Frequently Asked Questions

iAccess

  • What time is iAccess updated?

    With rare exceptions, the site is updated overnight and has all available information by the start of business every workday. During longer cycles however, it may take until noon PST to be updated.

  • What browsers does iAccess support?

    We are currently maintaining compatibility with Internet Explorer 6, 7 and Mozilla Firefox browsers.

  • Can I change my password once it is set?

    Yes, pending the introduction of the account administration tab.

  • Can I get copies of my statements off the site?

    You have at least 18 months worth of statements available at all times, within 24 hours of their generation.

  • Why can’t I see my statements when I click on “Get Statement”?

    To view statements, you need to have Adobe Acrobat Reader installed on your computer. You can download Adobe Acrobat Reader at http://www.adobe.com/.

  • Why do my American Express and Discover transactions not show?

    If you use specialized software or go through an auth processor who is not compatible with real time displays of this information, non-Visa and MasterCard transactions will not show. We apologize for any inconvenience this may cause. We are working with these other companies to find a solution.

  • Why do my debits show as one lump sum and not individually like my credits?

    If you use specialized software or go through an auth processor who is not compatible with real time displays of this information, your debits will not display in the same manner as your credits. We apologize for any inconvenience this may cause. We are working with these other companies to find a solution.

EMV

  • What does the acronym “EMV” stand for?

    Named after its original creators (Europay, MasterCard® and Visa®), EMV is the nickname for a new type of payment technology.

  • What does EMV really mean?

    The financial industry has adopted a shared set of specifications that ensure interoperability between new terminals and new payment cards, which have embedded microprocessor chips to store and protect cardholder data.

  • Who is EMVCo?

    EMVCo, which is spearheading the EMV project, is owned by American Express, Discover, JCB, MasterCard, UnionPay, and Visa, and also includes other payment industry organizations participating as technical and business associates.

  • How does chip technology work?

    EMV terminals communicate with the chips inside EMV-enabled cards to determine whether or not cards are valid. Generally, a terminal will prompt a customer to either sign manually or enter a PIN in order to reduce the likelihood of a fraudulent transaction.

  • How does EMV work?

    The security of EMV focuses on the point-of-sale (POS) transaction. Rather than swiping a card with a magnetic stripe, customers will insert a chip card into a new kind of reader.

  • How are EMV cards different from magnetic swipe cards?

    EMV cards have secure, embedded, built-in microprocessors, which generate a unique, one-tome-only transaction number for each individual sale. Magnetic stripe cards, on the other hand, use data that remains the same for every transaction.

  • What else can EMV cards do?

    In addition to stronger security features, EMV boasts other features, like Near Field Communications (NFC) technology, which lets merchants accept both contact and contactless payments.

  • What is the difference between a contact card and a contactless card?

    Contact cards communicate with the card reader via a contact plate (e.g. dip reader). Conversely, contactless cards communicate using only radio frequency (RFID) or near field communication (NFC). Dual interface cards combine these technologies and can communicate using either method.

  • Is a chip card the same as a contactless payment?

    In short: no. A chip card must be inserted into an enabled terminal that allows the chip to make contact with the reader to authorize and complete the transaction. On the other hand, contactless cards employ near-field communication (NFC), which transmits account information by waving or tapping the card in front of an enabled device.

  • Why is the United States migrating to EMV?

    The industry shift is primarily motivated by a desire to increase security and reduce fraud, in both card-present and card-not-present (or, online) payment transactions. In addition, adopting EMV in the U.S. will increase global interoperability.

  • Where else is EMV used?

    As of 2012, in parts of Europe 95% of terminals were chip-enabled, compared to 79% in Canada and Latin America, 77% in Africa and the Middle East, and 51% in Asia Pacific.

  • Why do merchants need to upgrade their equipment?

    In order to accept EMV chip cards, merchants must have an EMV-capable terminal, with a chip slot. Once a merchant has an EMV-capable terminal, he/she will also be able to add compatible peripheral devices with contactless functionality in the future.

