Uncategorized – PAYARC

Discover the Lucrative World of SaaS Sales with PAYARC
The Software-as-a-Service (SaaS) model has revolutionized the software industry, and PAYARC is at the forefront. As businesses increasingly seek out SaaS solutions for their operational needs, the opportunities for sales professionals have skyrocketed. Let’s explore how you can join the ranks of successful representatives and experience the benefits of partnering with PAYARC.

Understanding the Power of SaaS

In the past, businesses purchased software licenses for a one-time fee, hosted on their own servers. Then, SaaS emerged, offering cloud-hosted software accessible through subscriptions. This shift provided unparalleled advantages, such as easy scalability, regular updates, and reduced infrastructure costs. Today, SaaS solutions cover diverse sectors, including CRMs, billing software, warehouse management tools, and healthcare applications.
Mastering the SaaS Sales Process

At PAYARC, we equip our sales representatives with a well-defined sales process to achieve success in the dynamic world of SaaS.

Prospecting: Utilize digital channels, blogs, social media, and events to connect with digital-savvy customers interested in SaaS solutions.

Qualifying: Determine promising leads to focus your efforts on, using lead scoring tools and direct communication to gauge customer interest.

Presenting: Engage in phone calls to understand customers’ pain points and present tailored solutions to meet their needs effectively.

Closing: Navigate price negotiations and contract terms while emphasizing the value of our SaaS products.
The Path to SaaS Sales Success

Getting started in SaaS sales may seem daunting, but PAYARC offers valuable guidance and support to help you excel.

Find a Mentor: Leverage the expertise of senior sales professionals to gain insights and overcome challenges.

Focus on Your Technical Foundation: Cultivate a deep understanding of our SaaS products to effectively communicate their benefits to customers.

Specialize in an Industry or Product Type: Develop expertise in a niche that interests you to excel in your sales efforts.
Why Choose SaaS Sales with PAYARC?

Joining PAYARC’s team of SaaS sales representatives offers you a rewarding and lucrative career path.

Lucrative Earning Potential: Our sales representatives enjoy a combination of competitive base pay and uncapped commissions.

Continuous Support: Benefit from regular communication with our leadership team, ensuring you are aligned with our company’s direction.

Extensive Training: Receive comprehensive training on our cutting-edge SaaS products, enabling you to confidently address customer needs.

Are You Ready to Thrive with PAYARC?

If you’re a motivated and tech-savvy sales professional seeking a fulfilling career with excellent earning potential, sales with PAYARC is the perfect fit for you. Join us on this exciting journey, and together, we’ll make a profound impact on businesses worldwide.

Get in touch with us today to explore this incredible opportunity to become a top-performing SaaS sales representative at PAYARC!

Get Started Now
Payarc

August 9, 2023

Uncategorized

SAAS
Complying with Cash Discount and Dual Pricing Regulations

In our previous blog post, “Navigating Cash Discount and Dual Pricing Regulations,” we explored the concept of dual pricing and cash discount as a solution for businesses to streamline payment processes and reduce costs. Today, we delve deeper into the benefits of complying along with best practices to ensure compliance. By understanding and implementing these best practices, businesses can enhance profitability, build customer trust, and avoid potential legal issues or financial penalties. Let’s dive into the benefits of embracing compliant payment strategies and the key guidelines for achieving success.

Benefits of Compliance with Cash Discount and Dual Pricing

Avoiding Penalties

Compliance with regulations related to cash discounts is crucial for businesses to avoid legal issues and penalties. For example, violations of the Electronic Funds Transfer Act (EFTA) can result in fines of up to $1,000 per violation for individuals. For organizations, the fine is up to $500,000 per violation. Violations of the Truth in Lending Act (TILA) can result in fines of up to $5,000 per day for each violation. Additionally, businesses may be required to refund any overcharges to customers. Moreover, they would need to pay legal fees associated with a lawsuit or enforcement action.

Violation Fines

PAYARC – Complying with Cash Discount and Dual Pricing Regulations

PAYARC – Complying with Cash Discount and Dual Pricing Regulations

Building Trust with Customers

Compliance with regulations helps businesses build trust with their customers. Customers are becoming increasingly aware of pricing practices. They are more likely to do business with companies that are transparent and fair in their pricing. When businesses demonstrate their commitment to clarity and honest pricing practices, it increases customer satisfaction and loyalty. This leads to repeat business and positive word-of-mouth referrals. In addition, by providing clear and honest information about cash discounts, businesses can avoid misunderstandings and disputes with customers.

PAYARC – Complying with Cash Discount and Dual Pricing Regulations

PAYARC – Complying with Cash Discount and Dual Pricing Regulations

Maintaining a Good Reputation

Another benefit of compliance is it helps businesses maintain a good reputation, an important way for businesses to attract and retain customers. By complying with regulations related to cash discounts, businesses can also avoid negative publicity and word of mouth about their business.

Overall, compliance with regulations related to cash discounts is crucial for businesses to avoid legal issues, build trust, and maintain a good name. Compliance also helps businesses ensure that they’re treating customers equally, which leads to increased customer satisfaction and loyalty.

Best Practices for Cash Discount and Dual Pricing

1. Provide clear and conspicuous disclosures

It’s crucial that businesses clearly disclose the terms and conditions of the cash discount to customers in a way that’s easy to understand. This includes disclosing the amount of the discount, any fees associated with the payment method, and any other relevant information. A common way to do this is by having a dual pricing sign near the cash register, explaining the discount.

2. Ensure non-discriminatory pricing

Cash discounts and dual pricing should be applied equally to all customers, regardless of the payment method they choose. Businesses must avoid practices that discriminate against customers who make the choice to pay with credit.

3. Keep accurate records

Businesses should maintain accurate records of all cash discount transactions, including the amount of the discount, the payment method, and any associated fees. This can help businesses demonstrate compliance with regulations if they’re audited or face any legal challenges.

4. Train employees

Employees should be trained on the rules and regulations related to cash discounts. This can help ensure that they understand how to apply discounts correctly and how to communicate with customers about the program.

5. Partner with a payment processor

Working with a payment processing partner can help businesses ensure compliance with regulations related to cash discounts. Payment processors can provide guidance on regulatory requirements and best practices for cash discount programs, as well as handle the technical aspects of implementing the program.

By following these best practices, businesses can ensure that their cash discount programs are transparent, fair, and compliant with regulations. This will help them avoid legal issues and penalties, build trust, and maintain a positive reputation.

Conclusion

In conclusion, compliance with cash discount and dual pricing regulations are crucial for businesses that offer this pricing strategy. Clear and conspicuous disclosures, non-discriminatory pricing, and accurate record-keeping are some of the best practices that businesses should follow to ensure compliance.

It’s important for businesses to work with a reputable payment processing company, such as PAYARC, to ensure that they’re offering compliant cash discounts. PAYARC’s Dual Pricing program is designed to help businesses offer cash discounts in a compliant manner, while also ensuring that customers are treated fairly and transparently. By working with PAYARC, businesses can enjoy the benefits of offering cash discounts while avoiding legal issues and penalties.

For general inquiries, including partnership opportunities, please email: support@payarc.com

Download our e-book here

Payarc

June 22, 2023

Uncategorized

cash discount, dual pricing, mobile-commerce, payment-processing
How to Accept Credit Card Payments Online in 2023
Today, consumers in the US are 40% more likely to use a credit card when making a purchase. This is an important statistic to know since, in 2022, there were 268 million online shoppers in the US. That number also is projected to reach almost 285 million in 2025, making e-commerce more important than ever to consider. If you’re interested in setting up an e-commerce shop, you’ll need to know how to accept credit card payments online.

If you haven’t done your research, it can seem overwhelming, but there’s no need to overcomplicate things. Most importantly, you’ll need a payment processor. They should be able to minimize fraud, provide a secure experience, and have the flexibility to grow with your business. The global payment processing market size was valued at USD 47.61 billion in 2022 and continues to grow every year.

How to set up online credit card payments

Merchants can accept online payments with a merchant account and a payment gateway. A merchant account is a bank account that’s designated for businesses to accept credit card payments. Once a sale is completed, the profits land in your merchant account before being transferred to your business account. The money is usually held in the merchant account for a certain period before it’s transferred out. Merchant accounts are essential in knowing how to accept credit card payments online; otherwise, the money has nowhere to go.

The merchant account links to a payment gateway, where your customers input the information needed to pay you. The payment gateway is the online equivalent of a card processing terminal you can find in almost any physical store. It connects the different parties in the transaction and facilitates the delivery of funds. Using a payment gateway means you’ll have more personalized customer service since these providers are typically associated with larger companies. Meaning if you have any issues, you can likely get a real person on the phone to help you out.

