Process of electronically authorizing, capturing, and settling a credit card transaction.

A strip of magnetic tape affixed to the back of credit cards containing identifying data such as account number and cardholder name.

A batch close that the merchant initiated. 

A business that accepts credit cards.

The rejection of a sales draft by Visa or MasterCard before a transaction runs through Interchange, but after it has been paid by the acquirer.

This number is generated by a processor/acquirer and is specific to each individual merchant location. This number is used to identify the merchant during the processing of daily transactions, rejects, adjustments, chargebacks, end-of-month processing fees, etc.

A technology and payment method designed to limit fraud by using embedded computer chips on credit and debit cards. Businesses not using point-of-sale systems accepting EMV cards may become liable for certain fraudulent card transactions.

Private label credit cards are designed mainly for repairs, maintenance, and fueling of business vehicles.

The footer is the text printed at the bottom of a sales draft. A merchant can customize the footer (e.g., “Have a Nice Day,” “No Refunds,” “Thank You for Shopping With Us,” etc.).

Many of the hidden credit card processing fees are difficult to detect without detailed analysis, which often overwhelms most merchants. However, this particular hidden fee is easier to highlight. It involves a bit of math, but nothing too complex.”

Divide the “Processing Fees” charged to the merchant $1,559.41 by the “Amount of Net Sales” $326,194.08 and you get .48%. However, when you look at the “Discount Rate,” it shows .35% not 48%.

The credit card processor shows the 35% (which is already six times more than any merchant should ever pay for a discount rate) and hides the extra 13%. This one is not only hidden, it’s deceptive.

As seen on

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