ForumsMerchant Services

Our informational website explains many of the issues you brought up.

To learn about chargebacks, go to http://www.merchantservices-help.com/chargeback.html
Also consult the 'Glossary' and "FAQ' links on the site.

Declines for no reason? I doubt that. If there was a programming or technical problem, the terminal would
probably display a 'lost comm with host' or some other error message. When one receives a DECLINE prompt, that is usually a sign that the system worked properly and the correct response with displayed, in this case, 'decline'. Furthermore, it is the customer bank that issued the credit card to their customer who orders the decline prompt, not the processor. The only recourse is for the customer, not the merchant, to call their bank. And rest assured there most certainly IS a reason for the decline.... there always is.

There are many possible scenarios that would result in lots of chargebacks. The bottom line is: something is going wrong,and customers are claming fraud in some form. Either services rendered are unsatisfactory, non-existent, unauthorized, or something along those lines. In any event, 99% of the time, the cause and fault lies on the merchant side. The merchant needs to take a good hard look at what services they are selling, how they are delivered, and how they are being charged for. Lots of chargebacks will get the merchant shut down by the proceccor permanently in no time.

There are also many possible scenarios to explain delay in payment. Just a few possibilities:
An inordinate percentage of overseas payments are being processed. The merchant was incorrectly underwritten as a retail account when in fact they are processing internet, mail/phone order or something other than retail transactions. The volume and/or average ticket amounts presented for processing exceed the limits for either/or applied for and approved by underwriting. Lots of possible reasons.

One other possibility: The processor provided no training or instruction, and the merchant doesn't know what he is doing. This happens a lot. No frills processors are often guilty of this, and the short-changed merchant pays a steep price for this omission.

Summary: Something is VERY wrong with the scenario you are desscribing. The merchant needs to take corrective action immediately before they get shut down. If it helps, drop me a line and we'll arrange a phone conversation which might shed some light for you.

AMSPCS
amspcs@juno.com
www.MerchantServices-help.com

Phano's suggestion to try local bank for processing services in order to get a better pricing, although undoubtedly meant with the best of intentions, is not accurate.

In the first place, the number of banks that truly "provide processing services" is probably well less than 1% of all the local banks out there. There are hundreds, perhaps even thousands, of banks out there, but only
somewhere between 125-150 "or so Acquirerers" out there...these are the banking institutions that truly "provide processing services". All the rest solely play the role of referring party, nothing more. So as in all situations where one unnecessarily adds an additional middleman to the pricing equation, the cost to the end user is increased,not decreased. And any time your banker suggests he's not giving you his best deal unless you 'shmear' him a little on the side...that's your cue to find a new banker.

Here's a better idea: Instead of using a major processor via a third party, why not just go to that major processor directly yourself? In effect, if you negotiate effectively you can get the referral fees that otherwise would go to the referring bank instead deposited in _you_r pocket.

AMSPCS
amspcs@juno.com

Just as a side note - the sponser of this forum offers these services - http://www.bankofamerica.com/small_business/merchant_card_processing/

It's the economy. The merchant processors only do what their customers tell them to. If a customer contacts them and complains about a charge, they will act to keep the customer happy. The best way to eliminate these problems is to receive payment upfront or demand scheduled payments (50% at start of project and balance due 2 weeks prior to completion) for example.

Yes, sometimes there may be a computer glitch, but not often.

La'Shon
http://visuals4u.com