With merchant accounts and payment gateways, you should expect fees, though some providers will be more competitive than others. Depending on who you choose, your transaction fees might be lower than average, or you might not have to pay setup fees.

Fees and Application Process

To get a merchant account or payment gateway for accepting payments online, you’ll need to apply for both. This is another crucial aspect of knowing how to accept credit card payments online. You’ll be asked for financial and business information, and once you submit everything, it takes just a few days for processing. Once you’re approved, you’ll set everything up by connecting the account to the gateway and the gateway to your store. Once you’ve completed the setup process, you’ll be ready to begin processing payments.

All-in-One Solutions

Some providers offer a merchant account and payment gateway as an all-in-one solution. Many of these solutions don’t charge monthly or setup fees, but you might have to pay more if you want extra features. Because this combo streamlines the transaction process, all-in-one solutions are quicker to set up, making it faster to accept payments online. Though these services are becoming increasingly popular, you should use at least one other payment processor. Doing this will allow customers to use their preferred method of payment. This makes another important factor of knowing how to accept credit card payments online.

Simplified Payment Processors

A simplified payment processor is a type of payment processor that offers a streamlined and user-friendly payment processing experience. Some simplified payment processors don’t need a merchant service account or payment gateway, typically meaning fewer fees for merchants. Their rates are competitive, and many don’t have setup or monthly fees. These payment processors integrate with your checkout pages, so your customers never have to leave the shop. Like all-in-one solutions, they’re easy to set up. Knowing the difference between types of payment processors is important in understanding how to accept credit card payments online.

Security and Fraud Prevention

Another important aspect in understanding how to accept credit card payments online is security and fraud prevention. As e-commerce grows, the fraud associated with it also grows and is expected to exceed $200 billion this year. There are several measures you can take to be secure and prevent fraud when accepting payments online. Here are some best practices:
- Use a secure payment gateway: Choose a reliable and secure payment gateway provider that uses encryption to protect sensitive data during online transactions.
- Verify customer information: Verify the customer’s name, billing address, and card verification value (CVV) to ensure the transaction is legitimate.
- Monitor transactions: Monitor transactions in real-time to identify suspicious activity, such as multiple transactions from the same IP address.
- Implement fraud detection tools: Use fraud detection tools to identify potentially fraudulent transactions based on specific patterns.
- Educate yourself and your staff: Stay up to date with fraud prevention techniques and educate yourself and your staff on how to prevent fraudulent activity.
- Use strong passwords and two-factor authentication: Use strong passwords and two-factor authentication to prevent unauthorized access to your payment system.
- Keep your software up to date: Keep your payment software up to date with the latest security updates to protect against fraud.
By implementing these best practices, you can minimize the risk of fraud and keep your online payments secure.

How can PAYARC help with accepting payments online?

PAYARC helps businesses accept payments online by providing merchant accounts and payment gateways that allow customers to securely input their payment information. PAYARC also offers fraud prevention tools, chargeback management, and customer service support.

Reach out to us today and start accepting credit card payments online!
Payarc

March 29, 2023

Uncategorized

payment-processing

Card Brand Fees

Ever wondered about those mysterious NABU fees on your statement?

When you pick up your merchant services or credit card processing statement, you have probably seen pesky fees appear under a variety of labels. In most cases, these cryptic fees are labelled NABU (Network Access and Brand Usage Fees).

NABU fees are also known as card brand fees and are paid directly to Visa, Mastercard, American Express and Discover. It’s important to note that although your credit card processor may collect the fee, it doesn’t mean they directly benefit. In most cases, the fee is passed in its entirety to the card brand.

Why Pay Card Brand Fees?

Look, we get it… you have enough overhead to deal with. Who wants to pay extra fees?

Here’s the thing: card brand fees are a necessary evil for merchants who want to offer a variety of payment options to customers. The fees go towards ensuring the credit card company can continue serving merchants. Think of it as a small cost for the opportunity to accept their form of payment.

Let’s face it, most customers carry multiple credit cards and they expect to be able to use any card in their wallet. If you fail to accept common forms of payment, you’re giving your competitors an advantage over you.

How much am I paying in Card Brand Fees?

You pay interchange fees or card brand fees every time a cardholder makes a payment with their credit card. The amount paid in fees can vary by industry, transaction risk level, bank, card issuer and your payment processor.

Fees are typically used to cover these costs:

Credit and Debit Assessments

These fees can’t be avoided no matter which card issuer you choose. They are applied to gross credit and debit transaction volume and are paid directly to the card association (Visa or Mastercard).

International Processing Fee: If a customer makes a purchase using a card originating from outside the US, you will be subject to an international processing fee. You may or may not see the international fee on your statement depending on your pricing model.

Processing Integrity Fee: If a transaction doesn’t go through within a specific period of time, you may be subject to what’s called a processing integrity fee. Typically, the time window is 24 hours for “card present” transactions and 72 hours for “card not present” sales.

Card-Not-Present Surcharge: These are fees you might typically see in e-commerce or mail-order transactions when the card is not physically present. Because these are considered riskier transactions, the fee is slightly higher than “card present” transactions.

Account Status Inquiry Fee: This is a fee that is imposed when you verify cardholder information without actually charging the card.

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Can I Reduce Card Brand Fees?

Card brand fees are set by the credit card issuer. Unfortunately, these fees are not up for negotiation. Instead, we advise our clients to enforce best practices that can reduce costly penalties and fines.

Need Expert Help to Manage Your Fees?

We can help you gain control over your fees so that you don’t pay more than necessary.

If you are a foundation or nonprofit, ask us about our special offers for payment processing fees.

Visa Assessments

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Visa Fee: Pass-Through cost.

Credit Assessments: 0.14% of credit card volume and $0.0195/transaction. For a $100 credit sale, Visa takes about 16 cents.

Debit Assessments: 0.13% of debit card volume and $0.0155/transaction. For a $20 debit sale, Visa takes about 4.2 cents.

FANF: Fixed Acquirer Network Fee – Visa charges this flat fee based on how much volume you process per month. Online merchants and brick & mortar merchants have differing FANFs due to the difference in the risk of chargebacks.

International Service Assessment Fee (ISA): Any card you accept as a US-based merchant, in USD currency, from outside the US will be subject to a 0.80% international surcharge from Visa.International Acquirer FeeThis fee applies under nearly identical circumstances as above – there is an additional 0.45% surcharge from Visa for non-US issued cards that are processed in the US.

Transaction Integrity Fee (TIF): This $0.10/transaction fee is assessed when a settled debit/prepaid card doesn’t meet CPS requirements – such as submitting AVS info on keyed sales and settling every 24 hours.

Zero Floor Limit Fee: This $0.20/transaction fee is assessed when a settled transaction can’t be linked to a proper authorization.Zero Dollar Verification FeeThis rarely applied fee of $0.025/transaction applies when cardholder information (AVS, CCV) is verified without authorizing the sale.

Misuse of Authorization Fee: This $0.09/transaction fee applies to all authorized transactions that do not have a matching settled sale.

Base II System File Fee: This $0.0018/transaction fee is charged for each authorized transaction submitted for settlement.

MasterCard Assessments

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MasterCard Fee: Pass-Through cost.

Credit/Debit Assessments: 0.1275% of card volume and $0.0195/transaction for sales under $1,000. For a $100 sale, MasterCard takes about 15 cents.

Credit/Debit Assessments: 0.1475% of card volume and $0.0195/transaction for sales over $1,000. For a $2,000 sale, MasterCard takes about $2.97.

Digital Enablement Fee: This fee is 0.01% of volume, and applies on Card-Not-Present sales for commercial cards, consumer credit cards, and signature debit cards.

Cross Border Assessment Fee (Domestic): Any card you accept from outside the US will be subject to a 0.60% international surcharge from MasterCard.

Cross Border Assessment Fee (Non USD): Any card you accept from outside the US that is settled in non-US dollars will be subject to a 1.00% international surcharge from MasterCard.

Annual Location Fee: This $15 fee is assessed to all merchants on a per-location basis and is billed monthly at $1.25/month. This fee does not apply to merchants processing under $200/month, and does not apply to charitable/religious organizations (MCC 8398 and 8661).

AVS Fee (Card-Present): MasterCard assesses a $0.005/transaction fee for using Address Verification Services in a Card-Present environment.

AVS Fee (Card-Not-Present): MasterCard assesses a $0.01/transaction fee for using Address Verification Services in a Card-Not-Present environment.

Card Validation Code Fee: There is a $0.0025/transaction fee for all transactions that are submitted with the Card Validation Code (also known as Card Code Verification or CCV).

Pre-Authorization Integrity Fee: $0.045/transaction fee applies to pre-authorizations that are not fully reversed or cleared within 30 calendar days of the authorization date.

