Several unique terms and phrases describe the features of services we review on this site, some easier to grasp than others. This list briefly defines terms relevant to Credit Card Processing.

Ratings

Average Approval Rating

The average approval rating is the percentage of all applicants that get approved for a merchant account through a particular service.

Cost Per Month*

Our ratings on the cost per month are based on an average of 500 transactions, 1 statement fee, 1 charge back fee and 1 gateway fee.

Startup Cost

The startup cost includes the cost to set up a merchant account and the cost to set up a payment gateway.

Account Setup Time

The account setup time is the time that is required for the Underwriter or the ISO (Independent Service Organization) to process your application This also includes setting up the payment gatway and merchant account.

Customer Service

This term encompasses valued services such as: ease of containing a company, ease of ordering, friendly representatives, speed of service and helpful answers to questions.

Internet Based Features

Many merchant account companies offer more than one type of virtual terminal. Many also offer a demo on their website and a shopping cart.

P.O.S./Swiper Based

There are many different models of credit card swipers; some merchant account companies offer more than one for their retail customers.

Required Monthly Fees

Gateway Fee

Some payment gateway providers require a monthly payment for their services.

Statement Fee

Every credit card processing company requires a statement fee. The current industry standard is $10.00 per month.

Monthly Minimum

The monthly minimum is the amount that your business has to meet each month to keep the merchant account. If the minimum is not met one month then your business has to pay the extra amount.

Transaction Fees

Average Discount Rate

The discount rate is the percentage of your sale that the credit card processing company keeps for themselves.

Transaction Fee

This is a required charge per transaction; it doesn't matter if the transaction is $.50 or $500, this fee is always the same.

Address Verification Fee

Every time a transaction occurs and a credit card address is verified, this fee will be attached to your bill.

Features

Company is the Underwriter

There are two types of credit card processing providers. Underwriters who actually approve the applications, and there are ISO's (Independent Service Organizations) that accept your applications and then the send it to the underwriter to be approved. Usually the underwriters backup your merchant account, while the ISO's don't accept the responsibility.

Virtual Terminal

A virtual terminal is a screen that permits the customer to input personal credit card information. Most companies offer a virtual terminal with their services or offer a link to a secure webpage.

Payment Gateway

Payment gateway services verify all of a customer's credit card information, judges the authenticity of the transaction, then either declines or processes the credit card payment.

Merchant Account

A merchant account allows a business to accept credit card transactions from customers. Merchant accounts are commercial bank accounts set up between a retail business and a financial institution. Funds from customers are deposited into the merchant account.

P.O.S. Credit Card Swiper

A point-of-sale swiper is a manual credit card swiper machine for use at a physical store location to process payments.

Clear the Account (Days)

The processing time that it takes from when the customer inputs his/her credit card information until the time the money clears the account.

Offers eCheck

An Echeck is an electronic check instead of a paper one, an option for a customer to use a checking account over the web.

Shopping Cart Available

In order to sell products on an ecommerce site some credit card processing companies require you to have their shopping cart on their website. Some companies offer a shopping cart with their services.

Recurring Billing

This is a process that allows you to setup accounts that automatically create future recurring charges. For example if you are billing someone for a service and they will have a monthly bill.

Fraud Protection

Address Verification

Address verification is completed by the payment gateway service-data entered by the customer online is compared to the address of the person holding the account on record at the credit card company.

Real Time Processing

Right after the customer enters required data and presses the Enter key, the payment gateway will research the validity of the transaction then process the credit card. This usually takes only a couple of seconds.

SSL (Secure Socket Layer)

The secure socket layer is used to protect credit card data from computer hackers or anyone else trawling for personal information. The SSL uses a 128-bit encryption method to safely and securely move credit card information from one location to the next.

CVV2 (Three Digits)

The "card verification value" is a small three or four digit number printed (not embossed) on the back or the front of your credit card, depending on the card type. Sometimes part or all of the credit card number is included in front of the CVV2. The CVV2 isn't coded onto the magnetic strip of the credit card and does not appear on sales receipts. It's often required for online credit card transactions to ensure that the purchaser physically possess the card, increasing fraud protection.

Help/Support

Support Hours

These list the hours that the company is available to answer questions or sort out problems.

Toll-Free Phone Number

A toll free phone number where the company can be reached.

eMail

Valid E-Mail address on their website?

FAX

FAX

Live Chat (Online)

The website has a technical person available answer questions via live chat.

 ©2003 – 2008 TopTenREVIEWS, Inc.