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GENERAL FAQ
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OUR COMPANY
- What
is Paymentech and what is Alliance Payment Services?
Paymentech is a full service
credit card processing company, providing merchants and
business with the expertise
and knowledge to get their businesses started. Alliance Payment Services is the
sector of our company that helps merchants with setting
up Visa / Master card services for their business through
Paymentech.
- Do you provide services to internet retailers
and retailers who operate by mail or phone?
Yes. we do provide services to retailers who operate
through these means. As long as they provide us the details
of their business (i.e. Business Catalog, Business Promotions,
etc) and additional information such as 3 months bank statement
or income tax returns.
- Do you provide Visa and Master
card services only?
We can help you to set up your business with other
credit cards processors such as American Express, Discover,
and Telecheck. However, please note that their rates and
funding procedure are different.
- Can we set up Debit Cards,
ATM transactions, gift cards?
Yes, our technicians and staff
are trained to help you in these types of setups.
GETTING STARTED
- What are the steps to getting started?
Getting started is easy. After
reviewing the type of business you are doing, we will determine
the type of service
and terminal that best suits your business. Once you have
provided us you company info and provide all necessary
docs such as voided check and business license, it would
take around 3 business days to complete the setup.
- What
information will we need to provide?
For the
application form, we will need from your company and
owner’s information such as date of birth, driver’s
license, banking information, business information (federal
ID). You will also need to sign on the Fee Schedule.
- How
long would the approval for the merchant services account
take?
Once you have provided us all necessary
information, it would take around 3 business days to complete
the setup.
- What is the difference between legal name and the
DBA name?
Legal name is the name you registered
for your corporation with Secretary of States, this is the
name of the company
you paid for the business license and should be unique
within the state.
DBA basically could be any name you want to operate your
business with. It could be the same or different from Legal
name and not necessary to be unique from the other business.
- Should
I set up my credit card services utilizing my legal name
or the DBA name? Which provides the advantages?
For
Sole Proprietorship, legal name is always the owner’s
full name, whereas DBA could be anything. For other type
of ownership, legal name should follow the name on your
business license or registry, whereas DBA could be anything.
- How
are the terminals available to the merchants?
Terminals
are available for purchase (new or used) or can be rented
with us.
- What types of terminals are available?
There are hundreds of terminal models. We will have
to review your business and provide a terminal that will
tailor your needs. For Retail / MOTO merchants, we recommend
Hypercom T7P series, which is cheaper and easy to use.
For merchant who needs Telecheck service, we recommend
Eclipse. For internet merchant, we recommend the application
called Authorize.net.
- What if we already have
a terminal?
Once your account is setup with
us, our technician will re-program your existing terminal
at no charge. A
service call charge may apply if terminal repair is needed.
- What are your warranty policies on your terminals?
We do provide a one year warranty
on all new terminals purchased. Extended warranties are available
for our customers
for both new and used terminals.
- What happens if my terminal
is broken after the warranty periods?
We will provide a technician to diagnose the problem.
A service charge will apply to fix your terminal.
- Could
the deposit checking account be changed?
Yes, you will only
need to notify us and send or fax us a voided check.
It will usually take
2 business to change
the account information.
ABOUT TRANSACTIONS
- What is considered Qualified Rate?
It is a basic discount rate
that applies to transactions processed by expected means.
That is, for retail accounts,
the qualified rate will be applied to swiped transactions,
while key-in is considered non-Qualified. And vice versa
for Mail-order-Phone-order account.
- What is considered Mid-Qualified
Rate?
In general, this rate usually applies to merchants
who accept CPS Reward Cards.
- What is considered Non-Qualified Rate?
This rate usually applies to transactions with corporate
cards, international credit cards, airline cards, signature
cards.
- Are there any other transaction fees that may apply?
Yes, there is a transaction fee that applies to every
transaction and this varies with the type of program.
ABOUT BANK STATEMENTS
- How do we calculate the discount rate on a bank
statement?
It is total Visa/MC fee charge divided by Total Sales.
