The communications link (The core of the entire system) is completely proprietary. The Web Processing transaction servers use this multi-threaded, robust communications link to provide authorizations and funds capture in less than 5 seconds (average) per transaction.

Once a transaction is successfully authorized the merchant (or the merchant's web site in the case of Web Link) is immediately notified of the successful authorization and can respond accordingly.

Authorization declines cause the Web Processing system to refuse acceptance of the payment. For Web Link, the system will prompt the customer for a different payment method in order to proceed.

Sometimes all that is needed is for the customer to correct a typing error either a wrong card number or expiration date.

Any business (a merchant) with a computer, Internet access, and a valid merchant account from a bank or merchant provider that is compatible with the FDR-Nashville credit card processing network (formerly known as the Envoy network) for both front end and back end processing can use Web Processing.

Note: Some FDR-Nashville compatible banks require separate bank approval for Internet transactions, and other bank restrictions may apply. For a referral to a good bank or merchant provider, contact us.

In addition, the Web Processing transaction system is housed in a state of the art facility where it is directly attached to multiple DS3 Internet trunks with complete redundancy, assuring the best possible uptime statistics and bandwidth available on the Internet.

The entire Web Processing complex is housed in a state of the art facility with excellent physical security conditions and power backup.

On the front end (data received from the Internet on the Web Processing transaction server), data transport encryption is currently RSA certified 40 bit encryption using Secure Socket Layer v2.0 at the very least. 128 bit encryption is also available for merchant's requiring it.

The system is designed to support the future trends in electronic commerce security, including SET and Open Financial Exchange (OFX), as these technologies come to full fruition.

On the bank end, (the link between the Web Processing servers and the credit card network), the communications link is a dedicated point to point private connection, not accessible through the Internet at all.

Because the Web Processing system can be utilized without the need for separate software or programming on the part of the merchant, it can be used with any computer operating system where access to the Internet and the use of an Internet browser software is possible.

For Web Link, the system is compatible with any web site that can be accessed on the Internet, regardless of the type of web server that the web site is hosted on.

This section is provided for information purposes only.

Web Processing is separate from your merchant account. The terms and conditions of your merchant account are between you and your bank or merchant provider, and should be consulted for specific information related to your merchant agreement with your bank or merchant provider.

A merchant account is required to accept credit cards using Web Processing. A merchant account is a special account with a bank that is a member of the Visa and MasterCard associations.

Such a bank has been certified by Visa and MasterCard associations and can provide you, the merchant, with all of the services related to your merchant account. Once your merchant account is setup and "live" on the credit card system, you can accept credit cards from customers generally as follows:

A customer presents their credit card for payment:

Using their credit card number, you submit an electronic request to the processing network for "authorization to capture funds" from the card holder's credit card account in the amount of the purchase. You submit this request either by swiping their credit card through an electronic transaction terminal provided by the bank, or by keying the number into your computer. In order to use a computer for this purpose, you must have a modem installed in the computer and special software, such as Web Processing or PC processing software, on the computer.

The processing network immediately receives your electronic request and determines if the cardholder's account is valid and if the funds are available. If they are, the processing network returns an electronic response to your terminal or computer. This response is called an "authorization code", and is your guaranteed authorization to capture the funds. Typically, this code is a six-digit number. The transaction and its associated authorization are stored in a "batch", where other transactions for that day reside.

You print a receipt for the customer using the electronic terminal or your computer and the customer signs the receipt. As far as the customer is concerned, the transaction is complete. As far as you the merchant is concerned, there is one more step to complete the transaction.

At the end of your business day (usually), you submit a final request to the processing network to go ahead and "capture the funds" that you obtained authorizations for during the course of business that day. This is called "settlement" or "settling your batch".

This request is also submitted using the electronic terminal or your computer and software. The processing network immediately receives your response electronically and determines if the capture amounts contained in your request match the authorizations for each item. If so, the request is granted and an "Accepted" response is returned to your electronic terminal or computer. A settlement report can be printed showing the grand totals by card type (Visa, MasterCard, American Express, Discover, etc) for the settled batch. Note: any corrections to your batch must be made prior to settlement, such as voiding a transaction.

Within 48 to 72 hours (usually), the funds associated with the batch you settled are deposited electronically into your business bank account. Typically, the discount rates you pay to your merchant account provider are deducted from the deposit before it transferred to your bank account, resulting in a "net deposit" of funds.

