Rate Structures And How They Are Determined

Rates and fees charged by a merchant account provider can vary in numerous ways, including the manner in which the transaction with the customer is conducted by the vendor. When a vendor charges the credit card of a “regular” customer in what is called a “standard” transaction, they will be charged fees at the lowest qualified rate by the merchant account provider.

Exactly what constitutes a “standard transaction” will be defined by the provider; however it will generally be the “safest” method of performing the transaction. That is, there is little doubt as to the authenticity of the purchaser; they have been properly validated, etc.

Over the internet, the purchaser could be pretty much anyone

The easiest way of thinking about qualified rates is to imagine transactions conducted over the internet, and transactions done in a retail store. Over the internet, the purchaser could be pretty much anyone, with credit card details they happened to come across, and the goods they are purchasing could be about to be delivered anywhere (even over the other side of the world). The potential for fraud is massive and so the vendor in this instance will usually get an unqualified rate.

Compare this to the transaction that happens in an actual store. While the potential for fraud is still there, the vendor is able to verify the identity of the holder of the credit card (including that they actually possess the card and haven’t just found some random numbers on the internet), and there are also no concerns regarding shipping. Such a transaction will usually be deemed to be qualified by merchant account providers.

Mid-Qualified Rates

A provider will charge a mid-qualified rate in instances where the fully qualified rate cannot be applied, or the rate does not apply to the particular transaction for some reason. This may be because of:

• a rewards credit card being used (i.e. shopping points, consumer points, air points, etc);
• a cash bank card being used (i.e. 1% of all purchases back in cash); or
• other reasons such as the credit card number being keyed in to the point-of-sale machine instead of the card being swiped (as they do for pizza deliveries).

In fact, processing transactions that involve reward and cash back cards can make up a very large percentage of the interchange costs involved.

Non-Qualified Rate

As discussed above, the non-qualified rate of a merchant account provider will usually entail the highest amount of interchange fees being levied on the transaction. A transaction may be classed as non-qualified for several reasons including:

• proper identity and address verification procedures not being performed;
• transaction settlement times not being adhered to (note that there may also be additional penalties, fees and other action taken as a result of this); and
• Where information that would normally be provided in a “standard” transaction is not provided, either due to the special nature of the transaction or otherwise.

Merchant Solutions IQ is dedicated to saving merchants money on what they already have to pay. We believe that educating our merchants about the industry is the best way to earn and keep your business.

We perform custom rate analysis free of charge no obligation to any merchant who asks. Just contact me, Kevin at ksarisky@merchantsolutionsiq.com for more information.

Related posts:

1. What are Non-Qualified Transactions and How Can Merchants Avoid Them?
2. Terms To Know When Shopping For A Merchant Account
3. Types of Credit Cards

What are Non-Qualified Transactions? How Can Merchants Avoid Them?

How can merchants avoid being charged these surcharges and still qualify for the best rate possible?

I frequently get calls from merchants who say they were quoted one rate, but claim different rates are showing up on their statements. Unfortunately, merchants can experience a rate increase or surcharge because of the type of card your customers are using, such as sky miles cards and rewards cards. Another cause of increased processing costs is transactions being processed incorrectly by the merchant.

First, it is important to understand the different types of transactions that can occur when running a credit card sale:

• Retail swiped account transactions will get a Qualified Discount Rate, which is the lowest rate possible. In this type of transaction the card holder is present, they are using a standard consumer credit card, and once the card is swiped the transaction is batched within 24 hours. If any of these criteria change, you could downgrade to a MID-Qualified or a Non-Qualified transaction, thus increasing your rate.
• A keyed transaction, or manually entered transaction, will get a MID-Qualified Rate. This can also occur if AVS (Address Verification Service) is not entered when the customer uses a rewards card, or if the transaction is not batched within 24 hours.
• A Non-Qualified transaction occurs when a card is key-entered with no AVS info, or if a Corporate, Government, or International Card is used.

