For every credit card and debit card out there, there is a specific cost that comes from the card associations (Visa, MC, Discover & Amex). ALL merchant service provider’s and credit card processors have the exact same interchange rates that are mandated by Visa, Mastercard, Discover, and American Express.
2. What is Interchange Plus Pricing (also known as pass-thru pricing)?
Interchange Plus Pricing is a pricing model for credit card processing. This is the model Preferred Payment’s utilizes. We pass on the exact cost to you (interchange) and we add a fixed markup.
3. Can Preferred Payments work with any gateways or software?
Yes. Typically we can work with any gateway and most software or POS systems. Here are just a few examples of who we work with.
Gateways: Authorize.net, USAepay, Paytrace, Payeezy, Shopify, Converge, Merchant Partners
Software/POS: NCR, Aloha, Clover, Shopkeep, Bindo, POSitouch, Lavu, Quickbooks POS, Verifone Cloud
4. What is EMV, does it affect me?
EMV stands for Europay, Mastercard and Visa. EMV was mandated in October 2015 to help decrease fraud in a card present environment. The credit card uses the chip to authenticate the transaction. EMV only affects businesses who take cards in person. No one is required to update their terminal, but it is recommended to help protect your business against fraud.
EMV does not affect you if you do not take credit cards in person.
5. Is there a downside to not accepting EMV/chip cards?
Yes. If you do not accept chip cards in a card present environment, and a customer disputes a transaction, the business will automatically lose the dispute. This results in a chargeback.
6. How often will my rates increase with Preferred Payments?
Never. The rate you start with is the rate you maintain for the life of the account.
7. How difficult is it to switch from my existing provider?
Not difficult at all. We help you with the entire process and handle most of the changes on our end. There is no downtime for your businesses. The switch can typically be completed within 24-48 hours.
8. What documents are required for a new account?
Copy of Owners Driver’s License
EIN Letter or Business License
9. How long does the set up process take?
Once all the documents are received, approval within 24-48 hours, and can begin processing within 48-72 hours.
10. How quickly do I receive my funds?
You will receive your funds directly into your bank account the next business day. Friday’s transactions will be deposited on Saturday. Saturday and Sunday’s transactions will be deposited on Monday
11. Will my American Express transactions be deposited with the rest of my funds or will I receive a separate deposit?
Preferred Payments is set up so all funds will be received in one deposit. We make it easy to track all funds that were deposited. There is also no delay for receiving your American Express funds.
12. Do I receive access to reports and statements?
Yes. Each Preferred Payments merchant receives free access to our online reporting tool and electronic monthly statements. The reporting tool allows you to view daily transactions, settlements, deposits, chargebacks, refunds, etc. Our tool also allows you to access your statement each month.
13. POS vs Terminal?
POS Systems help manage your business. They consist of functions specific to your industry, and have a wide variety of features that add value to your business. If you’re looking for something specific. Ask us. We’re happy to work with you to ensure you have exactly what you need.
A terminal is a machine that accepts credit cards without all the bells and whistles. It is a standalone machine that can accept EMV chip cards, mag stripe cards, Apple Pay, and Google Wallets. You will also receive our reporting tool to track all of your transactions.
14. Can Preferred Payments Integrate with QuickBooks?
Yes. We can integrate with QuickBooks POS, Desktop and Online. We even have an EMV solution for QuickBooks POS.
15. Can Preferred Payments integrate with my online website and retail store?
Yes. We can integrate your store, regardless of what type of business, as well as your company website. All your reporting will be consolidated.
16. What is a Payment Gateway?
A payment gateway is a virtual terminal. It serves as an online payments page, which will go directly onto your website. You will also have the ability to log onto your virtual terminal to key in transactions manually.
17. How is Preferred Payments different then their competition?
We are a relationship based company, meaning, our goal is to satisfy you from the beginning throughout the life of your business. We want to make the process as easy as possible for you, and we’re here to help and support you in any way we can. You will have a dedicated account manager so that you have one person to always call, email, and go to for support. We also have backup 24/7 US based support. The rates we initially give you are locked in, they will never raise and we have no contracts, no cancellation fee and no set up fee.
18. Can I accept International credit cards?
Yes you can.