At the end of the month, your merchant account provider will mail a statement to you, detailing the credit card activity for the month and the associated fees you have been charged for such.
Now that you understand the basics of how a credit card merchant account works, you can see the role that Web Processing has in the processing of your credit card transactions.

Using Web Processing with your credit card merchant account:

Also, because of the advances in computer technology, it is now possible for you the expand your business to the last frontier - the Internet.

In order to accept credit card payments from your Internet web site, you must link your web site to Web Link. The technical details on how this should be done are provided with your purchase.

Once your web site is linked to Web Processing, customers browsing your web site at all hours of the day can make purchases from your web site with their credit card, all done securely and with immediate authorization from the processing network.

These transactions, along with transactions that you enter directly using the Web Processing Virtual Terminal, are stored in a "batch" and "settled" just as simply as described in the previous section.

There are many more features and benefits available from the Web Processing system. Each of them is described in detail.

Understanding credit card rates and fees from your merchant provider:

All banks and merchant providers require "transaction fees" from you for accepting credit cards. Typically, these fees are broken down into 3 categories: a discount rate, a transaction fee, and monthly fees.

For the bank's purposes, a transaction is usually defined as any communication between you and the processing network. A "credit" transaction is treated the same as a regular transaction. Settling a batch is usually considered a transaction as well, as it involves communication with the processing network.

Discount Rate - This is the percentage of the total transaction amount that the bank will usually deduct prior to transferring your deposit into your bank account. Typical discount rates range from 1.75% to 5%, depending on your type of business and other factors.

A higher rate may be charged on individual transactions if the transaction doesn't conform to certain qualifications, as described by your bank or merchant provider.

For instance, accepting a "Visa Business Card" credit card may cost you 1% more than regular transactions. The reasons for these non-qualified transaction surcharges and complete details on all transaction qualifications should be discussed with your bank or merchant provider.

Address Verification (AVS) may also fall into this category when not used properly. Address Verification (AVS) is described below.

Transaction Fees - This is a flat amount that you pay for each transaction. Typical transaction fees range from 30 cents to 50 cents per transaction.

Monthly Fees - These are fees charged for other account related services, such as customer service, your monthly statement, network access fees, and minimum monthly fees.

All the fees and charges are required to be disclosed to you prior to your commitment to the merchant agreement between you and your bank or merchant provider, and are usually enumerated carefully to you in the merchant agreement itself.

While a full address would normally be considered to be the Name, Address, City, State, and Zip code for the purposes of mailing, with the AVS system only the Address (number part only) and the five or nine digit zip code are actually verified.

Currently, a match or mismatch is simply reported back to the merchant, and does NOT result in a transaction decline. It is intended to help the merchant make an informed decision at the time of purchase whether or not to accept a person's credit card.

With so many possible reasons as to why an address and zip code may not match, a merchant is not required to refuse a transaction because the AVS response was a mismatch.

With most banks and merchant providers, use of the AVS system is required in order to avoid non-qualified transaction surcharges (typically an additional 1%); accepting a transaction involving an AVS mismatch response may or may not cause a non-qualified transaction surcharge according to your merchant agreement with your bank or merchant provider.

The AVS response from the processing network comes in the form of a 2 or 3 digit code, with each digit bearing a separate meaning. Your merchant provider can explain the meaning of the different response codes.

For instance a response of "YY" would mean that "Y"es the address was a match and "Y"Es the zip code was a match.

Using Web Processing

Login to Web Processing

The Web Processing System is quite easy to use. Each merchant that uses Web Processing has a unique login ID and password which is used to gain access to the system.

Your Web Processing reseller (usually the same as your merchant account provider) will provide you with your login ID and your password once your account has been created on the system. Your Web Processing account will not be "live" (ready to process real transactions) until your merchant account is active.

To login to Web Processing, you first must have access to the Internet. If you need Internet access, contact a local Internet Service Provider (ISP), who will set your computer up to "dial in" to the Internet using your computer modem.

Once you have connected to the Internet successfully, open your Internet browser software (provided free with your Windows software or with your Internet access account). With your Internet browser open, you are ready to login to Web Processing.

If it is the first time you have logged in to Web Processing, you will be required to read and agree to the Web Processing software license and service agreement. You will then have full access to the Web Processing system, which starts with a Merchant Menu:

Each Web Processing Merchant Menu Option is described and explained in the sections below.

