FAQ (Frequently Asked Questions)
You will find many answers to questions you might have about credit card merchant accounts here. This section has been divided into three areas:
- Those interested in obtaining a New Merchant Account.
- Glossary of Terms
If you still have questions about our products, services or support, please contact us directly.
New Merchant Accounts
- Who is Beacon Processing Solutions?
- What is a merchant account and how does it work?
- Do I need a merchant account?
- How do I apply for a merchant account?
- What do I need in order to obtain a merchant account?
- Once I apply, how long before I can start processing credit card transactions?
- What if I have less than perfect credit, questionable credit, or bad credit?
- What types of credit cards can I accept from my customers?
- How do I sign up for AMEX and Discover?
- How much will I pay to process credit cards?
- When do you charge my checking account for fees?
- How and when do I get my money once I process my customer's credit card?
- Do I need a business checking account?
- Will I need to open a separate checking account for these funds?
- Can I keep my existing bank account?
- Can I use a savings account?
- Will I need to purchase equipment or software?
- If I already have a terminal, do I need to buy a new one?
- What is the Virtual Terminal and how do I use it?
- How do I keep tract of my transactions?
- Who should I call if I have questions?
Glossary of Terms
- What is the Discount Rate?
- What is a transaction fee?
- What is a Customer Service/Statement Fee?
- What is an authorization?
- What is AVS and CVV2?
- What is a credit?
- What is a chargeback?
1. Who is Beacon Processing Solutions?
Beacon Processing Solutions is a registered ISO/MSP of Chase Paymentech Solutions, LLC (Dallas, TX). We specialize in providing financial processing products and services, including wholesale card processing rates, check verification, and internet processing.
2. What is a merchant account and how does it work?
To accept credit cards from your customers, you must establish a merchant account. A merchant account enables your business to accept credit card payments from your customers either in person, by mail/phone, or over the Internet for the sale of your products.
Once your merchant account has been established on the processing network (merchant record and terminal record identifying who you are), you can begin processing credit cards through a Virtual Terminal, Retail-Swipe Hardware Terminal, Mobile Wireless Terminal, or Phone Terminal. Terminals enable you to receive authorizations that cardholder funds are available so you can complete each sale transaction.
Beacon Processing Solutions provides you a monthly statement summarizing your credit card processing activity. Please refer to our Support page for more information.
3. Do I need a merchant account?
Absolutely! Studies have shown that having a merchant account may increase sales by as much as 50% when accepting credit cards as a payment option. Accepting credit cards provides credibility for your business, as well as convenience and security for your customers. Not accepting credit cards will result in lost sales and revenue.
4. How do I apply for a merchant account?
Please fill out the "Contact Us" form on the Get Started page and one of our application specialists will contact you.
5. What do I need in order to obtain a merchant account?
All you need is your business information, personal information about it's principals, a voided business check so we know where to deposit your funds, and copies of your business paperwork.
6. Once I apply, how long before I can start processing credit card transactions?
Once we have submitted your application, your Merchant Account will be processed and pending final approval you can begin accepting credit cards through within 3 to 5 business days. This process can take a bit longer if you wish to setup and install Hardware Terminals, to ensure setup is done accurately.
7. What if I have less than perfect credit, questionable credit, or bad credit?
If you have a recent bankruptcy that has not been discharged, or poor credit, you will be required to provide a Co-Signer with good credit to guarantee your merchant account. .
8. What types of credit cards can I accept from my customers?
You can be setup to accept and process Visa, MasterCard, American Express, and Discover cards.
9. How do I sign up for AMEX and Discover?
If you want to accept American Express or Discover cards when applying for your Beacon Processing Solutions merchant account, you can apply for them through the Merchant Application. If you decided to add these card types after your Beacon Processing Solutions Merchant Account is setup, you will need to download and complete the Card Addition Change Request Form.
Note: Getting setup with American Express and Discover may take 1 to 2 weeks before you can accept these card types. If you are currently accepting these card types through another processor, please complete the Card Addition Change Request Form.
10. How much will I pay to process credit cards?
Please refer to the Rates and Services page for pricing information.
11. When do you charge my checking account for fees?
Checking accounts are debited for applicable monthly fees at the beginning of each month for the previous months processing activity. Applicable monthly fees may include customer service/statement fee, Virtual Terminal/Gateway fee, Non-Qualified transactions, etc.
12. How and when do I get my money once I process my customer's credit card?
There are two steps required to complete a transaction - approval and settlement. Beacon Processing Solutions Merchants must obtain approvals via their point-of-sale terminals before completing a transaction/sale verifying that cardholder funds are available. The settlement process then occurs at the end of each day through a batching process (the sum of all transactions are submitted in a bulk file to each applicable card association) initiating the movement of funds from cardholder accounts directly into your merchant account from Beacon Processing Solutions within 48 to 72 hours. The deposit periods are reliant on your local bank float periods.
13. Do I need a business checking account?
Accepting credit cards requires that Beacon Processing Solutions Merchants have a Demand Deposit (Checking) account. Deposits flowing through the Automated Clearing House (ACH) can only occur through checking accounts; not savings accounts.