  • How does EMV security work?

    EMV enhances security in three main ways:

    • a.i. Card authentication protects against counterfeit cards by requiring an authentic card validated online (by the issuer, using a dynamic cryptogram) or offline (with the terminal, using SDA, DDA, or CDA).

    • a.ii. Cardholder verification protects against lost and stolen cards by using one of three cardholder verification methods: offline PIN, online PIN, or signature.

    • a.iii. Transaction authorization ensure that, when a transaction is performed online, the information is sent to the issuer, along with a transaction-specific cryptogram, at which point the issuer either authorizes or declines. Offline, the card and terminal communicate via pre-set, issuer-defined risk parameters.

  • Why should I invest in chip card acceptance now?

    The major credit card issuers in the United States have announced firm upcoming liability shifts. After the shift, merchants who do not support chip technology may be liable for any fraudulent transactions, bearing the cost of the related chargeback.

  • If fraud occurs during an EMV transaction, who will be liable?

    As of October 1, 2015, the liability for card-present fraud will shift to whichever party is the least EMV-compliant. (If neither or both parties are EMV compliant, the fraud liability remains the same as it is today.) Automated fuel dispensers will not experience this liability shift until October 1, 2017.

  • How does EMV impact PCI compliance?

    Merchants are still required to achieve and maintain PCI compliance, including completing annual SAQ requirements, as well as quarterly external vulnerability scanning requirements.

Administration

  • How long am I required to retain copies of sales drafts?

    You must retain sales drafts for at least three (3) years from the date of the transaction.

  • How do I change my address and/or telephone number?

    Complete the Address/Phone/Fax Change Request Form in the Forms & Guidelines section and fax it to the Account Changes at (800) 513-4313. The change will be completed upon receipt within three (3) business days.

  • How do I change the checking account information linked to my iPayment Merchant Account?

    It is extremely important to notify iPayment immediately upon any change in the checking account that is your iPayment merchant account. Failure to notify iPayment may result in the delayed deposit of funds to your checking account. Complete the Bank Account Number for ACH Debits/Credits Change Request Form in the Forms & Guidelines section. A voided check from the new account must be provided with the change request. Fax the completed form and voided check to the Account Changes Department at (800) 513-4313. The change will be completed upon receipt within three (3) business days. The original checking account should be left open with funds available during the transition to the new account.

  • How do I change my business name and/or the description of my business appearing on my customers’ billing statements?

    If there is a change in the business name and/or the DBA, either the Fictitious Name filing statement or the Articles of Incorporation must be provided to iPayment. Fax us a completed Business Name Change Form, found in the Forms & Guidelines section. Fax the completed form to Portfolio Management at (818) 540-6808. All non face-to-face merchants have the Customer Service telephone number appear on the cardholder’s statement. This is done to prompt the customers to contact the merchant directly when questioning a transaction to avoid a chargeback. To add a Customer Service telephone number to a retail merchant account, the request must be submitted in writing with the telephone number to be added.

  • How do I change the ownership information if I’ve recently acquired or sold the business?

    The new owner must complete a new application and agreement. Contact your Sales Representative for assistance. If you are unable to contact your Sales Representative, you may contact an iPayment Marketing Representative at (888) 822-1537.

  • How do I add American Express to my account?

    We require a request in writing including the American Express merchant number, your account information with us, and the signature of the principle. Fax this information to Account Changes at (800) 513-4313

Agent

  • What is a Business Cash Advance?

    A Business Cash Advance provides small business owners with the ability to raise needed capital. We advance cash by purchasing a pre-determined amount of the business's sales volume sold through your credit cards merchant account.

  • How long will I have to wait to find out if my client has been approved for a business cash advance?

    Approval is usually obtained within 24-48 hours. Funding usually takes 1-3 weeks depending on the amount of the transaction and the time it takes to get the signed contracts required to fund.

  • How much funding is available to my client?