Web Processing Virtual Terminal - (for performing transactions)

Virtual Terminal Overview

The Virtual Terminal should be used for manual entry of transactions on the Web Processing system. Some of the reasons you might need to use Virtual Terminal are:

:: You received an order by phone, fax, or mail and need to process the transaction

:: You need to perform a credit transaction according to your own refund policy

:: You previously received a voice authorization by phone and now need to submit the transaction to be captured. (Also called a Post-Authorization)

As you can see, the Virtual Terminal allows you to do many different kinds of transactions, including credits/returns (for refunding money to a customer's credit card), authorization only, post auth/ticket only, and of course a normal authorization.

You don't need to have a web site to use Virtual Terminal. Simply login to Web Processing and choose Virtual Terminal on the Merchant Menu.

To use Virtual Terminal, simply fill in the required fields and submit the transaction by pressing the "Submit" button. You will receive an immediate response from the Web Processing system. The Virtual Terminal fields are described below:

Invoice - This is your own invoice number. The value of this field must be all numbers. The invoice number will appear on the transaction receipt that your customer receives as well as on the merchant's copy of the receipt.

Description - Enter any description you want here. The description will appear on the transaction receipt that your customer receives as well as on the merchant's copy of the receipt.

Amount - This is the transaction amount. You must include the decimal point plus 2 digits after the decimal for the cents. You may not use a negative or zero amount. The amount will appear on the transaction receipt that your customer receives as well as on the merchant's copy of the receipt.

Payment Method - Select the appropriate payment method. For your information, all Visa credit cards begin with '4', MasterCard credit cards begin with '5', American Express credit cards begin with '3', and Discover/Novus credit cards begin with '6'.

Transaction Type - For credit card transactions, choose one of four transaction types:

Normal Authorization - for regular transactions to charge a customer's credit card. The transaction will be immediately authorized and will be included in the day's settlement. This is the most common transaction type.

Authorization Only (Auth-Only)- to authorize a credit card transaction. An Auth- Only transaction is NOT settled in the day's settlement.

Use Auth-Only if you are not shipping the order right away. In that case, you want the transaction authorized so that you can make the commitments you need to make in order to prepare/ship the order to the customer.

Once the order has finally shipped (must be within 30 days of authorization), you can include the transaction in that day's settlement. See the subheading "Auth-Only Transactions" under the "Credit Card Activity" section below for details on how to settle Auth- Only transactions.

NOTE: You can also use the voice authorization network provided directly by your merchant provider to obtain an authorization code for an Auth-Only transaction. To use the voice authorization network, you use a touch tone telephone to call a special access phone number, type in the details of the transaction you want authorized, and you receive an authorization code as a response.

In this case, because you didn't use Web Processing to obtain the authorization for the Auth-Only transaction, you must SAVE the authorization code in order to finish the transaction later when the order is shipped to the customer. See Post Auth/Ticket Only below.

Credit/Return - to issue a credit (refund) back to a customer. Always issue credits to the same credit card that was originally charged. Be sure that your refund policy is clearly disclosed to customer before they make a purchase from you, to avoid potential charge back disputes in the future.

Post Auth/Ticket Only - this transaction type should only be used if you previously obtained an authorization code for a transaction using the voice authorization network provided by your bank or merchant provider.

Choose this type if you have shipped the order and are now ready to settle the already authorized transaction. The authorization code you received from the voice authorization system is required.

Void - You cannot void a transaction from Virtual Terminal. To void a transaction, see the subheading "Voiding Transactions" in the "Credit Card Activity" section below.

Card Number - This is the credit card number of the cardholder making the purchase. For your information, a Visa credit card number is either 13 or 16 digits, a MasterCard credit card number is 16 digits, an American Express credit card number is 15 digits, and a Discover/Novus credit card number is 16 digits.

Do NOT use spaces or hyphens when typing the card number. The card number will appear only on the merchant's copy of the receipt.

Exp. Date - You must provide the expiration date of the credit card for all transactions. Type the expiration date in the form mm/yy or mmyy. For cards that expire in the year 2000 or 2001, use 00 or 01 for the year, respectively. The expiration date will appear only on the merchant's copy of the receipt.

