Merchant Card Account FAQ’s

WHAT IS A MERCHANT CARD ACCOUNT AND WHY DO I NEED ONE?

WHAT IS A PAYMENT GATEWAY AND WHY DO I NEED ONE?

HOW LONG DOES IT TAKE TO GET SET UP?

WHAT IS A QUALIFIED VS. A NON-QUALIFIED TRANSACTION?

HOW LONG DOES IT TAKE TO RECEIVE OUR FUNDS?

WHAT IS A MONTHLY MINIMUM?

WHAT IS A CHARGEBACK?

HOW CAN CHARGEBACKS BE PREVENTED?

WHAT IS INTERCHANGE?

WHAT IS PCI COMPLIANCE?

WHAT IS AVS?

WHAT IS CVV2?

HOW DO I UPDATE THE BANK ACCOUNT THAT MY DEPOSITS ARE SENT TO?

HOW DO I RETRIEVE COPIES OF MY MERCHANT STATEMENTS?

WHAT IS A MERCHANT CARD ACCOUNT AND WHY DO I NEED ONE?

A merchant account allows businesses to accept credit card payments. A merchant account is set-up with a financial institution. Unlike other services, money collected through your merchant accounts and its virtual or card payment terminal is deposited into your checking account within 2-3 business days. You must utilize merchant payment solutions to accept credit card payments using your company name and if you want the funds deposited into your checking account within 2-3 business days.
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WHAT IS A PAYMENT GATEWAY AND WHY DO I NEED ONE?

A Payment Gateway allows you to securely process transactions online. It is a third-party service that transmits e-commerce transactions to your payment processor for authorization. A Payment Gateway allows you to offer your customers a safe and secure way of buying from you online or over the phone. Authorize.Net and PayTrace are the VPS preferred payment gateways.
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HOW LONG DOES IT TAKE TO GET SET UP?

It typically takes 2 business days to get approved for your merchant account and implement merchant payment solutions. The time it takes to get set-up also depends on how quickly you follow up with answering any questions from the Underwriting Department and faxing the required paperwork.
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WHAT IS A QUALIFIED VS. A NON-QUALIFIED TRANSACTION?

Certain conditions must be met for a transaction to Qualify for the discount rate. If a transaction doesn’t “Qualify,” it becomes a Mid-Qualified or Non-Qualified transaction and the discount rate will increase (please check your Schedule of Fees). Qualified Transactions:

  • These are swiped transactions.
  • To qualify for the qualified discount rate the credit card must be present and swiped at the time of the sale.
  • Qualified Cards are typically standard, VISA/MASTERCARD/DISCOVER, Credit/Debit Cards.

Mid-Qualified:

  • These are typically key-entered transactions.
  • Mid-Qualified transactions are typically processed using your payment gateway or mobile device.

Non-Qualified:

  • These are transactions that process at the higher discount rate.
  • Typically these are Corporate, Government, Foreign or High-End Rewards Cards.

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HOW LONG DOES IT TAKE TO RECEIVE OUR FUNDS?

It typically takes 48 to 72 hours for the funds from your transactions via card payment terminal to be deposited directly into your checking account.
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WHAT IS A MONTHLY MINIMUM?

The monthly minimum is the minimum amount you will be charged in relation to the discount fees for your monthly Visa/MasterCard sales. You will pay the Monthly Minimum ($25.00) or your Discount Fees, whichever is greater. For example: In one month you processed $1000.00 in Visa/MC sales. $1000.00 x 2.19% = $21.90. This amount does not meet the monthly minimum of $25.00 so you will be charged an additional $3.10 to meet the monthly minimum of $25.00 ($21.90 + $3.10 = $25.00). However if in one month you process $1500.00 in Visa/MC sales then your fees = $32.85 ($1500.00 x 2.19% = $32.85). You will be charged $32.85 in Discount Fees as you have met the monthly minimum of $25.
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WHAT IS A CHARGEBACK?

