Initiatives offered by POS systems, exchanges

You probably occasionally get asked to use a processor that these POS systems, exchanges recommend. “Approved” processor means that they are getting a kickback of usually 35% or so on the monthly residuals paid on your merchant account. I have been getting quite a few of these accounts moving to me because of

-“discounts & incentives” offered by the POS systems, exchanges are added back to th processing fees so in effect there are no savings or incentives

-the “recommended” processors raise rates with no notice to merchants

-once your volume increases they are holding reserves without giving a date of when the reserves will be returned which is against MC/Visa/Discover/Amex regs

-they are using smaller acquiring banks that can’t handle large volume or address chargebacks properly. Only Matrix has been servicing ticketbrokers for over 10 years & we setup our acquiring banks very carefully to accept & properly service the ticketbroker industry.

 

Misconceptions about MC 3D Secure & Visa Verify

These programs are setup for the benefit of the cardholder not the merchant. When the cardholder enters an eCommerce website to purchase they are given an option of filling out the form. If they don’t they can still complete the checkout process. Also at this point only a small percentage of issuing banks are enrolled. For unenrolled cards, the first person to use the card online gets to set the password. Identity thieves often know a victim’s date of birth or last digits of a social security number required for activation with the issuing bank. Cyberthieves are also well aware how easy it is to reset a 3D Secure password. Perhaps worst of all promises by MC/Visa to insure merchants against “friendly fraud” where the caroler receives the merchandise and wants to back out are being kicked back to the merchant through loopholes in the policies & procedures.

sample of online optional forms below