FREQUENTLY ASKED QUESTIONS

1. What makes a transaction secure?
2. What costs are involved in a secure transaction?
3. How are transactions processed?
4. How are transactions transferred securely?
5. Can I process online payments myself?
6. What do I need to get started?
7. Can I process authorization-only transactions (no capture)?
8. I have customers who call or fax in orders. Can I still process these orders?
9. Do I need to store credit card information on my web server?
10. Is there a place I can view my transaction activity?
11. What is transaction processing?
12. How long does a typical transaction take?
13. Can I share an Internet merchant account with other merchants?
14. What is the cost of transaction processing?
15. How can I manually process transactions?
16. Can I void a transaction?
17. One of my customers accidentally placed duplicate orders on my web site. How do I deal with this situation?
18. There is a delay between the time I receive an order, and the time I ship product. Can I perform this type of transaction?
19. Can I process Recurring Billing Transactions?
20. I have never experienced fraud on my site. Why do I need to protect my site?
21. What types of credit card payments should your payment processor process?
22. Can a merchant outside the U.S. apply for a merchant account?
23. Will my merchant account be approved with a processing limit?
24. Why does my Payment Processor need to review my credit information?
25. Am I liable for disputed transactions?
26. What is check verification? Do I need it?
27. What are interchange fees?

1. What makes a transaction secure?

Security is a critical element of all financial transactions. Here is an example of five elements that work together to make transactions secure:

• tested serialized copies of the software.
• 128 bit encrypted SSL (Secure Socket Layer) security system
• active VERISIGN certificate
• interactive voice response (IVR) to authenticate each transaction with a dual access and password system
• predesignated fax to the customer is used to confirm each transmission and authentication
  
  

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2. What costs are involved in a secure transaction?

There are 4 elements to the total cost of electronic processing:

• software- costs to set up and install the software
• transaction costs
• ODFI (bank) fees- apply when a check is being processed for clearing
• Equipment costs- Retailers requiring check processing equipment or want EDI may need to purchase check processing equipment

3. How are transactions processed?

A payment processor should deliver a real-time, highly scalable and reliable Internet payment platform that enables companies to authorize, process, and manage multiple payment types (including credit cards, debit cards, purchase or procurement cards, Internet checks and automated clearing house transactions), and different payment models online.

4. How are transactions transferred securely?

To safeguard the transmission of data, your payment processor must use the latest secure SSL encryption technology to ensure data safety. However, it is the storage of data and not the transmission of data that poses the biggest security threat to electronic commerce. To prevent data compromise in the storage server, sensitive transaction information must be stored on secure systems that cannot be accessed through the Internet. Hardware and software firewall technology, and additional encryption technology eliminate all opportunities for intruders to "hack into" a server and compromise information.

5. Can I process online payments myself?

Yes. Merchants can receive customer billing information through the web, and process it manually; however, this process can be time-consuming. Manual processing does provide customers with the level of security they require. Running an online business can be a daunting enterprise, and extending a business to the web requires responsiveness and flexibility. Your payment processor should provide automated services on a cost-effective, secure, and easy way to implement and manage Internet payment processing, enabling merchants to focus on their core business.

6. What do I need to get started?

All it takes is these three steps:

1. Get a Merchant Account from a Merchant Provider that specializes in the DRTV industry.
   A Merchant provider specializing in DRTV will most likely be hooked up with the major call centers and fulfillment centers. Less programming means less money out of pocket for you.
2. Have a US based company, address, and bank account.
3. Have the following items available for sign up:
   a. Articles of Incorporation
   b. US Drivers License
   c. Pre-Printed Voided Business Check
   d. Depending on your volume and history you may need to have financials, bank statements, tax returns, or past merchant statements available.

Yes. You can authorize a transaction without capturing the funds for the transaction. When you authorize a credit card, a funds hold is placed on the cardholder's credit limit for the period of the authorization.

8. I have customers who call or fax in orders. Can I still process these orders?

Yes. You can take these orders manually, but process them online by using web-based tools. You can also use automated capabilities. We recommend that you consider providing your customers with the ability to make their purchases online. It will expedite your operations, making them much more efficient, so you can devote more time to other aspects of your business.

9. Do I need to store credit card information on my web server?

No. Your payment processor stores all transaction information from your web store and should use the latest secure SSL encryption technology to ensure data safety. While you have access to all transaction-critical information, your payment processor protects credit card data with the highest level of security, so you never have to worry about compromising your customer's sensitive credit card data.

10. Is there a place I can view my transaction activity?

Yes. Your payment processors administrative site enables you to generate reports that provide detailed information about all transactions processed through your account and allows you to change your account information.

