Knowledge Base

Browse our knowledge base below, or you can search for a specific term here:

Acquiring Bank

A financial institution that provides merchant’s the ability to accept payments from consumers for goods or services. Typically, this refers to accepting credit and/or debit cards. All merchant accounts must be sponsored by a bank that is a member of the card associations (such as Visa, Mastercard, American Express, and Discover. An Acquiring bank is responsible for depositing the funds into the businesses checking account.

Address Verification System (AVS)

The Address Verification System will compare the cardholder's billing address that is registered and on file with the card issuer against what was entered with the transaction at the Point of Sale. In most cases, a mis-matched AVS will not result in the transaction being declined. A merchant may be using other fraud prevention tools in which case they elect to set a rule to decline a transaction if there is not an AVS match, but by default, transactions will not be declined for this reason.

Approval Code or Authorization Code

The 6-digit code returned to the merchant upon approving a transaction.

Authorization, Capture & Settlement

Authorization - is the process of checking for available credit in the card holder’s account. A positive authorization places a hold the appropriate funds and reduces the cardholder’s available balance.


Capture - is when the merchant confirms that they wish to collect or formally withdraw the held funds from the consumer's account. When this occurs the consumer available balance is decreased.


Settlement - occurs when the funds are formally withdrawn and cleared from the consumers' account and are successfully received by merchant's bank account and those funds are made available to the merchant.

Automated Clearing House (ACH)

An ACH is an electronic funds transfer (EFT) from one account to another by way of bank account number and bank routing number. In online payments, it is the ability to accept a consumers account and routing number to process their payment. An ACH payment can take approximately 3-5 business days to process.

Batch 

A collection of transactions that have been made in a single day. Rather than batching several times during the day, most terminals and real-time processors collect all the transactions and submit a batch at the end of day.

Batch ID

Once a batch is settled, it receives a batch ID. Every transaction in the batch shares this ID. If a transaction does not have a batch ID associated with it, the transaction has not been settled.

Cardholder

A person who owns a credit or debit card.

Change Requests

If information regarding my merchant account has changed, who do I contact?

No matter what information needs to be changed on the account, please call 224-535 9462 x 2 or email our support team and advise what has changed. Our team will provide the necessary Change Request forms and steps for completing the change. This can include, but is not limited to, adding/removing URL’s, storefronts, Owners, Addresses (mailing/physical/legal, or personal), Payment Descriptors, DBA (Doing Business As), Telephone Numbers, or Point of Contacts (POCs), Legal Name, EIN’s.


Again, our contact information is:

Email: [email protected]

Phone: 224-535-9462 x 2

Chargebacks

What is a Chargeback? A chargeback is when a consumer is disputing the charge/s they see on their bank statement. By default, when a consumer initiates a chargeback, the funds are immediately debited from the Merchant's account and placed back into the consumer's account. If the merchant wishes to fight the chargeback it is up to them to provide proof of purchase along with other supporting documentation that indicates the sale was made by and agreed to by the consumer and that all services/products were in fact received by the consumer.

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How long do I have to respond to a Chargeback?

Chargebacks should be responded to as soon as possible. Most have a response time of 30 days, but this can vary by card network.

Retrieval requests should be responded to within 1-3 business days.


What do I need to include when responding to a Chargeback?

  • Delivery confirmation (any proof the customer received the product or service, i.e. receipts, tracking information, etc. )
  • Proof of customer purchase or usage history
  • Copy of the refund or return policy agreed to by the customer
  • AVS (address verification system) and CVV (card verification value) matches
  • IP address of customer’s purchase device for online transactions, along with exact time and date of purchase
  • Geographic location of the device
  • Correspondence, such as any emails, phone records or letters documenting conversations with the customer
  • Cover page or brief letter that recaps the reason for the Chargeback and what information you have on file with the consumer that validates the sale was valid and services/products were provided. It is important to be clear and outline the necessary information for the Card brands and Card Issuers; they won't go and "look" for the answers in the client's contract.

How to dispute the chargeback?
Once the information as outlined under “What do I need to include when responding to a Chargeback?” is collected; log into your Merchant portal, locate the chargeback section under reporting, and upload all of your supporting documents to the case. It is best to continue to check back regularly to monitor the status of the case. If the case is won in your favor the funds will be deposited back into your bank account. In the event the card brands rule in the cardholder's favor and you lose the case, then the funds will remain with the consumer. If you lose the chargeback, it is possible for you to dispute again in what is called pre-arbitration, but please be aware, this may lead to arbitration and can cost more. If you wish to continue to dispute a “lost” chargeback, it is recommended to reach out to JJS Global first to discuss the case further. You can reach us by phone at 224-535-9462 option 1 or via email to [email protected].
Should you have any questions throughout the chargeback process or in general, please do not hesitate to reach out.