Undefined Authorization Integrity Fee: $0.045/transaction fee applies to undefined authorizations that are not fully reversed or cleared within 7 calendar days of the authorization date.

Final Authorization Integrity Fee: 0.25% volume fee ($0.04 minimum) applies to final authorizations that are not fully reversed or cleared within 7 calendar days of the authorization date or when the final authorization amount does not equal the clearing amount or when the final authorization currency code does not match the clearing currency code.

Processing Integrity Fee: This $0.055/transaction fee is charged when transactions are not settled within 24 hours for Card-Present sales, or 72 hours for Card-Not-Present sales.

Processing Integrity Fee Detail Reporting: This $0.012/transaction fee applies to any authorization that generates a processing integrity fee for pre authorizations, final authorizations or undefined authorizations.

Account Status Inquiry Fee: This rarely applied fee of $0.025/transaction applies when cardholder information (AVS, CCV) is verified without authorizing the sale.

Discover Assessments

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Discover Fee: Pass-Through cost.

Credit/Debit Assessments: 0.13% of card volume and $0.0195/transaction for all sales. For a $100 sale, Discover takes about 15 cents.

International Processing Fee: This 0.55% fee applies to any cards that settle in dollars that differ from the home country, so it’ll apply just like the International Processing Fee whenever you run an international sale.

International Service Fee: Any card you accept from outside the US will be subject to a 0.80% international surcharge from Discover.

Network Authorization Fee: This $0.025/transaction fee is charged for each authorized transaction submitted for settlement.

American Express Assessments

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AMEX Fee: Pass-Through cost.

Credit/Debit Assessments: 0.15% of card volume is paid directly to American Express. On a $100 sale, this works out to 15 cents.

Card-Not-Present Surcharge: American Express will charge 0.30% of all Card-Not-Present volume.

International Assessment: This 0.40% fee applies to any cards you accept from outside the US.

Noncompliance Fee: American Express will charge 0.75% of the sales volume when the sale does not settle within 7 days of authorization. This fee may also apply when calling for a voice authorization on a sale. If applied, this fee will be removed from one of your next few deposits.

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Payarc

January 14, 2022

Uncategorized

Pricing Explained

Pricing is how a processor determines how a merchant will pay the credit card processing fees. In order to accept credit and debit cards, the merchant must pay. Depending on what your business does, how much you process, and many other factors, one pricing category may work better for your business than another in terms of less fees to pay.

While the card network sets the original fees, ISOs, issuing banks, and payment processors can add their own fees onto that base rate. In order to make sure that you are getting a good rate, check the most recent guides that Visa and MasterCard have released and compare them to your own.

Pricing rates can be categorized as tiered pricing, interchange plus pricing, and bundled pricing. Keep in mind that all of these rates may also come with an authorization fee per transaction.

Tiered Pricing

If your agent priced you under the tiered pricing category, then there are three groups of rates that you get charged depending on the type of card that your customer uses. These groups are the Qualified Rate, the Mid-Qualified Rate, and the Non-Qualified Rate. These can be further affected by the card brand, but most agents will price all brands the same way.

The Qualified Rate applies to credit cards that meet the definition of standard in the merchant’s industry and are considered as such by the payment processor. These are the lowest rates out of the tiered pricing model. Cards that are swiped are usually considered to be “qualified,” although there are ways for merchants that primarily do business online to process at the qualified rate.

The Mid-Qualified Rate is usually used for cards that are keyed in instead of swiped on the terminal. Additionally, if a customer is using a business card or a rewards card, the mid-qualified rate would also be used.

The Non-Qualified Rate is the generally the highest of the tiered pricing rates. The non-qualified rate could apply to cards that are keyed in and don’t require address verification or a business card where not all of the necessary data is captured during the transaction.

Interchange Plus Pricing

Interchange plus pricing is exactly what it sounds like: the interchange set by the card network, plus the markup. For example, if Visa sets an interchange price as 1.80%, and the payment processor’s markup is .035%, then the processor charges the merchant 1.80% + .035%. Sometimes the card brand affects the interchange plus pricing quoted to you by your merchant services agent.

Bundled Rate Pricing

Bundled rate pricing is the easiest to understand: one rate for all transactions. While this seems attractive, just be sure that this model is right for your business. Businesses that do benefit from bundled rates tend to have small tickets and do very little credit card processing.

Contact PayArc today to speak with our team about what pricing works best for you!

Payarc

December 9, 2021

Uncategorized

July 2020 Card Brand Enhancement: New Interchange Programs

New Interchange Programs

In July 2020, Visa, Mastercard, American Express, and Discover are implementing new interchange programs.

‍Business Impacts

Merchant portfolios may need to be reviewed to prepare profitability models to support these new interchange programs.

Visa

Canada Region

Changes to Performance Tier 1 Fee Program for Visa Consumer Credit Transactions

Performance Tier 1 will be renamed Performance
Performance Tier 2 will be eliminated
Performance Card-Not-Present will be introduced for consumer credit transactions

To qualify for Performance, retailers must have a minimum of $2 billion in total net VisaNet retail sales volume in Canada, a maximum fraud ratio of 0.07%, and a maximum chargeback ratio of 0.01%. This program applies only to electronic transactions.

FPI	IQSTA	IC Level	New Fee Program Name (PPM Description Name	New MAS and TSYS Express Fee Descriptor	New e-Connections Description	Fee Item to Copy	Interchange Rate
C08	11842	1UQ	VS Can Cons Cr Perform CNP	CANCONPERCNP	VS Can Cons Cr Perform CNP	CAN CONPIT1	1.35% + $0.00
C09	11843	1UR	VS Can Cons Cr Perform CNP Is	CANCONPERCNPIS	VS Can Cons Cr Perform CNP Is	CAN CONPIT1 IS	1.35% + $0.00
C06	11844	1US	VS Can Infin Perform CNP	CANINFPERCNP	VS Can Infin Perform CNP	CAN INFPIT1	1.60% + $0.00
C07	11845	1UT	VS Can Infin Perform CNP Is	CANINFPERCNPIS	VS Can Infin Perform CNP Is	CAN INFPIT1 IS	1.60% + $0.00
F51	11846	1UU	VS Can Hnw Perform CNP	CANHNWPERCNP	VS Can Hnw Perform CNP	CA PT1 HNW	2.35% + $0.00
F52	11067	1UV	VS Can Hnw Perform CNP IS	CANHNWPERCNPIS	VS Can Hnw Perform CNP IS	CA PT1 HNW IS	2.35% + $0.00

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New Industry Fee Utilities Program for Visa Consumer Credit and Debit Transactions

Visa will implement new Canada Industry Fee Utilities interchange programs that apply to Visa consumer credit and debit transactions from eligible merchants. To be eligible, a merchant must meet maximum service fee levels and must have Utilities (UTL) enabled in the boarding system.

FPI	IQSTA	IC Level	New Fee Program Name (PPM Description Name	New MAS and TSYS Express Fee Descriptor	New e-Connections Description	Fee Item to Copy	Interchange Rate
I29	11848	1UW	VS Can Cons Cr Utilities	CAN CON UTIL	VS Can Cons Cr Utilities	CAN STND CR	0.00% + $0.75
I30	11849	1UX	VS Can Cons Cr Utilities Is	CAN CON UTIL IS	VS Can Cons Cr Utilities Is	CAN STDCR IS	0.00% + $0.75
F29	11850	1UY	VS Can Infin Utilities	CAN INF UTIL	VS Can Infin Utilities	CAN STDCR	0.00% + $0.75
F30	11851	1UZ	VS Can Infin Utilities Is	CAN INF UTILIS	VS Can Infin Utilities Is	CAN STDCR IS	0.00% + $0.75
F55	11852	1U0	VS Can Hnw Utilities	CAN HNW UTIL	VS Can Hnw Utilities	CAN STDCR	0.00% + $0.75
F56	11853	1U1	VS Can Hnw Utilities Is	CAN HNWUTILIS	VS Can Hnw Utilities Is	CAN STDCR IS	0.00% + $0.75
I39	11854	1U2	VS Can Debit Utilities	CAN DB UTIL	VS Can Debit Utilities	CAN STND DB	0.00% + $0.10
I40	11855	1U3	VS Can Debit Utilities Is	CAN DB UTIL IS	VS Can Debit Utilities Is	CAN STDDB IS	0.00% + $0.10

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New Emerging Segment Preferred Program for Visa Consumer Credit and Debit Transactions

Visa will implement the following Canada Emerging Segment fee programs that will apply to Visa consumer credit and debt transactions from eligible merchants. Eligible merchants include the following MCCs of any transaction amount:

MCC 4900: Utilities
MCC 6513: Real Estate agents and managers – Rentals
MCC 9311: Tax payments
MCC 8398: Charitable and Social Service Organizations

