| Featured Provider (No Cancellation Fee) | |||
|---|---|---|---|
 Merchant Warehouse |
Rated 4.5-Stars |
See Review | Visit Website |
What is a Payment Gateway?
Simply put, a payment gateway is the connection between an online payment device (i.e. website, phone etc...) and the bank that processes any given credit card transaction. Whether being used for an eCommerce store, or a mobile payment application, the payment gateway is a piece of software that works behind the scenes to securely transfer sensitive credit card information from an online payment form to the payment processor.
To get a visual idea of how it works, take a look at the picture below:
Payment Gateway Vs Merchant Account
Sometimes people get the payment gateway confused with the merchant account, but they are two different things. If you look again at the picture above, you can see that the payment gateway is part of a larger process. The phrase "merchant account" is the umbrella term that defines that larger process. In other words, having a merchant account gives you the privilege of being a part of that process by allowing you to accept credit cards. The payment gateway is just the software application that plugs your website or mobile phone into that process.
When necessary, your merchant account provider will bundle a payment gateway with your merchant account so you can accept online payments. Most of the time that gateway will be Authorize.Net because it's so popular. However, some providers have in-house gateways like the Quantum Gateway by CDGcommerce which competes with Authorize.Net.
Payment Gateway Features
Here are some of the major features you can expect to get from a payment gateway:
Security
All payment gateways encrypt sensitive credit card information before they pass it along to the processing bank.
Recurring Billing
Allows you to process membership type recurring payments.
Virtual Terminal
A web version of the physical credit card terminal, the virtual terminal allows you to input a customer's credit card info and process a transaction directly through your computer's web browser via an online web form.
Easy PCI Compliance
There are a few gateway's on the market today that simplify the PCI compliance process for eCommerce merchants. The way it works is that they have a feature that allows you to conduct the entire transaction on the gateway providers own servers, not yours, even though the customer never leaves your website. That way, your own network isn't even involved in the transaction, thus absolving you from the need to maintain a secure network. CDGcommerce is one of the providers that's offering this type of service. Take a look at their instant PCI page to see what I mean. They do a better job of explaining it than I do.
Payment Gateway Integration
Payment gateway integration refers to the process by which one would connect the gateway software to some sort of payment device. That device is usually an eCommerce shopping cart. The integration process can be easy or difficult depending on how you're integrating. If you're using a shopping cart like Shopify or MagentoGo, there are pre-built payment gateway modules that make integration a breeze. It's when the shopping cart doesn't have a pre-built module that integration becomes tough. In that case, you'll have to do a custom integration which requires the talents of a knowledgeable web developer.
Conclusion
So there you have it! If you're an eCommerce merchant, you better believe that you're going to be using a payment gateway to process online payments. So make sure that the gateway offers the features you're looking for, and that it integrates easily with the shopping cart software that you're using.
Eliminate Interchange Fees with Dwolla; The Merchant Account Alternative
How good would it feel to not have to pay any interchange fees? You know, that 2-7% that you pay your credit card processor every time you run a transaction. Well, Iowa based Dwolla can help with that.
Founded in 2009 by Ben Milne and growing at an enormous rate, Dwolla is looking to become THE alternative to a traditional merchant account.
I stumbled upon Dwolla last year, but wrote them off as another payments start-up which would eventually fizzle out. It appears that I was wrong, which is good news for all of us.
What is Dwolla and How Does it Work?
Dwolla is a cash-based payment network that works directly with your financial institution. It allows everyday people and/or business owners to transfer money into and out of each other's bank accounts either online or through a mobile device. No credit or debit card required. Instead of VISA or MasterCard, think Dwolla.
Here's a great video that explains things further...
And for all you business owners, check this one out...
There's a ton of other helpful info in their Support Center and on their Youtube channel, so get acquainted. These guys are gonna be around for a while.
How Much Does Dwolla Cost?
$0 for any transaction under $10, and $0.25 for any transaction over $10. That's it.
Example:
For a $9 transaction the Dwolla cost is $0.
For a $100 transaction the Dwolla cost is $0.25.
For a $1000 transaction the Dwolla cost is $0.25.
Got it?
Who's Using Dwolla?
This is the million dollar question. Why? Because both parties (customer and merchant) have to be registered with Dwolla in order for them to exchange money. Similar to Paypal, the process doesn't work if one of you isn't part of the Dwolla network.
As of Dec, 29th 2011, Dwolla had 70,000 users. They still have a long way to go before they become the go-to payment network, but they're growing at a rate that makes them a viable option for your business.
