Why do I have to provide my social security number and date of birth?
All covered financial institutions must collect and verify information from all significant owners of legal entities and their accounts. They must collect all of this information when the new account is opened per the FinCEN legislation.
Full details can be found on the Financial Crimes Network Enforcement website - https://www.fincen.gov/what-we-do
When do I receive my deposits?
All credit card transactions will automatically batch out each day by 8pm EST and will deposit the next business day. ACH transactions will batch similarly, but will deposit five (5) business days later. Any transactions run after the cutoff time of 8pm EST will go into the following day's batch.
A chargeback is a dispute initiated by a customer against the merchant who accepted their card as payment in exchange for goods or services. The chargeback process is available as a protection for cardholders against fraud and merchants who do not provide their product/service as promised.
What is a Chargeback?
When a bank receives a chargeback dispute from one of their cardholders they open an investigation by contacting the processor and requesting evidence that the product/service was provided. The processor will then notify the merchant of the chargeback and advise as to what documentation should be provided.
While rare for most merchants, chargebacks can be a costly and time-consuming strain. Dishonest cardholders can try to take advantage of the system and the burden is on the merchant to prove that they fulfilled their commitment to the cardholder. It is recommended that you respond to all chargeback notices as quickly as possible and try to resolve any disputes with your customers before they result in a chargeback.
What are common chargeback reasons:
- Fraudulent transaction
- Duplicated charges
- Not as described/defective merchandise
- Services not provided or merchandise not received
- Refund not processed after a returned item
How can I avoid chargebacks:
- Always insert an EMV chip, swipe magnetic strip, or imprint any card that is present. (Inserting the chip greatly reduces your liability and should always be your first choice).
- Use PIN to verify debit transactions.
- Ensure that all displayed pricing is clear and up to date.
- When appropriate, collect billing address, zip code, and CVV.
- Use additional ID verification such as a driver’s license.
- An agreement or authorization form provides you with additional documentation for large purchases and can also detail the product or service should a dispute arise later. Have the customer sign the form.
- Maintain a history of tracking and proof of delivery.
When do the fees come out of my account?
Fees will be debited separately from the daily deposit. For example, if a customer processes $1,000 today, they’ll see a deposit for $1,000 and a debit for the fees on those funds. This is commonly referred to as gross funding.
What is PCI Compliance?
Payment Card Industry (PCI) compliance is a mandated requirement that includes a set of security guidelines formed by the five major credit card brands to ensure that merchants are following best practices in order to reduce credit card fraud and security breaches. PCI compliance is not optional and is required of all merchants by the card brands.
If a merchant does not become compliant within 90 days of processing their first transaction, they will be assessed a $54.99 PCI Non-Compliance fee every month until they become compliant.