The following MCCs qualify if they transact amounts equal to or greater than CA$1000:

MCC 8211: Elementary and secondary schools
MCC 8220: Colleges, universities, professional schools, and junior colleges
MCC 8351: Childcare services

FPI	IQSTA	IC Level	New Fee Program Name (PPM Description Name	New MAS and TSYS Express Fee Descriptor	New e-Connections Description	Fee Item to Copy	Interchange Rate
E34	11856	1U4	VS Can Cons Cr Emerg Pfd	CA CON EMG PFD	VS Can Cons Cr Emerg Pfd	CAN EMG CON	0.80% + $0.00
E35	11857	1U5	VS Can Cons Cr Emerg Pfd Is	CACONEMGPFD IS	VS Can Cons Cr Emerg Pfd Is	CAN EMG CON IS	0.80% + $0.00
E44	11858	1U6	VS Can Infin Emerg Pfd	CA INF EMG PFD	VS Can Infin Emerg Pfd	CAN EMG INF	1.00% + $0.00
E45	11859	1U7	VS Can Infin Emerg Pfd Is	CA INFEMGPFDIS	VS Can Infin Emerg Pfd Is	CAN EMG INF IS	1.00% + $0.00
F53	11860	1U6	VS Can Hnw Emerg Pfd	CA HNWEMGPFD	VS Can Hnw Emerg Pfd	CAN EMG HNW	1.95% + $0.00
F54	11861	1U9	VS Can Hnw Emerg Pfd Is	CA HNWEMGPFDIS	VS Can Hnw Emerg Pfd Is	CAN EMG HNW IS	1.95% + $0.00
E52	11862	1VA	VS Can Debit Emerg Pfd	CA DB EMG PFD	VS Can Debit Emerg Pfd	CAN EMG DB	0.00% + $1.00
E53	11863	1VB	VS Can Debit Emerg Pfd Is	CA DB EMGPFDIS	VS Can Debit Emerg Pfd Is	CAN EMG DB IS	0.00% + $1.00

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Changes to Domestic Interchange Fee Programs for Account Funding Transactions

Visa will implement new Canada domestic Account Funding interchange fee programs that will apply to select proprietary card products:

FPI	IQSTA	IC Level	New Fee Program Name (PPM Description Name	New MAS and TSYS Express Fee Descriptor	New e-Connections Description	Fee Item to Copy	Interchange Rate
C49	11955	1VC	VS Can Aft Money Tran Net4	CAAFTMTNET4	VS Can Aft Money Tran Net4	CAN AFT P2P	0.05% + $0.25
C50	11956	1VD	VS Can Aft Money Tran Net4 Is	CAAFTMTNET4IS	VS Can Aft Money Tran Net4 Is	CAN AFTP2P IS	0.05% + $0.25
C51	11957	1VE	VS Can Aft Top Up Net4	CAAFTOPUPNET4	VS Can Aft top Up Net4	CAN AFT P2P	0.05% + $0.25
C52	11958	1VF	VS Can Aft Top Up Net4 Is	CAAFTOPUPNET4IS	VS Can Aft top Up Net4 Is	CAN AFTP2P IS	0.05% + $0.25
C53	11959	1VG	VS Can Aft Other Net4	CAAFTOTHNET4	VS Can Aft Other Net4	CAN AFT P2P	1.25% + $0.00
C54	11960	1VH	VS Can Aft Other Net4 Is	CAAFTOTHNET4IS	VS Can Aft Other Net4 Is	CAN AFT P2P IS	1.25% + $0.00

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US Region

Changes to Interchange Fee Programs for Visa Consumer Transactions

Visa will implement new interchange programs that will apply to purchase transactions from Visa consumer credit card products.

FPI	IQSTA	IC Level	New Fee Program Name (PPM Description Name	New MAS and TSYS Express Fee Descriptor	New e-Connections Description	Fee Item to Copy	Interchange Rate
105	11868	1VI	VS Non Qual Cons Cr	NONQUALCONCR	VS Non Qual Cons Cr	DOMESTIC SALES	3.15% + $0.10
105	11869	1VJ	VS Non Qual Cons Cr Fuel Cap	NONQUALCRFLCAP	VS Non Qual Cons Cr Fuel Cap	EIRF FUEL CAP	0.00% + $1.10
146	11870	1VK	VS Vin Travel	VIN TRAVEL	VS Vin Travel	EIRF	2.30% + $0.10
150	11871	1VL	VS Vtr Spmkt Cr	VTR SPMKT CR	VS Vtr Spmkt Cr	SIP CREDIT	1.50% + $0.07
151	11872	1VM	VS Vin Spmkt Sig/Inf	VINSPMKTSIGINF	VS Vin Spmkt Sig/Inf	SIP CREDIT	1.65% + $0.07
153	11873	1VN	VS Vsp Viq Spmkt	VSPVIQSPMKT	VS Vsp Viq Spmkt	SIP CREDIT	2.00% + $0.07

‍

Changes to the Supermarket Credit Performance Tiers

Visa will replace the Supermarket Performance Threshold fee descriptors, fee program indicators (FPI), and rates. The new structure will expand acceptance to include Visa Signature, Visa Signature Preferred, and Visa Infinite.

FPI	IQSTA	IC Level	New Fee Program Name (PPM Description Name	New MAS and TSYS Express Fee Descriptor	New e-Connections Description	Fee Item to Copy	Interchange Rate
T01	11874	1VO	VS Spmkt Tr 0 Rate 1	SPMKTTR0RATE1	VS Spmkt Tr 0 Rate 1	CPS/SMKT CRTR1	1.15% + $0.05
T02	11875	1VP	VS Spmkt Tr 0 Rate 2	SPMKTTR0RATE2	VS Spmkt Tr 0 Rate 2	CPS/SMKT CRTR1	1.40% + $0.05
T11	11876	1VQ	VS Spmkt Tr 1 Rate 1	SPMKTTR1RATE1	VS Spmkt Tr 1 Rate 1	CPS/SMKT CRTR1	1.15% + $0.05
T12	11877	1VR	VS Spmkt Tr 1 Rate 2	SPMKTTR1RATE2	VS Spmkt Tr 1 Rate 2	CPS/SMKT CRTR1	1.50% + $0.05
T13	11878	1VS	VS Spmkt Tr 1 Rate 3	SPMKTTR1RATE3	VS Spmkt Tr 1 Rate 3	CPS/SMKT CRTR1	1.55% + $0.05
T21	11879	1VT	VS Spmkt Tr 2 Rate 1	SPMKTTR2RATE1	VS Spmkt Tr 2 Rate 1	CPS/SMKT CRTR1	1.22% + $0.05
T22	11880	1VU	VS Spmkt Tr 2 Rate 2	SPMKTTR2RATE2	VS Spmkt Tr 2 Rate 2	CPS/SMKT CRTR1	1.55% + $0.05
T22	11880	1VV	VS Spmkt Tr 2 Rate 3	SPMKTTR2RATE3	VS Spmkt Tr 2 Rate 3	CPS/SMKT CRTR1	1.65% + $0.05
T31	11882	1VW	VS Spmkt Tr 3 Rate 1	SPMKTTR3RATE1	VS Spmkt Tr 3 Rate 1	CPS/SMKT CRTR1	1.22% + $0.05
T32	11883	1VX	VS Spmkt Tr 3 Rate 2	SPMKTTR3RATE2	VS Spmkt Tr 3 Rate 2	CPS/SMKT CRTR1	1.60% + $0.05
T33	11884	1VY	VS Spmkt Tr 3 Rate 3	SPMKTTR3RATE3	VS Spmkt Tr 3 Rate 3	CPS/SMKT CRTR1	1.75% + $0.05

‍

Changes to Business Credit Interchange Fee Programs

Visa will support a new spend qualified tier interchange program for Business card transactions with a Product ID of G5 (Business Tier 5).

FPI	IQSTA	IC Level	New Fee Program Name (PPM Description Name	New MAS and TSYS Express Fee Descriptor	New e-Connections Description	Fee Item to Copy	Interchange Rate
148	11885	1VZ	VS Non Qual Bus Cr	NONQUALBUSCR	VS Non Qual Bus Cr	BUS ELEC T2	3.15% + $0.20
157	11886	1V0	VS Business Travel	BUSINESS TRAVL	VS Business Travel	BUS ELEC T2	2.70% + $0.10
163	11887	1V1	VS Business Tr 5 Prod 1	BUSTR5PROD1	VS Business Tr 5 Prod 1	BUS ELEC T2	3.00% + $0.10
178	11888	1V2	VS Business Tr 5 Prod 2	BUS TR5 PROD2	VS Business Tr 5 Prod 2	BUS ELEC T2	2.25% + $0.10
161	11889	1V3	VS Business Tr 5 Lvl 2	BUS TR5 LV2	VS Business Tr 5 Lvl 2	BUS LVL2 T3	2.25% + $0.10

‍

Mastercard

Canada Region

Enhancements to Intracountry Interchange Programs

Mastercard is enhancing the Canada Domestic Interchange Programs by lifecycling the existing consumer credit programs and creating new ones. They are also restructuring the commercial programs by setting them up as Small Medium Enterprise, Large Market, and World Elite Business.