Btw, here's a list of all the businesses that currently accept Dwolla as a payment option. When will you be on that list? 
Is Dwolla Safe?
Since there's no physical card involved with a Dwolla transaction, there isn't any card info to be stolen. That solves one part of the safety issue. Secondly, Dwolla never transfers, releases, captures or transcribes your financial information during a transaction. Visit the Security & Privacy page to learn more.
Note: There's always some security risk when you're dealing with payments. Money is an easy target. But the simple fact that a Dwolla transaction does not involve a credit/debit card at all, reduces that risk tremendously.
Conclusion
I'm always on the lookout for alternative payment methods that can either save you money or help you process more efficiently. At the very least, you should add Dwolla as an additional payment option...similar to Paypal. There might not be that many people using Dwolla now, but the user base is growing daily, and the savings you can see from even a few transactions will be well worth it. Especially if you sell big ticket items.
Let me know if you'd like me to put you in touch with someone at Dwolla.
Wells Fargo Merchant Services Review
Merchant Maverick's Rating: (3.5 out of 5)
Last Updated: January 27th, 2012.
Logo:
Overview:
In addition to its regular banking wing, Wells Fargo (WF) has a credit card processing division as well. If you're reading this review, then you probably already knew that. What you might not have known is that when you sign up for a merchant account through Wells Fargo, you're also signing up for an account with First Data. First Data acts as the payment processor for Wells Fargo, and Wells Fargo acts as the acquiring bank. It all sounds pretty confusing, but if you read this article, you'll understand it a bit better.
Putting that aside, the most important thing for you to remember is that Wells Fargo and First Data go hand in hand. So chances are, you'll at some point have to deal with both companies during your lifespan as a merchant.
Moving on...
I suggest you read the Common Complaints section below. That's where you'll find the most important info about Wells Fargo. Like the fact that they charge a $500 early termination fee, or that they have a tendency to push terminal leases and enhanced billback pricing. All of which add up to a not-so-great experience for you. If you plan on getting an account through WF, then I highly recommend you consult me first. At least I can walk you through the process and hopefully get you out of that $500 early termination fee.
One positive aspect to the Wells Fargo merchant account is that if you bank with them, then you can get your money deposited into your account the next day. Rather than the usual 48hrs+ that it takes for most other providers.
Wells Fargo Merchant Services gets a 3.5 out of 5.
Click Here If You Need Help Choosing a Provider
Date Established:
1999.
Location:
Several branches throughout the U.S.. Headquartered in San Francisco, California.
Domain Name(s):
- https://www.wellsfargo.com/biz/merchant/
Parent/Partner Company:
Wells Fargo is the Parent company.
Type:
Acquirer.
Acquiring Bank(s) (Acquirer):
Wells Fargo Bank.
Payment Processor(s):
First Data.
Payment Gateway(s):
Authorize.Net or First Data Global Gateway (formerly known as LinkPoint).
Do you need help setting up your payment gateway with your website? Click here.
Trust Symbols:
Since the credit card processing and regular banking divisions of Wells Fargo are under the same roof, the BBB profile doesn't really help us much. Here it is nonetheless. Just keep in mind that the complaints you see on that profile will be a mix of both regular banking customers, and those that have used Wells Fargo's merchant services.
Negative Reviews/Complaints:
You're going to have a tough time separating the complaints for Wells Fargo's regular business from their merchant services division, but you can do what I did. Search for "Wells Fargo Merchant Services complaints" or "Wells Fargo Merchant Services reviews." At least that way you can filter them a bit.
With that said, you can find some complaints here and here.
Common Complaints:
Here are some common problems that you may want to look out for...
- Expensive terminal lease contracts through First Data Global Leasing: Some merchants have complained about not being aware that they were signing into a 4-year terminal lease. The whole "not being aware" part can be chalked up to the merchant not fully understanding how leasing works. I personally think terminal leasing is unnecessary to begin with. If you're a small merchant, and you only need a few terminals, then why not just buy them? They don't cost much these days. Leases make sense for bigger organizations that need many terminals, and don't have the upfront capital to invest in buying them.
- Witholding of funds/termination of accounts: This can happen for a number of reasons. Chargebacks and/or suspicious charges can easily raise a red flag that will either get you suspended or shut down. Both First Data and Wells Fargo have been known to be a bit trigger happy when it comes to holding funds or terminating accounts. You're going to want to learn how to avoid holds and minimize chargebacks, if you plan on signing up with WF.
- Enhanced Billback: Wells Fargo and First Data are also known for using a billing technique called enhanced billback, which isn't the most transparent billing method. I plan on writing about it in the future, but in the meantime, you can learn about it here.
