Electronic Invoicing and Payment | Make it easy to get paid
Wouldn’t it be great if you could email your customers an invoice with embedded payment options? It seems like and easy and obvious choice but many businesses today still mail paper invoices and expect a check for payment. Think of all the saving an electronic solution provides. Save the paper of the invoice and envelope, save the cost of postage, save the gas and time it takes to travel to the bank to deposit checks.
With Maxx Merchants Electronic Invoicing you have an easy to use, professional and cost effective electronic invoicing system that allows your customers to pay via credit card or check. Our system gives your business the ability to create line-by-line detailed invoices.
Invoices are emailed in .PDF format with an embedded link for payment processing. All payment information is collected via our secure payment gateway so the business is not responsible for handling sensitive customer information or exposed to PCI compliance issues. Invoices are stored within the payment gateway for easy retrieval, review, editing or re-presentment.
There is no limit to the number of invoices that can be created and the business does not need a website or to integrate the solution into a website to process payments.
If the customer or issuing bank alleges that the merchant has violated Visa and MasterCard Operating Rules then it is considered “Out of Compliance” and the merchant will not be protected by the chargeback process. The issuing bank must certify that a financial loss did or will occur as a result of the rule(s) violation. Each side has an opportunity to present their case to the Visa and MasterCard Analyst assigned to the case. Compliance cases are filed within 90 days (Visa) and 180 days (MasterCard) from the transaction date. The date of a Retrieval Request ( the date of violation) is 90 days for Visa and 45 days for MasterCard from the date the issuing bank received notice from its cardholder of a violation (Date of Discovery)
Examples of Chargeback Compliance violations include:
- Failing to properly disclose “limited refund” or “return policies” to the cardholder at the time of the transaction.
- Preparing two or more transaction receipts to avoid authorization for a single transaction.
- Quality of service received from a travel and entertainment merchant.
Chargeback Compliance Filing Procedures, Fees and Penalties:
If you, the merchant, face a Compliance Violation claim, then you will be required to complete a Visa and MasterCard Compliance form and provide a description of the grievance, and submit copies of all supporting documentation. The issuing bank is required to provide the merchant with a Pre-Compliance letter, 30 days prior to filing, in attempt to settle the matter. As with a standard Arbitration, there is a Filing fee of $150.00, a Review fee of $250.00 paid by the losing party. Further, a $100.00 fine may be assessed for each technical violation found against the opposing party.
Criteria used for Chargeback Compliance Violation Decisions:
The arbitrator will consider the following when determining financial liability ~
- Was there a rule violation and a resulting financial loss
- Was the cardholder’s complaint reasonable
- Should the disputed amount be allocated between the two parties
When facing a Chargeback, Arbitration or Compliance claim keep in mind…
When a merchant is facing a Chargeback claim, Arbitration request or Compliance Violation charge, the most important thing to remember is to respond quickly and accurately with sufficient supporting documentation to defend your business. Failure to respond by the stated deadlines is an automatic forfeiture of the transaction which means you will lose the full transaction amount and could be subject to fines.
For more information on chargeback compliance please call (800)917-8026.
CHARGEBACK OVERVIEW | Part 1 of 2
What is a Chargeback?
A Chargeback is the process whereby a customer disputes a credit card charge. The chargeback usually occurs after the customer receives their billing statement and does not recognize the charge, is dissatisfied with the quality or service, or did not receive what was guaranteed. Generally, the customer will call the credit card company directly to initiate the chargeback without prior notification to the merchant.
What is the Chargeback process?
The bank has a time limit by which to initiate a chargeback. Within 120 days of the transaction date, the merchant will be advised that the cardholder or bank is claiming a mistake has been made and is attempting to have the charges removed from their statement. The merchant’s account is then debited for the amount of the charge and the merchant must provide evidence that the transaction was valid and in compliance with Visa and MasterCard rules and regulations.
Typical Chargeback justifications:
- Authorization not obtained for transaction
- Fraudulent or Duplicate charges
- Dispute over Quality, Service or Delivery
- Refund credit not received
5 Steps in the Chargeback Cycle:
- Presentment: The Presentment is the date at which the sale or transaction occurs.
- First Chargeback: When the customer disputes a charge to their Credit Card Company or bank and the bank responds with a retrieval request to dispute the transaction. The First Chargeback is the point at which the merchant and their bank receive notification from the cardholder’s issuing bank. The merchant has 7 days to rebut, however, the merchants account is debited for the disputed amount until the chargeback is resolved.
