cards
To accept credit cards simply means your business can
accept a customer's credit card for payment on the purchase
of goods or services. In order to be able to accept
credit cards, the merchant will need to have secured
a merchant account for their business.
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Acquiring Bank
An acquiring bank works in co-operation with merchant
service providers to process credit card transactions
for businesses. Acquiring banks allow the merchant account
service provider to extend their processing volume on
their merchant accounts, as well as assume some of the
risk that the merchant service provider undergoes while
processing credit card transactions. All merchant account
service providers have acquiring banks, and vice versa.
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Address Verification
Address verification is a tool in the fight against
credit card fraud for all parties involved in the credit
card processing business. Address verification, or AVS,
can be implemented in a number of ways. Typically it
is used at the time of sale to ensure that the card
holder is the one authorizing the transaction, and that
the card has not been stolen or is being used inappropriately.
Using AVS with your merchant account is an excellent
way to protect your merchant account from possible suspension
or loss, due to high levels or fraud or misuse during
processing. Ensuring that your merchant account is in
good standing is the only way to continue credit card
processing over the lifetime of your business. If your
merchant service provider ever believes that the merchant
account has been used illegally, or inappropriately,
your account will be suspended immediately, and you
will be unable to continue processing credit cards.
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AVS Fee
The AVS fee is the fee paid for the address verification
service on your transactions. This fee is due per transaction,
and is usually between .10 and .25 cents. You will be
billed for this fee, should you choose to use the AVS
tool, automatically throughout the month. These and
all fees due to your merchant service provider are automatically
held in your merchant account. They are paid to the
merchant service provider, before your funds are deposited
into your business checking. Your funds from your sales
will be released by your merchant account service provider
about 2-3 business days from the time you settle a batch.
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Batch
A batch is a collection of transactions that has been
gathered over a period of time, usually one business
day. It is the policy of most merchant account holders
to settle a batch at the end of every business day,
providing their have been more than just one or two
transactions. The sooner you settle a batch, the sooner
the funds can be transferred from your merchant account
to your business checking account for your access
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Card Present Transaction
When a credit card is physically present at the time
of a transaction it is said to be a card present transaction.
Card present transactions are typically conducted with
retail merchant accounts and wireless or mobile merchant
accounts. An Internet, phone or mail order merchant
account would not conduct card present transactions.
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Chargeback
A chargeback is a customer disputed sale that has passed
through your merchant account. A card holder has disputed
the charge placed by your company through your merchant
account on their credit card. This situation can arise
for many reasons, the first of which would be a blatant
case of theft. Someone possibly has purchased an item
from your business using a stolen credit card. The card
holder then receives their statement, sees the transaction
they obviously did not commit, or authorize, and contacts
their credit card company for recourse. In addition,
there are others reasons why a chargeback can occur.
If a product is not as described or pictured by your
business, if the customer is in any way less than satisfied,
or if the product or service has failed to be delivered
by the business, then chargebacks may occur. This is
why it is extremely important to ensure the following
two steps are taken: #1: You have a toll free customer
service number that your merchant account service provider
can place on the credit card statements on any transactions
coming through your merchant account. #2: That you properly
advertise your products and services, being completely
forth right, not trying to mislead the customer, or
misrepresent your products or services. If you follow
these two simple steps, and immediately respond to any
customer service calls regarding charges on their credit
card statement, or product disputes, then your business
should have a long and prosperous experience with your
merchant account and credit card processing.
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Credit Card Processing
Credit card processing is the service of enabling merchants
to accept sales in credit card format. The transactions
are processed, collected, fees are subtracted, and the
cash is placed into the merchant's bank account. Credit
card processing is only capable through a contracted
merchant account between a merchant service provider
and a merchant.
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Credit Card Processor
A credit card processor is a company that processes
credit card transactions for businesses. Typically,
a credit card processor will consist of two parts; the
merchant account service provider, and the acquiring
bank. These two organizations partner together to provide
businesses with every aspect of credit card processing
services. Together, they can leverage risk, increase
processing volume, and improve the efficiency of the
transaction processing. A credit card processor supplies
merchants with merchant accounts for their businesses.
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Credit Card Equipment
Credit card equipment is the mechanical and/or electronic
devices necessary to accept a customer's credit card
for a transaction. Credit card equipment works in conjunction
with your merchant service provider to pass your transactions
through your merchant account and into your bank account.
