{"id":900,"date":"2010-02-16T13:25:44","date_gmt":"2010-02-16T17:25:44","guid":{"rendered":"http:\/\/pro-webs.net\/blog\/?p=900"},"modified":"2010-03-31T20:55:40","modified_gmt":"2010-04-01T00:55:40","slug":"lose-your-merchant-gateway-account","status":"publish","type":"post","link":"https:\/\/pro-webs.net\/blog\/2010\/02\/16\/lose-your-merchant-gateway-account\/","title":{"rendered":"How NOT to Lose Your Merchant or Gateway Account"},"content":{"rendered":"
\"Merchant
Merchant Processing Survival Tips 2010<\/figcaption><\/figure>\n

If you haven’t read about the new “Brand Damaging<\/a>” issues and you accept credit cards on your website… You need to. The potential impact on your business is too large to ignore.<\/p>\n

Now that you have hopefully informed yourself, let’s concentrate on keeping you out of trouble and getting canceled.<\/p>\n

The new rules may seem a bit daunting, but they are really pretty simple…. If it’s trickery, you cannot do it anymore. You may be sitting there thinking, “I have been running this “Free Money” website for 10 years…. This doesn’t apply to me. You are most certainly wrong. These are new rules, new implementations and new punishments for violations.<\/p>\n

The cost for violating one of these rules and getting caught (and you will) is at it’s best cancellation of your merchant account or gateway account…. At it’s worst, very large fines and cancellation. Heed this warning, even if you haven’t received any communication from your Merchant services providers.<\/p>\n

Merchant Processing Survival Tips 2010<\/h2>\n

Online marketing campaigns that employ any \u201cFree-Trial\u201d, \u201cDeferred Billing\u201d and\/or \u201cShipping Only\u201d are considered trial offers and are subject to the new rules. Consumers must<\/strong> receive a tangible good or contracted service in exchange for the credit card charge(s). Incentive type discount offers are acceptable ONLY<\/strong> when the cardholder is receiving goods or services in exchange for payment. Having said this, note for example that e-Online will no longer support<\/p>\n

accounts engaging in hidden or delayed charges and \u2018free\u2019 offers that are not truly free.<\/p><\/blockquote>\n

    \n
  1. Avoid using\u00a0 “free” or “risk free” language on your website and in marketing campaigns (including PPC) .. Unless it is 100% really free.<\/li>\n
  2. If you use the “Pay Shipping & Handling Only” technique, then these charges must be fair, reasonable and fully disclosed. So if you have been slipping by on the $5 shipping and $20 handling fee, you must stop. Also note that inflating your actual shipping has additional implications as well… Did you know that most states expect you to pay sales tax on overcharged shipping fees?<\/li>\n
  3. Trial offers need to be no less than 10 days and the trial period should not begin until product is shipped to the consumer or the service has begun. You are not permitted to offer trails with exemptions, filtering or special rules for age, weight, height, geographic location, race etc.<\/li>\n
  4. Avoid creating a false sense of urgency because if the matter is not genuinely urgent you are in violation. For example if you have the “10 day only” message running on your website for 3 years now… You are in violation. These periods of offers must be genuine and accurate. e-Online has strictly forbid the use of\u00a0 applications such as countdown clocks, tickers, or language such as \u201cOffer Expires Today!\u201d<\/em>, for example already.<\/li>\n
  5. By mandate of the FTC<\/a>, product claims, promises, guarantees and research claims MUST be accurate and proper. This is pretty unlimited and includes testimonials, endorsements and even product reviews. Don’t think for one second that user supplied product reviews are exempt… It is your website right? Not only do you risk loss of merchant services with these issues, but the FTC can fine 11K on top of whatever the credit card companies may choose to fine you for your “Brand Damaging” behavior.<\/li>\n
  6. How about the FTC’s new rules for pricing? Prices must be within reasonable \u201cfair market value\u201d. Any negative options must be clearly disclosed, and you cannot bill for any product or service that the shopper\/consumer did not knowingly purchase… Including things like upgrades and software updates, for example.<\/li>\n
  7. If you have a special offer which includes some shady marketing like exclusions or negative options you are required<\/strong> to have that customer agree to the terms twice before charging them.<\/li>\n<\/ol>\n

    The first validation can take place with the initial offer presentation prior to submission of credit card information, and the second during the checkout process. The confirmation order page must also require consumers to acknowledge that they agree to the Terms & Conditions and authorize the merchant to charge the credit card for the disclosed dollar amount. Terms must be displayed adjacent to the \u201csubmit\u201d, \u201cconfirm\u201d or any other \u201ccall to action\u201d button confirming the order. The price must be within 100 pixels of the \u201csubmit\u201d, \u201cconfirm\u201d or any other \u201ccall to action\u201d button.<\/p>\n