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Common Merchant Services Questions

Review these common answers as you evaluate your merchant services questions.

Apply for the Right Merchant Services Account the First Time

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Our customer service representatives are happy to answer your specific questions any time. so all us at 1-800-315-7791 to connect with a knowledgeable representative. Merchant Services

What is a merchant services provider? 

A merchant services provider makes sure the funds a business customer authorizes to transfer to the business gets to the business account in a matter of days. The authorization takes place when the customer uses a debit, credit or gift card and these transactions occur electronically and via the internet. The merchant services provider can be a traditional or alternative bank or a third-party processor.

What is a merchant services account?

A merchant services account is something like a bank account in the sense that money comes in and out. Today’s merchant services accounts allow vendors to monitor income and outflow as easily they do their bank accounts. These accounts are available on all devices and accessible from any computer. 

What businesses need merchant services?

Any business that wants to make payments easy for their clients and customers, and particularly B2B businesses needs merchant services which includes a merchant account.

Rates & Fees: Merchant Services Questions

What do merchant services charge/cost?

Typically, a portion of every sale goes to the merchant processor. This amount runs between 1.5 and 4 percent. This includes all fees paid to card issuers, the gateway and networks via assessment fees. Many factors affect where the per-sale fee lands, including the business’ industry (high- or low-risk), whether point-of-sale (bricks-and-mortar) or ecommerce (website), your volume of sales and amount of average sale. A business in a low-risk industry that has year-round (rather than seasonal) sales gets a lower rate than the high-risk business that sells mostly at Christmas.

What documents will I need to submit when applying for a high-risk merchant account?

Our customer service representatives can go through all the documentation we’ll need. For now, get the following documents found and kept in one place:

Chargebacks: Merchant Services Questions

When a cardholder disputes a transaction on an account, the bank where the credit card was issues puts the funds on hold until it can investigate. If investigators find fraud was involved in the transaction, the bank takes back the full amount PLUS a fee.

Can I avoid chargebacks?

There are several smart steps you can take to make sure customer payments aren’t disputed. First, make sure your business name and website name match. Put your phone number and other contact information on your receipts so that the customer will choose to call you first to get their money back. Consider direct refunds your friend as they will keep the customer from calling their credit card issuer. Finally, always provide excellent customer service. Research exists that the cold, disconnected doctor gets more lawsuits than the inept but friendly one. This is the era of the customer. Do everything you can to keep him or her happy, even if it means losing money on a transaction. Do not stand on principle.

What is the interchange fee?

Credit card issuers Visa and Mastercard take a fee for every transaction. The bank that issued the card pays the majority of it, but puts a portion of it on the merchant’s bill. This small amount is called the interchange fee. Cash Discount Processing

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