General FAQ

Q1. What is a merchant account and why do I need one to accept credit card payments?

A1.Unlike retail physical stores where the card-holder is actually present at purchase, selling on the internet of via call center requires a card-holder NOT present type of merchant account so as to accept credit card payments "at a distance". Please visit our page relating to merchant accounts

Q2. What type of merchant accounts are there?

A2. There are two types

Card Holder Present Merchant Account
Card Holder Present Accounts, are the usual type of merchant account, which obligate the merchant to terms determined by the acquiring bank. Typically the main trading banks consider these type of accounts as lower in risk and attract merchant fees consistent with this lower risk.

Card Holder NOT present Merchant Account
Card Holder NOT Present Accounts, are the type of merchant accounts required for internet trading and for call centers. These also obligate the merchant to terms determined by the acquiring bank. Typically the main trading banks consider these type of accounts as higher in risk and attract merchant fees consistent with this higher risk.

Merchant FAQ

Q1: What is a Charge back?

A1: Please visit our page relating to chargebacks

Q2. What is the Card Issuers position concerning charge backs?

A1. Please visit our page relating to chargebacks

Q3. How do I prevent charge backs?

A3. Please visit our page relating to chargebacks

Q4. What are bank merchant fees, and how much are they?

A4. Please visit our page relating to bank merchant fees

Q5. What credit cards can I accept with my merchant account?

A5. Please visit our page relating to VISA and Master Card credit cards
or
A5. Please visit our page relating to Amex and Diners credit cards

Q6. Where can I get Best Practice information about accepting credit cards when the card holder is not present?

A6. Please review the following links for further information:

VISA NZ best practice policy
MasterCard guide to preventing fraud
AMEX guide to preventing fraud
Zipzap Risk Profile Alert Manager System

Security FAQ

Q1. What is EMV?

A1. EMV stands for Euro pay, MasterCard, Visa specifications. This technical specification outlines the interaction between chip cards and terminals to ensure worldwide interoperability.

New Zealanders have embraced electronic payment and rely on its convenience and security. While New Zealand enjoys relatively low levels of credit card fraud, internationally fraudulent activity has been increasing.

Banks are beginning to issue chip cards to their cardholders. These cards will offer cardholders increased security from fraud along with the potential for a range of other applications including stored value (where the card acts as an electronic purse replacing cash for small purchases), multiple application cards and new loyalty programs.

As EMV chip cards offer the best long-term solution to the problem of counterfeit fraud, in Asia Pacific, Visa is committed to EMV chip migration, with national programs underway in four markets. As of March 2005, Visa has close to 33 million EMV-compliant chip cards and more than 743,000 EMV terminals deployed in the region. In a mature chip world, compromised data would be very hard to use and cardholders would rest assured that they have the best protection against the problem.

Q2 . What is 3DES?

A2. Pronounced 'Triple Des'. DES stands for Data Encryption Standard, and is a widely-used method of data encryption using a private (secret) key. A triple-DES operation consists of three single-DES operations using two different single-DES keys, which results in an enhanced form of encryption. This simply means that instead of the current system whereby a cardholder's PIN is fed through a single DES operation (one algorithm with secret key), the PIN will have three stages of DES operation, which will make it more secure. Using 3DES will ensure you and your customers have the most up-to-date security, which will help to reduce the possibility for fraud.

Q3. What is SSL?

A3. Short for Secure Sockets Layer. Used by most commerce servers on the World Wide Web, this high-level security protocol protects the confidentiality and security of data while it is being transmitted through the internet. Based on RSA Data Security's public-key cryptography, SSL is an open protocol that has been submitted to several industry groups as the industry security standard. Denoted by the letters HTTPS in the URL .....more info