- High Cancellation Fee: If you want to cancel before your contract is up (3-years), then Wells Fargo will charge you a $500 cancellation fee. That's pretty steep considering there are plenty of other providers that don't charge a fee at all.
- Poor Customer Service: I really wouldn't expect much from such a large bureaucratic organization like Wells Fargo. You're usually a number, and not a name. Maybe they can prove me wrong.
- Increasing of Fees After Sign-Up: Although Wells Fargo has a right to increase fees, it's still a hard thing to swallow for any merchant. And judging by the number of complaints I've read about this matter, it seems WF likes to raise its rates frequently.
Verifiable Testimonials/References:
There aren't any testimonials on the Wells Fargo website that I could find, but when you're dealing with a company like WF, the name speaks for itself. Try to ask your sales rep for references. Specifically for businesses that operate in your same industry.
Security/Privacy:
The Wells Fargo online application is secured by Verisign.
Customer Service:
Existing customers get 24/7 service and support. The quality of that support on the other hand is questionable (see Common Complaints). Have you worked with Wells Fargo? Feel free to leave us your review. Don't forget to read the the user review and comment policy.
Contract Duration:
3-years.
Cancellation Fee:
$500.
Interchange-Plus Pricing:
Interchange-plus is offered by Wells Fargo, but good luck getting it on the first try. Most providers don't offer interchange-plus, unless they're asked for it. Even then, they may tell you that they won't be able to give it to you, or that it's "reserved for accounts that do a million or more a month, blah, blah, blah." If that happens to you, then just get an interchange-plus quote from another provider, and Wells Fargo will most likely match it...or they'll lose your business.
Seasonal Downtime:
Seasonal downtime is also offered by Wells Fargo.
Product/Service Offering:
Retail (Credit/Debit), Online/e-Commerce Payments, Mail Order/Telephone Order (MOTO), Wireless, Fraud and Risk Management, Recurring Payments, eCheck Processing, Gift & Loyalty, Point-Of-Sale (POS), Check Processing.
Product/Service Specialty:
None.
Don't forget to leave your review and rating in the comment section.
What is a Virtual Terminal?
A virtual terminal is basically the web version of a physical credit card terminal or Point-of-Sale (POS) machine. It is a software application that is hosted online, usually on the service provider's servers, and can be accessed from any internet connected web-browser.
A virtual terminal will allow you to input your customer's credit card information directly into a web-based payment form, which you can then use to process an electronic transaction.
To get a visual idea of what a virtual terminal looks like, see the picture below:
(Click to Enlarge)
As you can see, the virtual terminal web-form looks pretty much like any payment form that you'd find on an eCommerce website.
You just fill out the required information, and hit the "Submit" button.
Historically, Mail Order or Telephone Order (MOTO) merchants were ideal candidates for a virtual terminal, since they don't have access to a physical credit card, but that has changed in recent months.
A few merchant account providers (like CDGcommerce) have begun offering a USB credit card reader that connects to your virtual terminal, so you can process card-present transactions right through your computer.
Here's an example of what one of those card reader's looks like:
So what you do is hook up this reader to your PC, which interacts with your virtual terminal. Then, when you want to process a payment where you have the actual physical credit card, you can just swipe it through the reader. Pretty cool!
The obvious advantage of using something like this is that you won't have to buy/rent/lease a traditional credit card terminal if you're only processing retail credit transactions without a signature. The downside of course, is that you can't collect signature's or accept debit transactions. At least, not yet.
As I mentioned above, I like the CDGcommerce USB reader option, but there are more and more providers that are starting to offer this service, so ask around.
Sam’s Club Merchant Services Review
Merchant Maverick's Rating: (3.5 out of 5)
Last Updated: October 30th, 2011.
Logo:
Overview:
Similar to Costco's credit card processing, Sam's Club also offers merchant account services to its members. And much like Costco, Sam's Club resells the services of another credit card processor, which in this case is First Data.
I'm not going to write a traditional review for Sam's Club's credit card processing, because I've already written one for First Data. And since a merchant account with Sam's Club means that you'll be signing up with First Data, then everything that applies to the First Data review, pretty much applies to Sam's Club.
Now that we've established that Sam's Club is just a reseller of First Data's services, what would be the benefit of going through Sam's Club? Well, on the surface it seems that Sam's Club members get "discounted rates" on their merchant accounts. But the truth is, that a merchant account through Sam's Club isn't as cost-effective as you might think.