IRD	IQSTA	IC Level	New Fee Program (PPM Description Name	New MAS and TSYS Express Fee Descriptor	New e-Connections Description	Fee Item to Copy	Interchange Rate
6A	11894	2RF	MC Canada Consumer Contactless Core	CA CNTLSS CR	MC Can Cons Cntless	CA CNTCTLESS	0.87% + $0.00
7A	11895	2RG	MC Canada Consumer Standard Core	CA STD CORE CR	MC Can Cons Std Core	CA STND CON	2.06% + $0.00
BC	11896	2RH	MC Canada Consumer Merit I CP Chip Core	CAMERIT1CPCHP	MC Can Cons Merit1 CPChp Core	CAN STND CON	0.92% + $0.00
CD	11897	2RI	MC Canada Consumer Charity Core	CA CHARITY CR	MC Can Cons Charity Core	CAN CNS CHAR	0.92% + $0.00
EN	11898	2RJ	MC Canada Consumer Merit 3 Digital Comm Core	CAMERIT3DIGCOM	MC Can Cons Merit3 DgtlComm	CAN CNS WRLD T1	1.76% + $0.00
MJ	11899	2RK	MC Canada Consumer Merit 2 Unsecure CP Core	CAMRIT2UNSECCP	MC Can Cons Merit2 UnsecCP	CAN CNS WRLD T1	1.22% + $0.00
RA	11900	2RL	MC Canada Consumer CP Refund Core	CA CP REFUND	MC Can Cons CP Refund Core	CAN STND CON	0.55% + $0.00
RE	11901	2RM	MC Canada Consumer CNP Refund Core	CA CNP REFUND	MC Can Cons CNP Refund Core	CAN STND CON	1.06% + $0.00
SA	11902	2RN	MC Canada Consumer 3DS Core	CA 3DS CORE	MC Can Cons 3DS Core	CAN STND CON	1.50% + $0.00
UA	11903	2RO	MC Canada Consumer Utilities Core	CA 3DS CORE	MC Can Cons Util Core	CA UTILITIES	0.00% + $0.10
6B	11904	2RP	MC Canada Consumer Contactless World	CA CNTLESS WRLD	MC Can Cons Cntless World	CAWRLDCNTCTLSS	1.16% + $0.00
7B	11905	2RQ	MC Canada Consumer Standard World	CA STD WRLD	MC Can Cons Std World	CA WRLD STD	2.30% + $0.00
BD	11906	2RR	MC Canada Consumer Merit 1 CP Chip World	CAMRT1CPCHPWRD	MC Can Cons Merit1CPCHP Wrld	CA CNS WRLD T1	1.22% + $0.00
CE	11907	2RS	MC Canada Charity World	CA CHARITYWRLD	MC Can Cons Charity World	CA CNS WRLD CH	1.22% + $0.00
EO	11908	2RT	MC Canada Consumer Merit 3 Digital Comm World	CAMRT3DGCMWRLD	MC Can ConsMerit3DgtlComWrld	CA CNS T3	2.00% + $0.00
MK	11909	2RU	MC Canada Consumer Merit 2 Unsecure CP World	CAMRT2UNSCPWRD	MC Can ConsMert2UnsecCPWrld	CA CNS T2	1.52% + $0.00
RB	11910	2RV	MC Canada Consumer CP Refund World	CA CP REF WRLD	MC Can Cons CP Refund Wrld	CA CNS WRLD T1	0.73% + $0.00
RF	11911	2RW	MC Canada Consumer CNP Refund World	CA CNPREF WRLD	MC Can Cons CNP Refund Wrld	CA CNS WRLD T1	1.20% + $0.00
SB	11912	2RX	MC Canada Consumer 3DS World	CA 3DS WORLD	MC Can Cons 3DS World	CA CNS WRLD T1	1.70% + $0.00
UB	11913	2RY	MC Canada Consumer Utilities World	CA UTIL WORLD	MC Can Cons Util World	CA WORLD UTIL	0.00% + $0.10
6C	11914	2RZ	MC Canada Consumer Contactless World Elite	CACNTLSSWRLDEL	MC CanConsCntless World EL	CAWRLDELCNTLSS	01.48% + $0.00
7C	11915	2R0	MC Canada Consumer Standard World Elite	CA STD WRLDEL	MC Can Cons Std World EL	CA WRLDEL STD	2.54% + $0.00
BE	11916	2R1	MC Canada Consumer Merit 1 CP Chip World Elite	CAMRT1CPCHPWEL	MC CanConsMerit1CPECHPWrldEL	CA WRLDSECCODE	1.56% + $0.00

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IRD	IQSTA	IC Level	New Fee Program (PPM Description Name	New MAS and TSYS Express Fee Descriptor	New e-Connections Description	Fee Item to Copy	Interchange Rate
CF	11917	2R2	MC Canada Consumer Charity World Elite	CA CHARITYWEL	MC CanCons CharityWorld EL	CA CNWRLDEL CH	1.56% + $0.00
EP	11918	2R3	MC Canada Consumer Merit 3 Digital Comm World EL	CAMRT3DGCMWREL	MC CanConsMerit3DgtlCommEL	CAWRLDELSECCDE	2.24% + $0.00
ML	11919	2R4	MC Canada Consumer Merit 2 Unsecure CP World Elite	CAMRT2UNSCPWEL	MCCanCnsMerit2UnsecCPWrldEL	CA WORLDEL T2	1.86% + $0.00
RC	11920	2R5	MC Canada Consumer CP Refund World Elite	CA CPREF WRDEL	MC CanCons CPRefund Wrld EL	CAWRLDELSECCDE	0.94% + $0.00
RG	11921	2R6	MC Canada Consumer CNP Refund World Elite	CA CNPREF WREL	MCCanConsCNP Refund Wrld EL	CAWRLDELSECCDE	1.34% + $0.00
SC	11922	2R7	MC Canada Consumer 3DS World Elite	CA 3DS WRLDEL	MC Can Cons 3DS World EL	CAWRLDELSECCDE	1.90% + $0.00
UC	11923	2R8	MC Canada Consumer Utilities World Elite	CA UTIL WRLDEL	MC Can ConsUtil World EL	CA WRLDELUTIL	0.00% + $0.10
6D	11924	2R9	MC Canada Consumer Contactless Muse	CA CNTLSS MUSE	MC Can Cons Cntless Muse	CA CNTCTLESS	1.57% + $0.00
7D	11925	2SA	MC Canada Consumer Standard Muse	CA STD MUSE	MC Can Cons Std Muse	CA WORLDEL STD	2.69% + $0.00
BF	11926	2SB	MC Canada Consumer Merit 1 CP Chip Muse	CAMRT1CPCHPMUS	MC CanConsMerit1CPCHP Muse	CA CNS T2	1.65% + $0.00
CG	11927	2SC	MC Canada Consumer Charity Muse	CA CHARITYMUSE	MC Can Cons Charity Muse	CA CNWRLDEL CH	1.65% + $0.00
MM	11929	2SE	MC Canada Consumer Merit 2 Unsecure CP Muse	CAMRT2UNSCPMUSE	MC Can CnsMerit2UnsecCP Muse	CA WRLDEL T3	1.95% + $0.00
RD	11930	2SF	MC Canada Consumer CP Refund Muse	CA CP REF MUS	MC Can Cons CP Refund Muse	CA WRLDEL T3	0.99% + $0.00
RH	11931	2SG	MC Canada Consumer CNP Refund Muse	CA CNPREF MUS	MC Can Cons CNP Refund Muse	CA WRLDEL T3	1.43% + $0.00
SD	11932	2SH	MC Canada Consumer 3DS Muse	CA 3DS MUSE	MC Can Cons 3DS Muse	CA WRLDEL T3	2.03% + $0.00
UD	11933	2SI	MC Canada Consumer Utilities Muse	CA UTIL MUSE	MC Can ConsUtil Muse	CA WRLDELUTIL	0.00% + $0.10
17	11892	2RD	MC Canada Commercial Small Medium Enterprise	CA COMM SM MED	MC Can Comm SM MED	CA COMM LGMKT	2.00% + $0.00
18	11893	2RE	MC Canada Commercial World Elite	CA COMM WRLDEL	MC Can Comm World Elite	CA COMM LGMKT	2.25% + $0.00

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New Mastercard Enterprise Solution Wholesale Travel Program Product Codes

Mastercard is expanding the Wholesale Travel Program by introducing 5 new commercial business-to-business (B2B) credit product codes and new commercial interchange programs in Interchange Rate Designators (IRD) BB.

