FAQs

Frequently Asked Questions

Mystery and misinformation about credit cards and merchant account programs abound. We hope our Frequently Asked Questions page will help take the mystery out of the subject and help you make informed decisions.

If you have other questions that are not answered below, please email or call us, and we will reply promptly.

FAQ: What do I need to take credit cards?

Answer: There are two things you need to accept credit cards, a merchant account and a processing solution. Merchant accounts are issued by a Discover/MasterCard/Visa authorized bank or an agent of an authorized bank. The processing solution can be hardware or software that authorizes the transaction and is capable of settling the transaction on your PC. Your dabowinc agent can access your needs and make a recommendation after the interview.

FAQ: Where do I get supplies and parts for equipment that I buy from you?

Answer: dabowinc services and repairs the equipment it sells and stocks a complete line of receipt paper and ribbons.

FAQ: Can I pay dabowinc for the equipment or software with my personal or corporate purchase card?

Answer: We gladly accept Discover, MasterCard, and Visa.

FAQ: If I move my merchant account from my present processor and I don’t like the service, what are my options?

Answer: Many of our clients have been with dabowinc for 10 years or more. We want happy clients that will refer us to their business associates and friends. If you are not 100% satisfied with the quality of our service, just let us know in writing within the first 90 days of service and dabowinc will pay your company up to $250.00 for any applicable charges to switch back to your previous merchant service provider.

FAQ: Who will train my staff on the use of the equipment or software?

Answer: We have chosen to support only user-friendly credit card terminals and software. Equipment is shipped preprogrammed and ready to go. With a little telephone instruction from us, you will be ready to do business in a few minutes.

FAQ: What if my equipment fails?

Answer: Call our 24-hour toll free number that is on the equipment you purchased from dabowinc. We will overnight a like piece to replace yours, then you send the broken equipment back in the package our customer service representative will provide. If the equipment is under warranty, there will be no charge to you. If the equipment is out of warranty, the repair/replacement of equipment is $75.00 plus shipping.

FAQ: What makes the dabowinc warranty so special?

Answer: We want our merchants to have dependable P.O.S. equipment. dabowinc doesn’t care why it isn’t working—we want to get you an operational terminal or printer at once. In most cases we can have a replacement to you overnight.

FAQ: Can I purchase a terminal or printer from you without signing up for a merchant account?

Answer: Yes, we are aware that this type of equipment is used for all sorts of data capture applications. We even sell to our competitors.

FAQ: What if I already have my equipment?

Answer: If you already have credit card processing equipment that will do the job, we usually can reprogram it. If you need upgrades for debit or checks, we can take your old equipment in trade. If you wish to have your existing equipment reprogrammed, tell us the type of equipment you have.

FAQ: What is the warranty on the terminals that you provide?

Answer: We offer both new and refurbished equipment. The new terminals and printers come with a factory warranty. Our refurbished equipment is reconditioned by factory-trained technicians and is fully tested prior to you receiving it and has a one-year no-hassle warranty.

FAQ: Is there anything I need other than an electronic terminal to take credit cards that are electronically draft captured?

Answer: Yes, if you make face-to-face transactions where the card is present, you will need a manual imprinter even if your equipment has a built electronic printer. If cards will not swipe (and 1 out of 10 cards are not readable by electronic POS systems), you should manually imprint the non-readable card after keying in the transaction. Remember, manually keying in the customer credit card information does not constitute proof of a sale.

FAQ: What equipment do I need?

Answer: We can’t accurately determine your needs until we know more about your business. We have excellent state-of-the-art equipment and business-specific software available at reasonable prices. dabowinc wants to provide you with the proper equipment for your specific application. We can sort out your equipment or software needs during our interview.

FAQ: What are discount points and transaction fees and how do they work in the electronic payment system?

Answer: Banks and guarantee check services charge merchants discount points or rates to accept credit cards or guarantee checks. The discount rate or points is the percentage of each transaction that the processing company charges to handle the transaction for your business. Humbolt Merchant Services deducts this fee as the daily batch (deposit) is made. A transaction fee is a charge you pay each time you accept a credit card or check for guarantee. For example, if you have a swipe discount rate of 1.79% with a transaction fee of $.25 and you make a retail swipe for $100.00, your bank account will be credited $98.21. The transaction fees are deducted the first week of each month for the previous month’s transactions.

FAQ: Is the discount rate for swipe transactions the same as keyed transactions?

Answer: No. Retail credit card sales require a signature at the time of sale, and the customer usually receives the product or service at that time. The merchant gets the best discount rate for this type of transaction. When you see low rates offered, they are for retail transactions. Telephone or mail orders are charged a higher discount rate because of the increased risk that the customer will not receive the product or that the sale will be fraudulent. You should be sure the agent you choose to write your merchant account fully understands the difference between retail, telephone, mail order, and Internet. Not only are the fees different, but also the programming and needed equipment or software varies greatly.

