Paul,
I just want to say that I am a big fan of your publication and I read it all the time. I have a question to ask: I am looking for an ISO with relatively low buy rates that will take merchants with bad or no credit as well as some high risk merchants. Please lead me in the right direction. Thanks a lot.
Lost in NY
Lost in NY:
We are working on a complete list that will be published in the first issue of January 1999, which may be of help to you. This list will have buy rates and types of business accepted from a wide range of organizations.
Good Selling!
Paul H. Green
Editor-In-Chief
Mr. Green,
Thanks for all the information over the years. I have made many contacts in this industry and decisions for running my business based upon information I have been able to gather from The Green Sheet.
Debit cards are being issued left and right today and we are accustomed to calling them check cards. When a merchant processes these cards "offline" through a credit card terminal, I believe they can only check the two pieces of information that are available to a credit card transaction. First, is the card valid (not reported lost or stolen) and second, is there sufficient balance to cover the transaction at that moment. We know that no funds are captured at that time - that happens after the closing of the batch. Batches are typically closed each evening unless the merchant forgets to close or if it is the weekend and that could take 2-3 days for the funds to be captured. This is how credit card holders can spend over their credit limit.
If a check card-carrying customer has a higher priority transaction at their bank, i.e. demand payment check, ACH, if they withdraw their funds themselves, etc., this can remove the funds that were authorized for the offline debit transaction, which can result in an electronic NSF. The merchant simply gets an adjustment with no special explanation on their processing statement and does not understand why this has happened and does not have a physical check that he/she could collect on. At best they have a name and the name of the bank which will get them nowhere fast.
I have seen this situation on merchant statements, I have spoken with my bank personally, I have spoken with the District Attorney's office, and I have a basic understanding of how credit cards work. What I am looking for is a resource that would let me know how often this happens across the U.S. I want to explain to merchants the risks associated with these new "check" cards.
When I call banks, they tend to be not very informed about the offline debit cards they are issuing. When I press them a bit, I get transferred to someone who "deals with this." At least with a check which is called "bearer paper," a check guarantee company like CrossCheck can collect on it for the merchant. Please bring me up to speed on how often this happens and if you could point me to a resource I could do some more thorough research on this subject.
Thanks,
Chris McIntire
President, Universal Payment Systems
Chris:
You are right on the money, but if Visa or MasterCard has these statistics, they are not sharing them.
Good Selling!
Paul H. Green
Editor-In-Chief
Paul:
Just received my latest Green Sheet today. You have a good, informative publication that I look forward to reading. I just finished reading the "Letters to the Editor" section with the interesting letter from Ron concerning NETSTAR.
I was surprised to learn Dan Fuller's company went under. We were one of his first customers back in 1995 early 1996, when they were called The PFR Marketing Group.
To address Ron's question about other RCK processors, I would like to offer our services. I am very familiar with Netstar's EFT software program, and can offer Ron some viable solutions for processing his ACH transactions. He can reach me at (614) 793-8120 or via email at ecommerce@npsglobal.com.
We also have our own EFT reseller program available for ISOs and sales agents. Your readers can obtaindetailed information on the program from our autoresponder at eftdealer@smartbot.net. Thanks.
Great publication!
Greg Beasley
EFT Sales Manager
NPSGLOBAL