If you are not able to swipe a card because you are using an online payment gateway, how can you also take advantage of better pricing? When processing a MOTO (Mail Order Telephone Order) or Ecommerce transaction make sure to do the following.

• Make sure all required AVS information is entered
• Set your payment gateway or terminal to batch or settle within 24 hours
• Enter an Order or Invoice number
• Make sure to enter the CVV2 number

Many different factors can determine the rate you are assessed on your transactions. If you know you are going to be taking card types that will typically fit into the Non-Qualified category described above, be smart when setting up your credit card processing account – make sure to find out what your Non-Qualified rate will be. Be sure to find out all the fees involved before signing on the dotted line.

Merchant Solutions IQ is dedicated to saving merchants money on what they already have to pay. We believe that educating our merchants about the industry is the best way to earn and keep your business.

We perform custom rate analysis free of charge no obligation to any merchant who asks. Just contact me, Kevin at ksarisky@merchantsolutionsiq.com for more information.

Related posts:

1. Qualified Rate Structures
2. Terms To Know When Shopping For A Merchant Account
3. Reasons to Avoid Credit Card Terminal Leases

Related posts:

1. You Need a Business Merchant Account to Accept Credit Cards
2. Want to Pay by Credit Card? Minimum Purchase $10.
3. The "Hows and Whys" Of Credit Card Processing

Who Needs to Accept American Express?

American express is the 3rd most widely used credit card in the US. Depending on who your customers are, not accepting American Express may be a very poor business decision.

A typical retail business’s credit card acceptance percentages will look something like:

Visa – 60%
MasterCard – 25%
American Express – 10%
Discover – 5%

10% for Amex is not a huge number, especially considering that the majority of Amex users also have a Visa or MasterCard. Amex is more expensive than Visa and MasterCard, and businesses often choose not to accept it.

When we look at businesses that sell in areas where there are a lot of business professionals, or they cater to other businesses (B2B), we see Amex percentage go up drastically. Amex has a very strong business card program that many businesses use. Something as simple as having a location near a major business center, can have a huge increase on the amount of people that want to pay with American Express.

For a moderately B2B company, the credit card usage looks more like:
Visa: 45%
MasterCard: 25%
American Express: 25%
Discover: 5%

True B2B companies will see a very large increase in Amex sales, and these can be as high as 50% or more.

Even though your customers may have a Visa or MasterCard, you may lose them as a customer if you don’t accept Amex. Businesses that take their clients out want to pay with their business card. The same thing goes for purchasing office supplies, equipment, computers, paper, food, or anything else that could be considered a business related expense. If you don’t take Amex, the people wanting to use their Amex business card will find someone else who does.

Turning down sales because they cost a little bit more, doesn’t save money because those people are no longer spending money with you.

Merchant Solutions IQ is dedicated to saving merchants money on what they already have to pay. We believe that educating our merchants about the industry is the best way to earn and keep your business.

We perform custom rate analysis free of charge no obligation to any merchant who asks. Just contact me, Kevin at ksarisky@merchantsolutionsiq.com for more information.

Related posts:

1. The Players of the Credit Card Industry
2. Want to Pay by Credit Card? Minimum Purchase $10.
3. Credit card processing – Don’t Let Your Bad Credit Stop You From Accepting VISA

Important Points You Should Consider When Selecting A Credit Card Processing Service

Every business needs to have the ability to accept credit cards, and choosing the right credit card payment gateways is important. In fact, without that ability, many sales would be lost because people just don’t carry a lot of cash with them anymore.

Here are some tips for your consideration when you are ready to get your credit card processing companies for business.

Tips To Consider
There are many options to learn about as you prepare to get your company ready to obtain credit card payment gateways. Some caution is necessary here, and you do not want to rush into a contract with a company without considering the following.

The Company’s Approval Rating
Various websites have service comparison charts of the top companies in order to allow you to compare payment gateways. It will show comparisons and general satisfaction, or dissatisfaction, with features such as service, costs involved, debt consolidation loans and other general features of the plan.