What is Chargeback Mitigation?
This is the use of third-party software to help identify when a consumer contacts their bank and opens an inquiry on a transaction that appears on their bank statement. If enrolled, the consumers inquiry will send an alert so that the merchant is aware that the transaction may result in a chargeback. This provides the merchant with an opportunity to contact the consumer in an attempt to work things out with them directly or offer an immediate refund. Alerts need to be responded to within 24 hours to be most effective. It is also important to note that chargeback mitigation services typically offer a maximum of 30% coverage across the card networks. It is recommended that merchants always follow up with their consumers throughout the sale life cycle; including after initial purchase, and especially after the product/service have been received to ensure the consumer is happy and to avoid any unwanted chargebacks. 

Clearing

The process of exchanging financial transaction details between an acquirer and an issuer to facilitate the posting of a cardholder’s account and reconciliation of a customer’s settlement position. Clearing and settlement occur simultaneously. 

Currency conversion

A process where the currency involved in the transaction itself is converted into the currency of settlement or the currency of the issuer, so the transaction can be authorized, cleared and settled.

CVC2 (Card Validation Code 2) & CVV2 (Card Verification Value 2)

A security feature known as “CVV2” and “CVC2”. These are the three-digit numbers printed on the back side of the card (signature panel) to the far right. The three-digit code helps validate that the cardholder has the card in his/her possession, and the account is legitimate. You can include the code in your transaction and expect to receive a “match” or “no match” response. If you are using a shopping cart, make sure it can collect these numbers. A CVV and CVC cannot be stored in any form by a merchant.

American Express may also have a four-digit security code that should be on the front of the card above the account number. Discover Card also has a three-digit code very similar to Visa/MC in the same location.

Declines

Below are some common decline codes that might appear when a transaction can not be processed. 

Common Decline Codes

Response Code Status Message
00 APPROVED APPROVED AND COMPLETED
01 CALL REFER TO ISSUER
02 CALL REFER TO ISSUER-SPECIAL CONDITION
03 TERM ID ERROR INVALID MERCHANT ID
04 HOLD-CALL OR PICK UP CARD PICK UP CARD (NO FRAUD)
05 DECLINE DO NOT HONOR
06 ERROR XXXX GENERAL ERROR
07 HOLD-CALL OR PICK UP CARD PICK UP CARD, SPECIAL CONDITION (FRAUD ACCOUNT)
12 INVALID TRANS INVALID TRANSACTION
13 AMOUNT ERROR INVALID AMOUNT
14 CARD NO. ERROR INVALID CARD NUMBER
15 NO SUCH ISSUER NO SUCH ISSUER
19 RE ENTER RE-ENTER TRANSACTION
21 NO ACTION TAKEN UNABLE TO BACK OUT
28 NO REPLY FILE IS TEMPORARILY UNAVAILABLE
39 NO CREDIT ACCT NO CREDIT ACCOUNT
41 HOLD-CALL OR PICK UP CARD LOST CARD, PICK UP (FRAUD ACCOUNT)
43 HOLD-CALL OR PICK UP CARD STOLEN CARD, PICK UP (FRAUD ACCOUNT)
51 DECLINE INSUFFICIENT FUNDS
52 NO CHECK ACCOUNT NO CHECKING ACCOUNT
53 NO SAVE ACCOUNT NO SAVINGS ACCOUNT
54 EXPIRED CARD EXPIRED CARD
55 WRONG PIN INCORRECT PIN
57 SERV NOT ALLOWED TRANSACTION NOT PERMITTED-CARD
58 SERV NOT ALLOWED TRANSACTION NOT PERMITTED-TERMINAL
61 DECLINE EXCEEDS WITHDRAWAL LIMIT
62 DECLINE INVALID SERVICE CODE, RESTRICTED
63 SEC VIOLATION SECURITY VIOLATION
65 DECLINE ACTIVITY LIMIT EXCEEDED
75 PIN EXCEEDED PIN TRIES EXCEEDED
76 UNSOLIC REVERSAL UNABLE TO LOCATE, NO MATCH
77 NO ACTION TAKEN INCONSISTENT DATA, REV., OR REPEAT
78 NO ACCOUNT NO ACCOUNT
79 ALREADY REVERSED ALREADY REVERSED AT SWITCH
80 DATE ERROR INVALID DATE
81 ENCRYPTION ERROR CRYPTOGRAPHIC ERROR
82 CASHBACK NOT APP CASH BACK LIMIT EXCEEDED
83 CAN'T VERIFY PIN CANNOT VERIFY PIN
85 CARD OK NO REASON TO DECLINE
86 CAN'T VERIFY PIN CANNOT VERIFY PIN
91 NO REPLY ISSUER OR SWITCH IS UNAVAILABLE
92 INVALID ROUTING DESTINATION NOT FOUND
93 DECLINE VIOLATION, CANNOT COMPLETE
94 DUPLICATE TRANS UNABLE TO LOCATE, NO MATCH
96 SYSTEM ERROR SYSTEM MALFUNCTION
B1 SRCHG NOT ALLOWED SURCHARGE AMOUNT NOT PERMITTED ON VISA CARDS OR EBT FOOD STAMPS
B2 SRCHG NOT ALLOWED SURCHARGE AMOUNT NOT SUPPORTED BY DEBIT NETWORK ISSUER
CV FAILURE CV CARD TYPE VERIFICATION ERROR
EA ACCT LENGTH ERR VERIFICATION ERROR
EB CHECK DIGIT ERR VERIFICATION ERROR
EC CID FORMAT ERROR VERIFICATION ERROR
HV FAILURE HV HIERARCHY VERIFICATION ERROR
N3 CASHBACK NOT AVL CASH BACK SERVICE NOT AVAILABLE
N4 DECLINE EXCEEDS ISSUER WITHDRAWAL LIMIT
N7 CVV2 MISMATCH CVV2 VALUE SUPPLIED IS INVALID
R0 STOP RECURRING CUSTOMER REQUESTED STOP OF SPECIFIC RECURRING PAYMENT
R1 STOP RECURRING CUSTOMER REQUESTED STOP OF ALL RECURRING PAYMENTS FROM SPECIFIC MERCHANT

