PROCESSING
OVERVIEW
- The
carholder purchases goods or
services from the merchant.
- Your
credit card system dials the
processor who in turn contacts the
bank that issued the card to your
customer. The bank that issued the
card to your customer approves or
declines the charge.
- Tour
terminal "captures" the
information on the credit card.
- You
settle you batch at the end of your
day.
- Our
bank will "ACH" (Automatic
Clearing House) wire transfer the
sale less the bankcard interchange
rate (percentage) and the
transaction fee (costs associated
with the back and forth calling over
the various networks) into your bank
within 24 - 48 hours.
What
are all of those different Visa &
Mastercard rates on my statement?
Did you know that Visa and Mastercard
have over 50 different interchange rates
(fees) attached to different cards
prsented to different merchant types
around the country? This very complex
and sometimes confusing structure is
vastly different than, for example,
American Express or Diners Club which
may have one fee for all treansaction
types at your store. Listed below are
the most typical breakdowns on your
monthly statement that you will run
across with some associated
explanations. The following list is by
no means exhaustive, and your POS
representative can go into further
details with you.
Qulified
Rate - Your lowest rate. Face to
face transactions with card presented,
swipes through your terminal and signed
by the card holder (sometimes signified
by CPS Retail Credit (V) or Merit 3
(MC).
Mid
Qualified - A surcharge of
interchange added to your basic
qualified rate. Typically occurs on hand
or key entered transactions, or over the
phone mail order/ telephone orders.
Happens because key data from
cardholders magnetic stripe was not
transmitted to Visa/Mastyercard
(sometimes signified as CPS Card Not
Present (V) Merit 1/Moto (MC), Eirf(V)
These surcharges are also attached to
corporate Mastercard transactions.
Non-Qualified
- The highest rate you pay. A surcharge
added to the qualified rate. Visa
business card transactions. Although it
is rare it occurs primarily through use
of overseas issued bank cards (out of
country network calls), Visa Business
Cards, or someone at your place of
business forgot to send a batch for more
than 48 hours (signified as Standard
V/MC).
Remember
whatever rate you pay will always be
made up of two components - An
interchange rate and a transaction fee.
This can be shown in two ways:
Bundled-one number or Unbundled-Both
costs shown. These costs are one of the
same as they relate to your average
ticket(sale).
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