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Third party credit card processing | Allowed or Not?

Posted by Alex Neir on Wed, January 11, 2012 @ 11:21 AM
Third Party Credit Card Processing

Does your business outsource customer service to a call center? Would you like the outsourced call center to be able to accept credit card payments from customers they are assisting? This can present some confusion as the privilege to accept credit card payments is reserved specifically for the company that has been underwritten and approved for the account.  

When a business applies for a credit card processing account it is required that the business indicate what the account will be used for. The business must explain the products and service sold, the average ticket, high ticket and monthly volume that will be transacted with the account. This information, along with business financials and history will be used to determine if the account is accepted or not.

Once approved the business is permitted to use the account to transact credit card payments within the parameters indicated on the application.

So, what rules apply to a third party employed by the business that has been approved for the account?

Some providers have specific policies with regard to third party transactions and do not allow them.  However, this is a very common practice and is not a violation of Visa/Master Card guidelines. Third parties that are granted permission to process on an approved merchant account must adhere to the rules outlined in the merchant services contract. Any violation of the terms and conditions of the merchant account contract become the liability of the business approved for the account. Violations can result in the business being included on the TMF (Terminated Merchant File) so it is very important to make sure that any third party that is granted access to the account understand the terms of the contract.

For more information on the specifics facing your business please don’t hesitate to call. (800)917-8026

Tags: Third party credit card processing, Merchant Account Education, Credit Card Processing Solutions