Refunds Should Require a Passcode





Refunds Should Require a Passcode


When you became a merchant, you completed an application process that may have included asking for your Social Security number. While many people find this puzzling for a business account, the fact is – someone must be in charge and responsible for your terminal and the actions that take place within your account. Many terminals, such as the Ingenico brand allow three levels of access: Clerk, Supervisor and Manager. Imagine this for a moment – Your rogue employee issues a $10,000 credit to his personal MasterCard debit card on his last day of employment. Buckle up! The ride is about to get very bumpy for you.

All Access

Allowing all employees to have “all-access” to the functions of your credit card terminal exposes you to a potential nightmare. As you know, chargebacks, refunds and credits all come directly out of your bank account during the daily batch settlement. This means that you must have sufficient funds in your bank account to cover any refunds or credits issued during a business day. Giving your employees the ability to issue credits and refunds without any approval or oversight is the same as giving them direct access to all the funds in your bank account. They are in control without a passcode.


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Interchange Fees Increases Delayed Until April 2022!





Interchange Fees Increases Delayed Until April 2022


Interchange fees are set by each card brand (Visa, MasterCard etc.) as a transfer fee between acquiring banks and issuing banks for every credit card transaction. These fees are used to assess charges for merchants and are usually adjusted each year in April and October. The April 2021 scheduled increase has been postponed to April 2022!

This is great news for most merchants. The card brands realized that the economic recovery from the COVID-19 pandemic is in a fragile stage. As such, both Visa and MasterCard have decided to delay increases.

Chosen Payments clients are on a rate plan known as Interchange Plus. That means, we take the Interchange rate and add a small percentage for our services. When the Interchange rate goes up, our mark-up remains the same. Because of this, any interchange rate increases will have a direct effect on bottom line profitability.

The delayed fee increases that were included in the plan included increases that would have significantly increased fees for card-not-present transactions (CNP) such as online purchases, eCommerce, and phone orders. For a typical Visa card, the effective rate on a $100 charge was set to rise to 1.99% from a current average of around 1.90%. For a high-end Rewards Cards, the rate would have risen to around 2.6% from a current effective rate of 2.5%.


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Credit Card Transactions You Should Never Complete!





Credit Card Transactions You Should Never Complete

Your Merchant Account is a powerful tool in your business. You have the ability to post charges and credits to credit card accounts. Just because you can perform a transaction, doesn’t mean that you should. Here are some examples of transactions you should stay clear of to avoid having your merchant account suspended or closed for a seemingly innocent transaction.


Never Run Your Own Card!


Why would you run your own card? The reasons range from wanting to make a legitimate purchase from your own company to the sinister transaction of loaning your business money from your personal credit card line. While it certainly might seem practical during these lean and mean times of the pandemic, the truth is, this is a violation of your processing agreement as well as card issuer rules. In some circumstances, this transaction may be considered illegal. If you need to infuse money into your business, this is not the way to do it.


Accepting Payment for Another


You have likely been asked by a friend if you can run a card through your Merchant Account, deduct the associated fees and then pay someone else. Perhaps you have a friend selling baked goods from home. Someone wants to pay for her for a large order by using a credit card. Your friend doesn’t have a way to run the card. While you might be tempted to help your friend – don’t do it! Once you transact a payment, you retain the liability for that transaction. If there is a chargeback, you are on the hook. While it is unlikely that Susie Homemaker might be involved in laundering money, transactions like this could be considered a form of money laundering. The bottom line: Do not ever mix in someone else’s transactions with your own legitimate transactions.


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Summer Payment Trends





Summer Payment Trends

The month of June represents the beginning of summer for most Americans. While the official arrival of summer doesn’t occur until June 20th, the arrival of the Memorial Day weekend today signifies summer for both merchants and consumers. Labor Day weekend is generally regarded as the end of summer.

What does this mean for merchants? Both three-day weekends that anchor the months of summer represent a spike in transactions related to travel. Generally, we see increases in spending at gas stations, restaurants, auto rental companies, airlines, hotels and anyone else who provides service to vacationers. The trend for Summer 2021 is expected to be different than previous years as America begins to return to some normalcy after being cooped up for over a year.

As a result of reduced expenses over the past sixteen months such as fuel for driving to and from work and eating out for lunch everyday people have more disposable cash. Combine the reduced expenses with increased income through government stimulus checks and Memorial Day weekend will be filled with appliance, apparel and travel related credit card transactions.

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