MobileMerchant FAQ's
Credit Card Acceptance:
Merchant Account Information:
Glossary of Merchant Processing Terms:
Credit Card Acceptance
Why should I accept credit cards?
There are many good reasons to accept credit cards. Studies have shown that the average sale is considerably higher when paid for with a credit card then when it is made by other forms of payment, especially cash on hand. Credit cards do not require trips to the bank to make daily deposits; the funds are deposited into the merchant's account automatically.
Are there advantages to taking credit cards over checks?
Absolutely! Checks have to be taken to the bank and many banks apply deposit item fees. Checks can bounce and have you seen what the banks are charging for returned items these days? Checks can also be fraudulent. Using your Mobile device to accept Credit card purchases provides an authorization that the money is available in the customer’s account, and using the Mobile device to capture information about the card reduces the possibility of a fraudulent card. In short, accepting credit cards with your Mobile device is convenient and secure whereas checks are the opposite.
What difference does it make if I enter the data on a Mobile device vs. entering later on-line like I currently do?
The difference is substantial. First, you have the opportunity to make sure the funds are available. Second, we are able to offer lower rates than competitors because the card is present at the time the transaction is processed. Equally important is the fact you’re your customer is more likely to do business with you and buy more from you then they might otherwise, simply because they can see that their credit card information is not being written down for later entry.
Do I have to transfer money from my merchant account to my account and is there a limit on how often or how much I can transfer?
Unlike competitors who are aggregating your funds in a pooled account and limiting your access to your funds, MobileMerchant Accounts are real merchant accounts. All of the funds you process through your merchant account are immediately and automatically transferred to you checking account or MobilePaycard account. It’s your money, why should your access to it be limited.
When will the funds be available?
Generally, funds are available in your bank account within 48 hours after your transactions are settled for the business day. Depending upon your industry type, the terminal you use to process transactions, and the time you settle your batch each day, we may be able to provide you with next day funds availability.
Can I also accept non-bankcards like American Express and Discover?
Yes. We can provide you with the ability to accept all major credit cards as well as many other types and brands of cards. We are a direct processor for VISA, MasterCard and Discover and can also arrange for your American Express merchant account. American Express, however, determines the discount rate they will charge for processing your transactions.
Can I do any other transaction or just credit card sales?
The MobileMerchant Account operates on a Mobile device that is securely connected to the world’s largest payment processor. The software that we provide for your Mobile device, enables your Mobile device to become an electronic cash register. You can not only accept credit card payments, but you can also record cash transaction so that you have a complete record of all of your sales. Up until the time your batch is settled you can void any transaction if a mistake was made. If the customer is unhappy with the product and requires a refund you can accommodate that transaction. You can also look up any transaction that you have processed. The ROAM software placed in you Mobile device provides you with capabilities comparable to a credit card terminal without the expense.
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Merchant Account Information:
How does a merchant account work?
Your customer’s credit card transactions are authorized in real time. All approved transactions are batched out (aka settled) at the end of the day. When the settlement is performed we transfer from your customer and deposit the funds for their purchases directly into your business checking account or better yet, your MobilePaycard account.
What do I need in order to obtain a merchant account?
In order to obtain a merchant account you need to have some sort of business. This could be retail, home-based, internet-based, network marketing, etc., but it needs to be a business. One cannot obtain a merchant account for personal use. To open a U.S. merchant account one needs a Social Security number and or a Federal Tax ID number, a U.S. based checking account or MobilePaycard account, and a U.S. based address.
Which bankcards can I accept?
You can accept the most popular credit cards: MasterCard, Visa, American Express, and Discover. In addition to these credit cards you will also have the ability to accept many debit cards and Gift Cards branded by any of the major credit card brands.
Are there limits on the account?
Absolutely not. Unlike some competitors, we have no reason to place limits on the merchant account.
How does the MobilePaycard Account work with the MobileMerchant Account?
They have been designed to work together to enable you to fully operate your business and keep your business money separate from your personal account, and avoid having to pay for an expensive business checking account. The money you accept for payments using your MobileMerchant Account can be deposited directly to your MobilePaycard account. From there, you can use the card to obtain cash at ATMS, purchase supplies for your office or next sales event, or additional products from your supplier. Come tax time it is easy for you to identify your business expenses and income.
What information can I obtain about transactions and balances on my account?
Tons! First of all you can access all of your settled transactions on-line in numerous ways through Client Line reporting. The reporting tools and capabilities available through Client Line are like having your own transaction information system. What is even more incredible about the MobileMerchant account is that you can access your transactions before and after they settled on your Mobile device. You can even access Client Line reporting from your Mobile device.
