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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.
Have you looked at your local bank - many provide processing services and can get your funds a day or two earlier. Might offer relationship discounts as well.
Business Money Today
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.
You are right - there are many banks - mostly local or regional banks - that do offer merchant service processing or outsourse it.
I used to be a commercial lender with a National Bank (WFC). This bank, like many of its larger counterparts (like the sponsers of this forum), buy (acquire) companies to offer their services and increase their product lines (to increase revenue) - just like google acquired youtube - while youtube is still its own brand, it is part of google (google owns it). My bank owned this merchant services processing company and we as business bankers were very successful in selling it. One of our features of selling this product was that we could speed up deposits and have a local face that merchants could go to. We were getting merchants money into their accounts at least one day earlier as we, the bank. cut out the middleman.
True - there are others that outsource to a third party. I only suggested this as another means of comparision. If your bank does offer these services - it does not hurt to compare them to the other companies you are looking at - as I know you want the best deal for your company.
You can also ask other merchants in your area who they use and what they like and dislike about them. The more information you get - the better your decision - if you choose badly in the beginning - while not hard to switch - it is a pain that takes you away from your business.
We also have a few partners that we work with for merchant processing. I won't promote them here - but the idea is to get as much information as you can - the more information - the better your choice.
Business Money Today
Sounds like your clients are having a lot of downgrading issues. You might want to have your clients take a look into US Financial Services Group. We actually have our own Charge back managment department.
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.
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Hi - my partners and I are in public relations in Texas working mostly with new Tech compaines. Lately, a few of our clients have been having merchant processing problems - i.e. delays in payment, declines for no reason, chargebacks (lots of chargebacks). While we don't really deal that much with merchant processors - we do sit on the Board of many of these companies and are trying to find out more about the process and why these things keep happening. Can anyone help?