Frequently Asked Questions
Quite simply, a merchant is a special type of account that allows businesses to accept credit card and debit card payments from their customers.
There are many companies that will help you setup a merchant account for your business. A detailed application will need to be filled out that will ask you about the specifics of your business. The setup can take a few days or several weeks, depending on various factors, however having all of the information requested ready can help expedite the process.
There is a process in place for setting up a merchant account in which you will have to provide both information and documentation about your business. A few of the items required include: a checking account for the business, business type (LLC, corporation, etc), FEIN (Federal Tax ID Number), the social security number and address of the merchant account owner, information about products/services sold, and the refund/exchange policies of the business are just some of the information needed to apply for an account.
It's important to find a credit card processor that meets the needs of your business. Some questions you may want to ask the companies you talk to are:
- Is there a long-term contract?
- What happens if I close the account before the term expires?
- Do you offer 24/7 technical support?
- Is there a recurring billing option (if your business bills for products or services on an ongoing basis)?
- How long will it take for the funds from card transactions to reach my bank account?
- How long does it take to setup an account?
Above all, it's best to feel comfortable with the company you are talking to and have an idea as to whether or not they provide exemplary service.
As with any service, fees are paid to maintain a merchant account. One of the typical fees is the discount rate, which is paid to the company or bank where the merchant account is held. It is the percentage that is charged on each card transaction which was pre-determined when the account is set up. The fee is usually lower when the merchant is physically swiping a card (card present) and higher when the payment is taken online or over the phone (card-not-present).
Using Automated Clearing House (ACH), PowerPay will remit funds due to your business bank account for the following card types: MasterCard, Visa, Diners Card/Carte Blanche, JCB and, if you’re newly signing up with PowerPay, Discover. When/if you establish a service agreement with American Express, they will obtain your banking information and pay funds to your bank account.
Many factors determine the kind of hardware you will need, including: type of merchant account (e.g., eCommerce, retail or direct to market), the industry, # of transactions per day, the type of transactions, how many locations your business has, etc. Once we have all of this information, we will be better able to advise you on the type of equipment you'll need to process credit cards.
In many cases, we can work with the equipment you already own. To find out, contact us and we'll work together toward a solution.
PowerPay is a payment processor. We enable your business to authorize and transmit transactions by credit card, debit card, fleet card, private label card, electronic gift card and corporate card. We also settle the funds through the card Associations (e.g. MasterCard and Visa) and deposit funds to your checking account. In addition, we handle adjustments, chargeback processing, merchant billing and account activity reporting.
Interchange fees are transaction-related costs that PowerPay pays to the issuer of the card as compensation. These fees are established by MasterCard and Visa and are based on how a transaction takes place and in what type of industry.
PowerPay allows your merchant terminal to support MasterCard, Visa, American Express, Discover, Diners Club/Carte Blanche and JCB cards. Although we can support all credit card types, we only have the ability to process settlement (payment to merchants) for MasterCard, Visa, DC/CB, JCB and, in some cases, Discover. When processing occurs, each transaction must be authorized, the data must be captured and settlement/payment made back to the merchant.
Fill out the form below and a PowerPay representative will be able to help.