Check Verification, Check Guarantee and Check Guarantee with Conversion

Believe it or not people still write checks; lots of consumers still like the 2 day float when writing a check. We get a lot of questions regarding check services and what is involved with this process. Check services can work with your POS (Point of Sale) credit card machine but it does go through another company other than your merchant service provider. Your machine has to have the ability to add another application for the check service.

Check Verification
This service screens checks and the person who wrote the check in database that has a list of people who have a history of writing bad checks. The merchant enters the information in their POS machine and if the person has a negative history the transaction will decline. However, this service does not guaranty that you will be funded for the check.

Check Guarantee
This service like verification lets you know if the check writer has written bad checks or has outstanding unpaid checks. To use this service the merchant either scans the check through a checkreader or enters the check information on the POS machine along with the customers drivers license number and phone nunbers. If your customer is approved the check service company will guaranty that you are paid for the check amount; any issues after this the check service company will go after the check writer.

Check Guarantee with Conversion
This service is top notch!! This service utilizes the tools in verification and guarantee but also converts the check to an electronic fund right at the point of sale. This is similar to a PIN based debit transaction; once the merchant scans the check and enters all pertinent information the funds are automatically pulled from the customers checking account and on its way to the merchant. The merchant will simply stamp the back of the check and hand the check over to the customer; with conversion the merchant no longer has to deposit the checks into the bank.

Setting Up Your Retail Storefront

When preparing to set up your retail store with your credit card processing machine you need to consider a few things to make everything go smoothly.

If you have decided that you want to process PIN based debit transactions you will need to have the machine in a place where your customer's have access to the PIN Pad; this is used so the customer can enter their Personal Identification Number.

You will need to have the credit card machine in the same place as where your customers check out; having the machine across the store will take time for you and your staff to walk back and forth making your customers impatient,

You will need access to a telephone line, credit card machines can share a phone line via phone splitter; a lot of merchants tend to use the same phone line as their fax machine.

Hopefully these tips will help you when setting up your retail store.

Maintaining Your Merchant Account

As your business grows you may need to make changes to your merchant account; for instance maybe the bank where you do your checking with is not working out and you decide to change banks. This is not an uncommon practice since you are a consumer and you have every right to do so. However it is imperative to contact your merchant service provider and let them know you are switching banks. They should have a form that you'll need to fill out and sign as well as faxing a copy of a pre-printed check.

I know that more forms and faxing a pre-printed check seems a little redundant but you need to understand if someone were just to call the processing bank and give them the routing number off the check and then the checking account number all your transactions could go to a different checking account that is not yours. This is in your best interest.

The time may also come when you've out grown your current location and decide we need a bigger space; another time to check in with your merchant provider and fill out a form to do so.

What is PCI DSS?

Lots of merchants are asking their processors as what is PCI DSS, simply put it is Payment Card Industry Data Security Standard. This was developed by the card issuing companies as a guideline to help organizations that process credit card payments to prevent fraud, hacking and other various security threats.

Mechants that process, store or transmit payment card data must be compliant with PCI DSS or they risk losing the ability to accept cards or they will be fined and possibly audited.

Basic Requirements

• Build and Maintain a Secure Network
• Install and maintain a FIREWALL to protect cardholder data
• Do not use the Pass Words supplied by vendors

Protect Cardholder Data

• Protect stored cardholder data
• ENCRYPT transmission of cardholder data across open and public networks

Maintain a Vulnerability Management Program

• Use and regularly update your ANTI-VIRUS SOFTWARE
• Develop and maintain secure systems and applications

Implement Strong Access Control Measures

• Assign different ID's to each individual with access to your computers and networks
• Restrict access to cardholder data

Monitor and Test Networks
Do this regularly and test security systems and monitor access to your network

© Eagle Merchant Services, a provider of merchant accounts in the Chicago area that offers national services.

Merchant Credit Card Processing Glossary

Here is a list of terms to help you understand merchant credit card processing.

