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Merchant account charging for declined cards


hubcat

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I just got my first bill from my merchant account. First month in business I got 1 sale, but they charged me for 3 "connects" which they say are from people who got declined or made a mistake and had to resubmit. It's probably true, as I've already gotten a few scam e-mails and a got an order from "test card". But given that anyone can just use your site to check a credit card, I'm a bit nervous about paying every time I DON'T get an order.

 

Anyone else have experience with this? I'm using Authorize.net, but it's the merchant bank that's actually charging me.

 

Thanks,

Adrienne

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I just got my first bill from my merchant account.  First month in business I got 1 sale, but they charged me for 3 "connects" which they say are from people who got declined or made a mistake and had to resubmit.  It's probably true, as I've already gotten a few scam e-mails and a got an order from "test card".  But given that anyone can just use your site to check a credit card, I'm a bit nervous about paying every time I DON'T get an order.

 

Anyone else have experience with this?  I'm using Authorize.net, but it's the merchant bank that's actually charging me.

 

Thanks,

Adrienne

 

It seems to be the norm to charge for all transactions, not just the sucessful ones.

 

But i am sure there are some merchantaccount/processors out there who have a fairer system where you only pay for the sucessfull transactions.

 

That said here are some variations i have seen on this...

 

1. A given amount of transactions is included in the monthly fee, you will not be charged extra unless your transaction count is abowe this limit.

 

2. A differentiated charge between sucessfull and declined transactions. ie. a lower fee for declined transactions.

 

3. A fixed monthly and no transaction fees.

 

Ofcourse outside of this there is always the discount rate, but that one is always only deducted on sucessful orders.

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I use Verisign for my own credit card processing and have my own merchant facility with my bank.

 

Verisign allow 200 transactions a month (success and declined) and if you go over that you pay per transaction. I think it was 50c a transaction.

 

However we actually call our customers to grab the credit card details as we beleive a nice friendly voice on the phone goes a long way for customer relations. It also drastically reduces any credit card fraud.... kill two birds with one stone.

Dan

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  • 2 weeks later...

Well, I'm more unhappy than ever with my merchant solution. Turns out they charge the $0.39 fee once to check card number and AGAIN to check address! I'm paying $0.78 per successful transaction plus $0.39 for declined ones. >_<

 

So perhaps I could get a few more tips. Pillea, what payment module or contribution do you use in OSC with InternetSecure?

 

I checked into Verisign, bu they're pretty expensive upfront.

 

Anyone else have an account they're happy with? Is it difficult to switch providers once you're live? :'(

 

Thanks,

Adrienne

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Anyone else have an account they're happy with? 

I have been using Cardservice (based relatively close to you in Simi Valley) and the Linkpoint gateway (included as part of the account package) for years and am quite satisfied with them.

 

The contribution for using the Linkpoint gateway with osc has been very stable and has worked smoothly.

Rule #1: Without exception, backup your database and files before making any changes to your files or database.

Rule #2: Make sure there are no exceptions to Rule #1.

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