Merchant Tips
Processing Online Internet Transaction
The world of payment services is constantly changing. It can be
difficult at times to know how these changes affect your business. We
are dedicated to providing you with the most cost effective and
efficient payment processing service available. This section provides
you with a variety of tips that can help you better manage the
profitability of your business.
To speak with a US Merchant
Payment Services representative please call 402-504-1794 or send
an email to info@usmps.
Interchange Processing Fees
What is
Interchange?
Visa® and
MasterCard® charge
a processing or "interchange" fee on every sale. Interchange is paid to
the cardholder's issuing institution and reflects processing expenses,
including the cost of credit and fraud losses. This fee is determined by
the type of card presented (Visa®,
MasterCard®,
Business Card, Purchasing Card, Corporate Card) and the type of business
that is accepting the card (retail business, lodging, mail order, etc.),
and the processing environment.
How can I get
the lowest interchange rate?
In
order for a merchant to qualify for the lowest processing fee for a
particular transaction, the card's magnetic stripe must be read by the
terminal (i.e. cardholder is present) and sales must be deposited and
settled daily. The processing rate will be higher for a transaction
manually keyed or not deposited and settled through the terminal until
the next day.
Chargebacks / Fraud Control
How can I
recognize suspicious customer behavior? Be alert for the
customer who:
-
Makes indiscriminate purchases without
regard to size, style, color, or price
-
•Makes purchases, leaves the establishment,
and returns to make additional purchases
-
•Hurries you to complete the sale at closing
time
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•Refuses free delivery for large items
Credit Card Security Features
What to look
for on the Visa card:
-
•Look at the dove hologram. It should appear
to be three-dimensional and to move when you tilt
the card.
-
•Check the four-digit printed number above or
below the first four embossed numbers. They must
match.
-
•Check the embossing on the Visa card for
clarity and evenness
-
•Look for the special embossed "V"
-
•Look at the signature panel. The panel
should have the repeated word "Visa" printed at an
angle in
blue or blue and
yellow letters on a white background.
What to look for on a MasterCard:
-
•Look at the double globe hologram. It should
appear to be three-dimensional and to move when you tilt the
card.
-
•Check the four-digit printed number below
the embossed account number. It should match the first four
digits of the account number.
-
•Check the embossing on the MasterCard for
clarity and evenness
-
-
•Look for the unique embossed letter "M"
-
•Look at the signature panel. The MasterCard
name should be repeated.
- Other Fraud Protection Measures
-
•Always verify that the signature belongs to
the presenter
-
•Do not accept any cards which have not been
signed
What is a Chargeback?
A "chargeback" is a dispute usually originated by a
customer or the customer's credit card issuing bank and
subsequently debited to the merchant's deposit account. A
chargeback to the merchant may occur when a cardholder does
not recognize the transaction or disputes the following:
-
•Participation in the transaction or sale
-
•Performance and/or quality of the
merchandise or services
-
•Delivery of the merchandise and/or services
-
•Breach of any term, condition,
representation, and warranty of the transaction
-
•Amount of the charge
•
Top 10 Costliest Chargebacks
#1. Failure of merchant to respond to retrieval request
is the single most frequent cause of chargebacks.
Fortunately, this is often the easiest to prevent. Simply
keep copies of your sales transactions and respond to any
and all "Media" or Retrieval" requests by sending copies of
sales drafts immediately.
Card issuers are responsible for initiating copy requests.
Usually they are initiated to resolve billing disputes or to
comply with a subpoena. Fullfilling copy requests is very
important. When requests are not fulfilled within the
prescribed time period, they almost always result in a
chargeback. A chargeback for not responding to a copy
request is non-reversible per Visa/MasterCard requlations.
So it is in your best interest to respond quickly to copy
requests.
#2. Cardholder was billed
more than once for the same transaction
To avoid duplicate processing, reconcile your batches daily and
ensure that the register/terminal totals match the credit card
receipts for the day. If you do receive a legitimate duplicate
processing chargeback, do not issue a direct credit to the
cardholder - the credit will automatically be applied.