IRD	IQSTA	IC Level	New Fee Program (PPM Description Name	New MAS and TSYS Express Fee Descriptor	New e-Connections Description	Fee Item to Copy	Interchange Rate
BB	11934	2SJ	MC Global Wholesale Travel B2B MBA	GLWHSLTRB2B MBA	MC GLBL WHSL TRAVEL B2B MBA	GLWHSLTR B2BMBS	1.80% + $0.00
BB	11935	2SK	MC Global Wholesale Travel B2B MBG	GLWHSLTRB2B MBG	MC GLBL WHSL TRAVEL B2B MBG	GLWHSLTR B2BMBS	1.60% + $0.00
BB	11936	2SL	MC Global Wholesale Travel B2B MBH	GLWHSLTRB2B MBH	MC GLBL WHSL TRAVEL B2B MBH	GLWHSLTR B2BMBS	1.40% + $0.00
BB	11937	2SM	MC Global Wholesale Travel B2B MBI	GLWHSLTRB2B MBI	MC GLBL WHSL TRAVEL B2B MBI	GLWHSLTR B2BMBS	1.20% + $0.00
BB	11938	2SN	MC Global Wholesale Travel B2B MBJ	GLWHSLTRB2B MBJ	MC GLBL WHSL TRAVEL B2B MBJ	GLWHSLTR B2BMBS	1.00% + $0.00

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US Region

New Commercial Credit B2B Product Codes and Interchange Program

Mastercard is expanding the Variable Interchange Program (VIP) by adding three new commercial product codes which will be supported in three new VIP interchange programs. Separately, Mastercard is creating a dedicated product code (BPC—Bill Pay Commercial) and interchange program (IRD X5—Commercial Bill Pay Standard) specifically for consumer bill payments that use commercial cards.

IRD	IQSTA	IC Level	New Fee Program (PPM Description Name	New MAS and TSYS Express Fee Descriptor	New e-Connections Description	Fee Item to Copy	Interchange Rate
V5	11940	2SP	MC B2B VIP 12	MC B2B VIP 12	MC B2B VIP 12	MC B2B VIP 1	2.15% + 0.10
V5	11941	2SQ	MC B2B VIP 13	MC B2B VIP 13	MC B2B VIP 13	MC B2B VIP 1	1.55% + 0.10
V5	11942	2SR	MC B2B VIP 14	MC B2B VIP 14	MC B2B VIP 14	MC B2B VIP 1	0.40% + 0.10
X5	11939	2SO	MC Bill Pay Commercial	MC BILLPAYCOMM	MC BILL PAY COMMERCIAL	MC B2B VIP 1	2.50% + 0.10

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Revised Interchange Program and Rates for Assurance Framework

Mastercard is expanding the Merit 1 interchange program by introducing new consumer interchange programs that apply to Child Day Care Services (MCC 8351).

IRD	IQSTA	IC Level	New Fee Program (PPM Description Name	New MAS and TSYS Express Fee Descriptor	New e-Connections Description	Fee Item to Copy	Interchange Rate
78, 88, 98	11961	2SS	Merit 1 Day Care	MERIT 1 D-C	MC Merit 1 Day Care	MERIT 1 R-E	1.60% + 0.10
02	11962	2ST	World Merit 1 Day Care	WRLD M1 D-C	MC World Merit 1 Day Care	WRLD MERIT 1	1.60% + 0.10
RP	11963	2SU	Enhanced Merit 1 Day Care	ENH M1 D-C	MC Enhanced Merit 1 Day Care	Enhanced Merit I	1.60% + 0.10

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Discover

US Region

New Micro Ticket Interchange Programs

Discover will implement new Micro Ticket U.S.Consumer Acquirer interchange programs that will apply to transactions that are less than or equal to $5.00 for either card present or CNP transactions.

IRD	IQSTA	IC Level	New Fee Program (PPM Description Name	New MAS and TSYS Express Fee Descriptor	New e-Connections Description	Fee Item to Copy	Interchange Rate
817	11943	7KF	DS Micro Ticket Debit	MICRO TKT DB	DS Micro Ticket Debit	RETAIL DB	1.80% + $0.00
818	11944	7KG	DS Micro Ticket Prepaid	MICRO TKT PD	DS Micro Ticket Prepaid	RETAIL PPD	1.80% + $0.00
820	11945	7KH	DS Micro Ticket Core	MICRO TKT CR	DS Micro Ticket Core	RETAIL	1.95% + $0.00
821	11946	7KI	DS Micro Ticket Rewards	MICRO TKT RW	DS Micro Ticket Rewards	RETAIL RW	1.95% + $0.00
822	11947	7KJ	DS Micro Ticket Premium	MICRO TKT PR	DS Micro Ticket Premium	RETAIL PR	1.97% + $0.00
823	11948	7KK	DS Micro Ticket Premium Plus	MICROTKT PP	DS Micro Ticket Premium Plus	RETAIL PP	2.05% + $0.05
824	11949	7KL	DS REGF Micro Ticket Debit	RGFMICROTKT DB	DS RegF Micro Ticket Debit	RGF RETAIL DB	0.05% + $0.22
825	11950	7KM	DS REGF Micro Ticket Prepaid	RGFMICRTKT PD	DS RegF Micro Ticket Prepaid	RGF RETAIL PPD	0.05% + $0.22
452	11951	7KN	DS REG Micro Ticket Debit	RG MICROTKT DB	DS Reg Micro Ticket Debit	RG RETAIL DB	0.05% + $0.21
453	11952	7KO	DS REG Micro Ticket Prepaid	RG MICROTKTPD	DS Reg Micro Ticket Prepaid	RG RETAIL PPD	0.05% + $0.21

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Payarc

December 8, 2021

Uncategorized

Interchange Downgrades
If you’re a business owner, you’ve probably heard of the term “interchange downgrade.” Downgrades are not easy to understand, but they can end up costing you hundreds of dollars in credit card fees per month. While they’re not totally avoidable, it is possible to learn to recognize some of them and save money.
What Are Downgrades and Why Do They Happen?

In tiered pricing, each credit card transaction falls into a pricing category: qualified, mid-qualified, and non-qualified. Qualified rates are the lowest, and you might think that most of your credit card transactions fall into the qualified category. Not so! Downgrades can occur for several reasons, including, but not limited to:
Expired authorizations: if a transaction is not authorized within the allotted timeframe, the transaction will be downgraded and the merchant will be charged a higher rate.

Failing to use AVS: AVS, or Address Verification Systems, is meant to protect against fraud. If an e-commerce business does not use AVS, it could put everyone involved at risk of fraud. Therefore, this kind of transaction would be downgraded.

Not capturing required data: Credit card transactions require a certain amount of data to be captured. Some of the data includes:

Date of transaction

Transaction amount

Merchant name
Failure to capture this data will result in a downgrade.

Common Types of Downgrades

Visa

Each Visa transaction has what’s commonly referred to as a “target interchange rate”, which is the lowest rate for that particular transaction. When a transaction is downgraded from that target interchange rate, it falls into one of the following two categories:

EIRF

EIRF stands for Electronic Interchange Reimbursement Fee. This is considered the first step of downgrades for Visa. For example, if a transaction does not meet the requirements for the target interchange rate, it gets downgraded to EIRF. If it doesn’t meet the requirements for EIRF, then it gets futher downgraded to Standard. To qualify for EIRF, the transaction must be either card-present or key-entered, be electronically authorized, and settled within 2 days. The credit rate for EIRF for Visa Signature cards is 2.40% + $0.10, while for all other Visa credit cards the rate is 2.30% + $0.10. EIRF is only applicable to consumer transactions.

Standard

Each Visa card type has a “standard” rate associated with it, but that standard rate only applies if the transaction itself does not meet the requirements for the target interchange rate or the EIRF rate. As such, the standard rate is the most expensive rate. Standards rates can apply to both commercial and consumer transactions. The standard credit rate for Visa Signature cards is 2.95% + $0.10, while for all other Visa credit cards the rate is 2.70% + $0.10.

Mastercard

Standard

Like Visa, Mastercard has a standard interchange category for each card type. Also like Visa, transactions get downgraded to their standard rate if they do not meet the requirements for their target interchange rate. The following are the standard rates for each Mastercard card type:

Core (USD) Enhanced Value (USD) World (USD) World High Value (USD) World Elite (USD)

2.95% + $0.10 2.95% + $0.10 2.95% + $0.10 3.25% + $0.10 3.25% + $0.10

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How Can A Business Prevent Downgrades?