- Second Presentation or Re-presentment: The Second Presentment occurs when the merchant’s bank receives supporting documents from the merchant to substantiate the charge and, provided the documentation complies with Visa and MasterCard requirements, the chargeback is remedied. In some cases additional documentation may be required. If the chargeback is cleared then the merchant will be credited back the disputed amount and a letter will be sent to that affect. If the documentation does not satisfy their requirements then the merchant will receive a letter from Visa and MasterCard stating their decision and reasoning. This process can take up to 45 days.
- Second Chargeback: If the second presentment is rejected by the cardholder, the issuing bank files a second chargeback. At the time of the Second Chargeback the merchant can dispute the cardholders claim and, if necessary, escalate to Arbitration.
- Arbitration: Arbitration is the process the merchant and cardholder/issuing bank resort to when they cannot reach agreement through the chargeback process. All parties have an opportunity to present their case to a Visa and MasterCard analyst. Arbitration cases must be filed with Visa and MasterCard within 45 days of the Second Chargeback being issued. A Visa and MasterCard Arbitration form must be completed, along with a description of the grievance, and copies of all documentation submitted during the chargeback process. The losing party could be liable for fines of up to $500.00. Additionally, there is a Filing fee of $150.00 and a Review fee of $250.00 paid by the losing party (fees subject to verification). Either party can be assessed a $100.00 fine for each technical violation against the opposing party.
If you end up in Arbitration, there are several criteria the arbitrator will consider. Split decisions happen when one party offers a reasonable compromise or solution to the disputed charges. Merchants usually get an unfavorable ruling if:
- The merchant fails to address the issues raised by the cardholder
- The merchant fails to sufficiently prove that the dispute was unreasonable
- The merchant fails to present sufficient documentation to support their case
offers numerous tools to help prevent and manage chargbacks. If you would like more information please don't hessitate to call out friendly staff at (800)917-8026
Credit and debit card processing for businesses is almost a necessity for today's payment transactions. A venue without credit card processing is guaranteed not to get as much business as a competitor allowing this method of payment. Utilizing credit card processing will make payment much simpler, more efficient and more convienent for customers.
How Credit Card Processing Can Speed Things Up
There are several stages of credit card processing. The order in which the transaction is processed changes depending on the card issuer, easing the transaction itself while guaranteeing quick payment:
- The first stage is authorization. This is performed quickly through any credit card processor and determines whether the card is approved or declined for the purchase.
- The card is then authenticated by the banks using Card Security Codes and address verification and a PIN number in order to prevent fraud.
- Capturing will occur just before settlement, when transaction data is collected and sorted out.
- Next the transaction is cleared and settled, when the card issuer and the processing bank complete a payment transaction by sharing the transaction information and depost the transaction funds into the businessess account.
As a business, the only requirement is selecting a credit card processor that meets your business needs and works with either PIN-based or signature-based methods of card acceptance. PIN-based card acceptance is a more secure than PIN-less, it also costs about the same. As a merchant, learning how to handle credit cards is as easy as a 15 minutes conversation with a respectable processing firm.
Most of the major credit card companies' payment transactions are pretty much the same, though the transaction cycle itself may vary. Possessing a credit and debit card processor should speed your payment process up and save the consumers time during transactions as well. Along with swiftness of payment transactions, the minimal personalized credit card rate can also be available for every purchase using a trustworthy interchange-plus system. This can help to lower the price of processing in the end.
The right processing provider will ensure that a merchant account is created and that the business can initiate credit and debit card processing. Once this is done, payment transactions should be easier than ever.
Improve your business function with an electronic payment system
In today’s constantly changing times, it is important for any company to be able to stay afoot. When it comes to paying for services, cash or check had been the only way to pay for years. Now there are credit cards and debits cards so no one really uses anything but. A company should naturally find a way to appease these customers so that they will be willing to come back.
A step in the right direction would be to set up an electronic payment system. How will this help say a small business owner? Simply put if you are a small to medium sized business owner than this would help you tremendously. Instead of only being to help those customers who actually step foot in your shop, you can reach anyone worldwide. Here are a couple examples of this:
- You can advertise online and receive your payment electronically
- You can have someone place an order over the phone
- Like always, your customers can come in to the store and have more abundant payment options.
An electronic payment system allows your business to expand its react. By utilizing the benefits of the internet you can easily and cheaply expand your target market and appeal to a wider clientele. It will also make networking and advertising an easier sell as well.
Additional benefits of an electronic payment system include:
- Easy accounting: all your transactions will be stored electronically.
- Security: all of your customers data is encrypted and stored off-site.
- Convenience: most customers expect the convenience of multiple payment options