NEW MERCHANT FAQS

What is a merchant account?

A merchant account is a type of bank account that allows businesses to accept payments by debit or credit cards. A merchant account also serves as an agreement between a retailer, a merchant bank and payment processor for the settlement of credit card and/or debit card transactions.

What is the credit and debit business and how does it work?

Many merchants can accept credit cards or a debit cards for a sales transactions. A credit card allows the consumer to make purchases based on an established line of credit received by their card-issuing bank. The credit limit is the spending amount established by the issuing bank based on a consumer credit profile. A debit product allows the consumer to make a purchase based on funds available in their bank account. Debit purchases are drawn directly from the consumer's bank account and show up on the consumer's monthly bank statement.

How do I begin accepting Credit Cards?

It's easy to get started! The first step is to apply for a merchant account with NDMS.

What does NDMS do?

NDMS facilitates merchants' card acceptance from groups like MasterCard, Visa, Discover and American Express. NDMS connects and processes transactions over all of the various payment networks.
 

How long does it take before I can begin accepting credit cards?

This depends on your needs, but usually a merchant can formally accept credit and other payment cards in less than two days.
 

What is an Interchange Rate?

The interchange rate is the fee paid to card issuers on purchase transactions.  These fees are established by MasterCard and Visa and are only one of the cost components included in a merchant discount rate. MasterCard, Visa and Discover charge an interchange fee for processing each transaction. The fee is based on how the transaction is sent and the type of merchant account that you have. Usually stated as a percentage of the total sale plus a flat cost per transaction, this fee covers the costs associated with getting funds to your merchant bank and providing related billing information to the issuing bank.
 

What are the benefits of accepting Credit Cards?

Whether you are a new business or an established enterprise, card acceptance will likely have a big impact on your bottom line:

  • Increased Sales
    Consumers spend more when they are not constrained by cash on hand. You may see increased purchases of higher‐margin products as well as specialty items. And customers may visit your store more often.
  • Customer Satisfaction
  • Your customers will appreciate the fact that you allow them the flexibility to pay the way they want to pay ‐ including by credit or debit card. Happier customers are more loyal customers.
  • Speed of Checkout
    You will speed your customers through checkout with rapid electronic payment. No more counting change or waiting while customers write checks.
  • Improved Efficiency
    Card transactions today are conducted electronically. These paperless payments can save you time and money by minimizing cash handling and payment reconciliation, giving you more time to do more important things ‐ like managing and growing your business.
  • Safety
    With lower volumes of cash, you are less vulnerable to theft and pilfering.
  • Currency Conversion
    Card transactions today are conducted electronically. These paperless payments can save you time and money by minimizing cash handling and payment reconciliation, giving you more time to do more important things ‐ like managing and growing your business.

What type of merchant account do I need?

Part of the merchant account process is correctly identifying the specific type of business the merchant will be conducting with the account. Make sure that your MCC or Merchant Category Code is classified in the appropriate category for your business type. Not having the appropriate classification can mean serious downgrades on all of your transactions.

Check your merchant descriptor and verify the contact telephone number is correct and the description of the business for the MID is accurate. The better defined this information is, the less chance you will have of receiving disputes from customers that may have forgotten about their transaction with you.

Based on that information, the merchant will be given one of the following types of merchant accounts. Each has its own specific requirements and own rate.

Retail

This is the most common form of merchant account. Retail Merchant Accounts are used for businesses that provide goods and services in a face-to-face environment. If a merchant will be primarily swiping the magnetic stripe on the card, and does not fall in to any of the other “card present” categories, this is the type of account normally used.

Restaurant

Restaurant merchants follow all of the same rules and requirements as retail merchants, though there are additional fields that are required by the Card Associations in order for a transaction to qualify for the quoted discount rate, including Tip and Clerk.

Lodging

Lodging merchants have more information to process in their transactions, such as the check-in date, number of nights stayed, incremental authorizations, etc., than any other merchant type. This causes the lodging merchants' transactions to qualify for the quoted discount rate.

Lodging Merchants are those that offer basic rooms to their customers. In the case of resorts and large full-service hotels, it is not uncommon for there to be multiple merchant accounts of multiple types. For example, the front desk has a lodging merchant account, while the restaurants have restaurant merchant accounts and the gift shops will have retail merchant accounts, etc.

Mail Order/Telephone Order (MOTO)

A MOTO account is used when the Merchant’s primary mode of sales is not done face-to-face with the cardholder; this increases the chance that the true owner of the card is not making the purchase. Because of this, there is a higher risk of fraudulent activities and MOTO accounts carry higher discount rates than the previously mentioned account types. Additional security checks must be handled as well, such asAddress Verification (AVS) and Cardholder Verification (CVV2). MOTO accounts are considered different than ECommerce accounts, as there is a physical link between the purchaser and the merchant, either by telephone or mail.

eCommerce

Due to the nature of the Internet and prior instances of fraudulent activity with web-based Merchants, eCommerce merchant accounts carry the highest quoted discount rates. If the merchant’s primary mode of interaction with their customer is via the Internet, their merchant account should be configured as eCommerce. eCommerce merchants follow the same rules and guidelines as MOTO merchants and have to flag their transactions as being eCommerce generated transactions.

There are two types of eCommerce accounts: physical and digital. A physical account is designed for a web-merchant, which ships or provides some form of tangible product to the cardholder, while a digital account is designed for a merchant which provides a service.

Auto Rental

Auto Rental Merchant Accounts are used solely by organizations that rent vehicles. There are a variety of different pieces of information specific to the auto rental agreement that have to be included in the transaction data. The majority of these transactions will be carried out face-to-face and a card swipe will occur.

What type of payments does NDMS process?

Consumer and corporate credit card transactions including:

  • Visa
  • Discover
  • JCB
  • MasterCard
  • Diners Club
  • China Union Pay (CUP)
  • American Express
  • Carte Blanche

Both offline and PIN-based debit transactions are supported.
Networks include:

  • Interlink
  • STAR
  • NYCE
  • Pulse
  • Shazam
  • Elan
  • Maestro
  • AFFN
  • ACCEL
  • Alaska Option

Electronic Benefits Transfer (EBT)

  • Food Stamps
  • Cash Benefits

Prepaid and Gift Cards

  • Visa
  • MasterCard
  • Private Label
  • Closed loop Gift Card

Chip:

  • Visa
  • MasterCard
  • JCB

Check Processing services include:

  • Verification
  • Guarantee/Warranty
  • Electronic Check Conversion
  • ACH / eCheck

FleetFleet brand acceptance including:

  • Visa
  • MasterCard
  • Wright Express (WEX)
  • Voyager
  • Private Label

How does NDMS compare in price with other processors?

NDMS will meet or beat your current pricing. No obligation if we can't save you money! Learn about NDMS Clear Pricing ™.

Are there any programs that will help to grow my business?

Depending on the type of merchant business you run, NDMS has many programs designed to grow your business.  Contact a representative for more information.