Merchant Account - Frequently Asked Questions
What
is a Merchant Account?
Why
does any business need to accept credit cards from my customers?
How
does accepting credit cards increase my business?
How
long will it take for the applications to be processed?
What
credit cards can be accepted in the business?
What
type of equipment should be used to process credit cards and checks?
Will
statements be sent on the transactions processed?
How
will payment be received for each transaction?
Does
your software integrate with most websites?
Are
my funds guaranteed?
What
is Address Verification Service?
How
do I get technical assistance?
What is a Merchant Account?
A merchant account is a commercial
bank account established by contractual agreement between your
business and the banks represented by your processor. A merchant
account enables your business to accept credit card payments from
your customers.
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Why does my business need to accept credit
cards from my customers?
By accepting major credit cards
you can increase your credibility, customer convenience, and best
of all, your sales. Statistics say accepting credit cards can
increase sales by 30 to 100%! Millions of cards carried in the
U.S. by people who take their cards where ever they go - to the
mall, on vacation, to the post office, out to eat, to the dentist
and surfing the Internet. These consumers enjoy the convenience,
the flexibility and the security credit cards cards offer. For
years, card acceptance has been expected at places like retail
stores, hotels, restaurants and airlines. But today, consumers
expect to be able to use their cards for a much broader range
of products and services, including health care services, groceries,
tuition payments, movie tickets and recurring payments such as
cable or utility bills. And the list will only continue to grow.
As a result, businesses who accept cards are not only gaining
more customers, they are gaining more loyal customers and customers
who spend more. In addition, these merchants and service providers
are gaining real bottom line benefits for their business.
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How does accepting credit cards increase my
business?
Credit cards acceptance offers
your business a wide range of benefits in terms of reduced operating
costs and increased profitability, including:
- Increased
Sales : Consumers can take advantage of specials, stock-up on
the products and services they need most, and in the case of
health care services, obtain treatment when it's needed.
- Faster
Payment : With credit card transactions, you receive payment
within 24-72 hours, improving your cash flow.
- Reduced
Costs : You can save time on the management of billing, sending
statements and tracking receivables, reducing your overhead
and related expenses.
- Fewer
Processing Problems : Reducing the number of checks you take
in diminishes the likelihood of problems resulting from processing
checks. So you'll avoid redeposit fees and the cost of processing
additional transactions.
- Improved
Customer Service : Consumers enjoy the speed, convenience and
payment flexibility that cards provide. Card acceptance lets
you accommodate these consumers and offer increased payment
options with monthly, quarterly or semiannual billings.
- There
are specific programs and materials targeted exclusively for
your industry
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How long will it take for my application to
be processed?
In five working days your company
will be able to accept credit cards from your customers. Your bank processing department specializes in expediting
your application so you can immediately start accepting credit
cards from your customers. All necessary paperwork will be sent
next day via FedEx, and a next day scheduled prepaid pickup for
fast return of all documentation.
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What credit cards will my business be able
to accept?
Your bank will apply for your business to accept all 5 major
credit cards: Visa, Mastercard, American Express, Discover and
Diners Club. A separate application is required for American Express,
Discover and Diner's Club.
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What type of equipment should my business
use to process credit cards and checks?
Your bank offers
your business four options for processing credit card and check
orders:
-
Secure, real-time credit card and check processing for your
website.
- Software
for PC's
- Macintosh
and DOS for your Mail/Phone order business.
- Swipe
terminals and supplies for retail merchants.
Your bank
has the software or terminals your business will require at competitive
lease and purchase prices.
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How will my business receive payment for
each transaction?
Once the transaction has been
approved your customer's charges are deposited directly from the
credit card processor to your bank account. Transaction deposits
range from 24-72 hours from the date of the transaction.
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How does software / integrate with my website?
software /
setup is quick and easy. The merchant or webmaster simply establishes
a link between the software / secure server and
the merchant's website.
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Are my funds guaranteed?
Any customer has the right
to dispute a credit card charge from the card's issuing bank.
If a charge is challenged, a retrieval request will be sent to
the merchant asking for proof that a sale had been made by the
customer. In addition, the merchant's credit card processor has
the right to discontinue service for many reasons. And finally,
a merchant should take due diligence to protect against someone
trying to order merchandise with stolen cards by becoming familiar
with the process.
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What is Address Verification Service?
AVS is a service that is built
into the authorization process to help prevent fraudulent transactions.
The numerical portion of a consumer's address is sent along with
the transaction data and is matched against the address that is
registered with the consumer's credit card from their issuer's
bank. A response code is sent back with the approval (or decline)
message that indicates a match or not. Currently, a match or mismatch
is simply reported back to the merchant and does NOT result in
a transaction decline. The merchant then has the option to contact
their customer to confirm the correct address before they ship
any goods.
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