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  1. #1

    * Credit Card Transaction issues

    Hi all just wondering if this is the norm....
    I had a client pay 3 invoices the same day for different services. They wanted 3 separate charges as well for accounting purposes. Now cdgcommerce has informed us all the transactions are on hold and could take at least 2-7 days to be resolved and then the funding clock will begin after that. Apparently the bank thinks we tried to do a "split key" transaction i.e. splitting up one charge into 3 but thats not the case. Our client already called his credit card issuer to tell them everything is fine and was done as requested. We also provided all documentation to cdgcommerce (receipts etc).
    Is the lesson here to not process several payments from the same client on the same day?
    Are all banks this paranoid? or do we need a bank that specializes in higher transactions?
    Each transaction is below our transaction limit and the total is below our volume limits. The total of the 3 separate transactions would exceed our transaction limit.
    our transaction amounts are typically in 4 figures.

    Regards,
    Daniel

  2. #2
    Join Date
    Jul 2003
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    Castle Pines, CO
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    Some merchants do this so they don't go over their threshold. CDG is just trying to proect himself. Sometimes, depending on the acquiring bank, the merchant account processor will flag the transactions.

    Before it is your money, it is CDGs. If something were to happen, and the client did a chargeback and you were nowhere to be found, CDG would be out all that money.

    It sounds like they are just trying to protect themselves - they just probably want to verify with the customer the transactions.

  3. #3
    Quote Originally Posted by Corey Bryant
    Some merchants do this so they don't go over their threshold. CDG is just trying to proect himself. Sometimes, depending on the acquiring bank, the merchant account processor will flag the transactions.

    Before it is your money, it is CDGs. If something were to happen, and the client did a chargeback and you were nowhere to be found, CDG would be out all that money.

    It sounds like they are just trying to protect themselves - they just probably want to verify with the customer the transactions.
    Well that's fine, I even gave cdgcommerce our customers phone#. Ironically we were going to refer our customer to use the services of cdgcommerce. The worst part is we are going to miss out on saving over $5k from vendors that are having holiday specials that these funds were going to be used for.
    d

  4. #4
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    Castle Pines, CO
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    You can still refer your customer. They are just trying to protect themselves and follow rules / regulations set forth by their acquiring bank and Visa / MasterCard

  5. #5
    Quote Originally Posted by Corey Bryant
    You can still refer your customer. They are just trying to protect themselves and follow rules / regulations set forth by their acquiring bank and Visa / MasterCard
    Well they told me to refund everything. Apparently the transaction limit is not only per charge but per customer? (I'm still a bit confused).

    Our customers are not anonymous "internet clicks" but clients I've met in person. In addition anyone we allow to use credit cards has already worked with us for a while.

    I'm hoping they will allow us to put the charges through one at a time.

    d

  6. #6
    I guess at the end of the day what's the point of even using credit cards if it's this much trouble? If the banks/merchants can sit there and stop any transaction then I really cant depend on them. Instead each transaction is a chance for us to look bad in front of our clients and for the merchant/bank to cripple a deal. Our credit card sales are with companies we work with not anonymous clicks.

    it's funny lots of our clients asked us to be able to accept credit cards but most still paid by check/wire. What's interesting is for new clients the fact we accepted credit cards seemed to help raise there comfort level with us.

    well its gotten worse.

    we refunded all transactions at the bank's/merchant's request NOT the customer, the original transactions did NOT go through.

    now they want to charge us ($hundreds) for the transactions as though they went through even though they didnt!?!?!

    d

  7. #7
    Join Date
    Aug 2003
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    Chesapeake, VA
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    To clarify on this, there is always a reason whenever funds are held - by CDG or any other merchant processor. The intent is never to disrupt or antagonize anyone but simply to manage risk and manage client relationships in the best way possible. By working together, 99% of the risk issues out there can be quickly resolved.

    If a merchant is processing within their limits and approved parameters, there aren't any issues and even in many cases when a merchant goes outside those parameters no action is taken. However, in the case of large ticket transactions - the risk is substantially higher and this needs to always be taken into account.

    In addition, the risk on having the same cardholder do several different transactions for different amounts is very much the same to a single cardholder doing one very large amount... hence risk departments monitor for "split transactions" on the same card.

    The reason is simple: the aggregate charge represents a single customer relationship. For instance, if that relationship becomes soured, there are failures to deliver on any aspect of it, it ends up being a fraudulent transaction or even just a bad apple customer, etc. then it can easily result in multiple chargebacks for the total amount. I have seen this kind of thing happen many times in the past as has our risk department so that is one of the reasons to be cautious on these types of transactions.

