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Frequently Asked Questions

Merchant Account Frequently Asked Questions

Here are some handy answers to frequently asked questions about credit card processing and merchant accounts and payment processing. If you find the answer you seek, please contact us now.

Can I share someone else's merchant account to process my transactions?

This is a really common frequently asked questions. The answer is NO, this is against the rules and regulations every business signs for the privilege of accepting credit cards. The MasterCard and Visa associations call this unethical practice ‘credit card laundering’ or ‘factoring’. Any business that ‘shares’ their merchant account with another business owner to process your credit card transactions will be charged heavy fines and could loose the right to ever processing another electronic payment again.

What is a merchant account?

We’re glad you asked! A merchant account is an account at a financial institution or bank that allows you to accept credit card and debit card payments from customers. You may find that you can open a merchant account directly from your local bank or any of a number of Merchant Account Providers located on the Internet. For the absolutely best prices on transactions and credit card processing equipment, you just cannot beat the 5-Star service here at FDIS.

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Why are rates higher on transactions for Internet, Mail and Telephone Order sales?

There is far less risk of fraud associated with face-to-face transactions where the credit card is swiped by the merchant. Since there is such a minimal possibility of fraud involved, the processing banks can offer a great savings for these transactions. It is pretty rare that a person using a stolen credit card number will actually possess the physical card. To the processing bank there is far less chance of financial fraud and only the occasional possibility of chargebacks.

How long does it take to get setup for a credit card processing account?

The turnaround time can vary from company to company, however it can take as little as 24 hours to two weeks. Very high volume and International merchant accounts seem to take the longest. Companies that allow you to fax applications can usually have you up and running in a few days. One other factor may be the number of applications the bank is reviewing for approval.

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How long does it take for the funds to be deposited into my business checking account?

It usually takes 2 to 3 business days for the full batch to clear and be directly deposited into your bank account.

What are the available types of credit card processing solutions?

FDIS offers a wide range of solutions for all types of businesses.

• Counter top terminals and debit card pinpads for retail merchants.
• Real-time processing for Internet sites and shopping carts.
• PC software for mail order or phone order and Internet businesses.
• Touch-tone processing for low volume, seasonal and mobile merchants.
• Virtual terminals for Internet, mail and telephone order businesses.

Each of these electronic payments processing solutions do have their own pros and cons, ask your sales representative which is best for your business.

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Are Internet merchant accounts compatible with all shopping carts?

No. Shopping cart companies make their software compatible with certain secure payment gateways compatible with the processing bank. You’ll receive the most effective service for your clients to process their credit cards online with FDIS’s shopping cart solution through Authorize.net. This just happens to be the most universally accepted software and is preferred by most software companies.

What are chargebacks?

A chargeback is the unique term assigned to the situation of a transaction that is reversed other than through a refund. In other words, for whatever reason a chargeback occurs, the money originally paid into your account for the original sales transaction it is deducted. Chargebacks can occur for a wide variety of reasons, such as double-charging, credit card expiration, bank error and customer disputes. Whenever a chargeback occurs, there are times that the reversal can be repaired. Each of this events is unique. Working with FDIS customer service, we can assist you in resolving the situation fairly for all parties concerned.

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What kind of transaction reporting is available from FDIS?

Most merchant account companies will send you a paper statement at the end of each month. Some companies that are state of the art, like FDIS, offer detailed online reporting. For business owners on the go, this allows them to access batches and reports at their convenience for better overall sales information as you need it.

I have a credit card terminal from a merchant account company, is it compatible at FDIS?

Most likely it will be a simple thing to reprogram your existing equipment. Some terminals are so out of date that they are impossible to reprogram to the latest technology. Unlike other credit card processing companies, FDIS is not going to force you to pay a bunch of money to get started saving a bundle on transaction fees. We will replace that outdated terminal with a shiny new state of the art terminal FREE of CHARGE.

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What is a monthly minimum fee?

All credit processing companies have a set monthly minimum one every account they service. The processing fees on a merchant account are collected by the transaction and discount rate fees from your monthly credit card sales. At FDIS you have a $25 as a monthly minimum, if the combined transaction fees collected are equal to or exceed $25 that month, then no monthly minimum will be charged. However, if the fees for that month do not meet the $25 monthly minimum, you will then be charged the difference.

What is a discount rate?

Discount rates are simply a percentage of the total for each transaction that is charged for electronic payments processed. For example, with a discount rate is 1.99% and you have an order for $100; the discount rate being deducted would be $1.99.

Why do I pay a transaction fee?

Transaction fees cover the cost of maintaining the equipment and trunk lines that connect banks and processing companies all over the country. This keeps all equipment that makes instant payment processing possible in top operating order. By collecting the cost of this network with a few cents per transaction of every business, the US electronic payments is always state of the art constructed with the latest in technology. The transaction fee is flat rate no matter how much money is processed in an electronic payment. If your transaction fee is set at $0.20 it will not go up and down with the total of the payments you process like the discount rate does.

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Services by Cardservice International.

The FIRST DATA name, trademark and logo are owned by First Data Corporation. All other trademarks, service marks and trade names referenced in this material are the property of their respective owners. The First Data Independent Sales Agent Program is operated by Cardservice International, Inc. Cardservice International, doing business as First Data Independent Sales (FDIS), is a registered ISO/MSP of Wells Fargo Bank, N.A., Walnut Creek, CA. American Express requires separate approval. FDIS Calabasas is an independent agent for Cardservice International.
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