Beacon Processing Solutions Merchants established as a sole proprietor can have a personal checking account with the sole proprietor name pre-printed on the signed VOIDED check. For example: John Doe Bakery can submit a pre-printed check with the name John Doe.
Beacon Processing Solutions Merchants established as a Corporation or Limited Liability Company must have a business checking account and the business name must match the name on the Merchant Application, and it must be pre-printed on the signed VOIDED check.
14. Will I need to open a separate checking account for these funds?
Not necessarily. As long as the account is a Checking (DDA) account and not a Savings account, you can use an already existing account. Some Beacon Processing Solutions Merchants do open a separate Checking account just for their Merchant Services, for ease of accounting and balancing purposes.
15. Can I keep my existing bank account?
Yes - providing it has been established as a Demand Deposit (DDA) account; not a savings account.
16. Can I use a savings account?
No. Savings accounts do not allow funds to be debited or credited via the Automated Clearing House (ACH).
17. Will I need to purchase equipment or software?
Purchasing equipment is optional depending on your business model. The Virtual Terminal is provided as a way to process credit cards without equipment.
18. If I already have a terminal, do I need to buy a new one?
Most likely not! 90% of all major hardware terminals can process transactions through any platform. Beacon Processing Solutions Merchants having compatible hardware terminals can be reprogrammed (download process) with a new software application.
19. What is the Virtual Terminal and how do I use it?
The Virtual Terminal is no different than a hardware card-swipe terminal commonly seen at retail stores. The only difference is that transactions are hand-keyed from your computer having access to the Internet. All that is required is cardholder and transaction data to submit the transaction for approval.
20. How do I keep track of my transactions?
Beacon Processing Solutions provides a monthly statement providing all transaction and deposit activity occurring for the previous months processing activity. Beacon Processing Solutions Merchants setup to use the Virtual Terminal can access all transaction detail 24/7.
21. Who should I call if I have questions?
Beacon Processing Solutions has different toll-free customer support numbers depending on the type of inquiry you have. Please refer to the Support page for support options.
Glossary of Terms
1. What is the Discount Rate?
The Discount Rate is the percentage that gets discounted (deducted) from the transaction amount. The vast majority of the Discount Rate is paid to Visa or MasterCard Associations, the Card Issuing Bank (the bank that issued the bankcard to your customer) and to the Acquiring Bank (the bank that Beacon Processing Solutions processes with).
2. What is a transaction fee?
The Transaction Fee is the fee a merchant pays every time they access the processing network. This fee pays for the use of the infrastructure to receive payment information, request authorization from the customer's bank, transmit the authorization information to the merchant, and to facilitate payment to the merchant. For example, this fee is assessed when a bankcard is keyed into a Virtual Terminal over the internet, or when the merchant batches out, or when the merchant performs a Return or Void. The Transaction Fees are assessed at the end of the statement period which is usually at the end of the month.
3. What is a Customer Service/Statement Fee?
This fee is exactly as it sounds. This fee covers the account management and customer support on your merchant account, as well as the cost to generate and mail out your month-end statements.
4. What is an authorization?
An authorization is a transaction that helps verify that the credit card is not a counterfeit, verifies that the cardholder has sufficient credit for the purchase, and places a hold on the cardholder's credit for the amount of the transaction.
5. What is AVS and CVV2 (card code)?
AVS stands for Address Verification System. The credit card billing address of your customer is requested and verified prior to authorization being given for the transaction performed through your Virtual Terminal. It is a way to reduce the risk of fraudulent transactions and/or chargebacks.
CVV2 (Card Code) is the 3-4 digits located on the back of credit cards to help reduce fraud for mail order, Internet and telephone transactions.
6. What is a credit?
A credit is a refund issued by you, the merchant, to a customer due to a return, data entry error or cancellation of a sale. You should perform a credit when a customer returns product or cancels a sale and requests a refund on the amount of the return.
Note: You are not required to issue a credit. Even if you return policy is not to issue credits, your customer has the right to seek reimbursement through chargeback procedures. If your business incurs excessive chargebacks, you may be required to pay additional fees and in extreme cases, have your right to accept Visa or MasterCard revoked. Thus, a refund to one dissatisfied customer may be better that a potential chargeback.
7. What is a chargeback?
A chargeback occurs when a customer tells their credit card company that they did not authorize a purchase that appears on their month-end statement. A chargeback is the reversal of a sales transaction by the customer's credit card issuer. Chargebacks most often occur when a cardholder disputes a transaction and you, the merchant, cannot provide adequate proof that the transaction to the cardholder's account is valid. A chargeback can also result from processing errors, authorization issues, and/or any other irregularities. When a purchase is charged back to the merchant, a $20 fee and any fees charged by the customer's credit card issuer will be deducted from your checking account in addition to the value of the sale. A chargeback is the reversal of an earlier sale, and is initiated by the cardholder and the card issuing bank. A cardholder may dispute a charge for many reasons. The cardholder is within their legal rights to begin procedures to have the charge reversed up to 6-months after the original sale!
