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Credit Card Processing & Equipment Options Getting your investment to pay off. Bankcard 101 Merchant Credit Card acceptance and processing has become an integral part of business management, whether a one-man band or a multi-national corporation. In the years of Visa, MasterCard, American Express, Diners Club, Discover Card, JCB – (originally Japan Credit Bureau - now JCB International Credit Card Company), and other card types entering the market, the consumer has taken to the concept of a revolving personal line of credit like a fish to water. All to the benefit of the merchant being able to move more goods and services. Risk Management Merchant bankcard acceptance is a program designed around managing risk. The lowest risk is at the consumer end. This was intentionally designed this way so the cardholders would have absolute confidence in the use of the cards and in fact, prefer it over other payment forms. The merchant has the next level of risk as the cardholder can dispute or even chargeback items where the merchant is required to reimburse money. Typically, as long as the merchant location is ethical and delivers what is sold at the time of the sale, or in a timely manner, there is little to no risk in card acceptance. If the merchant is hit by fraudulent credit card use, where a patron pays for goods (usually goods, not services are more prone to this type of fraud) with a stolen card or one that was made from valid card information stolen through identity theft and reloaded onto a fraudulently produced plastic card, the merchant still looses out. The cardholder with the valid card did not make the purchase although the purchase was authorized against the valid data. Visa, MC and the various processors work vigorously to identify these transactions as quickly as possible and the number is blocked for transactions as quickly as possible. The average merchant will never experience this type of fraud but it does happen. The benefits far outweigh these exposures. The next level of risk is at the merchant processor level. When we set up a merchant and approve the account after review of various financial information, we are accepting full liability for the merchant location processing and activities within the Visa and MC guidelines. For this reason, we have an in-house risk management group that stays on top of the merchants we have to head off any potentially fraudulent activities either from the merchant side or the consumer side. Our risk department has identified and alerted some of our merchant clients to hundreds of thousands of dollars of attempted fraud over the years. We are always working to protect our merchant clients. Bankcard Glossary Visa website glossary: Visa Website MasterCard website glossary: MasterCard Website Our Fair Team is standing by ready to help you. Email us or contact us by phone, we will make sure you know your options in managing any Payment Processing issue. |
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