Ten Must Know Facts About Merchant Credit Card Processing
Owing a business these days means accepting credit card payments. Reason being, the ease and comfort of card payment have replaced physical cash. Moreover, card payment makes it convenient for the customers to buy products and services anytime they want. However, before getting with this system or you can say merchant services; the first crucial step is choosing the right card processing company. Check out the ten facts related to the same that you may not know.
Here, it is essential to know that some companies charge an application fee. By checking around carefully, such fee can be avoided. Moreover, if a business does not process a particular amount each month, an additional fee may be charged. Besides, statement fee is also charged. Not only this but cancellation fee is also there if a merchant account is canceled. Hence, facts are a must to know to make sure you don't get trapped in hidden charges.
6. Evert transaction is charged with a gateway fee to verify details about the transaction, a fee to process and a discount rate which is a part of the total sale. For some transactions, the address is verified and some processors charge for it too.
7. Frauds and identity theft are possible to the merchants as well as the cardholders. When information related to the card is stolen, the issuing bank does not pay anything for the fake transactions. In other words, the merchant loses not only the commodities but also the money. At times, money from such transactions is eliminated from the account of the merchant and that without informing them. This is referred as a chargeback.
8. There is chargeback insurance that protects the businesses against fraud by covering the money that gets lost in a fake transaction. It is important to know that chargeback not only occurs when the identity of the customer is stolen but also when a purchase is made by the customer online and charge is then canceled with the card company after receiving the product or service. These transactions are covered when all the facts are known.
9. Every credit or charge card that's accepted internationally follows a security standard known as the Payment Card Industry (PCI) Data Security Standard (DSS). This standard restricts the visibility of cardholder information during processing no matter how the information is processed.
10. Many other services may also be included in credit card processing. There are many card processing services that check verification besides card services. Hence, if a customer pays through an electronic check, facts will be verified on the account for the merchant. Not only this but processing service may also offer other electronic payment services and gift card.
These are ten very important facts about merchant credit card processing. To get the best of merchant services, take the services from reputed service provider only.