Discount Rate

A percentage that is charged on every transaction a merchant process. This fee is collected at the time of the transaction.

Ecommerce Merchant Accounts

These are special types of merchant accounts that allow you to accept card payments online. Online businesses may be viewed with a higher risk profile than compared to a retail business that captures face-to-face transactions with a signature.  

Electronic Funds Transfer (EFT)

A paperless transfer of funds initiated electronically from one account into another.

In House Credit Underwriting

This is where the merchant account provider (ISO/MSP) writes the merchant accounts within their own company (in house).

Free Equipment

Can I receive a free physical terminal?

Yes, merchants may be eligible to receive free. This is typically reserved for low to medium risk merchants. Call JJS Global to find out if you qualify for free equipment. 224-535-9462.

Funding Schedules

A. Credit/Debit Card Processing

i. Local Acquiring Processing – (local processing will refer to the bank and merchant residing in the same country). Same-day and next-day funding options are available. Standard funding is 3 business days. For existing merchants with low-risk factors, they may be eligible for same-day funding.

ii. Non-local Acquiring Processing – (this refers to when the bank and Merchant may not reside in the same country). 3-day funding time is typical but may be subject to longer payment terms.


B. ACH Processing – Check Processing

i. Typical funding times are 3-5 business days.

ii. If a merchant is eligible and approved from Same-day debits and submits their files with the correct Effective Entry Dates, funds will be deposited sooner, typically the following business day prior to 5pm of merchant's local time-zone.


C. What is Same-Day Funding?

i. If a merchant is eligible and approved for same-day funding, sales processed earlier in the day, prior to the same-day cut-off time, are directly funded to the merchant bank account on file later that same evening.

Issuing Bank

The bank that issues a customer a credit or debit card.

Merchant 

A business or person that sells goods or services and accepts payments from a consumer for those goods or services.

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What is a Merchant Account? 

A Merchant Account offers the ability to collect credit/debit and/or ACH payments from a paying customer for goods or services sold.  


Merchant Provider

Any organization that can connect a business or person seeking to accept card payments from its consumers with an Acquiring Bank. Providers generally have established relationships with several banks that operate merchant accounts. Providers either have their own processing system to process or validate transactions, or they act as resellers of third parties’ processing systems.


Merchant Identification Number (MID)

The MID is a unique set of numbers and/or letters assigned to a merchant to identify the merchant to the ISO, third-party processors, acquirers, and across the card brand networks. 


Can I Process Payments for More than One Website?