The Start-Up Cost and Time
After signing the agreement with the processing service, it is important to know just how long it will be before you can start using the service. If equipment is involved, there may be a wait for it to arrive before it can be hooked up. The standard for most companies is from one to six days.

Another area of concern is the start-up fees involved. While some companies have no start-up fees whatsoever, others could charge up to $500 – just to get you started – but even that does not guarantee a quick hook-up time.

Cost of Renting the Equipment
The card readers may come with some surprises if you do not read the fine print. Some companies can charge a fee of about $250 for three years, and others may charge as much as almost $70 per month for the same equipment. Still others offer the equipment for free.

Processing Gateway Service
The service that the gateway companies offer varies some, as well. This may include something as simple as how easy is it to get hold of some real flesh-and-blood help – when you need it. Nearly all of the companies permit you to contact them via a toll-free phone number, email, or fax. There are, however, a couple of companies that actually have a chat service 24/7. This certainly makes things a little easier, and comfortable, too.

About the Author:
Kevin has extensive experience in the credit card processing field, from Sales Agent, Risk Analysis, Proposals and Operations Manager for a major credit card processor. He can quickly guide and educate the merchant on how best to lower their fixed costs, reduce unnecessary expenses and offer merchants many merchant account options and help the merchant pick the correct solutions.

Related Posts:

• Related posts on credit card processing
• How To Choose A Credit Card Processing Provider | OffLine Gambling
• The Modern Credit Card Processing « Coming Beyond Imagination
• Dealing With The Credit Card Processing « Coming Beyond Imagination

• Related posts on mastercard
• Mastercard Is Recognised Worldwide | finance-resource-directory

• Related posts on selection
• Live chat: NCS Selection Sunday | East Bay Prep Corner

Related posts:

1. The "Hows and Whys" Of Credit Card Processing
2. Can You Afford to Give Your Credit Card Processing to the Lowest Bidder?
3. Is credit card processing service all I need to succeed in business?

Some lists you want to be on-like the VIP list. But the TMF is one list you don’t want to be on. We’ll talk about what this means for your business, how to avoid getting on the TMF list and what to do if you end up on it.

What is the TMF Match List?

When you apply for a merchant account, the bank will check to see if you are on the Terminated Merchant File (TMF). If you’re on it, this means that another bank has terminated a merchant account with you, and sends up a red flag to banks that you’re a credit risk. The chances are slim to none of getting approved once your name hits the list. Getting on the TMF list is the equivalent of getting blacklisted.

How do you get on the TMF List?

Unfortunately, it’s not that difficult to get on the list but it is a challenge to get removed-even if you didn’t deserve to get on the list in the first place.

All it takes is one accounting mistake (yes, even on the bank’s end), technical glitch or dispute over billing practices and your business is in jeopardy.

So how do you get on the Match File? The most common ways include:

• Credit card fraud. If your fraud detection controls aren’t strong enough you could end up with too many chargebacks.
• Friendly fraud. This is when a consumer disputes a legitimate charge such as from an adult website.
• Factoring. Factoring is when a merchant deposits transactions for sales generated by another business.
• Excessive chargebacks-approximately 1-2% of sales.
• Fraud. Types of fraud include not delivering products or misrepresenting products or services.
• Violating the merchant agreement
• Owing money to a bank or processor

One of the fastest ways to get on the Match list is to close your merchant account and not pay your last statement. It’s a simple oversight with costly consequences. Even a matter of a couple of dollars can land you on the dreaded list. Fortunately, this is one of the easiest fixes. Read on for tips on getting off the TMF list.

If you have an unscrupulous merchant account provider, you could wind up on the TMF if your provider counts chargebacks in the month it comes in instead of the month the original transaction occurred. If you do fewer sales in the month the chargeback is processed, your chargeback percentage could skyrocket.

How to get off the TMF list

Bad things happen to good people all the time-but that doesn’t mean you can’t do anything about it. If you find out that you’re on the TMF list, there is hope-but it will take some work. If you’re thinking that you can get a new merchant account by changing your business name or having a spouse or relative sign up for you, be weary; banks are savvy to this scheme. Banks have ways of finding you out through social security numbers, ISP addresses, and public records.

