Payment Reversal Explained

Payment Reversal Explained + 10 Ways to Avoid Them

If you’ve been in business longer than a month, you’ve probably experienced a payment reversal of some kind. Certain payment reversals (I’m looking at you, chargebacks), are so prevalent that business owners have to budget them into their expenses every month. The frequency of payment reversals is tied to an interesting intersection of technology, law, and product/market type. If your online store doesn’t do a good job with its descriptions, you may deal with more payment reversals. Or if your product is expensive and highly bespoke (think high-end mattresses or musical instruments), returns may be more common. Some payment reversals are just normal business. Others can be exploitations of fraudulent customers, but the burden of payment reversals is often placed on businesses. The major credit card networks (Mastercard, Visa, etc.) have more incentive to favor their customers, and it’s up to you to fight back when appropriate. The more systems…

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EFT vs. ACH: What’s the Difference?

As you’ve been learning about different transaction types and pros & cons of each for your business, you’ve probably come across EFT and ACH. Some people use these interchangeably, some confuse them, and some use them without exactly knowing what they mean. As a business owner, it’s advantageous for you to be informed. Different payment types dictate the flow and cost of money exchanges. Even a small percent change in fees or timing difference across types can make a world of difference. Taking the time to develop the most optimal payment system for your business will serve you for years to come and lay a proper foundation for growth and scaling. With that in mind, let’s learn about EFT (electronic funds transfer) & ACH (automated clearing house). EFT vs. ACH What is EFT? EFT stands for electronic funds transfer. An electronic funds transfer (EFT) is ANY transfer by two corresponding…

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What is an eCheck?

What is an eCheck? Everything You Need to Know

With electronic payments being the norm and cash payments & traditional checks becoming less common year after year, it can be tough keeping up with all the various forms of payments available to your business. But, as a business owner it’s important to understand the pros and cons of each payment type you can and do offer to your customers, and the more sales you transact the more important the charges and flexibility of these payment options become. Rapid growth requires a proper foundation across every facet of your business, and payment processing is a big part of that. Transaction fees really add up, so even a small percent change can mean big savings for your business in the long-run. And it’s not just about keeping an eye on transaction fees, providing the best option for your customers increases customer satisfaction and online conversion rates. With this in mind, let’s…

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What is Level 3 Data? Everything You Need to Know

If you’ve ever worked in the space of major business-to-business (B2B) or business-to-government (B2G) transactions, you may have heard of level three or level two payment processing. In the process of researching credit card processing, it’s a good idea to take a few minutes to understand what level one, level two, and level three credit card transactions are. Credit Card Transaction Data Level/Rate Each level of credit card transaction is associated with a set of data fields. With every credit card transaction comes some amount of auxiliary information. The most basic and common type of credit card transaction is the level 1 transaction. The basic data fields required to complete a level 1 credit card transaction are: Merchant DBA Name Billing zip code Transaction amount Additional information, such as the date and time of the transaction and additional cardholder information is automatically recorded by the bank but isn’t explicitly reported by the merchant…

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