Transaction processing involves the round trip transfer of financial transaction data (for example, consumer credit card information), from a merchant's web site to a processing network, and thereafter completes the transfer of funds to the merchant.

12. How long does a typical transaction take?

A typical transaction, including the response, will usually occur within 3 seconds.
If you do not receive a transaction response, or if you receive a "time out" error message, there may be problems with your Internet service, or other network communication errors. Check with your system administrator to verify that your system's Internet connections are functioning. If you are still experiencing errors, contact your payment processor.

13. Can I share an Internet merchant account with other merchants?

No. Doing so is referred to as a processing "factory." This is normally against Visa/MasterCard regulations and may result in your Internet merchant account being terminated by your acquirer.

14. What is the cost of transaction processing?

Because each of our customers has unique needs, our processing services are customized according to the specifics of their business. Pricing is based on factors such as type of industry, method in which payments are accepted, card types accepted and a number of other variables.

You can manually process transaction as well as issue voids, delayed captures, voice authorization, or credits, through your payment processors Transaction Terminal.

16. Can I void a transaction?

You can void any sale, delayed capture, voice authorization or credit that has not settled. Once a transaction has settled, it cannot be voided, but you can issue a credit. Authorization cannot be voided.

17. One of my customers accidentally placed duplicate orders on my web site. How do I deal with this situation?

Access your payment processors Transaction Terminal and issue a credit for the proper amount to the customer. To issue a credit, locate the original transaction ID associated with the transaction in question, and issue a credit to the cardholder using the Transaction Terminal.

Yes. You will need to use the delayed capture transaction type with your payment processor. Delayed capture transactions allow you to authorize a transaction, and specify a wait time until you ship the product to settle the transaction and capture the funds.

19. Can I process Recurring Billing Transactions?

Yes. This recurring billing service allows you to automatically charge your customers for regularly scheduled payments, such as membership dues or installment payments. It's convenient for your customers, and it will make your business look more professional and help you manage your cash flow.

20. I have never experienced fraud on my site. Why do I need to protect my site?

Online stores experience fraud 17 times more often than offline stores. An estimated $60 billion is estimated to have been lost to credit card fraud in 2006. 1 in 6 online consumers has been the victim of credit card fraud. Even if you haven't experienced online fraud, odds are you eventually will. See the suggestions under "Fraud."

21. What types of credit card payments should your payment processor process?

As a registered processor with MasterCard and VISA USA, your payment processor should provide merchant account payment processing services for MasterCard, Visa, AMEX, Discover, JCB and Diners. In addition your payment processor should also provide eCheck and ACH (Automated Clearing House) debit and credit services for those clients expanding their payment options.

22. Can a merchant outside the U.S. apply for a merchant account?

No. Only merchants with a legal presence in the US can be accepted for merchant services.

23. Will my merchant account be approved with a processing limit?

Merchant accounts are approved based on actual or projected dollar volume. Your payment processor monitors account activity and reserves the right to review accounts at any time should volume be significantly above or below the level represented on the merchant application.

24. Why does my Payment Processor need to review my credit information?

When you apply for a merchant account, you are essentially applying for an unsecured line of credit. When a transaction takes place, the cardholder is debited and the merchant is credited for the amount of the transaction. The cardholder still has chargeback rights and can dispute the transaction for up to 90 days. When a cardholder initiates a chargeback with a valid reason code, the funds are automatically taken from the merchant's account and credited back to the cardholder. Your payment processor wants to ensure that each potential merchant is financially sound, has a viable business and is operating in good faith and standing, so these disputes can be resolved with the merchant.

25. Am I liable for disputed transactions?

MasterCard® and Visa® Card Association rules and regulations govern liability with respect to disputed transactions. In general, you, the merchant, are not liable for disputed retail transactions if a card was swiped through a terminal, the cardholder's signature was obtained and an authorization was obtained. When the card is not present at the time of the transaction, the merchant assumes liability for any disputed charges. Such disputes may be reversed depending on the timing and nature of the cardholder claim.

26. What is check verification? Do I need it?

Check verification is a service that provides merchants with varying degrees of insurance against bad check losses by verifying the authenticity of each check and/or its presenter. Checks are verified through a national database gathered from retailers who upload bad check information. While a check verification service is not required, this service does help keep your business losses to a minimum.

27. What are interchange fees?

Interchange fees are transaction-related costs that your payment processor pays to the issuer of the card as compensation. These fees are established by MasterCard and Visa and are based upon how a transaction takes place and in what type of industry.