FAQs - About Credit Card Processing

Select a topic from the menu below:

• Authorizations and Deposits
• Sales Drafts
• Terminal Operations
• Credits
• Chargebacks
• Bank Information
  

AUTHORIZATIONS AND DEPOSITS

What is an Authorization?

As the name implies, an authorization is a transaction you use to:

• Help verify that the card is not counterfeit
• Verify that the cardholder has sufficient credit for the purchase
• Place a "hold" on the cardholder’s credit line for the amount of the transaction

What is a deposit? Do I need to process a deposit for every sale?

A deposit is the transaction that withdraws funds from the cardholder’s credit line and deposits them into your sponsoring bank account (or other account you’ve designated). Every sale must include an authorization and a deposit, in that order. Usually, in a retail setting, the authorization and deposit are handled as a single "sale" transaction. In mail order or other "non-magnetic" transactions, the deposit might come hours or even days after the authorization, and is timed to the delivery of the goods.

How long do I need to wait for the proceeds of a deposit to be made available in my bank account?

Deposits to your bank account will be available at our sponsoring bank in two business days. If you have designated another bank to receive deposit proceeds, then it will take an additional business day. The funds from other cards deposited electronically are posted to your account in accordance with the terms of your agreements with those organizations.

Do I need to run the authorization separate from the deposit transaction?

No. When the goods or services are being delivered immediately, you will use the SALE transaction (or Authorization and Deposit transaction). So, in addition to authorizing the charge, it deposits the funds for the sale into your checking account. 
(Click here for details on using the POS terminal to do this.)

I’ve already obtained an authorization. Do I still need to process a deposit?

Yes. The funds will not be available to you unless you process the deposit.

What Is an Authorization Number?

An authorization number, whether obtained electronically through your POS system, your PC processing system, the Internet, or from a representative at the Visa/MasterCard authorization center, indicates that the transaction has credit available on the card and that the transaction is not disputed by the cardholder.

Why do I sometimes get a "call voice center" response when I try to get a credit card authorized?

There are two primary reasons you might get this response. First, the automated, high-speed communications system ECHO uses to receive authorizations may be inoperable for some reason. This happens very infrequently, but when it does ECHO will advise you to call the voice center.

The second reason this might occur is the card-issuing bank may want to talk to you before they approve the transaction. This can be due to a reported stolen card or just a lot of transactions in a short time (holiday shopping).

What is the Authorization Center phone numbers to use when I get a "call voice center" response.

The authorization center numbers for ECHO merchants are:

VISA/MC – 800-228-1122

Discover – 800-347-1111

American Express – 800-528-2121

Diner’s Club/Carte Blanche – 800-525-9040

What Cards Can I Accept for Deposit through ECHO?

All ECHO merchants deposit VISA/MasterCard electronically under the sponsorship of our acquiring banks. Your depositing situation with other cards (American Express, Discover, etc.) depends upon your agreements with those organizations. If you would like to electronically deposit either Discover or American Express, and do not currently do so, contact ECHO Sales for more information.

How Do I Use a POS Terminal to Electronically Deposit My Transactions?
(Click here for complete details)

SALES DRAFTS

Do I Still Need A Sales Draft?

Yes! For every face-to-face credit card sale, a sales draft must be completed. This draft is a legal and binding contract between you and your customer.

If you have a POS system with a printer attached, it will automatically generate a sales draft for credit cards that are deposited electronically. When the draft has finished printing, present it to the cardholder for signature. Give the cardholder the bottom copy of the draft and retain the top copy (with the original signature) for your files.

Do I Need to Have an Imprint of the Card for it to be Accepted for Payment?

Yes. The imprint of the card is your proof that the actual card was present at the time of the transaction. This proof is critical in the case of a disputed transaction and could make the difference between your being liable for a transaction or not.

What Information Needs to be on the Sales Draft?

Whether printed by your POS system printer or produced manually on an imprinter, the sales draft must contain:

• The credit card number (recorded from the card’s magnetic stripe or imprinted)
• Authorization and Reference Numbers
• Signature of customer
• The card’s expiration date
• Date of sale
• Amount of sale, including tax
• Description of goods/services

What Do I Do with My Copies of the Sales Draft?

You are required to keep your drafts for three years (even if you sell your business). In the event of a question or chargeback, you may be required to produce the signed sales draft. Check with your accountant for guidance before destroying sales drafts.

