What is PCI? How Payment Card Industry Data Security Standard Works

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What is PCI? How Payment Card Industry Data Security Standard Works

Any company that processes or interacts with credit cards needs to be fully aware of the PCI standards. It is vital that merchants adhere to the PCI guidelines to protect themselves and their customer’s data. The PCI Security Council is a global organization with the goal to promote and help maintain security for cardholder information. The council creates, supports, and promotes the Payment Card Industry Security Standards. This is done through the creation of assessment and … Read More

What are Payment Gateways: How do they Compare to Merchant Accounts

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What are Payment Gateways_ How do they Compare to Merchant Accounts

Processing payments is not as simple as it seems to the customer making the purchase. It is crucial for merchants to be informed about all parties in the payment process and how they work together. This post will go through an overview of the payment process, then a deeper dive into two parties: payment gateways and merchant accounts. The payment process from the side of the cardholder happens in just a few seconds as the chip … Read More

What Is Cloud Based Point Of Sale?

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What Is Cloud Based Point Of Sale_

The brick-and-mortar store would not be able to function without a working POS system. More companies are starting to stray from a traditional POS system to a cloud-based POS system. We will go through what a cloud POS is, how it works, and some of the benefits that merchants receive by switching over. A point of sale or POS system is what makes it possible for customers to check out in a brick-and-mortar store. It is … Read More

Cash Back on Debit Card Transactions: What You Need to Know

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Cash Back on Debit Card Transactions_ What You Need to Know

Giving customers the ability to receive cash with a purchase on a debit card can help merchants gain loyalty, improve customer experience, and even save money. Here is what merchants need to know about allowing customers to receive cash back on transactions. Debit card cash back is when a merchants offers the cardholder to add an amount to their transaction and to receive it in cash. This practice is normally popular with grocery and c-store merchants … Read More

What is a Payment Reversal?

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What is a Payment Reversal_

Payment reversals are part of running a business. It is important to understand what types of payment reversals happen, under what circumstances each takes place, and what the outcomes are for merchants. A payment reversal is when a customer receives back the funds from a transaction. This process can happen in a couple of ways; customer disputes, authorization reversal, and refunding payment. Each of these reversals takes place at different stages of the payment process and … Read More

What is a Merchant Identification Number?

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Merchant Identification Number

With the rise of the internet and ecommerce, merchant ID numbers were created to help protect both the business and customer. A merchant identification number (MID) is a code that is associated with an online business and plays a pivotal role in keeping the transactions between the customer and business secure — including protecting the customer’s sensitive information. As the name implies, the merchant identification number correctly identifies the business when the customer makes a credit … Read More

What is a Bank Identification Number?

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What is the Bank Identification Number

On all the credit cards you own, you’ll have noticed the long set of numbers on the front. This is often referred to as the credit card number, and it’s what you input whenever you buy something online. Each set of numbers, however, has a special significance beyond simply separating one credit card from another. Right now, we’ll focus on the first set, which is called the bank identification number. So what is a bank ID … Read More

Difference Between ‘Acquiring Bank’ and ‘Issuing Bank’

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Difference Between ‘Acquiring Bank’ and ‘Issuing Bank’

Acquiring and issuing banks are some of the necessary parties that make payments happen. It is important for merchants to understand what these parties do, how they connect in the payments process, and what their roles are in the dispute process. Without further ado: An acquiring bank (the merchant’s bank) is a financial institution that initiates and maintains contractual agreements with merchants for accepting and processing credit card transactions. The acquiring bank is also referred to … Read More

What is MATCH?

Emily VuittonIndustry Terms7 Comments

MATCH stands for the MasterCard Alert to Control High-risk Merchants and it’s a system where acquirers are given the opportunity to review risk information before entering into an agreement with a merchant. MATCH is mandatory for all MasterCard acquirers and its database contains information about merchants and merchant account owners who have been terminated by an acquirer(s) in the past. The information contained in MATCH helps acquirers assess the reasons for previous merchant terminations to see … Read More

Pass-Through Pricing: As Good As It Gets?

Scott StoneIndustry Terms1 Comment

Interchange Plus Pricing

Whether you call it interchange plus pricing, true pricing, cost plus, or pass-through pricing, it is widely considered the most transparent and merchant-friendly credit card processing pricing structure. The savvy CFO has insisted her credit card processor utilize pass-through pricing for years now, but is that what’s really being provided? Pure Pass-Through Pricing Pass-through pricing is simply a pricing model used by credit card processors that charges merchants the industry-wide interchange fees plus a small fixed … Read More