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FAQ
Frequently Asked Questions
What is a merchant account?
A merchant account enables you to accept credit cards and debit cards as payment for the purchase of goods and services. There are different types of merchant accounts. The most common are:
Retail, Face-to-Face. If you have a traditional “brick and mortar” store, you can get a “retail” merchant account. You will use a special credit card terminal or cash register linked to credit card equipment to “swipe” the cards and obtain bank authorization.
Ecommerce/Internet. To accept credit cards on your website, you need a special “internet authorized” merchant account. Instead of a terminal, you’ll use a “gateway” to connect between your secure shopping cart and your merchant account. Certain safeguards need to be used to help prevent fraud.
Mail order/Telephone order. A “MO-TO” merchant account allows you to process cards online with a “Virtual Terminal,” or using a standard terminal or computer software. Again, certain safeguards need to be part of this process to help prevent fraud.
Wireless Terminal. If you’re on the move, you can still accept credit cards and securely process them for payment. Ideal for pizza delivery, service companies like plumbing and electrical, and outside salespeople, our wireless terminal connects through the cellular network in most parts of the country.
We can also help you with merchant accounts for special situations like Hotel-Motel, Grocery, and Gasoline.
When the order is processed, you obtain “authorization” through your gateway or terminal. Daily you’ll “settle” the transactions, which deposits them to your account and initiates a transfer to move the funds to your local bank account.
How do I get an account?
Applying for a merchant account here is easy: Complete a merchant application. Because a merchant account is a financial service, you will need to complete a simple application.
Do you approve everyone?
No. No payment services company will approve everyone, because there are various risks involved. And some banks favor certain business types over others.
We are happy to report that we approve 98 - 99% of applications. Part of the reason for that is that our agents review applications before they come to underwriting, and the number one reason applications are not approved is missing information. That’s why you will work with our agent to get your application processed.
What if I have bad credit?
We are happy to report that we approve 98 - 99% of applications. To find out if you qualify click here.
How long does the approval process take?
This depends on the type of business. Most merchants are approved within 24 hours. If you ordered pos equipment or software it might be another couple of days before you are actually processing.
How much information will you need from a merchant to get started?
- Application Completed.
- Copy of drivers license of applicant.
- Copy of Business License, Retail License or Tax Certificate.
- If switching from another processor send us at least three of your most recent merchant statements.
- Copy of your EBT certificate if you accept food stamps in your retail store.
- Copy of a business card, yellow pages ad, and other marketing material, if available.
In certain cases, the underwriter may need additional information. This may all be faxed to us.
Why do you need so much information?
This is a financial transaction. For your protection, we want to be sure that you are a real person and not someone else trying to use your information.
Do I have to change my bank account to get my funds?
No. We transfer your funds to your bank using ACH Debits and Credits. Nearly all banks have this capability. You can keep your existing checking account.
How quickly will I receive the money for the credit cards I process?
It generally takes 2-3 business days after a batch is closed to receive the deposit into your checking account. (Business days are Mondays through Fridays, excluding holidays.)
What does “ACH” mean?
ACH is short for “Automated Clearinghouse.” This is the system that handles electronic transfer of funds between banks. It’s used to deposit funds from your credit card transactions, and to withdraw fees, in your checking account.
What is an authorization?
As you accept cards, you process them, either online or with a terminal in your face to face business. Each time you process a card, you receive an “authorization.” This means the issuing bank has approved the transaction. It does not actually put the money in your account. That occurs when you “settle” by running a “batch.”
What is a batch? A batch contains all the transactions that were authorized since the last batch was run. Typically, businesses “close out” their batches at the end of each business day. The batch actually results in the charges being processed and deposited to your account.
Why do I need a manual imprinter?
Every retail merchant should have a manual imprinter and plate. Card company regulations require merchants to obtain an imprint for all retail transactions that cannot be electronically authorized. The imprint indicates that the cardholder was present at the time of the transaction. Imprints should be obtained in the following cirumstances:
- Imprint every sale or refund if the POS terminal does not have a printer.
- The magnetic stripe is unreadable on your customer’s credit card. Manually key the transaction and imprint the card.
