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FOUR RULES THAT RETAILERS MUST FOLLOW REGARDING NUTRA CREDIT CARD PROCESSING

At first sight the procedure of accepting credit card payments from your customers seemed very simple. You swipe the customer’s card to process his payment for which your account provider will charge you some fees. If you think like this then you are one among those many merchants who has not read the agreement carefully. This may cause serious problems for you.

Several thousand business owners violate merchant account agreements regularly without even knowing it. Unfortunately, this will jeopardize their merchant accounts. If there are many complaints against the merchant that are filed with the issuer then the issuer will terminate the merchant account. Given below are four rules that must not be broken by any merchant.

1)    “Minimum and Maximum Charges”

Several retail businesses don’t accept credit cards if the bill amount if lower than or exceeds a certain amount. This is understandable and may be necessary. For example, a customer’s total bill will add up to just some dollars, which if processed by credit card will make the transaction unprofitable because of the fees charged for every transaction.

In contrast, the ceiling imposed on the amount that can be processed using credit card is a security against possible fraud. However, both these acts are violating your agreement with the merchant account provider.

2)    Adding Fees

You will be tempted to charge some extra fees from you customers when they pay using a specific type of card. This is a common phenomenon with small retail shops. They do this to recover the fees that are charged by the bank. Charging such extra fees is a violation of the agreement that you have signed with your account provider.

But, this rule has to be looked in more detail because the agreement allows you to charge a convenience fee to your customers for certain kind of transactions. If your customers want to pay using their credit card for a certain thing which you don’t allow then you are permitted to charge the convenience fee. The circumstances where you are allowed to charge such a fee differ with different companies. Therefore, you should look at your agreement very carefully so that you don’t violate the terms and conditions.

3)    Refunding Cash

This happens more often than you expect. Many times customer’s will buy some goods and make the payment through credit card. But later, when they don’t like the product and come for a refund they ask for cash. The merchants will also agree to it because they think it is not wrong, which is false.

Refunding customer’s in cash will not only violate the rules but will also expose you to fraud. Therefore, avoid giving refunds in cash.

4)    Making the choice of Payment for your customer’s

The fees for processing credit cards vary widely between credit card companies. Visa will charge different rates and fees than Amex. Similarly, MasterCard will charge differently than Discover. The merchants will try to influence customers to choose a certain kind of payment option to reduce their fees which is a violation.  

Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.