Customers have the right to dispute a charge to their credit card, typically when goods or services are not delivered within the specified time frame, goods received are damaged, or the purchase was not authorized by the credit card holder. A Chargeback is the return of funds to the customer, initiated by the Issuing Bank. Merchant will be granted a timeframe to reply to the chargeback request, submit proof of the sale or the receipt of goods/services sold, and receive credit for the original sales amount.
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HOW CAN CHARGEBACKS BE PREVENTED?

Depending upon the method in which a merchant accepts credit cards (i.e. card payment terminal, virtual terminal credit cards, etc.,) there are various steps a merchant can take to prevent their exposure to fraud and risk, thereby preventing a potential chargeback. It is also crucial when accepting payments through credit card payment solutions that the proper documentation is gathered; in the event a chargeback is initiated having the proper documentation can assist the merchant in winning the dispute.
Card Present:

  • Obtain a full magnetic strip read whenever possible; if the magnetic strip is damaged, obtain a fully legible manual imprint
  • Check that the signature on the receipt matches that on the back of the card
  • All sales policies should be conspicuously posted at the cash register
  • Card Not Present (E-commerce or MO/TO)
  • Utilize the Address Verification Service and only allow transactions that have a perfect match to be completed
  • Ship only to the billing address of the card
  • Ship with a signature required on delivery

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WHAT IS INTERCHANGE?

It is a fee that a merchant’s bank (the “acquiring bank”) pays a customer’s bank (the “issuing bank”) when merchants accept cards using card networks such as Visa and MasterCard for purchases. In a credit card transaction, the acquiring bank pays the merchant the amount of the transaction minus both the interchange fee and an additional, usually smaller fee which is often referred to as a discount rate, or fee.
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WHAT IS PCI COMPLIANCE?

The Payment Card Industry Data-Security Standards (PCI DSS) is a set of requirements designed to ensure that ALL companies that process, store or transmit credit card through the use of Merchant payment solutions maintain a secure environment.
The PCI DSS is administered and managed by the PCI SSC (www.pcisecuritystandards.org), an independent body that was created by the major payment card brands (Visa, MasterCard, American Express, Discover and JCB.) To read more visit https://www.pcisecuritystandards.org/ Also, see additional FAQs about PCI here.
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WHAT IS AVS?

AVS (Address Verification System) is a system that attempts to match the billing address that a customer enters in the Billing Address fields during checkout. When the credit card entered is authorized, AVS checks to see if the cardholder’s address entered during checkout matches the address information on file with the issuing bank. This system will reduce the merchant’s exposure to fraud especially in a card not present environment.
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WHAT IS CVV2?

A CVV2 is a three or four-digit number printed on credit cards to help card-not-present merchants verify that the customer has a legitimate card in hand at the time of the order. The term “CVV2″ literally means card verification value 2. This is a code that is placed on the credit card for security purposes. The merchant asks the customer for the CVV2 and then sends it to the card Issuer as part of the authorization request. The card Issuer checks the CVV2 code to determine its validity, then sends a CVV2 result back to the merchant along with the authorization.
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HOW DO I UPDATE THE BANK ACCOUNT THAT MY DEPOSITS ARE SENT TO?

Please call Customer Service at 877.674.2286 option 3, and you will be sent an account update form. The completed form may be faxed to 207.221.1512.
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HOW DO I RETRIEVE COPIES OF MY MERCHANT STATEMENTS?

By logging on to our website at www.VisionPayments.com, clients using Internet Merchant Accounts may view their merchant statement. Under the “Aurora” heading, click on the link “Need to register for Aurora?” to register your account. For security purposes you will be asked for your 16 digit Merchant Account Number (MID) as listed above. Please follow the steps to ensure secure logins and also make sure to keep record of your new case sensitive password. Please contact customer support with any questions at 877-674-2286 Option 3.
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