There have been quite a few articles that have been written (here, here and here) which show that buying credit card processing services through membership warehouses like Costco and Sam's Club aren't exactly the "discounted" solutions that they claim to be. If you read those articles, you'll learn that although Sam's Club does a wonderful job of offering low prices on everyday goods, they aren't doing the same when it comes to merchant accounts.
With that said, I think you'll have a much better shot at saving money if you use a reputable comparison shopping engine like FeeFighters or CardFellow instead of Sam's Club.
In conclusion, I gave Sam's Club a lower score than First Data because I don't think that Sam's Club should be in the business of reselling credit card processing services. By doing so, they're just adding a layer between the merchant (You) and the processor (First Data), and that layer isn't really offering anything special, except for a little confusion.
Although offering merchant services is a great way for Sam's Club to make some extra money, there's isn't much of a benefit in it for you. If you already know what rate structure to ask for (interchange-plus), and what rates are fair, then you might as well go directly to First Data, OR go with another provider who's main business is credit card processing. Anybody that understands merchant account pricing, and is willing to negotiate will have a better chance of getting a superior deal than what Sam's Club is offering through First Data.
Stick with the wholesale goods Sam's Club. That's what we love you for.
Costco Merchant Services Review
Merchant Maverick's Rating: (3.5 out of 5)
Last Updated: October 29th, 2011.
Logo:
Overview:
Instead of using my traditional rating format for this review, I'm just going to give you a quick overview of Costco's merchant services. Mainly because of the fact that if you're getting a merchant account through Costco, then you're essentially getting a merchant account through Elavon (NOVA), and I've already written a full review for Elavon.
Costco is just a reseller of Elavon's services, so the only benefit that you'll get by going through Costco are the so-called "discounted prices" that Costco offers its premium members. But the truth is, that a merchant account through Costco isn't as cost-effective as it seems.
I won't get into the details of why Costco's "discounted prices" aren't really discounted at all, because that's already been covered here, here and here. The bottom line is that although Costco does a wonderful job of offering low prices on poultry and Playstations, they aren't doing the same with merchant accounts.
You'll have a better shot at saving money if you use a reputable comparison shopping engine like FeeFighters or CardFellow instead of Costco.
In conclusion, I gave Costco a lower score than Elavon because I don't think that Costco should be in the business of reselling credit card processing services. By doing so, they're just adding a layer between the merchant and the processor (Elavon), and that layer isn't really offering anything special, except for a little confusion. I've dealt with plenty of people that don't even realize that Costco isn't actually in the business of offering credit card processing services. Most of the time, those merchants have no idea that it's Elavon who's handling their account. Again...confusion.
If you know what rate structure to ask for (interchange-plus), and what rates are fair, then you might as well go directly to Elavon, OR go with another provider who's main business is credit card processing. Anybody that understands merchant account pricing will have a much better chance of getting a superior deal than what Costco is offering through Elavon.
Stick with the wholesale goods Costco. That's what we love you for.
The Quick Guide to PCI DSS Compliance for Small Merchants (Level 4)
A large majority of companies in the U.S. are considered small and medium sized businesses (SMBs). Most SMBs don't process any more than 20,000-1,000,000 (some much less) transactions per year, categorizing them as Level 4 merchants in the PCI world.
For those of you that have read my article on merchant risk levels, you'll know that Level 4 is the lowest tier, thus requiring the least amount of work for compliance. It's also the most vulnerable tier for hackers....go figure.
In this guide, I'm going to walk you through what you need to do to become compliant. I tried to keep it as short as possible, but not sure if I succeeded.
For Retail (Card-Present) Merchants
Scan Your System
Most credit card processors require proof that you've scanned your system for security threats, otherwise they'll charge you a monthly PCI non-compliance fee. So, make sure you comply with all the other steps below, then get scanned when you're ready for it. I've partnered with ControlScan, so I'm obviously going to recommend that you get your system scanned by them, but it's your call. There are plenty of other companies out there that offer scanning services. From what I've seen, ControlScan is pretty legit though.
Take the Self-Assessment Questionnaire (SAQ)
I touch on the SAQ in my other PCI article, but as a brief overview, the self-assessment questionnaire will give you a basic idea of what requirements you need to follow in order to become PCI compliant. The SAQ will probably reiterate everything that I'm telling you now, but that doesn't mean that you can skip it. Much like the system scan, most processors require that you take the questionnaire, or else they'll assess a non-compliance fee.
Now, follow these steps:
1. Use only PCI approved PIN transaction security devices (i.e. PIN pads).
By "device" I mean PIN pads and credit card terminals. Visit this link to see if your current device is compliant. If not, it's time to upgrade.
