JNS Consulting

Listed below are frequently asked questions dealing with merchant accounts and payment processing. If you have a question that is not listed below, please contact us.

• Can I use someone else's merchant account to do my transactions?

No, this practice is known as "credit card laundering" or "factoring." It is against the Visa® and MasterCard® agreement. Using someone else's merchant account to process your credit card transactions can lead to heavy fines and perhaps more. In addition, you'll also put that merchant's credit card processing account in jeopardy.

• What is a merchant account?

A merchant account is an account at a financial institution that allows you to accept credit cards. You can acquire a merchant account by JNS Consulting and we will help you may decide which of any number of Merchant Account Providers can best assist your business.

• Why are rates higher for Internet, Mail and Telephone Order transactions?

A face-to-face transaction where the credit card is swiped is considered less risky by banks. Since this is the case, rates are quite a bit lower as the instances of fraud and charge backs are a lot less. (See article: Understanding Rates)

• How long does it take to get setup with credit card processing?

The turnaround time can vary from company to company; however JNS Consulting works with companies that take as little as 24 hours to 4 days. Very high volume and International merchant accounts seem to take the longest. By allowing you to fax applications and information JNS Consulting can usually have you up and running in a few days.

• When are funds usually placed into my business checking account?

The typical time period is 2 to 3 business days.

• What kinds of credit card processing solutions are available?

There are a wide range of solutions for all types of businesses. Swipe terminals for retail merchants; real-time processing for Internet sites; PC software for mail order/phone order and Internet businesses; touch-tone processing for low volume, seasonal and mobile merchants; and virtual terminals for Internet, mail and telephone order businesses. Each has their own pros and cons, ask your consultant which is best for your business.

• What are chargeback’s?

A chargeback is what it's called when a transaction is reversed. In other words, rather than adding money to your account it is deducted. Chargeback’s can occur for a wide variety of reasons, such as double-charging, credit card expiration, bank error and customer disputes.

• What kind of transaction reporting is available?

Most merchant account companies will provide you a paper statement at the end of the month. Some companies can even offer detailed online reporting.

· I have a credit card swipe terminal from a previous merchant account, is it compatible other companies?

Probably. You will certainly need to have it reprogrammed to work with your new merchant account. There are some companies that only work with certain terminals, be sure to talk to your consultant during your initial consultation.

• What is a monthly minimum fee?

This processing fee is collected by your transaction and discount rate fees from your credit card sales each month. So, for instance, say your merchant account company charges $25 as a monthly minimum, if the transaction and discount rate fees collected by the processing company add up and equal or go over $25 that month, no monthly minimum will be charged. However, if the fees for that month do not meet the $25 monthly minimum, you will then be charged the difference. You can avoid this fee in many cases.

• What is a discount rate?

Discount rates are basically a percentage that is taken from the charge that is being processed. For example, if your discount rate is 2.35% and you have an order for $100, the discount rate being deducted would be $2.35.

Well it has been a little bit of a frustrating road and I have finally gotten this website up and running. I know there are still some fixes that need to be put into place but with time, this shall be the one-stop information center for all of your merchant needs.

Remember we are always looking for merchant consultants to partner up as an independent contractor for one of our partner companies. If you're interested you can find more information under the "Employment" tab.

For those of you who are new to the credit card and merchant account industry I would like to give you a little insight on how the credit card process works.

1. The merchant will slide the customer's card through the credit card terminal and enter the amount. The terminal will then dial a toll free number and connect to the processor for authorization. Once the terminal has connected it will send the credit card information and amount of the purchase.

2. The processor will pass that information to the bank that issued the credit card. The issuing bank will then check to see if the card is valid and if the amount requested is available on the card and set aside the amount of the purchase for the merchant.

3. The issuing bank will send either an approval number or a decline message back to the processor.

4. That information will then be passed back to the credit card terminal which will print a receipt for the customer to sign if the card is approved. It will take approximately 12-15 seconds to complete steps 1-4.

5. At the end of the day the merchant may manually "settle" their terminal which will begin the final process of the transaction. In most cases the processor can be set to settle all transactions at a specified time each day. Once the settlement process is initiated the funds will be transferred from the card issuing bank and will electronically deposit them into the merchant's checking account. It typically takes 2 business days from the time of the original transaction for the funds to reach the merchant's checking account.