Depending on why you’re on the TMF, you will have an easier-or a harder-time getting off of it. If you committed fraud, you probably won’t ever get off the list.

As soon as you find out that you’re on the TMF, call your merchant account provider-or the company that placed you on the list. Prepare to work to speak to many departments until you get in touch with the right person. You might end up being referred to the processing bank.

If you believe your business or name was mistakenly added to the Match file, you must work with the acquirer that added the listing to the file. Only the company that placed you on the list is authorized to request a change or deletion of the information.

If your acquirer recognizes that the listing was in error, they must request the file correction immediately. Examples of errors include termination for reasons that don’t warrant a public listing such as inactivity.

To request a change or deletion, the listing bank submits its request to MasterCard International in Purchase New York. The designated individual at MasterCard will review the merchant’s explanation and listing bank’s justification for change or removal from the listing. MasterCard International reserves the right to deny the request. The listing bank must justify its reason for the deletion.

Losing your merchant account and not being able to process credit cards is stressful but try to remain calm and act courteously to every person you talk to, no matter how upset or frustrated you are. Once you reach someone that knows something about your situation-probably in the risk department-he or she should be able to tell you why you are on the match file and explain your options to get off the file. Get a direct phone number for someone that you can correspond with about the situation in the future.

If you were placed on the match file for a high chargeback ratio, time is usually the only thing that will get you off the list. Your bank needs to know that it isn’t going to get stuck with unpaid bills resulting from the merchant’s former customers’ chargebacks.

If you didn’t pay your final bill, you may only need to pay off your debt with your former processor. You could be re-instated after a week or so after you make payment.

On the other hand, you could face more opposition. It can take several weeks to get off the match file in many cases. Sometimes you will have to negotiate to get charges resolved or fees removed. If after a few weeks you don’t make any progress, you may need to hire a lawyer.

Processors often use arbitration to avoid taking individual cases to court. It’s cheaper than going to a court and the results are often better for both parties. If you need legal assistance in getting of the Match file, seek a lawyer with experience in bankcard law.

Merchant Solutions IQ is dedicated to saving merchants money on what they already have to pay. We believe that educating our merchants about the industry is the best way to earn and keep your business.

We perform custom rate analysis free of charge no obligation to any merchant who asks. Just contact me, Kevin at ksarisky@merchantsolutionsiq.com for more information.

Related posts:

1. How to Stay Off the MATCH File
2. Where are Some Types of Online Fraud Coming From?
3. Types Of Merchant Accounts

The Hows and Whys Of Credit Card Processing

Jun 19, 2009 – Credit card processing allows an Internet enterprise so much latitude in accommodating a wider array of potential customers. Credit card processing, in fact, should be one of the primary considerations in building an online enterprise.

If you always wanted to know about credit card processing, then this article is for you. We will discuss the many benefits that can be gained by incorporating credit card processing into your online business, as well as the steps that you’d need to take to have a credit card processing system firmly entrenched in your business’ operations.

The Whys Of Credit Card Processing

Aside from the aforementioned latitude in accommodating credit card-paying customer, credit card processing would also allow you to organize your business into a well-oiled machine. With credit card processing, you would be able to automate the workings of your venture when it comes to accepting payments.

Additionally, by including credit card processing into your business, you’d be able to make things convenient for your potential customers. With credit card processing, they won’t have to send money checks, place checks by phone, or send money orders to purchase your products. Because of the credit card processing system you will have in place, all they have to do is to give the details of their plastic cash. The credit card processing system would verify this, and if all is well, the transaction would be executed smoothly.

Credit card processing is also an important component in automating your online business. Automation of course, is what you will need to earn 24/7, even when you’re offline. Credit card processing makes this possible as it will take care of payments without the need for constant supervision and intervention.

The Hows Of Credit Card Processing

The heart of credit card processing is, of course, a merchant account. A merchant account is a service that you would have to enroll with to avail of a credit card processing system that would take care of your orders. There are many kinds of merchant accounts offering to take care of your credit card processing needs. Some of them require a monthly fee to maintain a credit card processing account, while others only demand a onetime fee for the total enjoyment of such credit card processing services.