    Your client will qualify for an amount between $3,000 and $300,000. The actual amount is based on their average credit card volume.

  • How do you determine the amount of the business cash advance?

    The amount of receipts purchased is determined by their average credit card volume over a 180 day period. We encourage your client to provide any documentation, (bank statements, sales tax receipts) that support total sales volume in order to be approved for the highest amount possible. We will give your client the largest amount based upon the documentation provided and they can decide how much they would like to accept. If your client has chosen not to take the entire approved amount on the first funding, they may contact us anytime to request the unused portion.

  • How does my client repay the Business Cash Advance?

    We collect a small percentage of each credit card transaction through our processing bank.

  • Will my client receive the same low rates as their existing credit card processing account?

    Yes, we will meet or beat your current processing rates.

  • What are the client requirements to qualify for a Business Cash Advance?

    Restaurant or Retail or Service Business

    • At least 9-months in business
    • Accepts credit cards as a form of payment
    • Provide processing statements for the previous 4-months of at least $4,000 per month in credit card sales
    • Provide 2-months of bank statements with consistent balances for higher approval amounts
    • Acceptable personal and business credit (may have as low as 500 personal credit)
    • Has no large tax liens, judgments or bankruptcies
    • Is in good standing with property leasor with at least one year remaining on their lease
  • How will I get credit for my referral?

    You can sign up as an agent or partner. You will receive an Agent ID in your email with instructions on how to submit your client for approval.

  • What are the benefits for my customers?

    The program is simple:

    • Funding can occur in as little as 10-days
    • Easy payback terms and conditions
    • Can include all fees in cost of goods
    • Available funding for opportunistic buys
    • Tax deductible
    • Improves cash flow
    • Builds business credit
    • Increases open to buy for retailers
    • No need to markdown inventory to raise cash for new inventory
    • May receive additional funding for other purposes upon requests
  • Am I assigned a primary contact person for each iPayment department?

    Each ISO/Agent is assigned directly to the Relationship Management Department. This team is your day-to-day contact. You are welcome to contact Merchant Services, Risk and Chargebacks directly for department related issues.

  • Who should I contact if the Relationship Management rep I work with is not available?

    Each member of the Relationship Management Team serves as a backup for each other. If you have a sales related issue that this team cannot handle, you are welcome to contact any member of the Sales Department.

  • Can our organization’s logo be added to the Merchant Application and Processing Agreement or the merchant’s statement?

    Provided that you are a fully registered ISO of Visa, MasterCard and Wells Fargo Bank, the Merchant Application can be customized to include your company’s logo as well as any hard-coded fees you desire. All legal language of the contract must remain unchanged. The cost of customizing and printing the Merchant Application is free in a pdf format. Costs for extensive outline changes are based on a price quote from our printing vendor. All pricing and specifications are subject to change.

  • How do I become a direct registered ISO of Visa/MasterCard?

    Please contact Christa Shook (Christa.Shook@ipaymentinc.com / 818-540-6583) directly for details and paperwork. Please note there is a one-time registration fee and an annual fee to remain registered with the card associations.

  • How and when are the end-of-month (EOM) fees deducted from the Merchant’s bank account?

    Daily Discount Merchants (default setting)
    The bank will deposit a merchant’s net daily batch amount (batch minus the qualified rate discount fees). All downgrade discount rates, customer service fees, monthly minimums and any other monthly fees are deducted between the 1st and 5th of the following calendar month.

    Monthly Discount Merchants (must be approved)
    The bank will deposit each day’s batch totals in full. All discount rates and monthly fees are taken out between the 1st and 5th of the following calendar month.

  • How do I know the status of my applications?

    Your iPayment Agent site login shows you the status of your portfolio in real time. If you need training or a login issued on this system, please contact Relationship Management.

