• What exactly is a merchant account?
• What's a Reserve Account?
• What's a Holdback?
• I've filed bankruptcy before, can I still open a merchant account?
• Do I have to perform a post-auth/deposit after a pre-auth/authorization?
• Am I, the merchant liable for chargebacks?
• What are some different types of chargebacks?
• What is the chargeback procedure?
• What is the merchants responsibility in case there's a chargeback?
• What are the chargeback procedures for T&E cards (Disc, Amex, etc)?
• Are my per-transaction merchant account charges taken on each transaction or at the end of the month?
• Are monthly minimums required?

Software Questions

• I'm using the PCCharge payment processing software application and I want to use the internet or modem.  Does PCCharge support this?

Wireless/Mobile Questions

• I am interested in your touch pay merchant account. I already have a machine to take impressions of credit cards. Would I be able to get a new plate from you for this machine?
• I would like to accept wireless or mobile credit cards but I only have an internet merchant for my website or mail order businesses.  Can I accept mobile payments in real-time without requiring a laptop and wireless internet connection service.

Answer:  A merchant account is a central bank account that consolidates your payments from credit cards, electronic checks, and other payment processing services.  Opening a merchant account through TMS lets you accept most types of payments from your customers.  And offers the broadest means of handling these payments.  (Back to top)

Answer:  Reserve accounts are typically NOT required for retail merchants. However, sometimes a merchant, because of additional risk associated with their type of business may be required to maintain a Reserve Account. 

The Reserve account is an interest account that is held at the bank in the merchants name; however, the funds in this account are not available to the merchant until released by the bank and or/credit card authorization clearinghouse. 

Reserve Accounts are typically funded by depositing some percentage (typically 5%) of the merchant's ongoing processing volume directly into the Reserve Account. These funds are held in "reserve" to be accessed by the credit card authorization clearinghouse in the event that this merchant's activity creates chargeback losses which the merchant does not otherwise cover.  (Back to top)

Answer:  A holdback is a portion of the revenue from a merchant's credit card transactions, held in reserve by the merchant account provider to cover possible disputed charges, chargeback fees, and other expenses. After a predetermined time, holdbacks are turned over to the merchant.   (Back to top)

Answer:  Although a high percentage of merchants are approved, your chances are greater if you've had your bankruptcy discharged. The goal of a bankruptcy proceeding is to obtain a discharge of debts. When a debt is discharged, it is no longer enforceable against the debtor personally.  If you think this topic pertains to you and you'd like more information on having a bankruptcy discharged read the contents on: http://www.moranlaw.net/discharge.htm    (Back to top)

Answer:  You will need to perform a deposit (post-authorization) as the second half of an authorization (pre-authorization). The two of these transactions make up a complete (Sale). These two part transactions are most commonly used in a Hotel or Restaurant environment where you want to authorize and reserve an amount but not actually take the money from the customer's credit card yet (pre-authorization). Then when you're ready to actually withdraw the funds from the customer and have the funds go to your bank account you perform a deposit (post-authorization). Again, in a normal retail environment you would simply perform a sale and there is no need for a two-part transaction.  (Back to top)

Answer:  The merchant is liable for chargebacks 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.    (Back to top)

Answer:  A sale can be charged back for more that 35 valid reasons, but four of the most common are: 

1. no signature on a draft 
2. failure to fulfill a request for a sales draft 
3. no imprint on a draft 
4. unauthorized purchase        (Back to top)

Answer:  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  sale, you will receive a letter of notification and be requested to send 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 account.   (Back to top)

Answer:  As a merchant facing a chargeback you are required to locate the signed copy of the draft or other requested information and send it to your processor within the time allowed. Failure to do so will result in a chargeback due to non-receipt of requested item.

Copies may be requested up to three years following the date of sale.   (Back to top)

Answer:   If you have any questions on chargeback procedures for Discover, American Express or Diner's Club/Carte Blanche, contact the local representative of that issuer.    (Back to top)

Answer:  This varies, depending on the type of account that the merchant is opening.  In most cases the fees will be taken out daily, however some merchants may chose to have fees taken out weekly or monthly.   (Back to top)

Answer:  Monthly minimums are not required for all of our accounts.  There are monthly minimums that are associate to some touch-tone and free terminal programs, but in any event the monthly minimums are very minimal if there is a charge.  As it stands about 80% of our options do not require monthly minimums   (Back to top)

Software Answers:

Answer:  PCCharge for Windows supports either TCP/IP or dial-up modem payment methods.  This depends on which credit card processor you're using with your merchant account.  If your processor supports either method of authorization and is a PCCharge certified processor then PCCharge does support either method.  (Back to top)

Wireless/Mobile Answers:

Answer:  If you ever need a new imprinter we offer them for $25.95.  If you only need a nameplate for your existing imprinter you may order them direct from the merchant customer service department (this offer available only to existing merchants).  (Back to top)

Answer:  Yes, this is possible, if you're a merchant that is already or is considering using an online/payment gateway merchant account (with us or another provider) and would like to simply accept credit payments using that existing account from your touch tone phone; for mobile transactions, click here for our SOVAI payment service. This service allows you to use an online gateway account to securely accept mobile payments from your touch-tone phone without needing a new merchant account.  (Back to top)