The best way to prevent downgrades is to make sure that you are processing using the “interchange plus” pricing model instead of the “tiered” pricing model. If that is not possible, other ways to prevent downgrades are to swipe or dip (in the case of EMV chipped cards) cards instead of keying them in to the system to make sure that all required information is captured, using AVS for e-commerce transactions to reduce the chance of fraud, and batching out everyday to make sure that none of your authorizations expire.

Contact PayArc to speak with us about how to change your pricing model to interchange plus!
Payarc

November 22, 2021

Uncategorized
Mastercard Chargeback Resolution Process

hat is a Chargeback Dispute?

When a customer holding a Mastercard disputes a transaction, you enter into what is known as the chargeback dispute process.

Why do customers dispute transactions?

There are many reasons a customer may dispute a transaction, including undelivered goods or services, dissatisfaction, or a variety of other valid reasons.

As soon as a chargeback is filed, you enter a resolution process that goes through three cycles. Here are the three cycles that must be carried out before a dispute reaches arbitration:

Three Cycles for Mastercard Chargeback Resolution

Cycle #1

First chargeback: Your business enters the first cycle of chargeback resolution as soon as a customer holding a Mastercard disputes a transaction.

Cycle #2

Second presentment: The following cycle of chargeback resolution occurs when the acquirer refutes the issuer’s first chargeback.

Cycle #3

Arbitration chargeback: This stage is when the evidence provided by the acquirer in the second presentment is deemed insufficient.

Yet the chargeback process is being overhauled! Mastercard is now making significant efforts to streamline and modernize the entire chargeback process.

If you have heard rumblings about the Mastercard Dispute Resolution Initiative (or MDRI), it’s true! Mastercard is overhauling its entire payments ecosystem, and the changes will be rolled out in four distinct phases.

Here’s How MasterCard’s Dispute Resolution Process is Changing

Chargebacks were initially introduced 45 years ago when credit cards were still novel and unknown.

Consumers were comforted by the fact that they could dispute transactions or reclaim lost funds due to fraud. While Mastercard’s chargeback processes made sense 45 years ago, they haven’t kept up with the digital world we live in today.

That’s why Mastercard is now attempting to make the chargeback process more fair and responsive to the online landscape.

What are Mastercard’s goals with MDRI?

Get faster and more accurate dispute outcomes

Regularly make changes that can be easily adapted to new trends in technology and fraud

Allow for greater compliance and stability with a gradual and steady rollout.

The MDRI Rollout In 4 Phases‍

Phase 1: October 12, 2018

Issuers are required to collect more information from cardholders before a chargeback. Collecting relevant information will make it easier to filter out invalid disputes and fight against friendly fraud and cyber-shoplifting.

The change made during phase 1 applies to chargeback disputes listed under these reason codes:

4831 – Incorrect Transaction Amount

4834 – Point of Interaction Error

4853 – Cardholder Disputer

4863 – Cardholder Does Not Recognize

Phase 2: April 12, 2019

This phase addresses unjust enrichment or “double refund”. This happens when the issuer performs a chargeback while a merchant has also issued a credit to the cardholder. In the past, a scenario like this would have been resolved by compliance or pre-compliance case.

Under MDRI, compliance or pre-compliance will no longer be resolving double refund scenarios. It will be the issuer’s responsibility to check for refunds/reversals prior to chargebacks. If submitted as “Credit Processed”, issuers must accept a second presentment.

If you offer a refund after the customer’s bank has filed a chargeback, you will need to accept the dispute. However, if you have offered a refund before a chargeback has been filed, you will have 45 days to contest the dispute.

It’s also important to note that any chargebacks involving Mastercard’s reason code 4834 (Point of Interaction Error) will see the chargeback filing timeframe reduced from 120 days to 90 days.

Finally, Mastercard will eliminate the following two reason codes from their list:

4840 – Fraudulent Processing of Transactions

4863 – Cardholder Does Not Recognize (to be removed tentatively on Jul 12, 2019)

Phase 3: October 18, 2019

Mastercard hasn’t yet announced the changes for this third phase of the rollout. Stay tuned for more updates.

Phase 4: April 17, 2020

During this fourth and final phase of the MDRI rollout, the arbitration chargeback cycle will be removed. This is an effort to streamline the chargeback process and allow issuers to continue a dispute with pre-arbitration prior to escalating to arbitration for fraud.

The changes in this fourth phase do not apply to the following reason codes:

4870 – Chip Liability Shift

4871 – Chip/Pin Liability Shift

4808 – Authorization-Related Chargeback

Now, you might be wondering…

How Does MDRI Overlap With The Most Recent Version of the Chargeback Guide?

You may have already reviewed the most recent version of the Chargeback Guide issued by Mastercard on Dec 13, 2018. Because the first phase of MDRI went into effect on October 12, 2018, you will note that some of the changes were included in the guide.

Here are some important details to note from the guide:

When it comes to resolving a chargeback with reason code 487 (No Cardholder Authorisation), you are not allowed to submit any new information like name, location or date. This change applies if the information doesn’t match between authorization and clearing.

Please note that the changes that were set for late presentments have been withdrawn.

Additionally, you are also required to provide supporting documentation like a transcript of emails with your customer for chargeback reason code 4863 (Cardholder Does Not Recognize).

Do You Have Any Questions About How MDRI Will Impact Your Business?

Most businesses have limited time, resources and expertise to stay on top of MDRI updates and the various ways it will affect their business.

Get in touch with us right away for expert guidance in navigating Mastercard’s evolving chargeback process.

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‍

Payarc

November 16, 2021

Uncategorized
Top 6 Considerations for Your Mobile App Payment Gateway
So, you’re developing a mobile app because you want to earn a piece of the sweet, big mobile app pie on the menu today and tomorrow. Consumers can’t get enough of apps these days, and earnings reports reflect it.

How big is the pie? Forrester projects mobile payment transactions — in the U.S. alone — to account for $282.0 billion by 2021. They also expect mobile app sales to grow by a compound growth rate (CAGR) of 20.3% between now and then. Yum, that pie sounds delicious.

While the monthly revenues app developers expect to earn varies by what they sell and the platforms chosen, the future is bright.

Of course, without a mobile app payment gateway built in, the monthly earnings from an app fall abruptly to a Big Fat $ZERO.

Mobile app developers joining us today appreciate that there are many mobile app payment gateways to choose from, but might like to know what to consider when choosing one. Let’s walk through it together.

Assumptions

First things first. Let’s assume the following:
- The mobile app under development is a custom job.
- There’s no “one size fits all” mobile app payment gateway solution.
- You want to find a mobile app payment gateway that fits your business model, not adjust your model to fit the gateway.
- A gateway allows users to buy your products or services, providing a safe, secure way to give you money via payment cards, mobile wallets, and perhaps other choices.
Let’s look at the six most important categories of features to consider when choosing the mobile app payment gateway that suits your needs.

Business Model Considerations

Defining requirements should be a no-brainer for every app developer. Otherwise, the “shiny object syndrome” hits and the scope of your app grows quickly — not a winning scenario. Think about your business model and target market. Use this list to tickle your brain:
- Countries and Currencies you need to support.
- Payment Types. Which brands of credit and debit cards? What types of mobile wallets does your target market want? What about ACH (checks) via smartphone camera and one-touch payment capability?
- Payment Models needed in your app: one-time purchase, subscription services, and/or large scale payments for payroll and invoicing.
- Level of customization: Fully-hosted ecommerce solution with customizable look and feel throughout vs. Checkout screens customizable to support unique branding.
- Do you need a fully managed store front — a simple mobile app payment gateway to integrate into a custom app — or something in between?
Technology Considerations

Many of your technology choices may have already been made, and some may require research on pros and cons and user opinions.
- Support Apple iOS, Google Android, and/or Windows Phone.
- Ease of Integration, Ease of Use (points to API and SDK strength).
- Easily integrate with business software packages, and/or social media platforms.
- Full-stack solution, or gateway-only?
- Scalable solutions for different size businesses.
- Shopping cart plug-ins, custom forms.
Fraud Prevention Security Features

This may be THE MOST IMPORTANT consideration for your choice of mobile app payment gateway. eCommerce and mobile fraud prevention are top-of-mind for banks, credit card companies, payments processors and merchants of all types. Because retail merchants continue to experience fraud at alarmingly high — and growing — rates.
- PCI-DSS Compliance, required by the card brands for any merchant transmitting or storing payment card data. Don’t neglect this requirement as you look at various gateways. Failure to maintain compliance can result in large fines from major card brands.
- Support for fraud protection features like Address Verification and Card Code Verification (AVS/CVV), data encryption, tokenization, and other security protocols that allow you to monitor transactions in real-time.
Don’t shirk this responsibility as potential customers care a great deal about data security, especially the Millennial generation (a key target market).