Click here to see our credit card
equipment product list >
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Credit Card Printer
A credit card printer is the device which enables the
printing of a card present, credit card transaction
receipt. Utilizing a printer will help in reducing credit
card fraud, thus keeping your merchant account in good
standing. View
credit card printers here >
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Credit Card Terminal
If you want to accept credit cards in a retail setting,
then you will need a merchant account and a credit card
terminal. It is the device that card present transactions
are swiped through, in order for a transaction to be
processed. The terminal will read the customers credit
card, send the pertinent information back to the merchant
service provider, and the funds are collected from the
credit card issuing company. Once the funds have been
collected, they will be deposited into the merchant's
merchant account, then into their checking account,
minus the fees. Credit card terminals range in style,
options, capabilities and price. Very dependable and
efficient credit card terminals can be purchased at
affordable rates. Not all credit card terminals are
expensive, but all will require a merchant account in
order to process credit card transactions. View
list of credit card terminals here >
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Credit Card Transaction
A credit card transaction is a payment made via credit
card through a merchant account. Credit card transactions
are the most common form of cashless payment both online,
and in retail settings.
View credit
card transaction fees here > |
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Debit Card Pin Pad
The device used by the customer to input their 4 digit
password when accessing their bank account through their
debit card. Debit card transactions can also be processed
through a merchant account, but are subject to lesser
fees than a true credit card transaction. Consult a
merchant account specialist to learn how to use debit
card processing, and credit card processing, for your
retail business. Non-retail merchants can also process
debit cards, but since the transactions will not be
face-to-face, the customer does not have the option
of entering their pin code, and thus the transaction
is not considered a true debit card transaction. Internet,
phone, or mail based businesses can still process debit
card transactions through their merchant account, but
will not see the benefit of lesser fees that a retail
merchant will.
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Debit Card Processing
Debit card processing is the processing of debit card
transactions through your merchant account, no matter
what type of merchant account or business you have
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Debit Card Transaction
An individual sale from a debit card passed through your
merchant account, no matter what type of merchant account
of business you have. |
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Desktop Software
Software that is web or PC based, which is used by the
merchant to pass transactions from their business to
their merchant account. This form of processing can
be best suited for merchants with phone or home based
businesses. Desktop software is usually used in conjunction
with a home merchant account and/or a phone/mail order
merchant account.
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Discount Fee
The fee that is paid in percentage format of each transaction
passed through your merchant account. All merchant service
providers have different merchant account-no two are
alike. Discount fees will vary with merchant account
providers. Some factors that can effect the discount
fee are what type of business you have, how good the
business owners credit is, if your business has credit,
how long you have been in business, etc. Almost 100%
of merchants can be approved for a merchant account.
However, you may find that initially some merchant service
providers are not willing to extend a new business extremely
high processing volumes, when there is no established
credit history. It is best to start processing as soon
as you can, and then build up a solid merchant account
history, so that in time you will be extended generous
amounts of processing volume. The first step is definitely
to processing, keep your merchant account clean or chargebacks
and problems, and fill out a request for a processing
volume increase. You will almost be guaranteed an increase
in processing volume once you have established some
processing history. If your business model is more solid
initially, then simply show this to your merchant service
provider and you will get your high processing volume
from the start. To note, high processing volumes range
between $30,000-$100,000+ a month. Most merchant will
find that they believed they needed more processing
volume before they began processing than they really
did.
View all merchant account fees here
>
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Domain Name
A Domain name is the internet address of your website.
For instance, www.cardstreet.com is a domain name. Domain
names can be purchased through your merchant service provider
should your business need one. It is best to act quickly,
however, because thousands of domain names are bought
up each day. If you want the best name possible for your
business, it is imperative to act now. |
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E-Commerce
This title has been given to the act of electronic commerce.
E-Commerce can be business transactions completed over
the web, transactions conducted between various banks
by electronic means, or any form of cashless and paperless
monetary transaction. This form of monetary exchange may
also be called cyber commerce. Securing an e-commerce
merchant account for your business can be as simple as
applying with your merchant service provider. |
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Encryption
When applied to the credit card processing industry,
this term typically is used to describe the process
of setting up your credit card terminal. Before retail
sales can be conducted you must #1, secure your merchant
account, and, #2, select your credit card terminal.
Once your credit card terminal has been chosen, your
merchant service provider will begin encryption on the
unit for your individual business and individual merchant
account. This process is what allows your transactions
to be sent from your credit card terminal to your merchant
account. It is a vital step in your credit card processing
setup. Without the successful encryption of your credit
card terminal your transactions will never get to your
merchant account, and thus you will never get paid for
your sales.