Yes, you can process payments for as many websites as you wish. However, if the products on the websites are different or if they are being offered by a different LLC, Inc., or even DBA that you are still the owner of that organization, then you will need to apply for separate merchant accounts. To process payments for a new website or product other than what was originally approved on the signed application, please contact the JJS Global office at 224-535-9462 immediately.

Missing Deposits

You may be missing a deposit for a few reasons.

  1. Is it a federal observed holiday within your country or region? If so, the banks are closed and that will add a 1-day delay to your deposits.
  2. Is it a weekend, if so, please wait until the following business day to receive your funds.
  3. Have you processed a transaction that is higher than your approved high-ticket? If so, this can add a funding delay. When processing transactions that are over your approved high-ticket, please let our office know, so we can help monitor the deposit and ensure the sales receipt is provided to help expedite the funding time.

Monthly Minimum Fee

The minimum monthly charge a merchant must pay in Discount Rate fees. If the merchant’s sales for the month result in his paying Discount Rate fees greater than or equal to the agreed minimum monthly amount, no further fee is involved in this category However, if the merchant’s sales for the month result in his paying Discount Rate fees less than the agreed minimum monthly amount, the merchant must pay the difference. 

Payment Processor

A company that attends to the actual processing of a credit/debit card

Payment Gateway

A payment gateway is typically used for eCommerce transactions and connects the Merchant's website to the payment processor. A payment gateway will offer APIs/SDKs, and other robust integration options for merchants who wish to collect payments directly from the customers where the consumer enters their own payment information either on the merchant's website directly/shopping carts or via a hosted payment. 

PCI Compliance

The Payment Card Industry, which includes MasterCard and Visa, requires banks, online merchants, gateways, and Member Service Providers (MSPs) to protect cardholder information. This is done by adhering to a set of agreed upon data security standards. The Payment Card Industry security standard (PCI) includes MasterCard’s Site Data Protection (SDP) program and Visa’s Cardholder Information Security Program (CISP).

PIN (Personal Identification Number)

A secret code that allows the issuer of a card to positively authenticate the cardholder for the purpose of approving a transaction. The cardholder enters his/her PIN into a PIN pad. The PIN is required to complete an ATM/Debit card transaction. A PIN can only be requested in a Face-to-Face environment, where the cardholder can securely enter the data into the POS (Point-of-sale) directly themselves. 

Point Of Sale Terminal (POS)

The physical machine that allows a merchant to swipe, insert, or wave, a credit card through to initiate a transaction. Most common in retail environments. 

Pricing Structures

A third party company providing merchants with merchant accounts. Providers generally have an established relationship with a number of banks that operate merchant accounts. Providers either have their own processing system to process or validate transactions, or they act as resellers of third parties’ processing systems.

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Interchange ++

What is Interchange ++? The term “interchange” according to the Oxford Dictionary, is the exchange of information. When we apply Interchange to Merchant Services, we are referring to the costs associated with the exchange of information between the card networks, acquirers, and card issuers. Card brands such as Visa, Mastercard, Discover, and AMEX, each set their own Interchange rates. These fees vary based on the type of card being used by the consumer at time of purchase. Not all cards have the same interchange rate.

A Merchant account that is on IC++ pricing, is responsible for covering the costs associated with the consumer’s card. For example, a Travel Rewards card will have a higher (more expensive) interchange rate than a debit card.


Cash Discount is a discount that is offered to a customer at the point of sale for paying with Cash. There are specific rules that must be followed when offering a Cash Discount so please speak with a JJS Global Representative to learn more by calling 224-535-9462 x2.


Surcharge is the addition of a percentage (%) on top of the existing sale price of an item when a customer pays with a credit card. The current maximum amount is 3%, anything over is considered a violation of card brand rules. It is also important to note that a Surcharge cannot be applied to a debit card transaction. Furthermore, Surcharging is not allowed in all states and there are specific rules that must be followed when implementing a Surcharge, so please speak with a JJS Global Representative to learn more by calling 224-535-9462 x2.


Dual Pricing is the display of both a card and a cash price simultaneously, so the consumer is made aware of the costs associated with the different transaction types and can make the best decision for themselves. E-Commerce merchants may still be eligible for Dual Pricing, so please speak with a JJS Global Representative to learn more by calling 224-535-9462 x2.  

Prior Authorized Sale

A transaction for which authorization was obtained at an earlier time.

Processing Gateway

The gateway will automatically collect information and pass it to your acquiring bank. The processing gateway allows for automated real-time processing. Processing gateways JJS Global is partnered with are NMI (Network Merchants, Inc.) and Authorize.NET and FluidPay to name a few.