Level of Customer Support

This is often the least appreciated aspect of the payment aggregator business model, along with funding timeframes and account stability. Consider what fits your personality, including days and hours available.
- Email only support.
- Internet Relay Chat (IRC) site to converse with technical experts.
- Live Customer Support, with published phone numbers.
- Integration support.
Price Point/Charging Model

Pricing models for mobile app payment gateways vary. Consider your growth plans as well as start-up processing fees, because what sounds like a great deal initially can add up very quickly and reduce your share of the mobile app revenue pie.
- Monthly Fees are common, and range from $14.95 to $179.95 per month for the mobile app payment gateways reviewed.
- Other models use standard pricing tiers based on transaction volumes. Some gateway providers offer customized pricing for each customer.
- Extra fees may include set-up, product integration support, live support, and other add-on premium features.
- Payment aggregators typically offer free accounts with fixed, pay-as-you-go, per-transaction price structures in the form of X% of transaction + $0.YY per transaction. Pricing varies from 2.75% – 3.5% of transaction value plus $0.15 or more per transaction.
- Different types of accounts with varied features (some standard, some extra) may be part of the pricing model. For example, PayPal’s “Enhanced” and “Premium” support cost $150 and $459 per month.
- Fees for international transactions may be higher than domestic fees.
Contractual Terms and Terms of Service

Carefully review both before signing anything. If you find the they’re too legalistic, seek a legal review. Items to look for include:
- Is it a fixed-term contract? If so, is there an early-termination penalty?
- If not, can you cancel your arrangement at any time without penalty?
- What add-on fees may occur (like chargeback fees)?
- Is there a volume limit, or a large-transaction amount limit?
- Who owns your customer data? Can you port data easily if you decide to change gateways?
- By signing the contract, are you also agreeing to specific Terms of Service? Can you live with them?
Conclusion

When you need an eCommerce payment solution that both saves your money and gives you peace of mind, look no further than PAYARC.

PAYARC’s mobile SDK makes it easy to integrate mobile payment solutions into your app. Our PCI compliant web based payment gateway allows you to monitor transactions in real time.

And our industry leading payment processing solution gives you all the tools you need to start accepting payments while lowering your risk to fraud and giving you some of the lowest rates in the industry.

PAYARC wants to act as your payments advisor and consultant, not only your processor. Because you have a business to run…Our business is to help you run it better. Why not start processing with PAYARC today?

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Payarc

November 15, 2021

Uncategorized

mobile-apps-payments
Understanding the Application Process for Domestic Merchant Accounts
Ecommerce has grown precipitously over the last couple of years, with entrepreneurs establishing different business models targeting varying markets. Regardless of your industry or business type and the corresponding business model, you will need a domestic merchant account to accept payment card payments online.

As an online business considering domestic merchant accounts, you’ve likely done some research on your target customer base, which is based largely in your business’ country of origin. Accepting payment cards online will be the lifeblood of your ecommerce business, so you need to be prepared for the steps needed to obtain a domestic merchant account.

What are Domestic Merchant Accounts?

Domestic merchant accounts are built for card payments within the US. International merchant accounts, on the other hand, are developed to handle the complexities that come with foreign currency payments.

Although they both deal with card payments, the application process is quite different. Most US-based ecommerce businesses start out with domestic merchant accounts then apply for international accounts as they expand to foreign markets.

Let’s look at the steps required to apply for domestic merchant accounts.

How To Apply For Domestic Merchant Accounts

There are several steps when applying for domestic merchant accounts. Being prepared for the process can give you an edge and ensure that your business is best positioned for success. Making sure you have all the necessary paperwork is a significant part of applying for a domestic merchant account. There are also other pieces of information about your business that you’ll need to supply to the bank or your payment services provider. We explore these below.

Prepare Identification Documents

Banks that offer merchant accounts need a full financial picture of the business, including identifying information about the business owners. Additionally, the bank will want to view your business’ historical data and proclivity to fraud. This helps the bank to create a risk profile, which may ultimately determine whether a merchant is able to obtain a merchant account. Merchant banks, just as most other financial institutions, are risk-averse, so a high chargeback ratio or a large number of customer complaints could be a red flag to the institution that your business is “high risk.” Ideally, you want to quality for a low-risk domestic merchant account, which offers more competitive processing rates.

There are several essential documents that are typically requested by all account providers;
- Photo ID: As proof of the owners’ identities
- SS-4 Form: To ascertain your specific tax ID
- Voided Check: As proof that you own a bank account based in the US. Plus provide account details for deposit of payments
- Bank Statement: To assess the financial stability of your business
- Social Security Number: To further verify your identity and run credit checks
Have a Professional Business Plan

The bank or your PSP may also ask you to submit a business plan, which helps establish credibility. If you already have a business plan, ensure it is up-to-date. Include information on your industry, business/revenue modeling, sales and marketing plans, competitive analysis, and business processes.

Financial Data & Processing History

If you are moving to a domestic merchant account from another type of merchant account, you’ll want to show that you have a healthy processing history. Presenting strong financials can build your case for a domestic merchant account and make you more palatable as a merchant for banks. Try to show at least six months of processing history, which can highlight your record keeping as well as financial health.

Operating Controls

Present your internal processes and operating controls relating to inventory management, financials, security (including PCI compliance), and management reporting. The more information you can provide paints a positive picture of your business for the bank. You want to appear stable, viable, and in control of the internal and external processes of your business.

Consider Working With a Payment Processor

An alternative to approaching the bank directly is to work with a trusted, reputable payment processor that has experience with your business model. PayArc is a leading online payment processor trusted by both small and large enterprises in provision and management of domestic merchant accounts.

We’ve helped merchants big and small to obtain merchant accounts and grow their payments operations. Whether you’re a new ecommerce merchants or seasoned online business owner, we can help you managed payments from end to end.

We assist with everyday management and big picture payments issues, including chargeback management, fraud prevention, risk mitigation, PCI compliance, reporting, and more. We partner with you to provide expert guidance and consulting so you can keep your focus where it needs to be – on your business.
Payarc

November 15, 2021

Uncategorized

payment-processing

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Understanding the Power of SaaS

Mastering the SaaS Sales Process

The Path to SaaS Sales Success

Why Choose SaaS Sales with PAYARC?

Are You Ready to Thrive with PAYARC?

Benefits of Compliance with Cash Discount and Dual Pricing

Avoiding Penalties

Violation Fines

Building Trust with Customers

Maintaining a Good Reputation

Best Practices for Cash Discount and Dual Pricing

1. Provide clear and conspicuous disclosures

2. Ensure non-discriminatory pricing

3. Keep accurate records

4. Train employees

5. Partner with a payment processor

Conclusion

How to set up online credit card payments

Fees and Application Process

All-in-One Solutions

Simplified Payment Processors

Security and Fraud Prevention

Why Pay Card Brand Fees?

How much am I paying in Card Brand Fees?

Credit and Debit Assessments

Can I Reduce Card Brand Fees?

Need Expert Help to Manage Your Fees?

Visa Assessments

MasterCard Assessments

Discover Assessments

American Express Assessments

Tiered Pricing

Interchange Plus Pricing

Bundled Rate Pricing

New Interchange Programs

‍Business Impacts

Visa

Canada Region

Changes to Performance Tier 1 Fee Program for Visa Consumer Credit Transactions

New Industry Fee Utilities Program for Visa Consumer Credit and Debit Transactions

New Emerging Segment Preferred Program for Visa Consumer Credit and Debit Transactions

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Changes to Domestic Interchange Fee Programs for Account Funding Transactions

US Region

Changes to Interchange Fee Programs for Visa Consumer Transactions

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Changes to the Supermarket Credit Performance Tiers

Mastercard

Canada Region

Enhancements to Intracountry Interchange Programs

New Mastercard Enterprise Solution Wholesale Travel Program Product Codes

US Region

New Commercial Credit B2B Product Codes and Interchange Program

Revised Interchange Program and Rates for Assurance Framework

Discover

US Region

New Micro Ticket Interchange Programs

What Are Downgrades and Why Do They Happen?

Common Types of Downgrades

Visa

EIRF

Standard

Mastercard

Standard

How Can A Business Prevent Downgrades?

Three Cycles for Mastercard Chargeback Resolution

Cycle #1

Cycle #2

Cycle #3

Here’s How MasterCard’s Dispute Resolution Process is Changing

The MDRI Rollout In 4 Phases‍

Phase 1: October 12, 2018

Phase 2: April 12, 2019

Phase 3: October 18, 2019

Phase 4: April 17, 2020

Here are some important details to note from the guide:

Do You Have Any Questions About How MDRI Will Impact Your Business?

Assumptions

Business Model Considerations

Technology Considerations