To Decline AVS Mismatches or NOT?

MerchantProcessingNMCredit Card Processing/ Merchant Services

Do you ever wonder if it is a good idea or not to decline cards online which do not have an address match? The question is if you decline the card, will you miss real business. Or will you save yourself money reducing chargebacks? Well one of our customers has shared the data from their company. They do inflatable party … Read More

Compare a Merchant Account to PayPal

MerchantProcessingNMCredit Card Processing/ Merchant Services

PayPal is what is called aggregate processor. They aggregate all their merchants into one merchant account. One benefit is that they do not charge individual merchants PCI fees, because none of their individual merchants have an individual merchant account. But let’s also examine the disadvantages for the merchant.

Daily Discount Nightmare Compared to Monthly Discount!

MerchantProcessingNMCredit Card Processing/ Merchant Services

Most merchants get charged all their credit card processing fees at the first of the month following the month when the transactions took place. Credit Card deposits each day match their cash register daily credit card deposit summary. At the end of the month the deposits on their merchant account monthly statement match exactly their bank statement. This is called … Read More

Fees on Refunds

MerchantProcessingNMCredit Card Processing/ Merchant Services

When a merchant runs a transaction, the amount is assessed a rate and a transaction fee. Generally the rate is an assessment of risk and the transaction fee is a cost for accessing the digital network. When the merchant refunds a transaction, only a transaction fee is charged. The rate is not charged a second time because there is no … Read More

Understanding “Pass Through” Fees on Your Merchant Statement

MerchantProcessingNMCredit Card Processing/ Merchant Services

Your processing salesman told you about rates and transactions fees. But what are all those other fees called assessments, acquirer fees, wats fees, FANF fees, Nabu Fees, etcetera, and etcetera and etcetera? The interchange rates and transaction fees are what the issuing bank receives for issuing your customer credit. On top of that are assessments which go to the brands, … Read More

Merchant Scam Alert: Avoid Force or Offline Transactions, the Social Engineering Scam

MerchantProcessingNMCredit Card Scams Against Merchants

A scammer with a stolen or fake card attempts a transaction. The merchant receives a decline, but the scammer pretends to contact their issuing bank and tells the merchant they received an authentication code. The scammer instructs the merchant, per their bank, to use the code and force or create an “offline” transaction. The merchant enters the code, completing the … Read More

Secret #3 – The Myth about the Effective Rate

MerchantProcessingNMCredit Card Processing/ Merchant Services

The effective rate is the total monthly cost of credit card processing divided by the volume of processing. The effective rate usually varies from 1.5% to 4%+ depending on the merchant’s industry and type of transactions. If a merchant receives mostly debit cards which have a low risk and low interchange rate, the effective rate will be a lot lower … Read More