Price, however, should only be secondary to quality of service when it comes to credit card processing systems. Always bear in mind that the bread and butter of your online business, that is the payment, rests on the shoulders of what should be an effective credit card processing system. Make the choice of the best credit card processing service one of your main considerations when building your online venture.

About the Author:
Kevin has extensive experience in the credit card processing field, from Sales Agent, Risk Analysis, Proposals and Operations Manager for a major credit card processor. He can quickly guide and educate the merchant on how best to lower their fixed costs, reduce unnecessary expenses and offer merchants many merchant account options and help the merchant pick the correct solutions.

Related posts:

1. Important Points You Should Consider When Selecting A Credit Card Processing Service
2. Can You Afford to Give Your Credit Card Processing to the Lowest Bidder?
3. How can I get a lower credit card processing fee?

The Games Lease Providers Play

Reasons Not To Sign A Lease

Businesses often look at leasing as a viable alternative to purchasing high priced equipment. After all, not many small businesses can foot the bill for a $15,000 color copier. But would you lease a $200 cell phone or a $300 cash register? Of course not! So why do some businesses lease $150-$300 credit card terminals?

Most credit card terminal leases involve a 48 month term, and at least $20 a month. That totals $960 in payments! If you buy this same terminal for $160 from Merchant Solutions IQ and charge it to a credit card, you could have it paid it off in nine months, with interest, for the same $20 monthly payment.

Would you lease a $200 cell phone or a $300 cash register? Of course not!

The Games Lease Providers Play:

Most merchants are given inflated costs to make them more inclined to lease. For instance, some companies will say a terminal, which costs $160 at Merchant Solutions IQ, costs $500. With no frame of reference, many new customers will simply assume this is accurate, but may not have the cash or credit for that amount. Also, some companies claim tax advantages to leasing. This is simply false. It is true that lease payments are deductible, but any business purchase is deductible. Would you rather deduct an expense or have the cash in your pocket?

That’s not the only bad news. Here are a few more facts about leasing credit card terminals…

• Credit Card Machine Leasing Contracts are Binding
  • Regardless of your circumstances, you cannot terminate the lease before the term ends.
• You Have to Return the Equipment
  • After you spend your $960, you then have to return the terminal
• Leasing Has Costly Strings Attached
  • Terminal leasing companies sometimes continue to charge monthly fees beyond the contract term unless you contact them to cancel.
  • Equipment insurance is required for all leases, adding to monthly fees.

Don’t get stuck in a long-term leasing contract while paying far more than necessary to process credit cards. Save money and avoid the hassles of leasing—Click here to see our wide selection of Credit Card Machines.

Merchant Solutions IQ is dedicated to saving merchants money on what they already have to pay. We believe that educating our merchants about the industry is the best way to earn and keep your business.

We perform custom rate analysis free of charge no obligation to any merchant who asks. Just contact me, Kevin at ksarisky@merchantsolutionsiq.com for more information.

Related posts:

1. Virtual Terminal – Secure Credit Card Processing
2. My small business is looking to accept credit cards ( credit card processing ). What are the pros and cons?
3. good low cost credit card processing solution through the celluar phone?

Terms To Know When Shopping For A Merchant Account

Fee Terms And What They Mean

Over the past couple of weeks I have run into many merchants that feel ripped off by their merchant sales representative. Time and time again I hear “I just didn’t know what to ask for.” Like with any other purchase for your business, it is important to learn about your product.