  • What kind of turnaround can I expect on a newly submitted application?

    iPayment’s general rule is “in by noon, out by 5”. This means the account is approved, the MID and TID are activated, the file is built and the terminal is deployed (if applicable). You can check the iPayment Agent site for status and download information upon completion. Incomplete/illegible paperwork and multiple terminal deployments cannot be guaranteed for same day. Deployments requiring PIN-based debit are held overnight to ensure debit is activated and we can test the file before terminal is shipped.

  • What if I cannot communicate with iPayment via email?

    Please instruct the Relationship Management team that you do not have access to an email account and/or computer. We will set up services to call or send any information through the mail or fax.

  • Can I continue using the Value Added and/or leasing companies I currently work with?

    Yes, if you have your own relationships with certain vendors, you are welcome to continue working with them.

  • Can iPayment collect the application and/or equipment fees from the merchant?

    No, it is the responsibility of the agent to collect any additional fees directly from the merchant. iPayment will charge an agent directly for any of their fees. Agents can choose to pay by credit card or bank account ACH.

  • Who is responsible for calculating and paying our monthly residuals?

    iPayment has a Residual Department that handles month-end settlement and reporting. Residuals are paid on or around the 25th of the following month. You will receive the report via email or by regular mail (agent’s choice) with detailed income information on each of your merchants. ACH’s are submitted at the same time the reports go out. Questions regarding your residuals should be directed to Relationship Management.

  • How do we add the non-bankcard MIDs to the account?

    Fill out the Card Addition/Change Request Form and fax the information to the number provided.

  • Where do we fax completed applications?

    Fax new details, along with the supporting documents to the New Accounts Department (800) 858-6234. Please sign the application, include your agent/office ID and use a cover page to ensure you get credit for the deal.

  • Do I need to mail in the original signatures on a new Merchant Application?

    No, fax or scanned and emailed copies are acceptable.

  • Can I add/change the hard coded fees on the application?

    Any fee you have a base cost on can be lowered or waived. Simply cross out the hard coded fee and indicate next to it what you’d like to charge. Keep in mind that for any waived fees, you will be charged your base cost against your residual.

  • Do I have to purchase equipment through iPayment?

    You are welcome to use any source you prefer to obtain merchant equipment. If you choose to purchase equipment elsewhere, please check off “REPRO” on the equipment section of the application. If you intend to purchase equipment through iPayment, you will need to provide the Equipment Deployment Request forms for each MID you are placing an order for.

  • What online reports are available?

    The agent site and iAccess systems are available 24/7 at no cost. iAccess gives you a view into your merchant’s activity, statements, chargebacks, etc. The agent site gives you a view into status, underwriting notes and download info.

  • Can I create my own surcharge tables, interchange grids or per authorization tables?

    We have a number of grids that should meet your needs. If you run into a special situation and need to price a merchant outside of our guidelines, please contact Relationship Management with the details before quoting a merchant any special pricing. We will do our best to accommodate you.

  • Do you supply all of the marketing materials I’ll need to run my business?

    We provide Merchant Applications at no cost. Merchant program guides are provided in PDF format only. Business cards are available for a price of $160.00 for 1000 cards (price subject to change). Send all marketing materials and/or websites to Relationship.Management@ipaymentinc.com for iPayment and Wells Fargo approval prior to public distribution.

  • What terminal supply programs does iPayment offer?

    iPayment does not currently offer a merchant supply and/or terminal replacement program. All new terminals purchased through iPayment Inc. come with a one-year warranty and refurbished equipment has a 30 day warranty.

  • If my Merchant purchases a new terminal, how do I get that set up?

    Email or fax any upgrade requests to the Account Changes Department. Please include the MID and DBA on all requests. Indicate if the equipment is replacing what the merchant has or is in addition to.

Fees

  • Why am I charged a fee even if I can show the chargeback is invalid?

    The chargeback fee is a processing fee; it is not a penalty fee for receiving a chargeback.

  • What are the monthly processing fees?

    Monthly processing fees are calculated based on all the account fees assessed throughout the month with each date's activity and do not include your Daily Discount or Reserves (if required).

  • How do I pay for the monthly processing fees?

