Costados Merchant Information Costados Merchant Information Costados Merchant Information


Accept Credit Cards

More Sales: Research has shown that credit card customers spend about 2½ times more than customers who only carry cash.

Impulse Buying: Credit and Debit cards give customers the freedom to spend on unplanned purchases.

More Expensive Merchandise: Credit cards entice customers to purchase more expensive merchandise than originally planned.

Competition: Credit and Debit card customers are usually less conscious of price differences and will seek out businesses that offer these payment options.

Advertising: Since customers are likely to shop at businesses that have Credit and Debit card acceptance, they tend to look there first.

Steady Sales: Credit smoothes out business cycles. Cash shoppers buy on paydays and before holidays; credit card customers can buy as the need arises.

Customer Loyalty: Research has shown that customers who spend more on credit tend to return to the same businesses again.

The process of opening a Merchant Account:

  • Your account can automatically accept Visa, Mastercard, and Interac Debit.
  • Discover Card, American Express, and Gift Cards can be added if you request them.
  • The equipment you will need depends on your situation:
  • Payment terminals for traditional retail stores.
  • Virtual terminals for mail and phone order businesses.
  • Wireless terminals for mobile businesses.
  • Software and payment gateways for Internet businesses.
  • Free equipment installation, training, and set-up.
  • 24/7 technical support.
  • Fraud protection and security services included.
  • Online account reporting keeps you up-to-date on account activity.

Merchant Processing Terms and Definitions:

Acquiring Bank (Merchant Bank): The financial institution that conducts business with merchants who accept credit cards. The bank buys the merchant's sales and credits the monetary value to the merchant account.

Card-Not-Present (Keyed Entry): Credit card information that is manually keyed-in through a computer or terminal key pad as opposed to being swiped though a terminal.

Card Present (Swiped Card): Credit card information that is entered electronically by swiping the card through the terminal.

Chargeback: A reversal against a sale that was credited to the merchant's account. Chargebacks are usually the result of an error made by the cardholder's bank, a misunderstanding by the customer, or outright fraud. The merchant must provide proof that the goods and services in question were provided to the customer.

Discount Rate: A fee charged by the bank for processing credit card transactions. The fee is based on a small percentage of the merchant's total sales.

ISO: An Independent Sales Organization that is registered through Visa and MasterCard to set up credit card merchant accounts. They can represent banks or third-party processors.

Merchant: A business that has a merchant account to accept credit cards.

MSP: A Merchant Service Provider that contracts to an independent sales organization.

MO/TO or MO/PO: Stands for mail order/telephone order. Businesses that conduct credit card transactions over the phone or by mail are considered to be riskier than retail businesses that swipe credit cards.

Retrieval Request: A request from a cardholder's bank for information about a charge which is being disputed. Retrieval requests usually precede a chargeback.

Third-Party Processor: A company that processes credit card transactions and distributes funds. Many banks choose to outsource credit card processing to third party processors instead of handling it themselves.

Transaction Fee: A per transaction fee that is charged by the bank for processing debit or credit card transactions.