Here is a list of common terms you should know when talking to credit card processing companies:

• Qualified Rate – This is typically the rate you are quoted when you sign up for a merchant account. This rate only applies to swiped regular retail cards. Be sure to ask what your Mid-Qualified and non-Qualified rate will be.
• You may also be charged an Authorization fee. This is the amount charged to a merchant account each time communication happens between the software or point of sale terminal and the authorizing network. Make sure you are not charged an additional transaction fee because the two are the same.
• Your sales agent may refer to Basis Points. Basis points are the percentage that you are charged on a credit card transaction. One basis point is equal to 1/100th of 1 percent. Thus a rate of 1.85% is equivalent to 185 basis points. For some merchants, a basis point mark above Interchange is advantageous.
• Batch Closure fee – This is a fee charged each time a settlement or end of day processing totals are sent to the financial institution.
• Electronic Data Interchange (EDI) – The electronic communication of business transactions, such as orders, confirmations and invoices.
• Transaction Fee – A per transaction amount charged by the bank for processing each transaction. This amount is in addition to the discount rate. For example: a discount rate of 1.85% plus 30 cents per transaction. Make sure you are not being charged an Authorization fee as well.
• PCI Compliance Fee – This fee is usually assessed by your merchant bank because they are passing on a fine they received from the card associations. Make sure to dispute this with your processor if you see it on your statement.

Knowing the merchant processing industry lingo is just one way to protect your business from getting ripped off.

Merchant Solutions IQ is dedicated to saving merchants money on what they already have to pay. We believe that educating our merchants about the industry is the best way to earn and keep your business.

We perform custom rate analysis free of charge no obligation to any merchant who asks. Just contact me, Kevin at ksarisky@merchantsolutionsiq.com for more information.

Related posts:

1. What are Non-Qualified Transactions and How Can Merchants Avoid Them?
2. Get the Best Merchant Account.
3. Qualified Rate Structures

What is a Chargeback?

There’s also the problem of “friendly fraud”, where customers dispute a legitimate charge. Friendly fraud is particularly pervasive in online gambling and adult entertainment industries.

So what happens when a chargeback is initiated? A chargeback usually happens within 120 days of the transaction date (most banks have a time limit on initiating chargebacks). The cardholder or bank claim that the merchant – that’s you – made a mistake at the time of the transaction.

Typical chargeback reasons:

• Disputes over merchandise quality
• Refund credit not received
• Proper authorization not obtained at the time of the transaction
• Merchandise not received
• Duplicate charges
• Fraud

Then your account is debited and you must provide proof that the transaction is valid and complies with Visa/MasterCard rules and regulations.

How the Chargeback Cycle Works:

There are five formal steps in the chargeback process:

1. Presentment: Original Sale
2. First Chargeback: A customer disputes a charge to his or her credit card company or bank and the bank responds with a retrieval request to dispute the transaction.
3. Second Presentation or Re-presentment: This is when the merchant has an opportunity to respond to the first chargeback.
4. Second Chargeback: If the second presentment is rejected by the cardholder, the issuing bank files a second chargeback.
5. Arbitration: This is when Visa/MasterCard staff reviews the situation. The losing party could pay up to $500 in fees. If it means keeping your chargeback ratio in check, you may find it worth the gamble.

First Chargeback

Once your bank receives electronic notice of a chargeback from a cardholder’s issuing bank, you will get a notice advising you of the chargeback. You will have about 7 days to offer your rebuttal. Unfortunately, until the matter is resolved, your account will be debited for the disputed amount.

Second Presentment

Once your bank receives your supporting documents, they will review them to determine if the substantiation you provided meets the Visa/MasterCard requirements necessary to remedy the chargeback.

If it doesn’t, expect to get a letter notifying you of the decision, along with the reason the documents didn’t meet Visa/MasterCard requirements. In some cases you may be asked to provide additional documentation to clear the chargeback.

If your documentation does meet the requirements, you’ll get your money credited back and a letter stating that the chargeback was remedied. The process up to this point can take up to 45 days.

Second Chargeback and Arbitration

When the situation escalates into a Second Chargeback or Pre-Arbitration, you have to make a decision about your next course of action. If you continue to disagree with the cardholder and issuing bank, you must file for MasterCard arbitration.

For Visa transactions, the transaction amount is left in the merchant’s bank account while the merchant decides whether to accept the issuing bank’s request and return the transaction amount to the cardholder. If the merchant rejects the request, the issuing bank has the right to file for Visa arbitration.