    Monthly processing fees are directly debited from your checking account, also known as your DDA, through the Automated Clearing House (ACH) within the first 5 business days of the following month. Please ensure that sufficient funds are available.

  • What are daily fees?

    The "DISCOUNT" is the only "fee" that is collected daily. Commonly referred to as the "DAILY DISCOUNT," this fee is assessed on both sales and credits. The DAILY DISCOUNT fee will not be a direct debit to your checking account, also referred to as your DDA. Instead, the DAILY DISCOUNT is deducted from each day's NET DAILY ACTIVITY, meaning the total of sales minus the total of credits for that day. If your account does not require a reserve amount to be withheld, then your DDA will be credited for this amount, known as your GROSS DEPOSIT. In the event that any day's GROSS DEPOSIT, i.e. NETSALES minus the DAILY DISCOUNT, is a negative amount, then your DDA will be debited for that amount.

  • What are month-end fees?

    Month-end fees apply to various transactions that occurred during that month only and are assessed at the end of each month. Month-end fees may include:

    • Authorizations
    • Address Verification Service (AVS)
    • Retrieval Requests
    • Chargebacks
    • Minimum Discount
    • Statement fees
  • Can I pass on the processing fees to my customer?

    The short answer is no, at least for credit card sales. Visa and MasterCard expressly prohibit charging the customer and impose fines on merchants caught doing this. However, you do have a right to charge a customer for debit card transactions as long as it is clearly written in a visible place at the point of sale.

Chargebacks

  • How am I notified of a chargeback?

    The Merchant Accounting Detail (iAccess) report lists chargebacks debited to your account on a daily basis. For each chargeback debited to your checking account, you will be sent a notification letter on the date of the debit. This letter will identify the reason for the chargeback and the information/documentation required to attempt to reverse the chargeback. A copy of the cardholder’s dispute letter will also be included, if applicable.

    Please refer to your Merchant Agreement for complete information about credit card transactions.

    If you don’t receive a chargeback notification letter, the iAccess report and the debit to your checking account will serve as notification that a chargeback has been processed to your account. You may contact us to request a duplicate copy of the notification letter and supporting documentation.

  • How long do I have to respond to a chargeback?

    You have ten (10) days from the date of the debit to your checking account. If you don’t respond within this time period, you may forfeit your chargeback rights.

  • Why was I not notified of the dispute prior to the chargeback being processed?

    A chargeback is generated directly from the cardholder’s bank. iPayment Inc. only receives notification that a dispute has been initiated by the cardholder when the chargeback is processed.

  • How am I notified of retrieval requests?

    You will receive a letter providing:

    • the cardholder’s account number
    • the transaction date
    • the dollar amount

    Please note that sales drafts should be stored by cardholder number and transaction date, as the cardholder’s name is not available to iPayment Inc.

  • How long do I have to respond to retrieval requests?

    You have ten (10) days from the date of the notification letter. If you don’t respond to a retrieval request, you may receive a chargeback for the transaction. There is no recourse available to the merchant for chargebacks received due to failure to respond to a retrieval request.

Other

  • Who is FDR?

    First Data is the world's largest processor of credit card transactions. They provide numerous types of services to merchant banks as well as card issuing banks. In relation to your merchant account, FDR acts as a clearinghouse that sorts all of your credit card transactions and then routes them to the appropriate banks for posting to the cardholder credit card accounts.

  • Will I get downgraded to a higher discount rate if the zip codes or addresses don’t match on the address verification service (AVS)?

    Absolutely not, a transaction will only DOWNGRADE if AVS is required, but is not attempted. The response code that you receive based on the address information provided is not a criterion for DOWNGRADING a transaction to a higher DISCOUNT RATE.

  • What is an imprinter plate used for?

    This is used for a manual credit card imprinting machine to identify you as a merchant on all carbon imprints of credit card sales you have. Merchants who do their processing while away from a terminal or as backup in case their terminal is temporarily unavailable use manual imprinters. It also protects the merchant as further proof against chargebacks as it shows that the card was indeed present at the time of the transaction.

