Faster, Higher Pay Limit, Same Day ACH Transactions Coming

Same day ACH transactions will get faster, per-transaction limits will triple, and processing windows will expanding, according to three new rules announced by The Electronic Payment Association, NACHA. Nearly 41 million same day ACH transactions have flowed through the ACH Network, according to NACHA. Realizing that consumers are embracing same day ACH, NACHA, which manages and governs the ACH Network, continues to expand its capabilities with these new rules: The speed of funds availability for certain Same Day ACH and next-day ACH credits goes into effect on Sept. 20, 2019. Starting on Sept. 18, 2020, same day ACH transactions can

What is Chargeback Representment?

A chargeback representment is a process in which a merchant disputes a chargeback. Merchants must fight chargebacks, which are when credit card companies demand businesses refund the losses of disputed or fraudulent purchases, or work to prevent them or face fees and possible merchant account termination. Whenever a merchant opts to fight a chargeback, it enters the representment process. Representment is especially critical due to the numerous cases of friendly fraud, which is when people claim that they didn’t receive items or services because they don’t want to pay for them. During the chargeback representment process, a merchant must collect

What is Point of Banking?

A Point of Banking (POB) machine provides businesses – those that are no longer welcomed by MasterCard and Visa due to the products and services they sell, those that haven’t established themselves yet, or have no credit – with a way to accept cards without a merchant account. Merchants that want to accept and process credit card payments need merchant accounts. Unfortunately, smaller, high-risk merchants and those with bad credit have a hard time getting approved for a traditional merchant account. The only way they can accept cards is to move forward with a high-risk merchant account, which mean higher

What is a Chargeback and Should I Worry?

In the simplest of terms, chargebacks are when cardholder banks force merchants to reverse transactions. This can appear similar to a traditional refund, but it’s not. The difference is that a customer is not asking a merchant for repayment of an item or service they bought. Instead, the credit card company’s bank takes the funds from the business’ account based on the consumer’s request. Though chargebacks are investigated, in many cases, banks find consumers’ complaints valid. Then, the bank takes the money from the merchant’s bank account, and refunds the customer. The consumer is not obligated to return the purchase

What is an Acquirer?

An acquirer or acquiring bank has a few meanings. Sometimes, an acquirer is a business or corporation that takes over another’s ownership through a purchase or another type of action. More frequently, acquirers are banks that obtain the rights to a business’ merchant account, so that the financial institution can manage the company’s bank account. In the payments industry, an acquiring bank, also known as a merchant account bank or  settlement bank, often is a licensed member of a credit card association, such as MasterCard, Visa, or American Express. An acquiring bank screens and accepts businesses by approving merchant accounts

Transaction Flow Explained

In the simplest of terms, a transaction flow is the journey a payment takes from start to approval to settlement. Any time a person buys something using a credit card, it follows a stream or transaction flow, passing through many players before the payment is settled. Knowing how a transaction electronically passes from a customer to a merchant’s bank account, which is known as a transaction flow, is something every business should understand. Knowing this information also helps you get a clearer perspective and the importance of batch deposits, the risks of chargebacks, and the length of time it takes

How ISOs Can Prepare for Cryptocurrency

While cryptocurrency is not a significant factor for an agent ISO yet, there is a lot of chatter going on in the industry about how cryptocurrency will alter the way the value of goods are exchanged. Even so, experts are saying that the traditional merchant services model will have the advantage and appeal of widespread acceptance. Cryptocurrency still has a long way to go. For example, consider the process that takes place when a consumer goes to a store and wishes to pay with their credit card via the major card networks. When the payment takes place, it occurs with