If you haven’t watched part one of of this two part series go here to watch the first video.
The theme of part two of this series is that there is much more than just price to pay attention to when shopping for a merchant account. Watch the video and take a look at my [...]
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 [...]
Credit card processing seems simple enough. However, there are lots of moving parts behind the scenes. Here is a simplified, step by step list that reveals the whole process:
Authorization
1. Your customer presents their credit card (or the card number, expiration date and security code) to you or your employee.
2. You swipe the card or key [...]
By John Robinson, of Cocard Synergy
For the remainder of this discussion, I’ll discuss interchange fees and then a little about the fees to the merchant account provider. The assessment fees paid to the associations, both being small and not negotiable, can wait for another day.
Interchange fees usually make up roughly 80% of the fees you [...]
Many merchants believe that adding a cardholder’s three or four digit CVV2 code for a “card not present” (CNP) transaction will help qualify the transaction for a lower discount rate. However that is not the case; the CVV2 code is only valuable to protect against credit card fraud and has nothing to do with [...]
Check out this very simple flash presentation from MasterCard that reveals visually how merchant accounts work:
How MasterCard Works
Have you ever wondered what kind of merchant account the rich and famous businesses of the Fortune 500 have? Just in case you have the answer is Interchange Plus .
What is Interchange Plus?
First lets start by defining Interchange . Interchange is the set discount rates from Visa and MasterCard for various [...]
I am reviewed three merchant account statements today and they all have one thing in common – these businesses are not receiving a reduction in rate when a customer uses a debit card. On one statement there is no debit card activity noted at all. So just in case you have not heard [...]
Part of my job is to review and analyze merchant account statements from various businesses around he country. When ever I see the categories of “mid qual” and “non-qual,” I get a big smile on my face because I know my potential client is being taken advantage of.
Here is how these tiers work to [...]
