If you’re an Independent Sales Agent in the payments industry looking for helpful tips, then keep reading. As an Independent Sales Agent, it is crucial that you remain current and are familiar with the latest payment industry terminologies and technologies, as your role is essential for on-boarding new merchant accounts and speaking with merchants about their payment processing solutions. Not only will this help you to advance professionally, but also will give you the knowledge to become an industry expert.
Take a look at 10 key payment terms all Independent Sales Agents should be knowledgeable of:
Known as Europay, Mastercard, Visa. EMV is a worldwide standard for debit and credit payment cards established by chip card technology. EMV helps reduce fraud by protecting consumers, merchants, and issuers from potential losses caused by stolen or counterfeit cards used during payment. If a merchant is does not have EMV-capable solutions, an Independent Sales Agent will need to educate said merchant on EMV and help them become compliant with upgraded payment solutions.
- Ancillary Fees
Fees that include monthly minimums, customer services fees, statement fees, and batch fees. These are typically located on a merchant account statement.
- PCI Compliance
Known as Payment Card Industry. Every merchant that accepts credit card payments must adhere to the regulations of the Payment Card Industry Security Standards Councl’s (PCI-DSS) guidelines. These guidelines are set in place to protect sensitive payment information and cardholder data as well as reducing security threats. As a result, Independent Sales Agents need to understand the steps involved with helping a merchant become PCI Compliant.
- Interchange Fee
An interchange fee is considered a variable fee charged via card payment networks to process transactions. An average rate depends on the card brand and the type of transaction processed.
- Merchant Processing Agreement
A contract between a merchant and a merchant services provider that details the logistics and regulations of both parties regarding credit card processing.
- Monthly Processing Limit
The quantity of money a merchant services provider will permit a merchant to process every month before acquiring extra fees. This should be defined in a merchant’s processing agreement.
- Discount Fee
A type of percentage fee charged to merchants by a merchant services provider for payment processing.
Occurs when a cardholder disputes a charge and asks for a refund from the card issuer. A cardholder may file a chargeback if they received a damaged or defective item, did not receive their item, did not receive their item on-time, or they do not recognize the charge. Independent Sales Agents can inform merchants about the different types of chargebacks and give advice on what to do if their business experiences an incident.
- Point-to-point encryption (P2PE)
Point-to-point encryption is a type of security solution that encrypts data at the point of sale and is offered by a third party solution provider. P2PE offers enhanced protection from fraud and data breaches and a solution that Independent Sales Agents should push merchants to incorporate.
- Loyalty Programs
A rewards program given out by businesses to consumers who frequently buy goods or services. Examples of a loyalty program include exclusive sales, coupons, or free merchandise. Independent Sales Agents should teach and inform merchants about the various types of loyalty programs available to help them enhance the customer experience and gain loyal customers.