#3. Cardholder denies
making or authorizing a transaction
Make sure all transactions (other than mail/phone order) are
magnetically swiped or imprinted. Again, timely submission of a copy
of the properly completed and signed sales slip along with a written
explanation of the validity of the charge will be needed to try to
reverse a chargeback. If the disputed transaction is a phone or mail
order sale, the order form and signed delivery receipt from any
courier or handler will also be required.
#4. Failure of merchant
to follow correct procedures in completing the sales slip at the
point-of-sale
The sales slip must include both a cardholder signature and the card
account number to be valid. The account number must be obtained
directly from an imprint of the card itself or from electronically
reading the magnetic stripe. Manually entering the account number
does not protect you from a no-imprint chargeback even if the sales
slip is signed.
#5. Account numbers don't
match
After swiping a card, if the card number displayed does not match
the number embossed on the face of the card, ask for a different
form of payment. Always print and double-check the account number on
all phone and mail orders. Accepting non-matching transactions will
leave you vulnerable to chargebacks.
#6. A credit or
refund was not properly processed
Credits must be processed correctly and on time. Make your
customers aware of your credit/refund policy at the time of
purchase. Have the policy printed on your sales slips
directly above the cardholder's signature in accordance with
Association policy. Issue credits only to the same account
numbers to which the sales were made - refunds paid in cash
or merchandise, or to a different account number, will not
protect you from this type of chargeback.
#7. Failure to
obtain proper authorization
Be sure to authorize all transactions, and accurately record
the approval code on the sales slip. If your request for
authorization is declined, do not attempt to re-authorize
transactions to the same account number, as subsequent
approval may not protect you from a chargeback.
#8. A card was
used either before or after its valid date
Never process a transaction on a card prior to, or after,
the valid date. Instead, ask for a different form of
payment.
#9. Merchandise
or service not received by cardholder
Sales transactions must not be processed prior to delivery
of the product purchased. Proof of delivery, signed by the
cardholder, should be obtained for every credit card
transaction in which the merchandise or service is not
delivered immediately at the point-of-sale. Such proof of
delivery may be your only defense if a chargeback occurs.
#10. Cardholder
disputes quality of merchandise or services
Ensure that your customers are aware of your return policy
at the time of purchase. Stick to your policy. Display the
policy at the point-of-sale and print it on your sales
slips, directly above the cardholder signature.
Terminal
Operation
What type of phone line do I
need for my terminal?
Your phone line should be an analog line tied to a
single phone line. Terminals do not have the capability of
selecting a phone line, and they will not work on digital
lines. You do not need to have a dedicated line, but keep in
mind that if the terminal is connected to a line that is
constantly in use, you may have problems obtaining
authorizations.
Do I need to
purchase equipment or do I have other options?
As a merchant you may purchase, lease, or rent
equipment. If you already own your equipment we would need
to download our information into your terminal before you
could use our service.
What happens
if my terminal does not work?
Check that all plugs and connections are intact. If they
are and your equipment still does not work, call your
terminal help desk (phone number located on the terminal
sticker). We may be able to help you fix the problem over
the phone. If not, we can ship replacement equipment to you
overnight.
In the meantime,
you can still accept credit card transactions. Simply
request and obtain authorization over the phone using the
voice authorization phone number, manually imprint your
sales receipts, and obtain a signature. Later when your
terminal is back on-line, key in these transactions using
the voice authorization code received. Enter as either
off-line, force, or post auth entry. Please note that when
you manually key in these transactions, your processing fee
will likely be higher.
How can I reduce check
losses?
-
Ask to see a picture
ID, such as a Driver's License, and write the license number on
the back of the check.
-
Make sure there is a
telephone number on the check.
-
Make sure there is an
address on the check.
-
Sign up for
Electronic Check Service
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