- How are authorize / transaction fees determined?
This is information that you will find on each bank
statement. The fee can also be determined by dividing total
authorize /transaction by the number of transactions.
- How
can we tell which items is Mid-Qualified rate on the
statement?
We can find it on the description; they
might list as key-in/card present, reward card.
- What is
discount due and discount paid mean on the bank statement?
Discount
due is just the discount rate. Discount paid is the daily
deductions taken by the Bank.
- What is CPS Reward fee on
bank statement?
It is Mid-Qualified rate.
- What is Debit network fee?
When merchant accepts ATM card,
a debit network fee is charged for each transaction, the
fee varies with the
network it uses. Debit network includes Masetro, Star,
Interlink etc. Besides the network fee, transaction fee
will also applied.
- How long would a merchant get paid from
the bank?
All funding should be deposited within 48 hours.
- How do
the merchant pay the service fee/discount rates?
All fees
will be debited from the checking account directly. Merchant
may refer to fees detail in the month-end
statement.
- Is there any cancellation fee?
No, there is no contract
with Alliance Payment Services. Merchant can terminate anytime without any cancellation
fee.
- What is the chargeback fee?
When the cardholder disputes
the payment on the credit card, a $15 chargeback fee will
be applied regardless of
the outcome.
MERCHANT FAQ
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AUTHORIZATIONS AND DEPOSITS
- What is an Authorization?
As the name implies, an authorization is a transaction you use
to:
1. Help verify that the card is not counterfeit
2. Verify that the cardholder has sufficient credit for
the purchase
3. Place a "hold" on the cardholder’s credit
line for the amount of the transaction
- Can you explain my “Pass Through Fees”?
Pass Thru Fees are charges that all Acquirer/Processors pay
directly to Visa/MC for the use of their networks. Those
fees are based
on variables associated with your specific processing
method. For example, the lowest Pass-Thru fees are typically
given in
a Face-to-Face swiped transaction where the card and
cardholder are both present.
- What is a deposit? Do I need
to process a deposit for every sale?
A deposit is the transaction that withdraws funds from
the cardholder’s
credit line and deposits them into your sponsoring bank account
(or other account you’ve designated). Every sale must include
an authorization and a deposit, in that order. Usually, in a
retail setting, the authorization and deposit are handled as
a single "sale" transaction. In mail order or other "non-magnetic" transactions,
the deposit might come hours or even days after the authorization,
and is timed to the delivery of the goods.
- How long do I need to wait for the proceeds of a deposit
to be made available in my bank account?
Most Credit Card Processors will normally deposit your funds
in 2-3 days.
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- Do I need to run the authorization separate from the deposit
transaction?
No. When the goods or services are being delivered immediately,
you will use the SALE transaction (or Authorization and Deposit
transaction). So, in addition to authorizing the charge,
it deposits the funds for the sale into your checking account.
- I’ve already obtained an authorization.
Do I still need to process a deposit?
Yes. The funds will not be available to you unless you process
the deposit.
- What Is an Authorization Number?
An authorization number, whether obtained electronically
through your POS system, your PC processing system, the Internet,
or
from a representative at the Visa/MasterCard authorization
center, indicates that the transaction has credit available
on the card
and that the transaction is not disputed by the cardholder.
- Why do I sometimes get a "call
voice center" response
when I try to get a credit card authorized?
There are two primary reasons you might get this response.
First, the automated, communications system processor uses
to receive
authorizations may be inoperable for some reason. This happens
very infrequently, but in those cases you are advised to
call the voice center.
The second reason this might occur is the card-issuing bank
may want to talk to you before they approve the transaction.
This
can be due to a reported stolen card or just a lot of transactions
in a short time (holiday shopping).
SALES DRAFT
- What is a Sales Draft?
A Sales Draft is a receipt of acknowledgement that the credit
card customer signs upon completion of the transaction. A Sales
Dradt is automaticall generated and signed by the customer
during most face-to-face credit card transactions.
- When do I Still Need A Sales Draft?