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Face to Face Transaction
Face to face transactions are transactions completed with
both the customer and the merchant present. This term
is usually applied to transactions in a retail setting,
which are passed through a retail merchant account. If
you have an internet merchant account, or a phone/mail
merchant account, your transactions will not be considered
face to face. |
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Fees
Although they are often very small, all merchant accounts
carry various fees. Consult your merchant account specialist
or merchant service provider for more information on the
fees associated with your individual merchant account.
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Free Merchant Account
Some merchant service providers offer promotions to
new clients for free merchant accounts and free merchant
account setups. Such a promotion can often save the
merchant several hundred dollars in merchant account
setup fees. Consult your merchant service provider to
see if your merchant account is free. More
about a Free Merchant Account >
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Home Business Merchant Account
The home business merchant account is restricted to
only home business transactions. It will have its own
set processing volume, and schedule of fees, as all
merchant accounts do. A home business merchant account
may not be used as a retail merchant account, or any
other business type of merchant account. Be sure to
accurately depict your business type on your merchant
application, to get the correct merchant account setup
for your business. More
about a Home Business Merchant Account >
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Internet Merchant
The internet merchant account is restricted to only
internet business transactions. It will have its own
set processing volume, and schedule of fees, as all
merchant accounts do. An internet business merchant
account may not be used as a retail merchant account,
or any other business type of merchant account. Be sure
to accurately depict your business type on your merchant
application, to get the correct merchant account setup
for your business. More
about an Internet Merchant Account >
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Manual Printer
The manual printer is a non-electronic credit card terminal.
This device takes a carbon imprinting of the actual credit
card for proof of transaction, since the card will not
be electronically read through a swipe style terminal.
It is used in retail settings only, since the card must
be present in order to take such an imprinting. If you
do not have a retail merchant account, then you will not
need a manual printer.
List
of Manual Credit Card Printers >. |
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Merchant Account
A merchant account is the necessary financial services
tool which allows merchants to accept credit cards for
payment. Merchant accounts are obtained through cardservice
companies, merchant service providers, or credit card
processing organizations. Merchant accounts are unique
to each individual business, business owner, and business
type.
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Merchant Account Provider
Merchant account providers are organizations that will
permit the use of their credit card processing services
and abilities to be used for individual businesses and
non profit organizations. The account that an individual
opens with a merchant account provider in order to be
able to process credit card payments through that organization
is called a merchant account.
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Merchant Service Provider
Merchant service providers are organizations that will
permit the use of their credit card processing services
and abilities to be used for individual businesses and
non profit organizations. The account that an individual
opens with a merchant service provider in order to be
able to process credit card payments through that organization
is called a merchant account. |
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Merchant Training
Merchant training is conducted when necessary for new
merchants, or merchants using new terminals or credit
card processing equipment. Many different organizations
will often work together to provide this training, including
merchant service providers, credit card processors, merchant
account providers, acquiring banks, visa, MasterCard,
gateway providers, terminal manufacturers, etc. It is
best to consult your merchant account specialist to see
who would provide the specific training your require.
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Mobile Merchant Account
The mobile merchant account is restricted to only mobile
business transactions. It will have its own set processing
volume, and schedule of fees, as all merchant accounts
do. A mobile business merchant account may not be used
as a home business merchant account, or any other business
type of merchant account. Be sure to accurately depict
your business type on your merchant application, to
get the correct merchant account setup for your business.
More
about a Mobile/ Merchant Account >
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NSF Checks
NSF checks are checks returned by the bank for Non Sufficient
Funds. Every day in the United States 1,100,000 check
bounce. This astonishing number means your business could
easily be affected be the incredible rise in NSF checks.
Thankfully, there are options for merchant whom accept
checks for payments. Cardstreet.com has partnered with ChexCollect
to bring our merchants a unique, FREE program which successfully
obtains the funds due to our merchants, without costing
our merchants a dime. The system uses current state and
federal regulations which makes any NSF check collection
procedural fees the sole responsibility of the check writer,
and not the individual the check was made out to.
More about NSF Checks
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PC Software
PC software allows home or mail/phone based businesses
to process credit cards by directly inputting the information
into their computer. The credit card sale can then be
verified and processed by connecting to the internet.
PC software works in conjunction with home merchant accounts
or mail/phone based merchant accounts. |
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Per Transaction Fee
The per transaction fee is a fee imposed upon each individual
transaction passed through your merchant account. No matter
what business type, or merchant account type, per transaction
fees are always a cost of conducting credit card processing.
