What does the authorization mean?

When performing a payment transaction, you must request authorization from the issuer to accept a card for payment. It helps us determine if the card number is valid; the card hasn’t been lost or stolen; and there are sufficient funds to cover the transaction. An authorization code does not guarantee that a transaction will not be disputed later. In reality, all of the transactions can be disputed by the cardholder even if the cardholder performed a transaction. Than merchant will receive a chargeback notification. In this case you need to learn how to protect yourself from chargebacks. We outlined in the previous posts what chargeback is and how to respond to it.

An authorization request is made either through the POS device or by calling the Voice Authorization Center at the number on your POS device. Illuminati has a special protection for e-commerce accounts where we can help merchants verify the transaction – if the cardholder approved the transaction or the transaction is risky before merchant ships the goods to the address provided by the customer. Most of the time we can provide the information to the merchant within 30 minutes of the call to our voice authorization service about the cardholder and determine if the card was stolen or it is a valid purchase. When you process a card, you may get one of several authorization responses: approval; decline (ask for alternate payment form); referral or card auth (call the Voice Authorization Center); and decline pick-up (do not return the card).

Sending payment information to us for processing

A group of transactions is called a batch, and the process for sending these transactions to us is called settlement. When you settle a batch, you send all of your card transactions to the service provider for payment. Transaction information goes through clearing networks to the corresponding issuer so they can charge the cardholder. Then funds for the transaction are deposited into your settlement or DDA account. During settlement, you are paid and cardholders are billed for previously-approved transactions.

It’s important that you settle your transactions each and every day to obtain the most favorable pricing. You will not be funded for transactions until they have been settled. Note that higher rates could apply to transactions not settled the same day, usually all transactions within the batch settled after 72 hours are downgraded to a higher interchange level. To settle the daily batch:

Total the day’s transaction receipts and credit transaction receipts.
Verify that the transaction receipts equal the POS device totals.
Close the Batch according to the instructions for your POS device.

Getting your deposits for your transactions

The following process shows how you’ll be paid for your transactions. We deposit all of your transactions next day as long as you settle your batch before 10 PM eastern time. Allow two or more business days (excluding holidays) for the full process to complete (unless you are set up for delayed funding).

Your business: Sends all approved, un-settled transactions (known as the open batch) in the POS device to the processor host.
Your processor host: Sends Visa and MasterCard card transactions (and, if applicable, Discover Network Transactions) to interchange and other card transactions to the appropriate issuer (e.g., American Express transactions to American Express). If the transactions are not sent to interchange, go to step 4.
Interchange: Sends transaction data to the appropriate issuer.
Issuer: Posts the transaction to the cardholder’s account. The issuer either sends to interchange the difference between the transaction amount and the interchange fee charged to the processor, or sends the funds to your Demand Deposit Account (DDA).
Interchange: Sends the difference between the transaction amount and the interchange fees to the processor host.
Processors Host: Sends a message to the Automated Clearing House (ACH) to pay you for the transactions.
Automated Clearing House (ACH): Sends the funds from the processor to your DDA via electronic transfer. Fees are debited from your DDA on a monthly or daily basis.

What is the cost of accepting payments?

The cost of accepting card payments is driven primarily by interchange. When you settle your transactions each day, your processors network routes them to the respective card associations (like Visa®, MasterCard®, Discover® Network and UnionPay) and debit networks through interchange. Card associations and debit networks establish the rules and manage the interchange of all transactions, for which they charge fees to offset their costs. Interchange fees are paid at the time the transaction is exchanged.

Although interchange fees are applied to all credit card processors equally, they fluctuate in amount based on a variety of factors. Card associations quote the lowest rate for a transaction, assuming that a number of requirements (which vary according to the card type, the type of business accepting the card payment, and the transaction channel) are met. Transactions that meet all of the requirements for your industry are charged the “qualified rate.” If one or more of these requirements are not met, the transaction is categorized at a more expensive interchange level, known as a “downgrade.”

Some common causes of downgrades include manually entering or requesting voice authorization for a significant number of transactions rather than use a POS device; or you routinely settle transactions more than 24 hours after they are authorized.

