Best Practices for Your New Merchant Account – Online and Non-Card Present Merchants Guide

As an online business owner, maintaining your merchant account's stability is crucial to ensure smooth payment processing and avoid potential issues. Nationwide Payment Systems has created this guide to help you keep your account, avoid mistakes, and prevent fraud. Here's what you need to know.

Avoid Excessive Declines

Running a declined card more than twice can result in fines from VISA and Mastercard, as it's considered a card brand violation. Multiple declines can also trigger your credit card processor's risk system, which may place your account on hold and delay fund transfers to your bank. To avoid this, monitor your declines, and if there are recurring issues, contact your agent to review your fraud settings. This can also result in your customer's cards being frozen by their bank.

Don't Split Transactions on the Same Card

It's essential to process the full transaction amount at once. For instance, if you have a $7,000 sale, you cannot split it into two separate transactions on the same card. ($3000 and $4000) Doing so could be flagged as suspicious and lead to complications with your processor. Always charge the total amount or contact your agent for guidance if needed. This type of activity will trigger a chargeback!

Stay Within Transaction Limits

Each merchant account has defined transaction limits. Contact your agent beforehand if you need to process a payment that exceeds these limits. You'll need to provide a copy of the invoice and transaction details to ensure the risk management department can review it, helping you avoid having funds held.

Beware of Pre-Paid or Gift Card Transactions

If someone tries to use pre-paid or gift cards on your website or your business, be cautious—this is often a sign of fraud. Pre-paid cards can be challenging to track, and fraudsters use them to bypass standard fraud detection systems. Stay vigilant to protect your business.

Shipping

Never ship to UPS Stores, Mail-Box Stores, or addresses that look suspect. If you get an order that looks strange, it is always better to call the potential customer and verify their information. Shipping to an address like that can result in a chargeback that you can't win.

Handle Chargebacks Promptly

Chargebacks can be a headache for any business. Failing to respond to chargebacks quickly can result in funding delays or even account termination. Every e-commerce merchant should have a chargeback program to handle disputes effectively. If you need assistance, our team at Nationwide Payment Systems is here to help you set up and manage your chargeback program.

Keep Detailed Transaction Records

Keeping records of every transaction is crucial, especially for larger sales or Mail Order/Telephone Order (MOTO) and e-commerce transactions: store invoices, contracts, or receipts for future reference. In addition, gather the customer's contact information, such as phone number, email, and shipping address, and ensure you accurately document the services or products involved in the transaction.

Use Your Account Regularly

If you don't plan to use your merchant account for an extended period (a month or more), notify your agent to avoid potential issues with the underwriting department. Inactivity can sometimes trigger unnecessary reviews, so it's best to stay ahead of any problems.

Questions? Contact Your Agent

Feel free to call your agent if you need clarification or have questions regarding your merchant account. They can guide and help you resolve any concerns before they become more significant.

PCI Compliance is a Must

Staying PCI compliant is essential for protecting your business and customer data. Make sure you complete the PCI compliance Self-Assessment Questionnaire (SAQ) using the link provided by your processor. If you need help, there's always a support number available to guide you through the process.

Essential Information to Have on Hand:

Your Merchant Number

Your Agent's Name, Phone Number, and Email

24-Hour Help Desk Contact Information

By following these best practices, you'll reduce the risk of fraud, protect your business, and ensure your merchant account stays in good standing. If you need further assistance, feel free to contact Nationwide Payment Systems. We're here to support your success!

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FAQ: Best Practices For Your New Merchant Account

What should I do if a card is declined multiple times?

Running a declined card more than twice can result in fines and trigger your credit card processor's risk system. Monitor your declines, and contact your agent at Nationwide Payment Systems to review your fraud settings if recurring issues arise.

Can I split a large transaction into smaller amounts on the same card?

No, splitting a large transaction into smaller amounts on the same card can be flagged as suspicious and lead to complications. Always process the full transaction amount or contact your Nationwide Payment Systems agent for guidance.

What should I do if I need to process a payment that exceeds my transaction limit?

Contact your Nationwide Payment Systems agent beforehand and provide a copy of the invoice and transaction details to ensure the risk management department can review it and avoid having funds held.

Are pre-paid or gift card transactions safe?

Be cautious with pre-paid or gift card transactions, as they are often signs of fraud. Pre-paid cards can be challenging to track, and fraudsters use them to bypass standard fraud detection systems. Nationwide Payment Systems can help you stay vigilant.

Where should I ship orders to avoid potential chargebacks?

Respond to chargebacks promptly to avoid funding delays or account termination. Every e-commerce merchant should have a chargeback program to handle disputes effectively. Nationwide Payment Systems offers assistance in setting up and managing your chargeback program.

How can merchants prevent chargebacks?

Merchants can prevent chargebacks by using chargeback services, monitoring chargeback alerts, providing excellent customer service, and setting up fraud prevention tools. Keeping chargebacks low helps maintain a good relationship with payment processors and ensures the merchant account remains open. Nationwide Payment Systems offers expert advice and tools to help merchants reduce chargebacks.

How do I stay PCI compliant?

Complete the PCI compliance Self-Assessment Questionnaire (SAQ) using the link provided by your processor. If you need help, Nationwide Payment Systems offers support through their provided contact number.

What records should I keep for transactions?

Keep records of every transaction, especially for larger sales or Mail Order/Telephone Order (MOTO) and e-commerce transactions. Store invoices, contracts, receipts, and the customer's contact information. Nationwide Payment Systems can provide guidance on record-keeping.