Video: Are Early Termination Penalties Really That Bad?
Watch this video to here a different poi of view on merchant account early termination penalties. Let us know what you think by sharing your thoughts in the comment section below.
What is a “Third Party Processor?”
A Third Party Processor is an independent processor that is contracted with by a Acquiring Bank or Processor to conduct some part of the transaction processing process.
-Some of these Third Party Processors specialize in running and hosting networks of Point Of Sale (POS) terminals connected to their Host via dial out modem; they produce the [...]
Video – BE WARNED! Early Termination Fees and Auto-Renewal
Watch this video to be warned about the dangers that lurk in many merchant account contracts. The focus of this lesson is on early termination fees and contract auto renewal. If you heed these words you can save yourself a lot of money and suffering.
What is a Credit Card “Processor?”
A Processor is the company that actually routes an Authorization Request from a Point of Sale device (such as a Verifone credit card terminal) to Visa or Master Card, and then arranges for Fund Settlement to the merchant. Such processors are traditionally accessed via direct dial out modems connecting to their system.
-Processors need to have [...]
What is a “Sponsoring Bank?”
A Sponsoring Bank is a Chartered Bank or Savings & Loan that has obtained membership in Visa or Master Card in order to allow a Processor access to the Visa and Master Card networks (in order to process these types of transactions).
-Since only a Bank may join Visa or Master Card, many Processors make deals [...]
Who is the “Issuing Bank?”
The Issuing Bank is the financial institution that extends credit to a card holder through credit card accounts. The financial institution issues a credit card and bills the card holder for purchases against the bankcard account.
Here is wikipedia’s defenition for Issuing Bank .
Who and What is the “Aquiring Bank?”
An acquiring bank (or acquirer ) is the bank or financial institution that accepts payments for the products or services on behalf of a merchant. The term acquirer indicates that the bank accepts or acquires transactions performed using a credit card issued by a bank other than itself.
The acquiring bank’s contract with the merchant is [...]
What is a Merchant Account Downgrade?
A downgrade occurs when a transaction fails to meet certain pre-defined criteria from Visa or MasterCard, and an additional charge is added to the discount rate for processing the transaction.
What Does the Term “Settlement” Mean
The term “settlement” describes the process of sending a merchant’s batch (set of authorized transactions) to the network for processing and payment. The acquiring bank pays the merchant (less applicable fees) with funds from Visa/MasterCard. The bankcard issuer then bills the card holder for the amount of the sale. Capture is another word [...]
