Categories: Learn About Merchant Services

Tax IDs and TIN Mismatch

The Tax Identification Number is requiredAs part of our legal responsibility to ensure that all electronic payments can correctly be traced to a real company and real people, Dharma is required to collect the Tax Identification Number for every new account. For most businesses, this is your Employer Identification Number [...]

What is a Payment Aggregator?

About Payment AggregationFor most merchants, accepting payments is a critical part of doing business. What isn’t always critical is having your own merchant account. There are some situations where leveraging a provider with a master account is a better solution. You are likely familiar with some of the major Payment [...]

PIN Debit vs. Signature Debit

PIN vs. Signature - What's the Difference?There are two basic types of debit transactions – PIN Debit, and Signature Debit. You could consider card-not-present debit card transactions as a third type, but since you have no control over them, let’s just set that aside. PIN Debit occurs when a customer [...]

What is Interchange-Plus Pricing?

It’s the fairest model out there. Interchange-plus pricing works by adding a constant, flat margin on top of Interchange. So typically, Interchange-plus pricing models will also be written in the two component format, with a percentage fee and per-transaction fee above Interchange. This allows merchant service providers to price their accounts fairly, [...]

What is a Merchant Account?

A merchant account is an account with a bank that allows a business to accept credit card payments in exchange for their product or service. In order to accept credit cards in-person or online, you’ll need a merchant account. Your merchant account is administered by your Merchant Service Provider (MSP) – [...]

What is a Payment Gateway?

A payment gateway is the online-equivalent of a credit card terminal. The payment gateways’ job is to encrypt, and then securely authorize a credit card transaction. Payment gateways are fundamentally required when accepting a credit card transaction online, because they’re responsible for storing sensitive credit card data. Sometimes these gateways [...]

What’s the Difference between a Void and a Refund?

Let's set the stage first. Every time a sale processes, there are two unique steps. The first step is the authorization, which happens in real-time. The moment a card is swiped/dipped/keyed-in, the issuing bank of the customer’s card is contacted, and an authorization is generated. The card is either approved, or it’s declined. [...]

Chip+PIN or Chip+Signature?

This is a big question for retail merchants these days. Many merchants find themselves asking, “Do I need to accept PIN-debit?” Historically, the answer to this question depended on many factors, primarily cost differences and time saved with PIN entry. However, with the advent of EMV technology and regulations, PIN [...]

What is Factoring?

First, let’s define factoring. Factoring is the act of accepting credit card payments on behalf of another business/organization. For example – let’s say you own a bakery, accepting payments for cookies, cakes, etc. Let’s also pretend that you start a side-business selling car parts on the internet. If you were to start taking payments for [...]

What is Address Verification?

Address Verification is a very important step in any card-not-present sale. Whenever you accept a card without physically seeing the card, you inherently run a much higher risk of accepting a fraudulent card. As a merchant, you want to do everything in your power to reduce that risk. There are [...]