ACQUIRER
The financial institution that establishes and maintains the merchant account, receives transactions from the merchant. The acquirer must be a licensed member of Visa and MasterCard.

ADDRESS VERIFICATION SERVICE (AVS)
A service/system that verifies the cardholder's address, this is used mostly by mail, phone and internet order merchants.

BATCH
A group of accumulated transactions that have been captured but not settled. Most merchants settle their batches at the end of the day.

CARDHOLDER
The owner of the credit card being used to make a purchase.

CHARGEBACK
A transaction that has been disputed by the cardholder or issuer, the transaction is sent back through interchange to the acquirer and must be resolved by the merchant or the acquiring bank.

CLEARING
The exchange of transaction details between an acquirer and an issuer which posts the transaction to the cardholder's account and reconciles it for a settlement.

CVC2 and CVV2
Card verification value 2 adn CVV2 a 3 digit code printed on the back of a Visa card, this is a security feature that protects internet and phone order transactions from fraud.

DISCOUNT RATE
The amount charged to the merchant by the acquirer for processing their credit card transactions.

INTERCHANGE
The settlement system for MasterCard and Visa; this includes the transmittal of cardholder information, transaction data and the fees to the merchant.

INTERCHANGE FEE
The amount that Visa and MasterCard charge acquirers for each transaction that they process. This fee is passed along to the merchants in the DISCOUNT RATE.

ISSUER
The financial institution that issues a credit card to a cardholder. The issuing bank must be a licensed member of Visa and MasterCard.

POINT OF SALE TERMINAL
The machine used to transmit credit card transactions electronically for authorization and processing.

SETTLEMENT
The exchanging of data or funds between the acquirer and the issuer. This includes funding the merchant for the transaction and paying the fees due to the issuer and the acquirer.

© Eagle Merchant Services, a provider of merchant accounts to accept credit cards with over 10 years working with merchants.

What is an Internet Payment Gateway?

In order to process credit card transactions over the internet the merchant must have an internet payment gateway along with a merchant account. This is where a lot of merchants get confused. The internet payment gateway is the means of getting the secured transaction to the merchant provider for an authorization; think of it as a Point of Sale terminal (POS) for the internet.

Most merchant account providers have access to a payment gateway and your merchant provider must set you up with your payment gateway; the information needed to set up a gateway must come from the merchant account provider.

The payment gateway can also be linked to a secured shopping cart for e-commerce merchants; by now most of us have made purchases through the internet and have used a shopping cart. The shopping cart is a secured portal that allows the customer to enter in their information, credit card number and then send the transaction to the payment gateway. From here the transaction goes to the merchant account provider and then a confirmation email is sent to the merchant informing them that a customer has made a purchase.

If you have any more questions on internet payment gateway's please call Eagle Merchant Services and let one of our sales representative's answer your questions.

© Eagle Merchant Services, a provider of merchant accounts in the Chicago area that offers national services.

Merchants Protect Yourselves When the Card Is Not Present

Card not present merchants need extra precaution against fraud exposure and associated losses. Merchants should follow these steps to protect themselves against fraud.

1. Obtain an authorization for the transaction
2. Verify that the card is legitimate:
1. Ask the customer for the card’s expiration date and include this when doing the transaction and obtaining the authorization. If the customer doesn’t have the address chances are they do not have the card on them.
2. Use fraud prevention tools such Address Verification System (AVS) and Card Verification 2 (CVV2).
3. Look for these warning signs of fraud:
1. First time shoppers
2. Orders that include several of the same items
3. Orders that include your most expensive items
4. Orders that want the merchandise next day
5. International orders, AVS does not validate non-US addresses
6. Shipping to a different address that is not the billing address of the card.
4. If you receive an order and an authorization but you’re still hesitant of the transaction always ask for more information or contact the cardholder to obtain information like the billing address or the name of the card issuing bank.

At Eagle Merchant Services we offer all or our merchant’s that latest tools to prevent fraud with our POS equipment and processing software.