• They ask you a lot of questions about your business and how you are going to accept payments.
• They are willing to go into detail on how they will bill all types of transactions, not just the low published rate they are offering.
• They talk to you about much more than rates and fees.
• They are willing to work at your pace for set-up and will provide you with important training on how to process a credit card and protect your business against fraud and chargebacks.
• They clearly explain all terms and fees on your fee schedule, purchase agreement, and/or lease agreement.

Banks
Most banks focus on driving in deposits and handing out loans, and merchant services is an afterthought.  Most sales representatives in this arena will only have a basic knowledge, and will be locked into a few pricing options, which makes it difficult for them to customize the right program for your business.  However, many will be able to offer faster funding times due to clearing and funding the transaction in the same financial institution.

Associations
Some associations and trade organizations may recommend a processor to you with whom they have negotiated a deal.  Some of these deals can be extremely good for your business, and others may not be so good.  It is important, again, to ask a lot of questions and not blindly go with a processor simply because it was recommended by a group you are associated with.  Also, many of these partner agreements give revenue streams back to the association for members they have referred to the merchant services provider.

Independent Sales Organizations (ISOs)
A wide range of companies fall into this category, from extremely professional and knowledgeable organizations, to the fast-talking car salesman who you will never hear from again after signing the agreement.  ISOs have a wide range of offers from free terminals to low introductory offers.  Again, stop and ask yourself if you feel the sales representative is getting to know your business and offering solutions that will be good for your business, or do they seem focused on price only and how much they will save you?

Lease

• Most, if not all, leases cannot be canceled.  This means you are obligated for the full term of the lease, regardless of the status of your company.  Leases can usually be transferred, but check with your leasing company.
• Leases offer you the ability to defer payments over a term and keep needed capital in inventory where you can turn a profit, instead of investing in equipment that will depreciate over time.
• Leases usually come with a free replacement program for the full term of the lease if your terminal is defective.
• It is important to learn about and understand the buyout options, too.  Check with your accountant or CPA on the tax benefits of leasing.
• You have the ability to upgrade equipment when new technology comes out.

Purchase:

• There is generally a lower overall cost than leasing.
• Equipment is generally treated as customer-owned after one year of ownership.

• At the point of sale, the merchant has the responsibility to check over the physical aspects of the card, including the embossed account number, cardholder name, expiration date, and customer signature.  In addition, other anti-fraud measures that merchants should check include the Flying Dove hologram, the ultra-sensitive dove that is visible when the card is placed under ultraviolet light, and the “Flying V” embossed security character.
• Merchants should contact their merchant services provider to better determine what additional services could be deployed to reduce fraud and manage chargebacks.  From Verified by Visa to CVV2, merchants have sophisticated technologies at their disposal to reduce fraud losses.
• Review the PCI data security requirements and immediately begin the process of ensuring cardholder information is protected.

• Purchase a lot of merchandise without regard to size, color, or price;
• Ask no questions on major purchases;
• Try to distract or rush you during a sale;
• Make purchases, leaves the store, and returns to make more purchases;
• Make large purchases right at opening or at the last minute when the store is closing; or
• Refuse free delivery for large items.

• Hold on to the customer’s card if you think you can do so safely.
• Follow your company’s procedures and notify the authorities.
• Call your voice authorization center and request a “Code 10” authorization, using a normal tone of voice.  An operator will tell you what to do.
• Never risk your own safety or the safety of others in the vicinity!

• Do not complete a transaction if the authorization request was declined.  Do not repeat the authorization request after receiving a decline.
• If you receive a “Call” message in response to an authorization request, call your authorization center.
• Make an imprint for all card-present transactions.
• Obtain cardholder signature.  Make only one imprint of the card for each transaction.
• Ensure that transactions are entered into point-of-sale terminals only once and deposited only once.
• Ensure that incorrect sale receipts are voided and that transactions are processed only once.
• If your establishment has policies regarding merchandise returns, refunds, or service cancellation, disclose these policies to the cardholder at the time of the transaction.
• Deposit sales receipts with your merchant bank as quickly as possible, preferably within one to five days of the transaction date — do not hold on to them.
• Deposit credit receipts with your acquirer as quickly as possible, preferably the same day as the credit transaction is generated.
• If a customer requests cancellation of a recurring transaction which is billed periodically (monthly, quarterly, annually), always respond to the request and cancel the transaction immediately or as specified by the customer.
• Keep customers informed on the status of their transactions.
• If the merchandise or service to be provided to the cardholder will be delayed, advise the cardholder in writing of the delay and the new expected delivery or service date.
• If the merchandise ordered by the cardholder is out of stock and delivery will be delayed, or the item is no longer available, advise the cardholder in writing and offer the cardholder the option of purchasing a similar item or canceling the transaction.
• Ship merchandise before depositing transaction.