Processing

  • Should I issue credit to the cardholder upon receipt of a chargeback?

    No. They receive credit from their bank upon the processing of the chargeback.

  • What if I have already issued credit to the cardholder prior to the chargeback date?

    If a credit has been issued prior to the chargeback date for the same transaction that a chargeback has been received, please notify us in writing with the date and dollar amount of the credit. We will verify the credit and reverse the chargeback to the cardholder’s bank, then credit your account. Please note that we must receive your response within the required timeframe.

  • Should I issue credit to the cardholder upon receipt of a retrieval request?

    You may issue credit to the cardholder upon receipt of a retrieval request; however, you must still supply the requested sales draft to avoid a future chargeback. If credit has been issued upon or prior to the retrieval request, please indicate the date and dollar amount of the credit on your response. This will alert the cardholder’s bank to check for a credit to the cardholder’s account for the transaction in question and not process a chargeback for the disputed item.

  • How do I start accepting American Express, Diners Club or JCB cards?

    An account number must first be obtained prior to accepting the above card types. iPayment Inc. has the ability to establish an American Express account on your behalf. After your account number is setup for MasterCard and Discover you will have the ability to accept Diners and JCB cards. Please contact Merchant Services for assistance.

    You must also ensure that your processing equipment is set up to accept the additional card type(s). Most terminals will not require additional programming to be completed, as they are already capable of processing all card types. Some software programs may require you to activate the additional card type(s) under the Set-Up option. If you process through an Internet vendor, you must contact the vendor directly to notify them of the addition of the new card type(s).

  • How do I increase my processing limits?

    This request must be submitted in writing with the new requested average ticket amount and average monthly volume amount. To make this change to your merchant account, use the Processing Limit Change Form, found in Forms & Guidelines. The reason for the increase in processing must also be included in the request and sent to the attention of the Portfolio Management Department. The iPayment Portfolio Management department will review the request and the merchant account for approval. Additional documentation may be required.

  • How do I know what has been deposited into and/or deducted from my checking account by iPayment?

    This information is available in several formats. A monthly processing statement is mailed the first week of each month for the preceding month’s activity. iPayment also offers deposit, transaction processing, chargeback, and retrieval request information directly through the Internet via our online iAccess report or via faxed Merchant Ledgers and Chargeback Detail reports. Deposits will show as MTOT Bankcard Deposit or IPMT fees.

    If the account is set up with a one-day hold you can expect the transfer within 48-72 hours. Please take into account that batches should be closed before 3:00 PM Pacific Standard Time, in order for the batch to be processed that day.

  • How frequently are funds deposited into my checking account?

    Activity on your MERCHANT ACCOUNT is processed on a daily basis and is reported according to the processing date. Your MERCHANT ACCOUNT has a designated time frame referred to as "HOLD DAYS" that must mature prior to funds being credited to your DDA/CHECKING ACCOUNT. The transfer of funds to or from your DDA/CHECKING ACCOUNT takes place through the AUTOMATED CLEARING HOUSE (ACH). Depending on your MERCHANT ACCOUNT type, the HOLD DAYS may vary from 1 to 5 business days. Processing activities take place on Sunday through Friday. (Saturday activity is processed on Sunday, along with Sunday's activity.) Weekends and federal holidays are not considered as business days.

  • Most of my sales are for the same amount. How can I tell which transactions are showing up in my banking account?

    Refer to the Merchant Ledger or Merchant Accounting Detail (iAccess) report. Remember the ledger sheet will show information about Settled Transactions. You will need to factor in the time lag between processing and settlement when reviewing the report.

  • I have sales that are not showing up in my bank account statement.

    Remember to factor in the lag time between processing, settlement and the number of days the processing bank will hold funds (per your agreement) before sending the sales to your checking account. Sales that are made during the final week of a month may not show up in the bank statement for that month.