    Again, if the merchant is approved for a sufficient set of limits to qualify for the aggregate sale then this is a non-issue. The multiple invoices can easily be processed without any holds or review and everything works normally... it is only if the limits are exceeded that it may be held for further review.

    Regarding the other item on providing the customer phone #. The reason why our risk group validates through the issuing bank is that there is otherwise no way to verify the fact that the cardholder is actually the person at the phone #. There have been more than a few situations where the person ordering was not actually the true cardholder and this has come as not only a surprise to our risk team but also sometimes the merchant themselves.

    That being said, while I can see from our internal records that we are able to accomodate the overwhelming majority of the risk limit increase and other special circumstance requests that we get, there are those that we are unable to for reasons of risk management.

    These reasons can be quite varied and I really don't want to get into a list of them here as other forum members might construe one or more as being applicable to clearstr and our privacy policy would never permit any kind of disclosure of that sort.

    For what it is worth, clearstr, I read through the support ticket on this matter and I do appreciate you assisting our risk group with the requested information. In terms of the last item that you mentioned on the credit returns, I will have to check with our primary support team in the morning to see more details on that and then I will be happy to assist or clarify further on that for you.
    CDGcommerce.com - Trusted Merchant Account Solutions since 1998
    Many thousands of successful, growing businesses benefit from our expertise every day. You can, too!
    We help merchants to eliminate gateway costs, reduce & mitigate fraud and achieve streamlined PCI compliance.
    Learn more today at http://www.cdgcommerce.com - we look forward to helping your business grow!

  8. #8
    Just met with a member of my staff that happened to contact paypal (we have a premier account there). Now paypal claims our client can send the whole amount and it would be available to us instantly!?! No waiting holds etc. A higher discount rate though. Paypal claimed they could send up to 10K. How can this be? How can they be faster/less trouble than a real merchant account? Is paypal telling the truth here?

    d

  9. #9
    Join Date
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    Seattle, WA
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    That is true, and the 10k isn't a limit as far as I'm aware. I've handled larger transactions then 10,000 usd through PayPal.

    This doesn't mean that they're an adequate sub for a true merchant account, but it sounds like a good fit for this transaction. PayPal has the same "problem" with enthusiastic holds - everyone has to cover their ***.

  10. #10
    Quote Originally Posted by taylorwilsdon
    That is true, and the 10k isn't a limit as far as I'm aware. I've handled larger transactions then 10,000 usd through PayPal.

    This doesn't mean that they're an adequate sub for a true merchant account, but it sounds like a good fit for this transaction. PayPal has the same "problem" with enthusiastic holds - everyone has to cover their ***.
    So are you saying they may actually hold some of the money back even though on the phone they claim they wont?

    d

  11. #11
    Join Date
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    Customer service telling you they won't hold any money - well, they don't know what risk management will do. Risk might flag it, especially if you have not done this before. Any processor would because of the risks involved. And Paypal is no different.

    Most everything is set up on a computer and a threshold is set. If you pass that threshold, chances are your account will be held until payment is verified.

    Calling any large company - especially Paypal - you are subject to different answers. It is not their fault, but it is the person who answers the phone and how they perceive it. Call back - get their name / ID. Get a log number of the call. Even make them promise. You might laugh but one time I called Paypal for something - got the above information and then I asked her - "You Promise"? She actually put me on hold to ask her supervisor and came back to correct herself.

  12. #12
    well the saga has taken an interesting turn....

    My assistant knows our client's ceo assistant real well and apparently relayed all the issues we were having processing their payments. To my surprise the CEO shows up at my door with check in hand. WOW! We are really fortunate to have such enthusiastic loyal caring clients!

    Well as far as the credit processing fiasco, cdg said they may help offset some of our fees... well time will tell. Well they may have their risk department but now I have mine. It may take me a while to trust using it again and risk any issues popping up.
    Anyhow with the credit processing guess now I'm caught in a catch 22. It would help to get some smaller projects and put those through to build up more history to get more flexibility with our account. Hey anybody our there need computer consulting/development, video production/post-production/vfx etc... LOL!

    d

  13. #13
    Join Date
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    Chesapeake, VA
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    This may sound funny coming from a merchant processing company but... if you have a trusted client who is willing to give you a check, especially a hand delivered one, by all means take it.

    Credit cards are a very important form of payment acceptance for most merchants but if you do run into the opportunity to take a check or get a wire transfer, that will always save you money.
    CDGcommerce.com - Trusted Merchant Account Solutions since 1998
    Many thousands of successful, growing businesses benefit from our expertise every day. You can, too!
    We help merchants to eliminate gateway costs, reduce & mitigate fraud and achieve streamlined PCI compliance.
    Learn more today at http://www.cdgcommerce.com - we look forward to helping your business grow!

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