FAQ's

• What is a Merchant Account and why do I need one?
• What is a Payment Gateway and why do I need one?
• How long does it take to get set-up?
• What is a Chargeback?
• What is a qualified vs. a non-qualified transaction?
• How do I get set-up to accept Discover and American Express?
• How long does it take to receive our funds?
• What is a monthly minimum?

What is a Merchant Account and why do I need one?

A merchant account allows businesses to accept credit card payments. A merchant account is set-up with a financial institution. Unlike other services, money collected through your merchant account is deposited into your checking account within 2 to 3 business days. You must have a merchant account to accept credit card payments using your company name and if you want the funds deposited into your checking account within 2 to 3 business days.

What is a Payment Gateway and why do I need one?

A Payment Gateway allows you to securely process transactions online. It is a third-party service that transmits eCommerce transactions to your payment processor for authorization. A Payment Gateway allows you to offer your customers a safe and secure way of buying from you online. Authorize.Net is Merchant Focus’s preferred payment gateway.

How long does it take to get set-up?

It typically takes 2 business days to get approved for your merchant account. Once your merchant account is approved we will set-up your Authorize.Net payment gateway and you will receive the gateway information within 24 hours of your approval. The time it takes to get set-up also depends on how quickly you follow up with answering any questions from the Underwriting Department and faxing the required paperwork.

What is a Chargeback?

A Chargeback occurs when the merchant’s sale is disputed by the cardholder for any reason including:

• the merchant won't issue a credit return (refund) for a product dispute
• the customer claims they never received the product
• the customer claims their card was used fraudulently

…then the customer can call their Card Issuing Bank directly and disputes charge.

The Card Issuing Bank notifies our Acquiring Bank that a cardholder is disputing the transaction and they notify us. We in turn mail the merchant a Chargeback notification and require the merchant to respond ASAP to their customer’s dispute.

It is up to the Card Issuing Bank, based on their investigation, if we have to give cardholder their money back. In this case, the funds will be debited from the merchant’s checking account and given back to the cardholder.

The chargeback fee is $25.00 regardless of the outcome.

NOTE: This is why is it so IMPORTANT to have excellent “return, warranty, cancellation policies” clearly accessible on your Web site.

What is a qualified vs. a non-qualified transaction?

Certain conditions must be met for an Internet transaction to Qualify for the 2.19% (or applicable) discount rate. If a transaction doesn't Qualify, it becomes a Non-Qualified transaction and the discount rate will increase (please check the merchants Schedule of Fees).

Here are Visa/MasterCard's rules for Internet transactions:

* QUALIFIED TRANSACTION CONDITIONS FOR INTERNET ACCOUNTS

• The transaction must be electronically captured no later than 24 hours from authorization.
• The authorization code must be included in settled transaction (this is done automatically by the system when using a Payment Gateway such as Authorize.Net to “authorize” the card).
• The authorization request message must include matching Address Verification Service data (AVS) data such as Zip Code and/or Street Address.
• The transaction/shipping date must be within 7 calendar days of the authorization date.
• The authorized transaction amount must match the settled transaction amount.
• The settled transaction data must include the merchant's customer service telephone number, the order or invoice number, and the total authorized amount.
• Additional data is required in the settled transaction on all Purchasing and Commercial cards at non-T&E locations (Purchasing card - customer code and sales tax; Commercial card - sales tax)

** NON-QUALIFIED (NQ) TRANSACTION CONDITIONS FOR INTERNET ACCOUNTS

• One or more of the Qualified conditions were not met. (OR)
• The transaction was electronically settled more than 24 hours from the authorization date. (OR)
• Commercial card, World MasterCard, or Visa Signature card accepted at a T&E location. (OR)
• No additional data in the settled transaction on Purchasing and Commercial card at non-T&E locations. (Purchasing Card - customer code and sales tax; Commercial Card - sales tax). (OR)
• Visa Infinite card accepted. (OR)
• Transaction was not electronically authorized (voice authorization) or the authorization code was not included in the settled transaction.
• The customer is using a Corporate or Government-issued credit card.
• The customer is using a credit card issued by a Foreign Bank.
  How do I apply for an account?

Simply fill out our online application. You can find more information here. (link “here” to the Merchant Accounts Page.)

How do I get set-up to accept Discover and American Express?

We are not allowed to quote rates for Amex/Discover. We can submit the application on their behalf to both companies.

On the application just select that you would like for us to apply for these card types on your behalf.

How long does it take to receive our funds?

It typically takes 48 to 72 hours for the funds from your transactions to be deposited directly into your checking account.

What is a monthly minimum?

The monthly minimum is the minimum amount you will be charged in relation to the discount fees for your monthly Visa/MasterCard sales. You will pay the Monthly Minimum ($25.00) or your Discount Fees, whichever is greater.

For example: In one month you processed $1000.00 is Visa/MC sales. $1000.00 x 2.19% = $21.90. This amount does not meet the monthly minimum of $25.00 so you will be charged an additional $3.10 to meet the monthly minimum of $25.00 ($21.90 + $3.10 = $25.00).

However if in one month you process $1500.00 in Visa/MC sales then your fees = $32.85 ($1500.00 x 2.19% = $32.85). You will be charged $$32.85 in Discount Fees so you have easily met the monthly minimum of $25.