When you decide to start accepting credit cards, understanding industry terminology and understanding how a merchant account is set up and managed are both important to the success of your company. Here are some terms you´ll want to remember and some questions that are frequently asked by our customers. If you have other questions, please feel free to contact us.
How long does it take to get a merchant account?
Final approval and set up usually takes only 48 hours. It’s easy!
What if my credit is not very good?
It is usually not a problem. We approve 99% of our merchants. We are not locked into just one processing bank so we have several different banking relationships we can use to get you approved.
How do I receive payment from credit cards?
All funds are wire-transferred directly into your business checking account within approximately 48 hours.
What if I need help with my terminal or gateway? Is there support?
Yes. You will have access to free customer service and support 24 hours a day, 7 days a week.
What setup fees do you charge for Internet transactions?
There are no setup fees or application fees. It will not cost you a penny to get started!
Do you have long-term leases for equipment?
No. Our goal is to provide you with top-notch service and credit card processing, not big profit margins on your equipment. We provide you with POS terminals at wholesale pricing so that you can spend your money on things like advertising to make your company grow.
ACH
"Automated Clearing House" - a wire transfer method that automatically wires funds into your checking account.
AVS
"Address Verification System" checks the cardholders "bill to" address to ensure it matches what the card-issuing bank has on file as a “bill to” address.
Chargeback
The process of taking back, or debiting, the merchant´s credit card funds after the funds have been paid to the merchant. This is different from a refund because this only occurs when a customer disputes a credit card transaction. The merchant must respond to the charge back and provide proof that the product or service was provided to the customer.
Corporation
A separate legal entity with its own identity separate and apart from the shareholders (owners). As a separate legal entity, a corporation is responsible for its own debts.
Discount Rate and Transaction Fee
The percentage rate and per transaction charge paid to the credit card processor for each transaction.
Limited Liability Companies (LLC)
Separate legal entities from the owners of the LLC. Like a corporation, the owners of an LCC are not personally liable for the debts of the LLC.
Merchant Account
An account set up by a merchant bank allowing a merchant to accept credit cards.
Partnerships
A for-profit business association of two or more persons where each partner shares control of the business operation. Generally partners are jointly and independently liable for the partnership’s debts and one partner’s signature will bind the partnership.
Payment Gateway
Authorizes the credit card transaction, securely encrypts it, and submits an authorization request to the card-issuing bank. It will then submit the transaction to the credit card processor who deposits the funds into the merchant’s checking account.
POS Device
The machinery that sits next to nearly every checkout register in the country. This device is generally used for a brick and mortar retail store. A “Point Of Sale” terminal allows a merchant to either swipe or key-enter a customer´s credit card.
Secure Socket Layer (SSL)
A secure web protocol that uses 128 bit or higher encryption to keep the customer´s credit card and personal information secure as it travels over the Internet for authorization.
Sole Proprietorship
An unincorporated business that is owned by one individual. Its liabilities are the owner’s personal liabilities and he/she undertakes all the risks of the business for all assets owned. A married couple is not a sole proprietorship and is actually considered to be a partnership.
Virtual Terminal
A secure web-based interface that allows a merchant to process credit card payments from any computer that has an Internet connection. This is a perfect solution for mail order or telephone order merchants who do not want to spend money on a POS terminal.