Customer ID - This is the ID you use for your customer. If you don't use customer ID's in your business, consider using the customer's last name here, or the text "Internet customer".

The customer ID will appear on the transaction receipt that your customer receives as well as on the merchant's copy of the receipt.

Name - This should be the cardholder's name. The name will appear on the transaction receipt that your customer receives as well as on the merchant's copy of the receipt.

Address - This should be the cardholder's address. The address field is required for proper use of the Address Verification System (AVS). A valid AVS response cannot be provided without the address.

For more information about AVS, see the section above entitled "What is Address Verification (AVS) and how do I use it?".

The address will appear on the transaction receipt that your customer receives as well as on the merchant's copy of the receipt.

City - This should be the cardholder's city. The city will appear on the transaction receipt that your customer receives as well as on the merchant's copy of the receipt.

State - This should be the cardholder's state. For non-U.S. customers, use whatever is appropriate in this field. The state will appear on the transaction receipt that your customer receives as well as on the merchant's copy of the receipt.

Zip - This should be the cardholder's zip code. The zip field is required for proper use of the Address Verification System (AVS). A valid AVS response cannot be provided without the zip code.

For more information about AVS, see the section above entitled "What is Address Verification (AVS) and how do I use it?".

For non-U.S. Customers, use whatever is appropriate in this field. The zip code will appear on the transaction receipt that your customer receives as well as on the merchant's copy of the receipt.

Country - This should be the cardholder's country. Choose "Other" for countries not found in the list. The country will appear on the transaction receipt that your customer receives as well as on the merchant's copy of the receipt.

Phone - This should be the cardholder's phone number. You may use numbers and characters in this field. The phone number will appear on the transaction receipt that your customer receives as well as on the merchant's copy of the receipt.

Fax - This should be the cardholder's fax number. You may use numbers and characters in this field. The fax number will appear on the transaction receipt that your customer receives as well as on the merchant's copy of the receipt.

E-mail - Provide the customer's E-mail address here. If Web Processing has been configured to send a transaction receipt by E-mail on your behalf, this is the E-mail address that will be used for the customer.

The E-mail address will appear on the transaction receipt that your customer receives as well as on the merchant's copy of the receipt.

What actually happens when a transaction is submitted from Virtual Terminal?

1. The transaction fields are verified and checked for errors.

2. The transaction is immediately transmitted to the processing network for authorization. (For credit card transactions only)

3. A response from the processing network is received and the transaction is stored in the merchant's current batch awaiting settlement. (For credit card transactions only)

4. The transaction receipt is E-mailed to both the customer and the merchant according to the merchant's configuration.

5. The transaction receipt is displayed on the screen for the merchant to print if they want.

Configuration Options for Virtual Terminal

You may find it cumbersome to have to fill in every field to do a transaction. You can configure the system to allow fields to be left blank, or just the opposite - to require that certain fields are not left blank.

You can also configure the system to send, or NOT send, the customer a transaction receipt by E-mail on your behalf.

Please note that disabling the customer's E-mail receipt affects both Virtual Terminal transactions and Web Link transactions (those that take place from your web site). The E-mailed receipts to the merchant can be similarly configured.

Some configuration changes may only be made by your Web Processing reseller (usually your merchant provider). For complete details on how to make configuration changes to the Web Processing system, see the section entitled "Edit Configuration" later in this.

Credit Card Activity - (to view the current batch and previous batches)

Credit Card Activity Menu Overview

The following features are available from the Credit Card Activity menu. Each feature is described in more detail in the sections that follow.

Review Current Batch - to see the transactions in your current batch, or to void transactions in your current batch.

Review Auth-Only Transactions - to see your Auth-Only transactions, or to move the Auth-Only transactions into your current batch to be settled.

Review Previous Batches - to view the transaction details of previously settled batches, or to download the transaction details of previously settled batches.

Summary of all batches - to view only the batch totals of all batches

Review Current Batch:

The Review Current Batch window displays batch totals and transaction details for the current batch and allows you to void transactions.

The following details about the current batch are available from the current batch window:

Batch Total - The total dollar amount of all the transactions in the current batch

Total Number of transactions -

Subtotal for each card type -

Transaction details - Each transaction in the current batch is listed here, in the order that they were received by the Web Processing system. Only transactions that are "voidable" will have the void option available.