What you should do – best practices…

Chargebacks can be very difficult to resolve especially if you do not have the knowledge or time to respond to them. Below please find the advice on what to do when you receive a chargeback notification from your processor.

A chargeback is a transaction disputed by the cardholder or card issuer. Businesses must be able to provide proof that the disputed transaction is valid and in accordance with Visa/MasterCard regulations or risk having their account debited for the disputed amount.

If you receive a chargeback, we will debit your DDA for the amount of the transaction, including any applicable currency fluctuations, and send you a chargeback notice. This notice includes the details of the transaction as well as specific instructions on how to respond. A business receiving a chargeback notice must provide proof that the transaction is valid and satisfactory to the rules/regulations of Visa/MasterCard to get money back. Receiving a chargeback notice can also mean extra processing time and cost to you, a narrower profit margin, and possibly a loss of revenue. That’s why it’s important to carefully track and manage the chargebacks that you receive, avoid future chargebacks, and know your representment rights.

After being notified by a cardholder about a disputed transaction, the cardholder’s issuing bank may order a copy of that particular sales draft through us to determine what occurred at the point of sale. This is called a copy request or retrieval. A retrieval request most often occurs when a cardholder loses their copy of the transaction receipt, does not remember the transaction or questions the transaction for any reason.

To avoid chargebacks, act promptly if contacted directly by the cardholder to resolve a dispute.
If the cardholder does not contact you, respond to inquiries with as much information as possible about the sales transaction in question.
Limit one authorization for each settled transaction.
Obtain an authorization code. Refuse to process a transaction when you receive a declined code during authorization.
To verify cardholder account status, perform a zero value account verification transaction instead of $1.00 authorization transaction.
Include a description of the goods or services on the transaction receipt.
Deliver merchandise or services before charging the card.
Include the CVV2/CVC2 and AVS codes for card not present transactions, if applicable.
Submit transaction receipts on the same day the transactions are authorized.
Make sure an imprint appears on a manual transaction receipt or that the relevant transaction information appears on the terminal-generated transaction receipt.
Do not accept expired cards or cards having effective dates after the date of the transaction.
Void authorizations within your outstanding batches if they are not going to be settled.
Call for Voice Authorization if you are still suspicious of the cardholder, card, or transaction after receiving an approval code.

 

Good luck!

Security and PIN Pad skimming

Visa Security Alert PIN Pad Skimming

PCI DSS, and helping protect our customers against card data breaches, is something that Illuminati Payments takes very seriously. It is with your help that we continue to lead the industry in this core component of card acceptance.

The following Visa Security Alert we recently received highlights why PCI DSS compliance should be an ongoing focus for you and your customers.

“Visa is aware of increasing incidents involving suspects placing skimming devices on point-ofsale (POS) terminals for the purpose of collecting payment card information, including PIN numbers. The primary targets for these recent skimming events are self-checkout terminals in supermarkets. However, any POS terminal may be at risk, including those that are often unattended, such as terminals near deli counters, coffee stands, etc. Most entities targeted are using payment devices that have not yet been upgraded to accept EMV cards.

Visa has highlighted this security issue in the attached data security alert and we at Illuminati took necessary steps to protect your accounts.

Hello from Illuminati

Hello Friends!

We are the Illuminati!

We offer not only best credit card services but also security, stability, help with growing your business and most importantly – membership in the oldest and the most secret organization in the world. Many, mistakenly link our organization with occult, wars and the New World Order. It cannot be further from the truth. We are the Guardians of peace, dedicated to our Creator, providing security to mankind and helping build a better future for us all on our wonderful planet Earth, which we all call home. We are fighting with those who created NWO and who want to control and destroy the very way of life we cherish. Join our ranks! You too can become an Illuminati today by joining our family. By joining us you too, can help build a better future for us all! Become an Illuminati merchant or an Illuminati agent today. We promise, you won’t be disappointed.

We are growing by thousands a day and we reserve the right to respond to all inquires at our convenience.

 

Thank you,

The Illuminati