Real-Time Processing

Credit/debit card processing is completed instantly.

Processing Volume

How much will my account be approved for?

A merchant is able to dedicate how much processing volume they may need on a monthly volume, but this will be validated against existing and previous processing, along with business or even personal financials.

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What happens if I process more than my approved monthly volume?

It is recommended to let the JJS Global office know in advance if you will be processing over the approved monthly volume so we can coordinate with the Acquiring Banks and adjust equipment if needed, to accommodate the increased volume as well as prevent any delays with deposits.

What happens if I process less than my approved monthly volume?

It is okay to process less than your approved monthly volume; as long as the account is not inactive it will be okay. Is it important to keep the account in good standing and keep the chargeback levels below the card brand thresholds. Having high processing months followed by low months can cause an increase to chargeback ratios and this should be monitored closely.


What happens if I process more than my approved high ticket?

The transaction or the batch may be held if there is an item that is higher than your approved high ticket. If this happens, please let JJS Global know and submit a copy of the sales receipt along with the client's Proof of Purchase. This will help RISK release the funds faster and in accordance with your regular funding schedule.

Recurring Transactions

A transaction in which a cardholder has given a merchant permission to charge the cardholder’s account on an ongoing basis until the agreed upon amount has been received. Subscription based accounts such as Netflix/Hulu/Amazon enroll its customers in recurring billing. 

Reserves

What is a Reserve?

A reserve is typically a percentage that is held back from the total sale. For example, a 10% reserve would result in 10% of the total sale being withheld from the deposit to the Merchant. If a consumer makes a $100 purchase and the Merchant is subject to a 10% reserve, then the Merchant would have $10.00 withheld from that sales deposit.

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Will I have a Reserve on my Merchant account?

Reserves are established based on various risk factors during underwriting only once all documents are submitted. Most Low-Risk verticals, such as grocery stores or other face-to-face transactions, may not be subject to a Reserve. However, Medium to High-Risk verticals will most often be subject to a reserve.


Can I monitor my Reserve account?

Yes, all merchants will have access to an online dashboard that will provide the ability to view and monitor their Reserve accounts.


Can I have my Reserve Capped?

A reserve can be capped once a Merchant has established itself and there is good clean processing with minimal risk factors. Strong financials with also aid in requesting a reserve to be capped.


What is a Rolling Reserve?

A rolling reserve is an ongoing reserve that will automatically release funds back into the Merchant's bank account. This happens in a “rolling” fashion which is where the name “rolling reserve” is derived from. For example, the reserves withheld from month 1 are released back to the Merchant on month 7th.


When is a Reserve Released?

A Reserve can be released in a few different ways.

  1. A merchant may be placed on a Rolling Reserve in which case the releases are automatic and ongoing.
  2. A merchant who may be on a capped reserve may decide that they wish to receive a release from the reserve account, in which case the account will be reviewed, and if the account warrants, a release can be issued. In most cases, a capped reserve that takes a release will have the reserve % turned back on until it replenishes itself.
  3. In the event a Merchant is terminated, reserves will be subject to the terms and conditions of the MPA (Merchant Processing Agreement) and are typically reviewed after 180 days (about 6 months) from the date of the last activity on the account. The last activity on the account can include refunds, chargebacks, and/or sales.

Secure Socket Layer (SSL) 

A secure web protocol designed to ensure cardholder information is safe during the ordering process.

TID (Terminal ID)

The identification number assigned to a credit card transaction device (such as a POS terminal or gateway). It identifies the merchant’s equipment to the processor and bankcard data transport networks. A TID is also used for payment gateways and other software applications. 

Transaction Fee

A fee that is assessed on a per-transaction basis, expressed in dollar and cent terms that a merchant provider or processor charges merchants for each transaction processed.

JJS Global
Diagram to use for customization

Click here to check out Visa’s video for a more in-depth look at the transaction life cycle.

VAR

VAR stands for Value Added Reseller and is commonly referred to as a a VAR sheet. This document contains pertinent information that allows an Acquiring Bank to board the merchant account and connects it to downstream terminals, gateways, or software.

Virtual Terminal (VT)

A virtual terminal is an application that can be accessed through a web browser (cloud based) for any device that has internet connection or installed directly on your computer or mobile device. The application allows you to securely key-in, swipe, or accept contactless payments from paying customers.

Void 

A void is the reversal of an approved transaction, one that has been authorized but not settled. A settled transaction requires processing a credit, i.e., a refund, to be reversed. 

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[email protected]

+1 224.535.9462

+1 224.535.9747

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