View all
merchant account fees > |
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Recurring Checks
Recurring checks are a form of recurring payment. Most
often, recurring payments are conducted via direct ACH
or EFT debit, or by credit cards. Now, new technology
is in place to allow for recurring checks to be a form
of recurring payments. Consult your merchant account specialist
for more information on recurring checks. |
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Re-Encryption
The process of re-encryption is conducted when a credit
card terminal is purchased used, or transferred from one
merchant account to another. It connects the terminal
with its new merchant account for processing credit card
payments. Consult your merchant account specialist if
you need further assistance with re-encrypting your credit
card terminal. |
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Retail Merchant
The retail merchant account is restricted to only retail
business transactions. It will have its own set processing
volume, and schedule of fees, as all merchant accounts
do. A retail business merchant account may not be used
as a home business merchant account, or any other business
type of merchant account. Be sure to accurately depict
your business type on your merchant application, to
get the correct merchant account setup for your business.
More
about a Retail Merchant Account >
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Settlement
Settlement is the process of clearing all your transactions
out of a batch. A batch is a grouping of credit card transactions,
usually considered a days worth of credit card sales.
Most merchants will complete settlement at the end of
a business day, in which there consisted at least one
credit card transaction. Settlement moves the transactions
from your merchant account to the credit card issuing
banks for collection. Once the transactions have been
processor by your customer's credit card issuing banks,
the funds are deposited into your merchant account with
your merchant service provider. From there, any fees due
to the merchant service provider are subtracted, and the
remaining funds are transferred to your business checking
account with your local bank. The entire process will
typically take 2-3 business days. |
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Statement
Statements are monthly records of all your credit card
processing conducted through your merchant account. Your
merchant service provider will typically send this to
you in paper format at the end of your businesses monthly
cycle. It should be kept for your records, and tax keeping
purposes. It is important to properly read your merchant
account statements because vital information is contained
on these documents. You will particularly want to keep
informed of any chargebacks or refunds your company was
responsible for. It is imperative that all merchant account
holders keep their account in good standing, by preventing
and immediately addressing any refund or chargeback issues
or procedures. This will insure that your business builds
better credit, better credit card processing history,
and keeps its merchant account for the life of your business.
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Real Time Web Gateway
The real time web gateway is an internet based tool that
allows your customers to make purchases or payments on
your website. The real time web gateway is connected directly
with your merchant account. With this system in place,
a customer may enter their credit card information into
the payment form of your website, press submit, and get
a real time response in about 3-10 seconds regarding the
status of their order. The customer will either get a
message that the transaction has been approved, and that
their order is in process (by your company), or that their
credit card was declined by their credit card issuing
bank. A gateway will traditionally only be necessary if
you have a website and wish to take sales on that site.
As always, you will need a merchant account to process
credit card sales with a real time web gateway. |
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Web Design
The process of designing, setting up, and implementing
your internet website is called web design. Combining
web design with credit card processing is an excellent
way to boost sales for your business. If you need assistance
setting up your website, please consult one or our merchant
account specialists and they would be happy to explain
our exciting website offers.
To find a web design
company, click here > |
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Web Hosting
Web hosting is the process or service of storing your
website files on a computer hard drive. The computer hard
drive which the files are stored on, called a server,
is directly connected to the world wide web 24 hours a
day, 7 days a week, with a typical connection percentage
of around 99.99%. This means your website is always able
to be accessed by online visitors. For more information
about web hosting, or to setup a plan, please consult
one of our merchant account specialists today.
To find a web hosting
company, click here > |
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Web Software
Web software used in the credit card processing industry
is typically web software used for inputting credit card
transactions into your merchant account. A merchant account
holder whom has a home or phone/mail based merchant account
would be utilizing such a product. For more information,
please consult a merchant account specialist. |
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Wireless Merchant Account
The wireless merchant account is restricted to only
wireless business transactions. It will have its own
set processing volume, and schedule of fees, as all
merchant accounts do. A wireless merchant account may
not be used as a home business merchant account, or
any other business type of merchant account. Be sure
to accurately depict your business type on your merchant
application, to get the correct merchant account setup
for your business.
More
about a Wireless Merchant Account >
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Don't Just Take Our Word For It….
See What Others Are Saying About Merchant Account Services
at Cardstreet.com
"When I found your website, I knew right away that I
wanted to use your company for my merchant account setup.
I was so impressed with everything I saw and read, and
the free merchant account definitely closed the deal
for me! Thanks again for my free merchant account."
-Debbie Mitchell, DTM Inc. Read
more customer testimonials >>
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Join Us
Today and Take Your Business to The Next Level! Apply
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Make Sure You Also Review:
Tips
for Setting up a Merchant Account
Getting
Started
FAQ
Merchant
Account Credit Card Processing Fees
Customer
Testimonials
Merchant
Account Equipment Prices
Read More About Cardstreet.com
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