2. Use only PCI validated POS (Point-of-Sale) & payment gateway software.
Visit this link to see if your current software is validated. If not, it's definitely time to upgrade. Here's a good place to find POS hardware/software, and all of my top rated credit card processors offer payment gateways that are PCI compliant.
3. Don't store any sensitive cardholder data.
As a small business, it's easy to forget about stuff like this. I remember writing down credit card info on a notepad for later reference, without realizing how big of a security risk that actually was. So, whether on paper or your hard drive, don't store any cardholder data. If you're worried that maybe your credit card terminal or PIN pad is storing card data, just keep in mind that newer equipment either doesn't store the data, or encrypts it. So, if your equipment is PCI compliant, then you need not worry.
4. Use a firewall on your network and PCs.
This one's pretty easy. Most operating systems come with some sort of security package which includes a firewall. Just make sure that you regularly check to see if it's working, and you update it if necessary. If you don't have a firewall, Norton is pretty good.
5. Make sure your wireless router is password-protected and uses encryption.
Another easy one. Your router's instructions will walk you through the process of password protecting and encrypting the router.
6. Use strong passwords. Be sure to change default passwords,
This is a no-brainer. I use password generator in order to make me some quick and secure passwords. Never use the default password for any hardware or software.
7. Regularly check PIN entry devices and PCs to make sure no one has installed rogue software or "skimming" devices.
This is where the system network scan comes in handy. Your average joe doesn't really know how to check for this kind of stuff, so by using a company like ControlScan, you can just rely on their expertise.
8. Teach your employees about security and protecting cardholder data.
Don't get lazy on this one. I have a few articles in my PCI Compliance category, so you can refer your employees to them. You also have plenty of resources at your fingertips so don't forget to use your favorite search engine.
For eCommerce (Card-Not-Present) Merchants
Follow every step in the list above (expect for #1. You obviously won't have a PIN pad or credit card terminal if you're strictly eCommerce.), and the following:
Get an SSL Certificate
An SSL certificate ensures that any sensitive data transmitted through your website is encrypted so as to protect that data. An obvious place that you would use an SSL would be on a payment page during checkout. There are a ton of SSL vendors out there, but if you're going to get your system scan at ControlScan, then you might as well pick up your SSL with them as well. 
One thing that I'd like to point out is that a there are a few payment gateways out there that can alleviate your PCI requirements almost completely. The way it works is that they have a feature that allows you to conduct the entire transaction on the service providers own servers, not yours. That way, your own network isn't even involved in the transaction, thus absolving you from the need to maintain a secure network. Take a look at the CDGcommerce instant PCI page to see what I mean. They do a better job of explaining it than me.
In Closing
You can also visit the Small Merchants page on the PCI Security Standards Council website for more info.
The Bad Credit Merchant Account
Have poor credit? These days it's hard to find someone who doesn't.
I can't count how many emails I've received from merchants desperate to get a merchant account, but unable to do so because of their low credit score. The truth is that they can get a merchant account...they're just not looking in the right place.
Most processors have a low risk tolerance and aren't willing to accept merchants with bad credit...unless they can minimize the risk somehow. Below you'll find some ways that you can help alleviate that risk for them.
How to Obtain a Merchant Account Even w/ Bad Credit
Use a Co-Signor
Having a co-signor with good credit will immediately get you a pass from the risk department. If the merchant account provider knows that they have a second party on file that has good credit, they'll be willing to accept your application.
If you do get a co-signor, then just look through my comparison page and find a top rated processor that suits your needs.
Find a Specialist
If you can't find a co-signor then go with a company like Durango Merchant Services. They focus on high risk merchant accounts, so bad credit is not a problem for them. Chances are, they'll approve you.
You can also Google "bad credit merchant account" and find plenty of providers. Just make sure they're reputable.
Use a Third-Party Provider
Services like Paypal offer third-party payment processing, where they handle the entire transaction on their end. That alleviates some liability for them, so in most cases, they don't even run your credit.
Offer a Rolling Reserve
Tell the processor that you're willing to leave a "reserve" of funds with them for a while just to cover them in case you default. Of course, this will only work if you can afford it.
Offer an ACH Delay
An ACH delay is basically a delay in the deposit of processing funds to your bank account. The processor withholds your funds for a few extra days as a guarantee that all of your transactions are legit.
There you have it! All is not lost when you have bad credit.
Learning About the Terminated Merchant File (TMF) aka MATCH List
Chances are, you're reading this article because you've just found out that you've been added to the Terminated Merchant File (TMF) or MATCH list. And now you're scrambling to figure out what this "list" or "file" actually is, and how you can get yourself off of it. Am I right?
