automatically settles transactions at the optimum time and rate. If it spots a compliance problem (eg wrong date or amount) it voids that transaction and authorises a new one that is correct. So you
get the best interchange rate without doing a thing.
Interchange rates are not constant. As the risk of your transaction goes up, so do the rates you pay. You need a processor that can automatically settle your transactions at the optimum time and interchange rate.
Are you at risk? Card-not-present businesses are, definitely.
Merchants in certain Category Codes (MCCs) are too. In fact any business that ships to customers is vulnerable to higher rates, if there is a chance that the amount you first authorise doesn’t match the actual transaction value.
How can JetPay help? Our unique Transaction Clean-Up Service does exactly what it says. If it spots a compliance problem at settlement, it automatically voids the incorrect transaction and authorises a new one showing the correct amount or date, so that it qualifies for the best interchange rate. All behind the scenes. You do nothing.
Fulfilment centres that take over two days to ship find this invaluable because of the timeliness rule, which only allows merchants 48-hours to settle a transaction. But, even if you ship overnight, you could still get stung if you find a part is missing and it takes 3 days to replace.
Transaction Clean-up is saving one of our computer hardware clients $12k a month on interchange – and two employees’ time.
If you charge for shipping by weight you’ll pay higher Interchange every time the actual shipping weight is different from the weight you quoted for. And if you sell in Europe, where sales tax varies, you’re also at risk because of the chance that delivery address is in a different sales tax region to the one they ordered from.
But with Transaction Clean-up, problem solved.