  • Why is my deposit less than what I charged?

    The qualified discount rate is deducted from the batch amount prior to deposit.

  • Can I link my personal checking account to my merchant processing account?

    Owners of Sole Proprietorships can use their PERSONAL CHECKING accounts as DDAs and link them to their MERCHANT ACCOUNTS. All other forms of business ownership, i.e. partnerships, LLP, LLC, and corporations, must use a BUSINESS CHECKING account as the DDA that is linked to their MERCHANT ACCOUNT.

  • What are rolling reserves?

    To protect both the merchant and the cardholder against fraud and/or customer disputes, some merchant accounts are required to maintain a cash reserve for a specific period of time. A ROLLING RESERVE is not actually a fee since the money may be returned to the merchant at the end of the hold period, assuming no adverse transactions have occurred. If your merchant account is required to maintain a reserve, an amount will be withheld from each day's GROSS DEPOSIT. If you are required to maintain a ROLLING RESERVE, each day your DDA will be credited with a NET DEPOSIT, meaning daily NET DEPOSIT minus daily RESERVES withheld.

  • Why do I have to close my batch?

    Visa and MasterCard mandate that the batch is closed in a timely manner in order to efficiently process the transactions to the customer's account. If it is not closed within a 24-hour period of running the transaction, Visa or MasterCard will downgrade the transaction to a non-qualified (higher interchange) rate.

  • Am I allowed to say no to a customer who wants to pay with a credit card if the dollar amount is too low?

    The policy of both Visa and MasterCard is that if you display a MC/Visa sign, you must accept those cards for any dollar amount. Both companies will impose fines on merchants who do not follow these policies if reported by a customer.

    You do have the right to deny any card or sale if it is suspicious or the name or signature does not match the person presenting the card for payment.

Tips

  • Chargeback Prevention Tips
    • Obtain a card imprint (either manual or electronic) and the cardholder’s signature for every transaction, if possible.
    • Use Address Verification Service (AVS) for all non-face-to-face transactions. AVS will verify that the address the customer is providing is also the billing address of the account number being used.
    • Check all security features on the credit card as well as the cardholder’s signature on the back panel against the signature on the sales draft. If the transaction involves suspicious or unusual circumstances, call the voice authorization center and request a “Code 10” authorization.
    • Document any return/cancellation policy on the sales draft or other sales documentation that is signed by the cardholder. All return/cancellation policies must be in writing on sales documentation that is signed by the cardholder to be considered valid notification by MasterCard and Visa.
    • Do not process a transaction for billing to the cardholder’s account until the merchandise has been shipped and/or services have been received.
    • Obtain signed proof of delivery for merchandise that is shipped to the customer. Should a customer dispute a transaction claiming that the merchandise was not received, only shipment tracers that are signed by the customer are considered to be valid evidence that a customer did receive the merchandise in question.
    • Obtain a positive authorization response for all transactions. Do not complete transactions when a “decline” response is received or no authorization request has been completed. This may result in a chargeback for which you have no recourse.
    • Process all transactions for billing within seven (7) days from the date a positive authorization response is received. After this time period the authorization number is no longer valid.

Glossary

  • Acquiring Bank

    The financial institution that settles card transactions for a merchant.

  • ACH

    ACH (Automated Clearing House) is an electronic funds transfer system between financial institutions.

  • Address Verification Service (AVS)

    A system built into the authorization process that enables a merchant to verify a United States billing address of a customer to be the same billing address the Issuing bank currently has on file.

  • Average Ticket Size

    The total dollar amount of a single transaction approved to be processed through a merchant account.

  • Business Cash Advance

    A Business Cash Advance provides small business owners with the ability to raise needed capital. We advance cashby purchasing a pre-determined amount of the business's sales volume sold through your credit cards merchant account.

  • Card Association

    MasterCard International, Visa U.S.A., Visa International and any other association and/or network assigned to the Merchant Bankcard Services Agreement.