Well, don't feel too bad, because you're not the only merchant who's been caught off guard. The truth is that most merchants don't know that they are TMF'd or MATCH'd until they submit an application for a new account elsewhere and find that they are declined. At which point, the reason for the decline is revealed to them.
I hope that in this case, I'm catching you before you've been placed on the MATCH list, but if not, I'll do my best to help you out anyway.
You might have already noticed that this infamous "list" goes by a couple names:
- Terminated Merchant File (TMF), and...
- MATCH (Member Alert to Control High-Risk).
Until recently, "Terminated Merchant File (TMF)" was the default term used by everyone, but lately it has been replace by "MATCH." So, for the sake of this article, we're also going to refer to it as MATCH, but just remember that they both pretty much mean the same thing. I also want to clarify that I'll be using the words "list" and "file" interchangeably as well.
What is MATCH?
MATCH is a system created and managed by MasterCard. It is essentially a database that houses information about businesses (and their owners) whose credit card processing privileges have been terminated for reasons which I'll discuss later.
It is used by acquiring banks (aka merchant processing banks) to screen potential applicants to see if that applicant has been terminated in the past. Acquiring banks also have the ability to add or remove merchants to or from the MATCH database, given they have justification.
In a nutshell, the MATCH file is like a "blacklist" that banks can cross-check when they take on new business. That way, they won't get stuck with any bad apples.
The biggest downside to the MATCH system is that MasterCard does not verify or confirm the accuracy of the information reported to or listed in the MATCH database by the acquiring bank. As you can see, that gives the acquirer full discretion in deciding whom to add to the list. It's a system without any checks and balances, which is a bit dangerous if you ask me.
What Happens When You're MATCH'd?
When a merchant is placed on the MATCH list, the business name, principal, and any business partners are all recorded on file and basically blackballed (for the most part) from opening any new merchant accounts elsewhere. Once on the MATCH, it is extremely difficult to obtain a new merchant account by any other bank.
Since merchant processing is a business with a high risk of loss to the banks, MATCH is used by the banks to see if the risk of opening an account is less than a bank's risk tolerance.
If an acquiring bank finds that a merchant applicant is in the MATCH system, they are allowed to contact the prior bank who placed that merchant on the list and ask why that particular account was shut down. From there they can make a decision to accept the application, decline the application, or provide a conditional acceptance based on certain restrictions to prevent a similar type of scenario.
Why Do Merchants Get MATCH'd?
The reasons for being added to the MATCH database can vary. Having too many chargebacks, participating in fraudulent activity, or money laundering are all activities that can get you listed.
In the past, MasterCard made it really easy for acquiring banks to add merchant's to the list, but in recent years, they've become more strict with their guidelines.
Here's a quick table I pulled from the MasterCard website (see table 11.3). The numbers before each category are "reason codes," so if somehow you only have a reason code, you can look for it in the table to find out what it means.
| Code | Description |
| 01 | Account Data Compromise The Merchant unknowingly or unintentionally facilitated, by any means, the unauthorized disclosure or use of account information. |
| 02 | Common Point of Purchase (CPP) The Merchant knowingly caused or facilitated, by any means, the unauthorized disclosure or use of account information. |
| 03 | Laundering The Merchant was engaged in laundering activity. Laundering means that a Merchant presented to its Acquirer Transaction records that were not valid Transactions for sales of goods or services between that Merchant and a bona fide Cardholder. |
| 04 | Excessive Chargebacks With respect to a Merchant reported by a MasterCard Acquirer, the Merchant's chargebacks in any single month exceeded 1% of its MasterCard sales Transactions in that month, and those chargebacks totaled USD 5,000 or more. With respect to a merchant reported by an American Express acquirer (ICA numbers 102 through 125), the merchant exceeded the chargeback thresholds of American Express, as determined by American Express. |
| 05 | Excessive Fraud The Merchant effected fraudulent Transactions of any type (counterfeit or otherwise) meeting or exceeding the following minimum reporting Standard: the Merchant's fraud-to-sales dollar volume ratio was 8% or greater in a calendar month, and the Merchant effected 10 or more fraudulent Transactions totaling USD 5,000 or more in that calendar month. |
| 07 | Fraud Conviction There was a criminal fraud conviction of a principal owner or partner of the Merchant. |
| 09 | Bankruptcy/Liquidation/Insolvency The Merchant was unable or is likely to become unable to discharge its financial obligations. |
| 10 | Violation of Standards With respect to a Merchant reported by a MasterCard Acquirer, the Merchant was in violation of one or more Standards that describe procedures to be employed by the Merchant in Transactions in which Cards are used, including, by way of example and not limitation, the Standards for honoring all Cards, displaying the Marks, charges to Cardholders, minimum/maximum Transaction amount restrictions, and prohibited Transactions set forth in Chapter 5 of the MasterCard Rules manual. With respect to a merchant reported by an American Express acquirer (ICA numbers 102 through 125), the merchant was in violation of one or more American Express bylaws, rules, operating regulations, and policies that set forth procedures to be employed by the merchant in transactions in which American Express cards are used. |
| 11 | Merchant Collusion The Merchant participated in fraudulent collusive activity. |
| 12 | PCI Data Security Standard Noncompliance The Merchant failed to comply with Payment Card Industry (PCI) Data Security Standard requirements. |
| 13 | Illegal Transactions The Merchant was engaged in illegal Transactions. |
| 14 | Identity Theft The Acquirer has determined that the identity of the listed Merchant or its principal owner(s) was unlawfully assumed for the purpose of unlawfully entering into a Merchant Agreement. |
How Long Are You On the List?
