Listed below are frequently asked questions dealing with merchant accounts and payment processing.
If you have a question that is not listed below, please contact us.
What is a merchant processor?
Also known as a payment processor, these types of institutions handle credit card and check transactions for merchants.
In an operation that will usually take a few seconds, the payment processor will both check the details received by forwarding them to the respective card’s issuing bank or card association for verification, and also carry out a series of anti-fraud measures against the transaction.
Is Precision Payment Systems a merchant processor?
No, we are an independent broker of merchant processors. We have strong relationships with the world’s leading processors, which enables us to “shop around” on behalf of our merchants for the lowest rates and most efficient processing solutions available.
Can I use someone else's merchant account to do my transactions?
No, this practice is known as "credit card laundering" or "factoring." It is against the Visa® and MasterCard® agreement. Using someone else's merchant account to process your credit card transactions can lead to heavy fines and perhaps more. In addition, you'll also put that merchant's credit card processing account in jeopardy.
Why are rates higher for Internet, Mail and Telephone Order transactions?
Face-to-face transactions where the credit card is swiped is considered less risky by banks. Since this is the case, rates are quite a bit lower as the instances of fraud and chargebacks are much lower.
How long does it take to get setup with credit card processing?
The turnaround time for a merchant processing application varies based on business model, products/services sold, volume, length of time in business. Very straight-forward, less risky businesses can receive approval in as little as 2 hours; higher risk merchants with more complicated business models can take up to 2 weeks for account approval.
What kinds of credit card processing solutions are available?
There are a wide range of solutions for all types of merchants. The Products & Services page lists these. (Make Products & Services a hot link to that page)
What are chargebacks?
Chargebacks can occur for a wide variety of reasons, such as double-charging, credit card expiration, bank error and customer disputes.
A chargeback is a transaction reversal initiated by your customer through their credit card institution. That credit card company will contact the merchant’s payment processor, at which time the processor notifies the merchant in writing of the chargeback. Merchants are given between 14 and 30 days to refute the chargeback and provide proof of the disputed charges. If no rebuttal is provided, the chargeback is automatically ruled in favor of the customer and the disputed funds (with fees) are deducted from the merchant’s checking account.
What is a discount rate?
“Discount rate” is the full term for what is commonly referred to as “rates”. It is a percentage paid on the charge that is being processed. Rates are mostly comprised of fees set by the credit card associations and the processor’s cost of administering those fees.