19. What is PCI Compliance?
PCI stands for Payment Card Industry. If you are a business who accepts credit cards you must be PCI compliant. Compliance consists of a self-assessment questionnaire and a scan. Your dedicated account representative will continue to help you attain and maintain compliance for the life of your account.
20. Does Preferred Payments offer everything I need to complete PCI compliance or do I need to reach out to a third party to prove compliance?
Preferred Payments provides you with everything you need to complete compliance. We supply you with your own credentials to log into our online portal to complete compliance. You do not need to reach out to a third party.
21. What is the different between pin and signature debit?
Signature Debit: Signature debit is when the customer uses their debit card but does not enter their pin number into the pin pad. Instead they sign the sales receipt, just like a credit card transaction. This is also known as an offline debit transaction.
Pin Debit: Pin debit is when a customer pays using their debit card and enters their pin number into the pin pad to complete the transaction. The customer does not need to sign a receipt. Pin Debit is also known as online debit transaction.
22. What is NFC and Apple Pay?
NFC stands for “Near Field Communication”, giving merchants the ability to accept payment forms electronically through cell phones. An example of NFC is Apple Pay, Samsung Pay and Google Wallet. Security is at the forefront of NFC transactions by utilizing tokenization. Tokenization creates a token instead of showing or transferring your actual credit card number.
23. If I already have a terminal, do I need to purchase a new one?
Preferred Payments can often reprogram existing terminals, so you don’t have to purchase a new one. Some terminals, due to their older technology, are not reprogrammable, including terminals that cannot accept EMV cards. If you have an existing terminal, let us know and we’ll determine whether it can be reprogrammed.
Preferred Payments doesn’t lease terminals because then we would be required to lock you into a contract. Many companies who lease terminals not only lock you into a contract, but they also raise your rates over time, and if you cancel, there is a substantial cancellation fee. Another reason we don’t lease terminals is because leasing typically means you are overpaying for the equipment. Terminals can range from $150-$800 (average is $200). Companies who lease make over $1000 off your $200 purchase by the time the lease is over. Preferred Payments is happy to provide you with options of terminals and their costs.
25. What Card Brand and Card Types can I accept if I used Preferred Payments?
You can accept any major card brand, including Visa, Mastercard, Discover, American Express, Diners, JCB, debit, and pin debit. Plus we offer Apple Pay, NFC, gift cards and ACH/Check Processing.
26. What is customer support like?
Each of our clients receives a dedicated representative to help you throughout the life of your account. After the initial set up and approval, we remain as your first line of support. We also have 24/7 US based back up support.
27. Can I accept payments in my store and on my website?
Yes. We can link all your reporting and sales for your store and online, or keep them separate. This is your option.
28. If I have multiple locations, can I see reporting for all locations remotely?
Yes. We have a reporting tool for businesses with multiple locations. You can view locations separately or together. If you are a franchise owner, you have access to all locations, separate from individual store owners who only have access to their store.
29. Can I accept gift cards?
Yes. We can set you up with new gift cards, or utilize the ones you have.
30. Can I issue refund and is there a cost?
Yes. You can issue a refund or void a transaction, at no cost to you.
31. What is the difference between a void and a refund?
A void is when you refund a transaction the same day you accepted the card, before you settle your sales for the day, i.e. you are cancelling the transaction as if it never happened- before it posts to the cardholder’s account.
A refund occurs after you have settled sales for the day, and after the transaction has appeared on the cardholder’s account. i.e. the money has already been debited from their account. A refund typically takes 3-7 business days to process.
32. Does Preferred Payments help with Chargebacks? Do you offer a Chargeback management tool?
Yes. Preferred Payments will help you gather the appropriate documents to dispute a chargeback. We also offer a chargeback management tool which allows you to oversee and quickly respond to any disputes.
33. Does Preferred Payments offer automatic card updater?
Yes. If you store customer’s credit cards, our automatic card updater will minimize declines by automatically updating your customer’s card number if it has expired, been lost, etc.
34. What is AVS?
AVS stands for Address Verification Services, and is used to verify the cardholder’s billing address with the address on file at the issuing bank, helping to reduce identity theft and fraud. Entering the zip code also helps to lower your interchange rate, as it’s an additional layer of security.
35. Can I accept tips?
Yes. Whether you have a stand-alone terminal or a POS system, can accept tips.