For every face-to-face credit card sale, a sales draft must be
completed. This draft is a legal and binding contract between
you and your customer.
If you have a POS system with a printer attached, it will automatically
generate a sales draft for credit cards that are deposited electronically.
When the draft has finished printing, present it to the cardholder
for signature. Give the cardholder the bottom copy of the draft
and retain the top copy (with the original signature) for your
files.
- Do I Need to Have an Imprint of the Card for it to be Accepted
for Payment?
Yes. The imprint of the card is your proof that the actual card
was present at the time of the transaction. This proof is critical
in the case of a disputed transaction and could make the difference
between your being liable for a transaction or not.
- What Information Needs to be on the
Sales Draft?
Whether printed by your POS system printer or produced manually
on an imprinter, the sales draft must contain:
The credit card number (recorded from the card’s
magnetic stripe or imprinted)
Authorization and Reference Numbers
Signature of customer
The card’s expiration date
Date of sale
Amount of sale, including tax
Description of goods/services
- What Do I Do with My Copies
of the Sales Draft?
You are required to keep your drafts for three years
(even if you sell your business). In the event of a question
or chargeback,
you may be required to produce the signed sales draft.
Check with your accountant for guidance before destroying
sales drafts.
CREDITS
- What Is A Credit?
A credit is a refund issued by you to a legitimate customer
due to a return, cancellation of a sale or entry error.
This transaction
reduces your day’s processing total.
- When Should I Issue A Credit?
A credit is required when a customer returns merchandise or cancels
a sale and requests a refund on the amount of the return. You
should process the credit through your POS system if the original
transaction was electronically deposited.
- Am I Required To Issue A Credit?
No. But even if it is your store policy not to issue credits,
your customer has the right to seek reimbursement through chargeback
procedures.
If your store incurs excessive chargebacks, you may be
required to pay additional fees and, in extreme cases,
have your right
to accept VISA or MasterCard revoked. Therefore, a refund
to one dissatisfied customer may be better than a potential
chargeback — but
you must make that decision.
CHARGEBACKS
- What Is A Chargeback?
A CHARGEBACK is a multistage dispute procedure that begins
when a cardholder questions a charge on his credit card
account. This
part of the process is referred to as the "DISPUTE".
The issuing bank will then decide according to industry guidelines
whether the merchant or the cardholder is financially liable
for the charge. In making their decision, the issuing bank might
request documentation from the merchant that originated the charge.
This is called a "RETRIEVAL REQUEST". If upon
receipt and review of the requested documentation, the
issuing bank
decides that the merchant is financially liable for the
charge, they
will: 1) credit the cardholder's account for the disputed
amount, and 2) return the charge to the merchant's bank.
In turn, the
merchant's bank will CHARGEBACK the merchant to collect
those disputed funds.
If the merchant has sufficient documentation to refute
the reason for the CHARGEBACK, the merchant can make a
REPRESENTMENT
of
the charge to the to the card issuing bank. If the card
issuing bank determines the merchant has provided sufficient
documentation,
the charge will stand. If they still believe that the merchant
is financially liable for the charge, they can issue a "SECOND
CHARGEBACK".
- Am I Liable for Chargebacks?
Yes, if the customer has a valid dispute with the charge
in question and you do not satisfactorily remedy the situation.
If, however,
the customer doesn’t have a valid dispute and you
complied with processing regulations, you may not be liable.
- What are some of the Different Types
of Chargebacks?
A sale can be charged back for more that 35 valid reasons, the
four most common are:
no signature on a draft
failure to fulfill a request for a sales draft
no imprint on a draft
unauthorized purchase
For more information and FAQs on chargebacks, click here.
- What Is the Chargeback Procedure?
Most often, the first stage of a chargeback proceedure
comes in the form of a ‘retrieval request.’ A
retrieval request is a request from a card-issuing bank
to see an original,
photocopy or fax of a sales draft to prove the validity
of the sale. If one of your customers disputes a VISA or
MasterCard
sale, you will receive a letter of notification and be
requested to send a copy of the signed copy of the draft
or other information
to your processor.