According to this MasterCard PDF (see section 11.2.6), you'll remain in the system for 5-years.
How Do You Get Off the List?
Lets say somehow you've ended up terminated and on the list. So now what? Well, the only way to get off MATCH is through the same bank that put you on it in the first place. Once you discover you are listed, the first step is to call your former provider.
You're most likely going to have to jump through hoops, sitting patiently through many phone transfers, until you get to the right person, or get forwarded to the processing bank themselves. But, once you find the correct contact, you can then find out the explanation and reason code for why you are on the file, and ask what you need to do to get off.
Depending on why you're on the file, getting off can be easy or impossible. It is nearly impossible to get off the file for being identified of fraudulent activity. Banks obviously hate fraud.
Often a termination resulting from too many chargebacks can be corrected with time. Banks will wait until all chargebacks have been rectified and there are no further chargebacks from the merchant's former customers, before removing a merchant off the list.
If you believe you were erroneously added to the file, you must work with the bank that added your listing in order to get your business name removed or file details changed. Once investigated, if the acquirer agrees that you were listed in error, they must immediately request a correction.
If you've tried all the phone calls and spoken to every representative, your last option may be to seek legal counsel and head into a possible arbitration.
Can You Still Get a Merchant Account?
Believe it or not, there are some processing banks that will approve your account even if you're in the MATCH system. Obviously, the reason has to be within reason (pun intended).
I know personally that Durango Merchant Services is willing to accept some TMF/MATCH merchants, so you might want to give them a try.
The Bottom Line
Avoid getting placed on the list at all cost! Being an honest and scrupulous merchant is the only way to be a functioning merchant. Once on the list, do whatever your previous bank says in order to get taken off. Remember, being MATCH'd not only stops your current credit card processing operations, but prevents you from doing any future operations under any other business names. It can quite possibly be the end of the road for your processing career, so be sure to take it seriously.
TSYS Merchant Solutions Review
Merchant Maverick's Rating: (4 out of 5)
Last Updated: October 1st, 2011.
Logo:
Overview:
Total System Services, Inc. (commonly referred to as TSYS) is another one of those huge credit card processing companies. They operate many offices across the U.S. and have hundreds of thousands of merchant's that are using their services.
I'm going to focus this review solely on TSYS' direct sales channel called, TSYS Merchant Solutions (www.tsysmerchantsolutions.com). TSYS Merchant Solutions is where you would go as a business owner if you wanted to get a merchant account directly through TSYS.
As you may know, there are MANY resellers (called ISOs/Agents) of TSYS that either contract TSYS for their processing platform, or act as referral partners for all of TSYS' services. Some of those resellers are going to be ethical, and others are not. My advice would be to just go direct with TSYS Merchant Solutions. They have their own in-house sales team, and they can sign you up directly. No need to go through a middle-man, unless that middle-man is going to offer you something above and beyond what TSYS Merchant Solutions can give you. Superior customer support or training would be one example. A reseller that adds value is appropriately called a Value-Added Reseller (VAR).
The best info about TSYS Merchant Solutions will be found below, so I encourage you to read the whole review.
You can find TSYS Merchant Solutions on Facebook, LinkedIn and Twitter.
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Date Established:
1953.
Location:
TSYS Merchant Solutions has several locations, but they're headquartered in Omaha, Nebraska.