With my current account I do not receive a statement, all I get is the balance and last ten transactions. Do I get a statement with my MobileMerchant account?
Absolutely! The MobileMerchant account is a real merchant account. Through ClientLine you can see all of your transactions and fees daily or monthly and print as much information as you like.
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Glossary of Merchant Processing Terms:
Discount Rate
Discount rates, also known as interchange rates, are estalished by the Card Associations (VISA, MasterCard, etc.) as a means of compensating the card issuer (issuing bank) for their risks and costs, and are paid for by the acquiring bank. The rates vary by type of card, and the location where the card is processed. Acquirers, such as Merchant Services, set rates based upon the interchange and processing costs.
The Discount Rate is typically comprised of both a percentage and per item rate that are applied to each transaction.
The most important factor in determining the merchant's Discount Rate is the transaction method the merchant uses. Transactions that are conducted with the card present and swiped through a reader are less risky than those where the card is not present and cannot be read electronically.
Transaction Fee
The Transaction Fee is the fee a merchant pays every time he or she accepts transactions for payment. For example, when a bankcard is Swiped or Keyed in, when the merchant Batches Out or when the merchant performs a Return or Void. The Transaction Fees are assessed at the end of the statement period.
As with the Discount Rate, the most important factor in determining the merchant's Transaction Fee is the transaction method the merchant uses.
Average Ticket Amount
This is the dollar amount of the average transaction that is (or will be) processed. For example, if you only sell computers for $800.00, then every time you sell a computer your ticket amount is $800.00. But if you sell one type of computer for $1,200 and another type for $800.00, and you sell equal amounts of each, figure out the average:
$1,200.00
+ $800.00
========
$2,000.00 / 2 = $1,000.00
In this case your Average Ticket Amount is $1,000.00.
Transaction Method
This is the method by which you perform the bankcard transactions. There are two distinct methods: 'Swiped' and 'Keyed'.
Swiped
This means the bankcard is actually swiped through a Point-of-Sale Terminal magnetic strip reader. This is a low risk transaction as the card is read electronically and the customer is present at the transaction. Hence there is less risk of a dispute / chargeback. Examples of Swiped transaction businesses are Retail Merchants and Restaurants. As there is less risk, a Swiped Discount Rate is far lower than a Keyed Rate.
Keyed
Keyed means the merchant keys in (using the touch keys on the Point-of-Sale terminal or keyboard on a PC) the bankcard number and expiration date. With a Keyed transaction the bankcard does not have to be presented by the customer and thus there is more risk involved than a Swiped transaction. A Keyed Discount Rate is higher than a Swiped Rate. Examples of Keyed Merchants are Mail Order/Telephone Order (MOTO), and also internet transactions (as the card is not presented to the merchant at the time of the transaction).
Monthly Transaction Volume
This is the total dollar amount of transactions processed through your merchant account on a monthly basis. In essence there is a limit on this amount as this is an unsecured credit line given to the merchant. Just like a credit card's "credit limit", the Monthly Transaction Volume is an amount that you will have to get approved for. Based on your credit and other business factors, a merchant is approved for a certain Monthly Transaction Volume.
AVS
When a credit card’s magnetic strip cannot be read electronically there is a possibility that the card is not valid. AVS stands for Address Verification Service. Using this service, the customer’s address information (street number and zip code) are compared to the address information of the cardholder when the transaction is submitted for authorization. You are then informed as to whether or not it matches and can make an informed decision about accepting the card for payment. For your safety, it is important to perform this service when you key enter your transactions. The ROAM software makes this easy by using reverse phone number look up to gather the data for you.
CVV2
CVV2 stands for card verification value. When you accept a card that you cannot enter through a magnetic strip or cannot see (mail or phone order) you need some assurance that the card is real. That is what CVV2 does for you. The CVV2code is a three digit number on the back of the card (four digits on the front for American Express) that enables to card to be validated when it is submitted for authorization. By using this information your can now feel secure about acceptance of a card you can’t read electronically or see.
Chargeback
A chargeback is when the customer disputes a transaction because of a problem with the product the amount paid or simply indicates that they did not make the purchase. When the customer enters a dispute, you are in the clear as long as you have a valid authorization of the transaction. If there is a problem with the amount an adjustment may be warranted. If it is a problem with the product then you need to resolve that problem. The key is to respond quickly to both the back and the customer. You only have to pay the amount back and a fee if you cannot satisfy the requirements.
ACH Reject
When your funds are transferred from your merchant account to either your checking account or your MobilePaycard account, they are sent through there ACH (Automated Clearing House) which is operated by the Federal Reserve bank. If a transaction rejects because the account is closed or there are insufficient funds in the account, then the transaction is rejected.
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