As I am working through statements from day to day, I started to notice that some businesses are paying very steep discount charges. What I discovered was those same businesses were also being assessed a high number of TIFs (Transaction Integrity Fees). This impacts your credit card transaction fees bottom line.
Just what does this fee mean and how does can it impact your business? Back in April 2012, Visa introduced this new $.10 for each debit card that does not qualify for the CPS (Custom Payment Service) interchange rate.
You might be wondering how a debit transaction does not qualify? After all, you are simply swiping the customers credit card, right? Well there are several possibilities:
Transactions are not settled (batched) within 2 days
AVS (Address Verification) is not requested for key-entered sales
Internet sales do not include order number of customer service number
Hotels are not providing all the requested data
Therefore, depending on your business practice, you could be assessed a TIF fee. Additionally, those sales will also downgrade to the EIRF or Standard interchange category, meaning you will be paying a higher percentage rate for those sales. What can you do to reduce your merchant account fees? Here's a few simple things you can do:
Make sure terminal is set to auto-batch out every day.
Make sure to enter the required AVS information accurately for each card you manually enter (billing address with zip code)
Always authorize and settle for the same amount.
By following these suggestions, you can qualify more sales for the best rates and more money in your pocket.