Domain Name(s):
- www.tsysmerchantsolutions.com
- www.fnms.com
- www.firstnationalmerchants.com
- www.termnetinc.com
Parent/Partner Company:
TSYS has many subsidiaries and partner companies that it works with. For the sake of this review, we'll only talk about the ones that matter to you, and they are, First National Merchant Solutions (FNMS) and TermNet Merchant Services. TSYS acquired FNMS back in April of 2010, and TermNet in May of 2011. Why is this important to you? Well, mainly because both of the above mentioned companies were merchant account providers themselves, so when doing your research, it's best to investigate those brand names as well. Although TSYS may have overhauled some of their system and processes, it's best to know if those companies were ethical or not.
Type:
Registered ISO/MSP, Direct Processor.
Acquiring Bank(s) (Acquirer):
First National Bank of Omaha, First National of Nebraska.
Payment Processor(s):
TSYS is the processor.
Payment Gateway(s):
Payfuse, Authorize.Net or Paypal Payflow.
Do you need help setting up your payment gateway? Visit the Payment Gateway Integration page for more info.
Trust Symbols:
There a multiple listings for TSYS Merchant Solutions on the BBB, including a couple that are for the companies which TSYS has acquired. Here are the listings that I used for my research:
- TSYS Merchant Solutions Headquarter's (Omaha, Nebraska). This is their main BBB listing. It has a "B-" rating, and 13 complaints in the last 36-months (as of this update).
- TermNet Merchant Services (Atlanta, Georgia). This listing is for the company which TSYS acquired back in May of 2011. They have an "A+" rating with 6 complaints in the last 36-months (as of this update).
Negative Reviews:
I searched for the keywords: "tsys merchant solutions complaints," "first national merchant solutions complaints" and "termnet merchant services complaints," which gave me a decent amount of info. You can also swap out "complaints" with "reviews" to find some review sites with info as well.
Considering how large TSYS Merchant Solutions is, I was surprised that they have only a handful of complaints. First National Merchant Solutions (a TSYS company) and TermNet (another TSYS company) didn't have that many either, which is great news.
Common Complaints:
There was only one common pattern that I could pick up amongst all the complaints.
- Undisclosed/Excessive Contract Term and Cancellation Fee: A merchant account with TSYS carries with it a 3-year contract term and $250 early termination fee. The contract also automatically renews when the 3-years is up. When there are other merchant account providers that don't lock you into a contract at all, it becomes hard to justify a reason to go with TSYS. Hopefully they'll follow suit and switch to the more desirable month-to-month contract in the near future.
Verifiable Testimonials/References:
There are plenty of testimonials and case studies on the TSYS Merchant Solutions website. Don't forget to ask for references.
Security/Privacy:
No on-site security features (i.e. McAfee, Security Metrics etc...). The security issue really depends on what kind of information the merchant account provider is collecting from you. If they require you to fill out a full digital application with sensitive info like SSN numbers, then they should definitely have some third-party security in place. Sometimes, and in the case of TSYS Merchant Solutions, the initial contact form only requires some basic info, then the real application is taken care of by fax or later on through a secure online app..
Customer Service:
I haven't had the chance to experience their customer service just yet. If you have any experience please let us all know.
Contract Duration:
The TSYS Merchant Solutions contract runs for 3-years and automatically renews once the initial term is up. I'm personally not a fan of auto-renew contracts, which played a factor in the rating that I gave TSYS Merchant Solutions.
Cancellation Fee:
$250 if you cancel before your 3-year contract is up.
If you decide to go with TSYS Merchant Solutions, ALWAYS ask them to waive the early termination fee. Most sales reps will do it for you. Just make sure that it clearly states so in your contract. Otherwise, sign up with a provider that only offers a month-to-month contract by default.
Interchange-Plus Pricing:
Interchange-plus is offered by TSYS Merchant Solutions. Be sure to ask for it. If you don't know the rate/terms to ask for, let me know. I'll tell you.
Seasonal Downtime:
TSYS Merchant Solutions does offer seasonal downtime, but be sure to work out the terms with your sales rep.
Product Offering:
Retail (Credit/Debit), eCommerce (Online), Payment Gateway, Virtual Terminal, ACH (Automated Clearing House), EBT (Electronic Benefits Tranfer), Gift Reward & Loyalty Cards, PCCharge, Point-of-Sale (POS), Mobile Commerce.
Specialty:
None.
Don't forget to leave your review and rating in the comment section below.
Note: Please remember, this review is for the direct sales wing of TSYS called, "TSYS Merchant Solutions." Any reviews that are left below should be from merchants that signed up for a merchant account directly through TSYS Merchant Solutions.
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