Transactions that are declined (for whatever reason) are NOT stored by the Web Processing system, with one exception; transactions that are contained in a delimited text file that you uploaded for processing by the Web Processing system will be stored and reported by the Web Processing system.

Voiding Transactions:

A transaction can only be voided if it has not yet been settled. Batches are automatically settled by the Web Processing system each business day, between 4:30 PM and 5:30 PM pacific time (PST) each business day including Saturday.

If you need to void a transaction before settlement occurs, simply select the transaction(s) you want to void and click the "Void" button. You will be prompted to confirm the action.

Once voided, you will no longer see the transaction in your current batch, and the voided transactions CANNOT be restored. Please note that you cannot void a transaction from an already settled batch.

The only way to reverse a transaction from a settled batch is to perform a Credit/Return transaction using the Virtual Terminal.

Daily Batch Settlement:

Each business day and on Saturdays the Web Processing system automatically settles your current credit card batch for you. The actual settlement time will vary between 4:30 PM and 5:30 PM pacific time (PST), depending on the number of transactions in your current batch.

Review Auth-Only Transactions:

The Review Auth-Only Transactions window displays transaction details for all pending auth-only transactions and allows auth-only transactions to be moved into the current batch so that they can be settled.

The same transaction details displayed in the current batch window discussed above are also displayed for the auth-only transactions here.

As discussed earlier, auth-only transactions are transactions that are authorized but not settled with the current batch. Auth-only transactions must be manually moved into the current batch when they are ready to be settled. This is normally done when the order associated the transactions has been fulfilled or shipped.

IMPORTANT NOTE: The authorization associated with an auth-only transaction will expire after 30 days. After 30 days, an auth-only transaction will NOT be available to be settled on the Web Processing system.

The transaction will have to be resubmitted for authorization, either as an auth-only transaction again or as a regular transaction.

Settling Auth-Only transaction:

If you need to settle an auth-only transaction, simply select the transaction(s) you wish to settle and click the "Settle" button.

You will be prompted to confirm the action. This will move the selected auth-only transaction(s) into the current batch, where they will be settled normally along with the rest of the day's transactions.

Review Previous Batches:

From the Credit Card Activity menu, you can select a previously settled batch (listed by settlement date and time) to display the batch "details" or to "download" the batch details to a file on your computer.

The Review Previous Batches window displays batch totals and transaction details for a previously settled batch. If the "download" option was selected from the Credit Card Activity menu, the display of the transaction details will be in tab delimited format.

The same transaction details displayed in the current batch window discussed above are also displayed for the selected previous batch here.

If you want to download the transaction details of the selected batch, simply save the tab delimited display using the "save" feature of your Internet browser software. Be sure to save the file as a "text" file (ending in .txt) and make a note of where your browser has saved to file.

To use the tab delimited file you saved with your favorite database or other software, consult your software's documentation on how to import and work with delimited text files.

Summary of all batches:

The Summary of all batches window displays only the batch totals of each of your batches, including the current batch. Each row in the display is for a different batch, and the rows are sorted in descending settlement date order, with the current (pending) batch always displayed first.

The purpose of this window is to give you a quick overview of your credit activity without having to open many different batch windows.

Merchant Support - (for submitting questions to customer support)

The online merchant support form can be used for submitting a question to customer service or to technical support. Any questions specifically related to the use of Web Processing will be answered within 1 business day. You can also send a request for support directly using your own E-mail software.

Upload a Batch - (for submitting a text file of transactions for processing)

Web Processing Batch file upload overview:

In your business you may have transactions that you want to process on a recurring basis, such as a monthly subscription billing. The Web Processing system allows you to upload a delimited text file containing transactions you want to process.

If you are unsure how to create and maintain delimited text files, please consult the software documentation or support for your database or word processing software.

The delimited text file you upload to Web Processing must contain specific fields in a specific field order in order for Web Processing to recognize and process the transactions contained in the file correctly. Following is the batch file upload specifications to assist you in creating the delimited text file correctly.

Web Processing Batch file upload specification:

There are 21 fields required in the tab delimited text file you will upload for processing. All transactions contained in your file are processed in the currently open batch and are settled with any other transactions submitted under your account within that same batch.

Fields are delimited with the TAB character. Do not encapsulate fields with quotes. Fields that are not required and that you don't use should still be represented with just the TAB. Do not include field names in the first record.

You can name give the file any filename that is meaningful to you. Most text files end with a .txt file extension.

