Credit Card Processing Common Asked Questions

Merchant Service Common Questions-GDpay
  • What is IIAS?
    The Inventory Information Approval System, or IIAS, is a point-of-sale technology used by retailers that accept FSA debt cards, which are issued for use with medical flexible spending accounts (FSAs), health reimbursement accounts (HRSs), and some health savings accounts (HSAs) in the United States.
    By the end of 2007, all grocery stores, discount stores, and online pharmacies that accept FSA debit cards must have an IIAS.
    show all, IISA
  • What does EIRF stand for?
    Electronic Interchange Reimbursement Fee.  This happens when a merchant doesn't batch within 48 hours or doesn't enter AVS on a retail account.
    show all, EIRF
  • What are the retrieval codes for Visa & MasterCard?
    MasterCard Retrieval Codes

    21-  Customer does not recognize transaction
    23-  T&E - Invalid Transaction
    41-  Legal or fraud analysis
    42-  Potential chargeback/Compliance doc
    99-  Request for Media (Default)

    VISA Retrieval Codes

    28-  Request for copy bearing signature
    29-  Request for T&E document
    30-  Request due to cardholder inquiry
    33-  Request for legal process or fraud analysis
    34-  Repeat request
    99-  Request for media (default)
    show all, retrieval
  • Do I need to sign a Personal Guarantee when setting up my merchant account?
    When applying for a merchant account a personal guarantee can be required. A personal guarantee means that if the business cannot fulfill its obligations to the processing bank then the processing bank can legally pursue the guarantor to fulfill those obligations. This means if your business owes the processor money and it cannot pay then the bank can come after the guarantor seeking those funds.  The reason why the processing bank does this is because of the high risk they are exposed to due to the nature of their business. The processing bank can be on the hook for a large sums of money. Naturally they wish to protect themselves as best they can.

    There are other options to work around a personal guarantee. They are listed below:

    -Financial records 

    -Tax returns 
    -Letter of Credit
    -A Reserve or a funding delay may be required

    In all cases, it is easier to get the application through the approval cycle when the Personal Guarantee is signed by the merchant. For some types of businesses a personal guarantee is not necessary (Non Profits, Corporation owned, etc)
    show all, personal guarantee
  • What is a Chargeback/Retrieval fee?
    Chargeback and Retrieval fees take place when a customer or client disputes a credit card transaction. The customer may not recognize the charge or remember the transaction or service or product may have not been delivered. Also the transaction could be a fraudulent and merchant usually neede to supply documentation to support the transaction. 
    show all, chargeback,retrieval
  • What is the difference between Interchange Plus and Tiered Pricing?
    This topic is discussed at length. Learn more about merchant accounts
    show all, interchange plus, tiered pricing
  • Should I lease my credit card equipment?
    You need to ask the question, how much does the terminal cost to buy? In today's very competitive business environment, terminals can be purchase at a fraction of the cost of leasing them.
    show all, credit card, equipment
  • What do I do if I think there is a fraudulent transaction?
    You may need to call the card issuing bank from the back of the credit card being used and call them yourself to verify the transaction. Make sure that the AVS, CVV2 code match when obtaining a authorization code along with the expiration date of the credit card.
    show all, fraudulent, transaction
  • What is PCI?
    The Payment Card Industry Data Security Standard (PCI DSS) is a set of requirements designed to ensure that all companies that process, store or transmit credit card information maintain a secure environment.
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  • What is a Cross Border fee?
    Visa and MasterCard charge a cross border transaction fee even when no currency conversion occurs. The fee applies when a customer makes a purchase at a foreign country merchant. The fee is applied when the issuing bank of the customer is located in a different region than the merchant account of the seller. When the Issuer and Acquirer are in the same region then no cross border fee will be applied.
    show all, cross border
  • What is a chargeback and how can I protect against them?
    A chargeback is when a customer reverses an order they made and then gets their money back from you as the merchant. There are 4 reason codes for chargebacks – Technical, Clerical, Quality or Fraud. Card present merchants can protect themselves by making sure the credit card transaction has been swiped with the customer signature (Verify the signature on the sales slip and the back of the credit card) and approved authorization code. To take it a step further you could ask to see a valid driver license. For Card not Present merchants you will need the complete credit card number along with the AVS (Address Verification) and CVV2 code from the credit card and obtain the authorization code.
    show all, chargeback
  • What is a Visa APF (Acquiring Processing Fee)?
    The APF applies to all U.S. acquired authorizations on all Visa branded cards. The fee applies to all authorizations even if it is not used for a subsequent transaction.
    show all, APF, acquiring Processing fee
  • What is a Visa Zero $ Account Verification (also referred to as $0.00 auth)?
    Visa requires an authorization only to be completed in support of a specific transaction and expects a one ‐to‐one relationship between an authorization and a transaction. Visa Zero $ Account Verification requests are submitted to validate a cardholder account. The Visa Zero $ Account Verification is not an authorization, but instead confirms the cardholder account.
    show all, Visa Zero Auth
  • What is a Visa Misuse fee?
    The Visa Misuse Fee is assessed when an authorization is not utilized in a timely manner or is not reversed based on Visa standards. If an authorization will not be used for a transaction, card present merchants must complete an authorization reversal within 24 hours. Card not present merchants must complete a reversal within 72 hours.
    show all, visa misuse fee
  • What is a Visa Risk Identification Service (RIS)
    The Visa RIS fee is assessed to all Visa transactions by Visa to perform risk management at a transaction level.
    show all, visa (RIS)
  • What is a Visa International Acquiring Fee (IAF) (also referred internally to as Cross‐border Fees)?
    The IAF is a Visa US fee that applies to all U.S. acquired purchase transactions on non‐U.S. issued cards.
    show all, visa (IAF), cross boarder fee
  • What is a Visa Zero Floor Limit/Misuse of Authorization?
    The Visa Zero Floor Limit fee is assessed when a clearing record cannot be matched to an approved or partially approved authorization. A Misuse Fee is applied if a transaction is not cleared within 10 days of authorization for all MCCs with the exception of T&E (travel and entertainment) segments. For T&E MCCs, the transaction must be cleared within 20 days of authorization, regardless of actual transaction date.
    show all, zero floor limit, miseuse auth
  • What is a Partial Authorization Non‐Participation Fee (PANPF)?
    The Visa PANPF applies to any Automated Fuel Dispenser (AFD), MCC 5542, transaction that does not support partial authorizations. Although Visa encourages all merchant segments to support partial authorization support, the PANPF only applies to AFD transactions.
    show all, partial auth, PANPF
  • What is a Fixed Acquirer Network Fee (FANF)
    Visa charges each merchant a fixed monthly cost to accept Visa cards.  The fee is based on Card-Present or Card-Not-Present. The fee is based on volume and number of merchant locations. Please see FANF pricing.
    show all, fixed acquirer netowrk fee, FANF

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