FAQ: PAYMENT PROCESSING INFORMATION
What is Chase Merchant Services's role in processing transactions
Chase Merchant Services is a payment processor. We enable your business to authorize and transmit transactions by virtually all types of credit and debit card, as well as gift card. We also settle the funds through the payment brands (e.g., MasterCard® and Visa®) and deposit funds to your checking account. In addition, we handle adjustments, chargeback processing, merchant billing and account activity reporting.
Can I see transaction information now, without having to wait for my statement?
Our Web-based reporting tools, like Paymentech Online and Resource Online, can provide you with up-to-date daily transaction information.
What is check verification? Do I need it?
Check verification is a risk management service that verifies the authenticity of each check and/or its presenter. eCheck transactions are verified through a third-party database that gathers information from major retailers and banks about bad checks and bank accounts that are in a negative status due to returns for insufficient funds or that have been closed. While check verification service is not required, this service does help keep your business losses to a minimum.
What are interchange fees?
Interchange fees are transaction-related costs that Chase Merchant Services pays to the issuer of the card. These fees are established by MasterCard and Visa and are based upon how a transaction takes place and in what type of industry.
As a merchant, what types of credit cards can I accept?
Chase Merchant Services allows you to accept MasterCard, Visa, American Express®, Discover®, Diners Club®/Carte Blanche® and JCB cards. Although we can support all credit card types, we only have the ability to directly fund merchants for MasterCard, Visa, Diners Club/Carte Blanche and JCB. When processing occurs, each transaction must be authorized, the data must be captured and settlement/funding made back to the merchant.
What are debit cards?
Debit cards are another payment method. When goods or services are purchased with a debit card, the funds are removed from the customer's checking account. In addition to standard ATM cards, many banks also issue Visa® Check Cards and/or MasterCard® Check Cards - both of which can be used at the point of sale or online.
What are the major types of debit card transactions?
Debit card transactions can be accomplished through PIN debit (requires the consumer to enter a PIN), signature debit (no PIN required), online bill payment and online debit. Debit card transactions are the fastest growing point-of-sale payment method today. The acceptance of this payment method continues to remain popular because customers and merchants both appreciate the convenience and ease of using debit cards to purchase merchandise and services.
What is the difference between PIN debit and signature debit?
The difference between these two debit choices is whether a PIN (personal identification number) is used at the point of sale. When a PIN is used, the payment is immediately withdrawn from the cardholder's available funds. When a signature debit transaction occurs, funds are not withdrawn until the transaction processes - usually 2-4 days after the sale.
What are commercial cards?
Commercial cards - corporate, business, purchasing - are issued to businesses as an alternative way of financing expenses such as supplies, business travel and entertainment, and other purchases that may have required a purchase order otherwise. These cards, often referred to as purchase cards, also provide businesses with specific reporting advantages. By using a commercial card, cardholders get itemized records of all their purchases, which simplifies reimbursement procedures and helps track expenses. This specialized reporting is possible because specific data is captured at the point of sale. MasterCard and Visa each provide issuers with the ability to issue commercial card products.
What is a private label card?
A private label card is a credit card issued under the name of a particular merchant organization. Merchants offer it as an incentive for cardholders to spend money at their businesses. Cardholders receive benefits (special discounts, deferred payment schedules, frequency points, etc.) for using the private label card instead of the more common methods of Chase Merchant Services such as Visa, MasterCard or American Express. Typically, private label cards carry the brand of the merchant issuing the card.
What is a stored value program?
A stored value program allows you to offer your customers and employees a proprietary card pre-loaded with value for future purchases. Although there are many different applications for stored value cards (Gift Card, Merchandise Return, Prepaid), they all share some common components:
- Magnetic Stripe Cards - The merchant gives a consumer an electronic stored value card in exchange for a pre-payment. Typically, the card includes a magnetic stripe, the merchant's name or logo and an account number.
- Transaction Processing - The merchant can process stored value transactions from the point of sale. These transactions are delivered toChase Merchant Services's authorization system for processing in real time. Account balances are maintained for all cards within our system.
- Merchant Reporting – The merchant receives reporting that provides information about the transactions processed during a period of time and the outstanding balances of their cards.
What is Electronic Benefits Transfer (EBT)?
EBT is the automation of cash or cash-like benefits through electronic authorization, data capture and settlement processes. This is accomplished with the use of plastic, magnetic-striped cards at the point-of-sale. The end result is the elimination of coupon benefits distribution. The electronic process results in increased security, thereby reducing fraud and benefit misuse.
What is Electronic Check Processing (ECP)?
ECP is a transaction via ACH (Automated Clearing House) or facsimile draft sent by a merchant to directly debit or credit a customer's checking or savings account. ECP processing is often used for recurring payments, such as monthly membership fees, and is available in the United States and Canada.