What is Arbitration?

Arbitration is a process reserved for cases when the cardholder/issuing bank and the merchant cannot resolve a disputed transaction through the chargeback process. You would only move on to arbitration after the Second Presentment stage. All involved parties have an opportunity to present their case to a Visa/MasterCard analyst.

Arbitration cases must be filed with Visa/MasterCard no later than 45 days after the Second Chargeback is issued.

Filing Procedures, Fees and Penalties for Chargeback Arbitration

You must complete a Visa/MasterCard Arbitration form along with a narrative description of the problem and legible copies of all documentation submitted during the chargeback process.

There is a filing fee of $150.00 and a review fee of $250.00 paid by the losing party (these fees are subject to change and verification). One important thing to note is that either party can be assessed a $100 fine for each technical violation against a party. A party could win a case but still be assessed a technical fine.

Who Wins?

If you end up in arbitration, there are several criteria the arbitrator will consider. Merchants usually get an unfavorable ruling if they:

• Fail to address the issued raised by the cardholder.
• Fail to prove that the dispute was unreasonable.
• Present insufficient documentation to support either argument.

Split decisions sometimes happen when one party offers a reasonable compromise solution to the dispute.

Compliance Issues

There are instances when you are not protected by the chargeback process. This happens when a cardholder or issuing bank alleges that you violated specific Visa/MasterCard Operating Rule(s) that is not covered by a chargeback right.

The issuing bank must certify that a financial loss did or will occur as a result of the rule violation. Each side has an opportunity to present to a Visa/MasterCard analyst assigned to the case.

Examples of compliance violations include:

• Failing to properly disclose limited refund or return policies to the cardholder at the time of the transaction;
• Preparing two or more transaction receipts to avoid authorization for a single transaction;
• Quality of service received from a travel and entertainment merchant.

Compliance cases are filed within 90 days (Visa) and 180 days (MasterCard) from the transaction date, the date of a Retrieval Request or the date of violation; or 90 days for Visa and 45 days for MasterCard from the date the issuing bank receives notice from its cardholder of a violation (Date of Discovery).

Filing Procedures, Fees and Penalties for Compliance Issues

If you face a compliance violation claim, you will have to complete a Visa/MasterCard compliance form and provide a narrative description of the problem and legible copies of all documentation supporting your case. The issuing bank must provide you with a pre-compliance letter at least 30 days prior to filing in an attempt to settle the matter.

As in regular arbitration, there is a filing fee of $150.00 and a review fee of $250.00 paid by the losing party. Further, a $100.00 fine may be assessed for each technical violation found against a party. A party could win a case but still be assessed a technical fine.

Decision Criteria for Compliance Violations

The arbitrator will consider the following factors when determining final financial liability:

• Whether or not there was a rule violation and a resulting financial loss.
• Whether or not the cardholder’s complaint was reasonable.
• Whether or not the disputed amount should be allocated between the requesting and opposing parties.

If you’re facing a chargeback claim, arbitration or a compliance violation charge, the most important thing to remember is to respond quickly and accurately with sufficient supporting documentation. Failure to respond by the stated deadlines is an automatic forfeiture of the transaction – meaning you will lose the full transaction amount.

Merchant Solutions IQ is dedicated to saving merchants money on what they already have to pay. We believe that educating our merchants about the industry is the best way to earn and keep your business.

We perform custom rate analysis free of charge no obligation to any merchant who asks. Just contact me, Kevin at ksarisky@merchantsolutionsiq.com for more information.

Related Posts:

• Related posts on arbitration

• Conspiracy arbitration Unleashed Reviews – PPC Marketing …

• Related posts on Chargeback

• UsedVintageGuitars.com // Bass Vintage Guitars | Vox Cougar Bass …

• Related posts on credit card account

• Making The Most Of Your Business Credit Card Account | The Credit …

Related posts:

1. The Players of the Credit Card Industry
2. Want to Pay by Credit Card? Minimum Purchase $10.
3. Types of Credit Cards