Minimum required fields for a successful transaction (by number - see below): 3,4,5,6,7

Suggested minimum required fields (by number - see below): 1,2,3,4,5,6,7,9,10,11,14

1.INVOICE (Must be all numeric)

2.DESCRIPTION

3.AMOUNT (MUST have decimal point and 2 digits for cents in all cases. Use negative sign for CR type transactions.)

4.METHOD (Must be exactly one of: Visa, MasterCard, Amex, Discover, ACH)

5.TYPE (Must be exactly one of: NA, AO, CR, PA. NA=Normal Transaction, AO=Auth Only, CR=Credit, PA=Post Auth)

6.CARDNUMBER

7.EXPDATE (Must be either mmyy or mm/yy)

8.AUTHCODE (For PA type transactions only and is required in such case)

9.CUSTOMERID

10.NAME

11.ADDRESS (Suggested for Address Verification System <AVS>)

12.CITY

13.STATE

14.ZIP (Suggested for Address Verification System <AVS>)

15.COUNTRY

16.PHONE

17.FAX

18.EMAIL (If provided, customer will receive a standard E-mailed receipt, assuming that your account is configured to send customers an E-mail receipt)

19.BANKNAME (For ACH method transactions)

20.ACCTNUMBER (For ACH method transactions - up to 17 digits)

21. ABACODE (ABA Transit/Routing number. For ACH method transactions - MUST be 9 digits)

How to upload a batch to Web Processing:

To upload a batch, simply login to Web Processing and select "Upload a batch" from the Merchant Menu.

Then, use the "browse" button on the upload form to select the delimited text file you have prepared for processing.

You will receive a confirmation that your file has been uploaded successfully. Your browser must support the HTML File upload form tag and it must also be configured to allow cookies to be set (the default for most browsers). If you are unsure of either of these browser requirements, consult the documentation or technical support for your browser.

Edit Configuration - (for editing the configuration of Web Processing)

Edit Configuration Overview:

From reading this guide you have discovered that Web Processing can be configured and customized many different ways. The best way to see what you can and cannot configure and customize is to take a look at the "Edit Configuration" option from the Merchant Menu.

If the "Edit Configuration" option is not available on your Merchant Menu, contact technical support using the "Merchant Support" feature on the Merchant Menu.

Any configuration changes you make to the Web Processing system are immediately configured when once you submit the changes using the "Submit" button from the configuration form.

ACH Activity - (to view ACH account statement and transaction details)

ACH/Electronic checks overview

The Web Processing system supports the processing of ACH/Electronic check transactions. You must have an Web Processing ACH processing account in order to accept ACH/Electronic checks with Web Processing.

When you accept an ACH/Electronic check as a form of payment, you are allowing your customers to give you their checking account information and the authorization to debit their bank account directly as payment for goods or services.

The customer simply provides their bank name, checking account number, and ABA Transit/Routing number. It is just as easy as providing a credit card as a form of payment.

Using your Web Processing ACH account, the Web Processing system then debits your customer's checking account and transfers the funds first into your Web Processing ACH account, and then into your regular business checking account. The total time that it takes for the funds to move from your customer's checking account through the system and into your regular business checking account is approximately 5 business days (Approximately 2 days slower than credit card funds). The flow of funds in an ACH transaction is as follows:

Customer provides their checking information and authorization to merchant, then..

The funds are deposited (by ACH) into the merchant's Web Processing ACH account and the customer's checking account is debited by the Web Processing system within 48 hours, then..

Once the funds have "cleared" successfully, the funds are transmitted (by ACH) into the merchant's regular checking account within 48 hours.

What if the customer has "Insufficient Funds" (NSF)?

The risks associated with accepting ACH/Electronic checks are no different than those associated with accepting credit cards. The funds from an ACH transaction remain in your Web Processing ACH account until the funds have cleared or until the transaction is "returned" or "charged back".

The Web Processing system will report/inform a merchant of a returned transaction and the cause thereof usually within 2 to 3 days of the original transaction date.

The two most common reasons a transaction is returned are Insufficient Funds (NSF) or Invalid Acct (the bank account number and routing number where type incorrectly).

Please note that a returned transaction will cause a returned item fee to the merchant, which is usually $3.00 per item. It is a good idea to charge a customer a returned check fee for returned transactions just like you would for returned checks.

