[thelist] Explaining Payment Processing

[Norman Bunn]

Maximillian Schwanekamp wrote:

>Keith wrote:
>  
>
>>That is certainly feasible, from a technical standpoint. But read your
>>merchant account small print, it is illegal. In fact, if you have a
>>"storefront" merchant account and you process Internet sales over that
>>account you are committing fraud. Not criminal fraud - contractual fraud.
>>    
>>
>
>The main reason for this is that merchant account providers generally
>have different rates for in-person transactions and MOTO (Mail Order /
>Telephone Order) transactions.  Sometimes it's broken down further, but
>that's the usual division.  The MOTO txn will have a higher discount
>rate, though it's usually only a few tenths of a percent higher.
>
>  
>
In my case, the client already had mail order and phone order 
capability, as well as POS, so adding the web site to it was no big 
deal.  The best thing to do is check your agreement and make sure you 
are complying with the requirements.

Norman

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Norman W. Bunn
norman.bunn at craftedsolutions.com
803.405.1008
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