Specifically, Average ticket size is most relevant, particularly when processing a new merchant account. However, an estimate of average ticket size is also accepted, especially if you don’t own a credit card.
Batch
A batch can be described as the aggregation of a particular day’s transactions conducted by a card. Batching involves transmitting funds from the issuing bank to the acquiring bank and ultimately to the establishment. Once the batching process is initiated, no other adjustments can be made to a transaction. Also, a small batch fee is usually charged by credit card processors.
Chargeback
A chargeback occurs when there is a transaction that has been disputed by a cardholder. The card issuer initiates any retrieval request and ensures that the matter is amicably settled. The merchant is also accorded a maximum of ten days to respond to the client and ascertain the legitimacy of the transaction. A chargeback fee is imposed on the merchant to facilitate the handling of the dispute.
Credit Card Processing
Credit card processing refers to the multifaceted electronic procedures involved in the processing and verification credit card dealings. The processes involved include initiating the transfer of money from the issuing bank to the business bank account under the authorization of a credit card processor.
High-risk Merchant Account
When establishments such as a firearms or tobacco business are strictly regulated, there is an increased risk of loss given the numerous oversight requirements that the credit card processor must sternly follow. Thus, a high-risk merchant account operates in a high-risk industry described above.
Merchant Account
A merchant account refers to a business agreement between you (the dealer) and a credit card processor. Such arrangements permit the merchant to accept credit and debit cards from the clients.
Merchant Services Provider
A merchant service provider is responsible for the provision all related services required to process payment cards dealings. They are the intermediary between you (the merchant), the issuing bank and credit card networks and deposits the funds into the merchant’s business bank account.
Merchant Processing Agreement (MPA)
MPA refers to an agreement between the merchant and the business account providers who outline the specific duties and warranties associated with credit card processing.
Monthly Minimum
This term relates to the specified amount that a merchant is required by a credit card processor to pay if the specified number of transactions does not meet the stipulated requirement as
outlined under the MPA.
Terminated Merchant File
This refers to an executive merchant database listing merchants whose rights to process credit cards and conduct electronic transactions have been terminated. The termination of such privileges is mostly done by an acquirer if there has been a violation of MPA guidelines.
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