The Optimum Solution:

FAQ - Frequently Asked Questions:   Listed below are frequently asked questions dealing with merchant accounts and bankcard acceptance services.   If you have a question that is not listed below, please Contact Us:

What is a Merchant Account?
A merchant account is an account at a financial institution that allows you to accept bank cards, i.e. credit cards, debit cards, check cards, T &E cards, etc.

What kinds of merchant accounts are available?
There are a wide range of solutions for all types of businesses. Swipe terminals for retail merchants; real-time processing for Internet sites; PC software for mail order/phone order and Internet businesses; touch-tone processing for low volume, seasonal and mobile/wireless merchants; and virtual terminals for Internet, mail and telephone order businesses. Each has their own pros and cons, ask your sales representative which is best for your business.

How long does it take to get approved and setup for credit card processing?
The turnaround time can vary from company to company, however it can take as little as 24 hours to two weeks.  Very high volume and International merchant accounts seem to take the longest. Companies that allow you to fax applications can usually have you up and running in a few days.

What are Interchange Rates & Fees?
Interchange is the wholesales rates and fees charged by Visa/MC to the bank to capture and settle your bankcard sales transactions.   

What is a discount rate?
Discount rates are the "mark-up/retail" rate charged by the bank and the processor to process your bankcard sales transactions.   For example, if your discount rate is 1.75% and your sale is $100, your discount fee is $1.75 for the transaction.

What are transaction fees?
Transaction fees are fixed flat fees charged by Visa/MC, the bank and the processor to authorize, capture and settle your bankcard sales transactions.   For example, if your discount rate is 1.75%, your transaction fee is $0.25 and your sale is $100, you would be charged $2.00 for the transaction ($1.75 + $0.25).

Why are rates higher for Internet, Mail and Telephone Order transactions?
Face-to-face transactions are considered less risky by banks, therefore, rates are lower because the chances of returns, charge-backs, unauthorized charges and other fraudulent activity is a lot less.

When are funds deposited into my business checking account?
The typical frame for Visa/MC is 48 hours, Amex three (3) business days.

What is a Charge-back?
A chargeback is a transaction whereby the original sale amount is reversed/deducted from your account due to any number of reasons, including but not limited to:  a discrepancy by the cardholder, credit card expiration, bank error, etc. 

Can I use someone else's merchant account to do my transactions?
No, this practice is known as "credit card laundering" or "factoring".  It is against the Visa/MasterCard Agreement. Using someone else's merchant account to process your credit card transactions can lead to heavy fines and perhaps being "black-listed".   In addition, you'll also put the other merchant's credit card processing account in jeopardy.

Are Internet merchant accounts compatible with all shopping carts?
No. Shopping cart companies make their software compatible with certain secure payment gateways (i.e. Authorize.net, VeriSign, etc.).   In addition, merchant account companies work with different secure payment gateways so their clients can process credit cards online. It's important to take time to find out from your merchant account company what secure payment gateway you'll be using. If it's Authorize.net, you can expect most shopping cart companies will support that gateway.

What kind of transaction reporting is available?
Most merchant account companies will provide a paper statement at the end of the month. Some companies can even offer detailed online reporting.

I have a credit card terminal from a previous merchant account, is it compatible with other companies?
In most cases it will be compatible however you will need to have it reprogrammed to work with your new merchant account. There are some companies that only work with certain terminals, be sure to inquire before signing up.

What is a monthly minimum fee?
The minimum amount charged by the bank/processor to capture and settle your bankcard transactions.  If you have a $25.00 monthly minimum, and the total monthly fee collected by the processor is less than $25.00 your account will be charged the difference.  If the total fee collected is equal to or greater than $25.00 no additional charges will be assessed.   You can avoid this fee in many cases by just processing a few thousand dollars per month.