1. Do I need to settle (“batch out”) my terminal every day?
Yes. At the close of every business day, you should settle your terminal. * This is important for a couple of reasons. First, it can have an impact on the discount rate that you pay for your transactions. Transactions that are not settled within 24 hours of their authorization may be subject to a higher rate. Secondly, settling your terminal is what triggers a deposit into your bank account (typically, you’ll see a deposit into your bank account about 48 hours after a settlement).
*This does not apply to newer model terminals that have the “Auto Batch” function.
2. What can I do, as a merchant, to help fight bad check writers?
Unfortunately, consumer protection laws favor debtors more than they favor small business owners. Therefore, as a merchant, the best thing you can do is hire a good collection agent to take EVERY legal step available so that you don’t have to waste any more time and resources chasing bad checks. You can also invest in a check verification program which can act as a front-line defense against bad check writers.
3. What is the difference between online debit and offline debit?
The difference between these two debit choices is whether a PIN (personal identification number) is used at the point of sale. When a PIN is used, the transaction becomes “online” and funds are immediately withdrawn from the cardholder’s available funds. When an offline debit transaction occurs, the cardholder signs a receipt, much like a credit card transaction. Funds are not withdrawn.
4. Are manual imprinters not considered in compliance with the new card truncation laws?
“Card Truncation” relates to electronically generated receipts. It is the ability of a terminal to mask or hide all but the last few digits of a card number on a receipt. Besides the obvious safety benefits to the cardholder, many states are now requiring merchants to provide truncation services in order to reduce the growing problem of electronic fraud. Thus, because imprinters are used manually, the card truncation laws do not apply.