  • Card Verification Value – Visa (CVV 2) Card Validation Code - MasterCard (CVC 2) - Discover (CID)

    A three-digit value printed in the signature panel on the back of a MasterCard, Visa, or Discover card. This value is a security feature designed to crosscheck the information embossed on the card.

  • Cash Reserve Amount Percentage

    The percentage of settled transactions set aside in the merchant Reserve Account.

  • Chargeback

    A chargeback is the return of funds to the consumer. The transaction is charged back by the cardholder’s bank. This occurs at the request of the cardholder or their bank. Chargebacks can occur if:

    • the cardholder disputes a transaction.
    • the authorization process was not followed properly.
    • the authorized owner of the account number used claims that he/she did not engage in or authorize the transaction.
    • the cardholder claims that the merchandise or services for which they are being charged have not been received.
    • the cardholder claims that the merchandise or services received were not as initially described or were received in defective condition.
    • the cardholder claims that the transaction was cancelled and/or the merchandise was returned.
    • a valid authorization number was not obtained for the transaction in question.
  • Chargeback Ratio

    The amount of sale transactions divided by the amount of chargebacks received in any given month. This is calculated using either the item count of both or the dollar amount of both.

  • Demand Deposit Account (DDA)

    A checking account, which must be linked to a merchant processing account to deposit funds to and debit funds from as needed.

  • Digital Certificate

    An authentication that confirms a website is registered to the correct individual(s) through a thorough validation process.

  • Discount Rate

    The percentage of the total transaction amount, debit and credit, that is deducted from the amount deposited to the merchant account.

  • Electronic Commerce Transaction

    A transaction conducted over the Internet or other network where a cardholder enters card data and transmits the data. This includes email, electronic order forms, and websites.

  • ETC Type

    Electronic Ticket Capture is a code that identifies the method that a merchant settles transactions.

  • Inquiry Fee

    A fee imposed for all card types (MasterCard, Visa, American Express, Discover, Diners Club, JCB, etc.) each time an authorization is requested and/or a batch is closed.

  • Issuing Bank

    The financial institution that issues a card to a consumer.

  • ISO (Independent Sales Organization)

    An ISO (also known as Merchant Service Provider (MSP)) is a third-party organization that offers financial transaction processing services through partnerships with acquiring banks to find, open, and manage merchant accounts on behalf of such businesses.

  • Monthly Bankcard Volume

    The total dollar amount of MasterCard and Visa transactions approved to be processed through a merchant account in any given month.

  • PCI Compliance

    Payment Card Industry (PCI) compliance applies to anyone and any business that collects, transmits or stores cardholder data. iPayment is dedicated to maintaining the highest standards of security.

  • Payment Gateway

    The transaction processing vehicle that receives encrypted transactions from the merchant server, authenticates the merchant, decrypts the payment information, and transmits the data to the authorization and settlement networks.

  • Reserve Account

    Merchant funds maintained at iPayment to be utilized for any potential losses generated from a merchant account, such as unpaid chargebacks or other unpaid fees.

  • Retrieval Request

    A retrieval request is a request from the cardholder’s bank to supply a copy of the sales draft. If the transaction was a non-face-to-face transaction, a substitute sales draft may be provided. The following information must be included on all sales draft and substitute sales drafts:

    • Cardholder Account Number
    • Card Expiration Date
    • Merchant Name
    • Merchant Location (city and state)
    • Transaction Date
    • Transaction Amount
    • Description of Merchandise or Services
    • Authorization Code
    • Cardholder Signature (if applicable)
  • Secure Electronic Transaction (SET)

    An industry standard that authenticates customers and merchants to ensure the safety and confidentiality of data processed over the Internet.

  • Terminal

    A hardware device equipped with a magnetic strip reading device utilized for processing of card transactions, typically used in a retail (face-to-face) environment.

  • Transit Routing Number / ABA #

    A nine-digit identification number assigned to a financial institution necessary to authenticate automated clearinghouse (ACH) transmissions regarding a merchant account.


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