The typical fee to a customer for a returned check or ACH transaction is $15.00. You must disclose your returned check/returned ACH policy to your customer at the time of sale.

Remember also that a customer has basically the same rights to charge back an ACH transaction as they do a credit card transaction. You may be required to provide proof of authorization or return the funds to the merchant.

In the event of a charge back, the customer's bank will charge back the funds immediately and it is the burden of the merchant to seek recourse for the funds, as with credit card charge backs.

If your customer feels that they have been charged erroneously or without their authorization they may dispute this directly through their bank with a charge back.

You should encourage your merchant's to contact you if they have any problems or concerns with their order, and you should properly disclose your refund policy at the time of sale to avoid potential charge backs.

It is also a good idea to store receipts and other records or proof of service or delivery for transactions involving credit card or ACH payments. For merchants that conduct their business carefully and with adequate customer service, charge backs should not be a problem, as most customers will be willing to resolve any disputes they have directly with the merchant.

ACH/Electronic check transactions are NOT processed in real-time:

The ACH system is not setup for real-time processing, involving immediate authorizations and instantaneous responses like the credit card networks are.

An ACH transaction is not a guarantee of funds until the customer's bank account has been successfully debited, which takes at least 48 hours from the time of the transaction. Therefore, it is NOT advisable to accept ACH/Electronic checks as a form of payment for a product or service that you provide immediately at the time of sale.

It IS, however, entirely appropriate as a form of payment for a product or service that you "deliver" or that is a recurring service. Many customer's prefer to have their checking account debited for a monthly subscription service. Others may not have a credit card but want to purchase a product for delivery right from your web site or over the phone using their checking account.

Indicating to the customer to "allow 2 to 3 weeks for delivery" would give you ample time to assure that the funds have cleared prior to shipment of goods.

Processing ACH transactions with Web Processing:

If you have a Web Processing ACH account, the following Web Processing features are available to help you perform ACH transactions and to assist you in managing your ACH transaction activity.

Web Processing Virtual Terminal - (it is expanded to allow ACH transactions)

Web Link - (it is expanded to allow ACH transactions)

ACH Activity Menu - (the main ACH reporting menu)

Using Virtual Terminal to process ACH transactions

For the basics on using Virtual Terminal see the section entitled "Web Processing Virtual Terminal" above.

Once your Web Processing account is configured for ACH acceptance, you will see an additional payment option called "Checking Account" in the list of available payment methods.

In addition, three addition fields will be visible: "Bank Name", "Account Number" and "ABA Code". The blue help prompts on the Virtual Terminal window will assist you in providing the right information.

Using Web Link to accept ACH from your web site:

Complete details on how to link your web site to Web Link are provided in the section entitled "Web Processing Link HTML Help". Please review the ACH overview for a complete understanding of when it is appropriate to accept ACH/Electronic checks from customer directly on your web site.

Using the ACH Activity Menu:

The Web Processing system provides excellent reporting and ACH account management information to help you keep ahead in your business.

The ACH Activity Menu is actually very much like an actual bank statement, where you see one statement for each period with a previous balance and ending balance for that period.

However, unlike a bank statement, there are links to more details right from the ACH statement, and you can change the beginning and ending date of the statement in order to see more or less information according to your needs.

Whenever there is activity with your account, it is reported immediately on your ACH statement. Your ACH statement is constantly being updated by the system with current information pertaining to your Web Processing ACH account. The following activities are reported on the ACH Activity statement:

Submitted Items - (these are the items submitted to the system either by you from Virtual Terminal or from your web site through Web Link.

The total is the amount that has been transferred from your customers' accounts into your Web Processing ACH account) You can click the link to view the individual transaction details of the submitted items.

Returned Items - (such as insufficient funds and charge back items) You can click the link to view the individual transaction details of the returned items.

Funds transfer - (for funds that are being transferred from your Web Processing ACH account into your regular checking account)

Bank fees - (for miscellaneous fees associated with your Web Processing ACH account, such as returned item fees)

If you have questions about your ACH Activity statement and transactions please contact technical support using the "Merchant Support" feature on the Merchant Menu.


Keith R. Johnson
All Rights Reserved
http://www.biz-sites.com
Free use of this article is granted provided it is posted in it's
entirety with all links and this notice intact. An email with the URL
of where you are posting it is appreciated.