In most cases, if your records are complete and you have
complied with credit card regulations, you can successfully
contest
chargebacks. It is also possible that the initiation of
a chargeback will
cause the cardholder’s bank to withdraw funds from
your bank account. Note that you would be notified by letter
after
your account has been debited. This is why we always encourage
merchants to maintain a balance in their accounts.
- What Is My Responsibility?
You are required to locate the signed copy of the draft or other
requested information and send a copy of it to your processor
within the time allowed. Failure to do so will result in a chargeback
due to non-receipt of requested item. Your Credit Card Processors
may request copies up to three years following the date of sale.
- What is FDR?
First Data Resources (FDR) is the world's largest processor of
credit card transactions. They provide numerous types of services
to merchant banks as well as card issuing banks. In relation
to your merchant account, FDR acts as a clearing house that sorts
all of your credit card transactions and then routes them to
the appropriate banks for posting to the cardholder credit card
accounts.
- What is the Discount Rate?
The Discount Rate is a fee assessed on each sale and credit that
is processed through your merchant account. The Discount Rate
is expressed as a percent and it may vary from one of three tiered
rates. Depending upon characteristics of the transaction in relation
to your business type, each sales transaction will be assessed
either the Qualified, Mid-Qualified or Non-Qualified Discount
Rate. Each rate increases from the Qualified Rate as a transaction
downgrades. The Non-Qualified rate is the highest Discount Rate
that a sales transaction will be assessed. All credit transactions
will always be assessed the Qualified rate. Please remember,
the Discount Rates referred to here apply to Visa and Mastercard
sales and credits only. American Express, Discover, Diners and
JCB fees and rates are established by each individual brand in
accordance with your merchant agreement with each provided that
you accept those card types. Your merchant account for Visa and
Mastercard transactions does not have any control or involvement
in their fees or the disbursement of funds into your checking
account when you accept one of those card types from a customer.
- What is "Real Time Authorization"?
"
Real Time Authorization" occurs when the merchant is able
to obtain authorization as the customer is making the purchase.
In face to face transactions using a swipe terminal, all sales
are completed with "Real Time Authorizations." In
non-face-to-face transactions or face to face transactions
without a swipe terminal,
merchants can only do Real Time Authorizations by using
a service that provides a direct connection to their occur
in both delayed
time and real time.
- What is a "batch"?
A "batch" is a collection of transactions accumulated
over a period of time (generally not more than one day)
and processed as a group. You can batch orders for authorization
or for capture.
Your processing requests may in turn be batched for settlement
by banks.
- What's the difference between a credit
card and a debit card?
A credit card is a card that lets a consumer
access funds in a credit line set aside for that user. When
the purchase is made,
and settlement occurs, funds are drawn from the credit line and
deposited to the merchant's account.
On the other hand, a debit card is a payment card whose funds
are withdrawn directly from the cardholder's checking account.
With an on-line debit card, the customer must enter a PIN to
authorize payment at the time of sale (and the funds are settled
through a debit network). In the case of off-line debit cards
(generally with Visa or MasterCard logos) the customer signs
a receipt, as would be the case in a credit card transaction.
In this case, the funds are transferred after batch settlement.
- What
is a discount rate?
The discount rate is the percentage
of sales amounts that the bankcard acquirer or travel and entertainment
(T&E) card
issuer (i.e., American Express, etc) charges the merchant for
the settlement of the transactions. Much of the discount rate
is dictated by the "interchange" costs imposed by the
card associations.
- What is Address Verification Service (AVS)?
Address
Verification Service (AVS) is a fraud prevention service that
validates a cardholder's address (provided during a transaction)
against the card issuer's records. This service is provided as
part of a credit card authorization for mail order/telephone
order/Internet transactions. A code is returned with the authorization
result that indicates the level of accuracy of the address match
and helps secure the most favorable interchange rates. Note that
if AVS returns a "no match" result, it is up to the
merchant to decline the transaction.
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