TERMINAL OPERATIONS

How do I set up my terminal?

If you have trouble setting up your ECHO terminal, just call customer support at 800-339-1819 or 800-233-0406 (press "1" for customer support) for assistance.

How do I operate my terminal?

A step-by-step guide is provided for every merchant using POS services.

Click here to read or print out the on-line version

ECHO merchants can request a free copy of our terminal usage guide by calling Customer Support at 800-339-1819 or 800-233-0406 (press "1" for customer support).  Note that your ECHO ID# is required for this request.
 

CREDITS

What Is A Credit?

A credit is a refund issued by you to a legitimate customer due to a return, cancellation of a sale or entry error. This transaction reduces your day’s processing total.

When Should I Issue A Credit?

A credit is required when a customer returns merchandise or cancels a sale and requests a refund on the amount of the return. You should process the credit through your POS system if the original transaction was electronically deposited.

Am I Required To Issue A Credit?

No. But even if it is your store policy not to issue credits, your customer has the right to seek reimbursement through chargeback procedures.

If your store incurs excessive chargebacks, you may be required to pay additional fees and, in extreme cases, have your right to accept VISA or MasterCard revoked. Therefore, a refund to one dissatisfied customer may be better than a potential chargeback — but you must make that decision.

CHARGEBACKS

What Is A Chargeback?

A cardholder may dispute a charge for many reasons (see below). The cardholder is within his/her legal rights to begin procedures to dispute the charge up to six months after the date of sale, although in some cases the charge may be disputed up to 3 years after.

Am I Liable for Chargebacks?

Yes, if the customer has a valid dispute with the charge in question and you do not satisfactorily remedy the situation. If, however, the customer doesn’t have a valid dispute and you complied with processing regulations, you may not be liable.

What are some of the Different Types of Chargebacks?

A sale can be charged back for more that 35 valid reasons, the four most common are:

• no signature on a draft
• failure to fulfill a request for a sales draft
• no imprint on a draft
• unauthorized purchase

For more information and FAQs on chargebacks, click here. 

For information on fraud prevention that can prevent chargebacks, click here.

What Is the Chargeback Procedure?

Most often, the first stage of a chargeback proceedure comes in the form of a ‘retrieval request.’ A retrieval request is a request from a card-issuing bank to see an original, photocopy or fax of a sales draft to prove the validity of the sale.

If one of your customers disputes a VISA or MasterCard sale, you will receive a letter of notification and be requested to send a copy of the signed copy of the draft or other information to your processor.

In most cases, if your records are complete and you have complied with credit card regulations, you can successfully contest chargebacks.

It is also possible that the initiation of a chargeback will cause the cardholder’s bank to withdraw funds from your bank account. Note that you would be notified by letter after your account has been debited. This is why we always encourage merchants to maintain a balance in their accounts.

What Is My Responsibility?

You are required to locate the signed copy of the draft or other requested information and send a copy of it to your processor within the time allowed. Failure to do so will result in a chargeback due to non-receipt of requested item.

Copies may be requested up to three years following the date of sale.

What About Other Cards?

If you have any questions on chargeback procedures for Discover, American Express or Diner’s Club/Carte Blanche, contact the local representative of that issuer.

How much do chargebacks and retrievals cost me?

At ECHO, The first five chargebacks per month are free. After the fifth, ECHO charges a $5.00 fee per chargeback or retrieval. This fee is to cover expenses with processing. To reverse a chargeback, when it's possible, costs you nothing.

For more information and FAQs on chargebacks click here

What’s the difference between my ECHO ID number and my Merchant Number?

A. Your ECHO ID number is a unique number assigned by ECHO at the time your account was opened. You’ll find it on your monthly billing statements and other correspondence from ECHO relating to your account.

Your merchant number is a 15-digit number that you will find on your
imprinter plate (or possibly on your printer receipt). It was assigned to
you by ECHO’s Visa/MasterCard sponsoring bank and will start with a prefix containing 6 digits that relate to the specific bank. (We put the
prefix of the bank's merchant number next to the name of the sponsoring
bank in the prior question.) As an example, if your merchant number starts
with 541623, then you are sponsored by First Regional Bank.

It’s good to keep your merchant number near the terminal since it will be requested whenever you are required to call the Visa/MasterCard Authorization Center for special authorizations. If you do not know your merchant number or just want to be sure it is correct, please call ECHO Customer Support and we will be happy to give it to you.

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