- The customer ordered the product over the phone and it is being delivered. Imprint the card at the time of delivery and obtain a signature.
- Any time you feel that the likelihood of a customer disputing the transaction is high. An imprint will help the chargeback reversal process.
If a manual imprinter is needed, please contact your agent to order one. Imprinters are available in a standard and/or portable model configuration.
I already have a retail merchant account for my business. Why do I need another account for my internet business?
Banks and credit card companies look at internet transactions as carrying different risks because you can’t see the customer’s card. With different risks, the banks want to evaluate and track your business separately. That takes a separate account.
How much does a merchant account cost?
All banks and merchant account providers require fees. These fall into 3 categories: a discount rate, a transaction fee, and monthly fees.
The bank considers a transaction as any communication between you and the processing network, whether a charge or a credit. Settling a batch is usually considered a transaction as well, as it involves communication with the processing network.
Discount Rate - The percentage of the total amount that the bank will deduct prior to transferring your deposit into your bank account. Usually in the range of 2% to 5%, a higher rate is charged on individual transactions if the transaction doesn’t conform to certain qualifications. For instance, accepting a “Visa Business Card” credit card may cost you more than regular transactions.
Transaction Fees - The flat amount that you pay for each transaction, typically 30 to 50 cents per transaction.
Monthly Fees - Fees charged for customer service, your monthly statement, and network access fees.
Minimum Monthly fees - If your discount rate and basic transaction fee in a month does not reach this amount, the difference will be billed to make up the minimum. (This applies to processing only; internet gateway fees are not included.)
To see our fees, check our Rate Schedule.
What are qualified, mid-qualified, and non-qualified transactions?
These refer to three general categories of charges. Most often, they are:
A qualified transaction is a normal credit card which was swiped through the Point-Of-Sale terminal.
A mid-qualified transaction means the credit card had to be manually typed in with “AVS” and a “CVV2 code”. This occurs when you take orders online, by phone, or if the credit card strip is not readable.
A non-qualified transaction is a corporate credit card, business card, rewards card, or foreign card, or the credit card sale was keyed without using AVS or a CVV2 code.
Mid-qualified and non-qualified transactions are more expensive to process than qualified transactions.
What is AVS?
Address Verification System - With this service, you save on fees because it helps secure the transaction. Your POS terminal will ask for the address number and zip code in most cases. This service is only used when the card cannot be swiped, as in Mail order, Telephone order, and ecommerce business, or when the card terminal is unable to ready the card.
What is CVV2?
It’s a security feature, a three or four digit code on the back of each card. This insures that the card holder actually has the credit card in hand. (American Express places the code on the front of the card.)
What’s an Internet Gateway?
The gateway is software operating on the internet that functions as your credit card terminal. When a customer places an order at your website, your secure shopping cart system sends the charge request to the gateway, which communicates with the processor to get authorization.
Virtual Terminal - This is the online credit card terminal, part of your gateway account, that lets you manually process card charges, returns, etc.
What is a debit card?
Debit cards (sometimes called Check cards) are linked to a user’s checking, savings, or money market account. Rather than creating a credit transaction, as with a credit card, a debit card transaction subtracts the funds from the users bank account.
PIN-based Debit card transactions: Because the customer enters their PIN code, the likelihood of fraud is greatly reduced. These are processed through special ATM networks. Therefore, merchants may be charged a lower fee than credit card fees.
Signature-based Debit card transactions: Signature-based debit cards have a Visa or MasterCard logo and are processed like a credit card, meaning no PIN is entered. The merchant generally incurs the same discount rates and fees as credit cards. Merchants can accept signature-based payments via the Internet, telephone, or via a retail terminal.
Can I accept Diners Club® cards?
Yes! In 2004, Diners Club entered into an agreement with MasterCard, so Diners Club and Carte Blanche cards can be accepted just like a MasterCard. Now you’ll see the MasterCard symbol on the card. This change applies to all Diners Club cards issued in the US and Canada, and to most foreign issued Diners Club cards as well.
Because of the Diners Club - MasterCard alliance, it’s no longer necessary to sign up with Diners Club to accept their cards in the US and Canada.
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