“Rates” Posts

Why We Care About Ethical Credit Card Processing

Why We Care About Ethical Credit Card Processing

Read enough about PayJunction’s company culture, and it’s clear we prioritize long-term relationships over short-term profit. That’s not just a nice-sounding statement, it’s what we practice every day with our customers. Since we launched our blog, we’ve largely focused on unethical billing issues. These are the unfortunate, but all-too-common, ways players in the payments space unfairly profit off their customers. Because everyone does it, there’s an assumption among providers that it’s OK. Business owners are left to believe they can’t escape fake fees and hidden markups because they’re the norm. Complex…

How Refunds Impact Credit Card Processing Fees

How Refunds Impact Credit Card Processing Fees

Unless you have a no-returns policy, refunds are unavoidable. Even if your goods are in pristine condition, a change of heart can be enough to reverse a purchase decision. That said, refunds aren’t great for businesses. They represent more than a lost sale; they result in additional credit card processing fees. There are a few reasons for this (some are ethical; others not so much), but luckily you can sometimes bypass the unpleasant processing fees related to refunds altogether. Credit Card Processing Steps Numerous parties facilitate each credit card transaction, but the ability to void instead of refund a…

AVS Downgrades Increase Your Fees

AVS Downgrades Increase Your Fees

Address Verification System (AVS) is a common fraud-prevention measure for card-not-present transactions. AVS checks that the purchaser is in fact the cardholder by requesting the address and ZIP code for the card and comparing it to the bank’s records. Presumably, a fraudster would not know this information and would be prevented from making an e-commerce or over-the-phone purchase. Beyond catching fraudsters, AVS affects your processing rates too. Why is this the case? The card brands try to account for risk and reward when it comes to processing rates. If either one goes up, so do your rates. By not…

MasterCard Announces New Merchant Location Fee

MasterCard Announces New Merchant Location Fee

MasterCard announced a new assessment fee that will be billed per business location that accepts its cards. MasterCard’s Merchant Location Fee will be charged to Merchant Account Providers for 2016 onward. Providers will pass the fee onto their customers (that’s you). Though this $15 fee is scheduled to be billed annually, providers may choose to bill it monthly or quarterly instead. Because the fee is determined by MasterCard, it should never exceed the set amount. If you are charged more than $15 annually for the MasterCard Merchant Location Fee, your provider is practicing unethical billing. The following information…