FAQ: What is the discount or percentage rate that is charged on each transaction?

Answer: The bank that approves your application determines it. Expect the rate to be between 1.69% and 2.95%.

FAQ: Is there a transaction fee?

Answer: Yes, all banks charge a transaction fee. Transaction fees are set by the card associations and passed on to banks and merchants. The transaction fee is never more than 30 cents. Most merchants pay 25 cents on swiped business and 30 cents on keyed business. Should you be offered a rate without transaction fees, it means that the processor has simply bundled the fee into the discount rate.

FAQ: Are your prices competitive?

Answer: You bet, but that is what you expect us to say. Remember we want your business. We will work hard to get you approved and by representing several banks we succeed 99% of the time. We also provide your equipment at discount prices and offer a no haggle warranty. You may even qualify to get your equipment for free. Ask us how.

FAQ: What about “lowest rates” I have seen on the Internet?

Answer: Be very careful! One of the ploys we have heard about is the practice where you are promised a low discount, and then, after you have signed up, your rate is drastically increased. Your rates are fixed in writing by our banks so you know exactly what you will pay.

FAQ: What kinds of business will dabowinc accept?

Answer: We accept all legitimate businesses and have been able to place all types of entrepreneurs, retail, service, medical, mail, and telephone order. All home-based and Internet business applications submitted to Humbolt Merchant Services in the last 24 months have been approved.

FAQ: How long does it take to get my money on Discover/MasterCard/Visa Transactions?

Answer: Your money less the discount rate will be electronically transferred in two business days to the bank account you specified on your application for a merchant account.

FAQ: Can dabowinc provide check and credit card fraud training for my cashiers?

Answer: As a client you may check out videotapes and books on check and credit card fraud free of charge. As a client you will receive periodic literature and bulletins on fraud prevention.

FAQ: What is the Address Verification System?

Answer: If you sell by mail order or telephone, you do not want to send a product to a false address and have the risk of the cardholder not receiving the order as well as a charge back to you. The Address Verification System (AVS) lets you enter the customer’s billing or home address and compares it to the address on file with their credit card company. If someone uses a stolen card and wants products shipped to a false address, AVS will detect this for you.

FAQ: What if I need help?

Answer: You are provided a toll free number to handle problems or questions that arise. It is available 24 hours a day 7 days a week. Additionally your dabowinc agent is only a phone call or an e-mail away.

FAQ: What type of cards may I accept?

Answer: When your processing equipment is installed, you can accept Discover, MasterCard, Visa, and debit (if you ordered it). All other major credit cards, including American Express, can be added to your system with our assistance at no charge.

FAQ: Who will help once my account is activated?

Answer: dabowinc is service oriented. After you have been set up you will receive a welcome letter with a toll-free number and the name of your customer service representative along with their mobile phone number for emergencies. This is how we have done business since 1990. It works, and our clients refer their friends and business associates to us.

FAQ: Is there a problem if I have a bad credit rating?

Answer: We have a special program for people who have gotten into financial trouble in the past. The Jump-Start program was designed for new merchants with less than desirable credit, who might otherwise be turned down for higher processing limits. Advise us up front of any credit problems, and we will make every effort to get you approved.

FAQ: Can I find out how the application process is going?

Answer: We are advised by e-mail at 12:00PM and 6:00PM CST of the status of all applications. You may call or e-mail for the status of your application.

FAQ: How long will the approval process take?

Answer: Once you submit the pre-application and your dabowinc agent submits the completed paper work, it usually takes one business day. Once the bank issues your merchant ID number by e-mail, dabowinc will program your equipment and ship it to you so you can began accepting credit cards.

FAQ: How do I know what is being deposited in my account?

Answer: After every daily batch (an industry word for electronic deposit) the settlement of the day’s credit card transactions, your credit card terminal or software will print a daily batch report. Consider this the same as a deposit slip. On about the 10th of the month you will receive a monthly statement to reconcile your bank statement for credits and debits from your merchant account. You also may subscribe to Merchant View, a service that is available on the Internet that utilizes interactive Web pages and digital certification technology to provide you with simple and secure access to information about your merchant account.

FAQ: What kind of information will be asked on the merchant account application?

Answer: Your merchant account is a credit line from a federally insured financial institution. Your merchant account application will ask the same questions you would be asked if you were applying for a loan, and the application is processed just like a loan application.

FAQ: Do I need a pin pad for debit transactions?

Answer: Yes, for a true debit transaction to take place you must have an encrypted pin pad for the debit cardholder to enter their pin number. You can accept debit cards that have a Discover, MasterCard, or Visa logo on them without a debit account or pin pad. Your processor handles it just like a credit transaction, and the debit cardholder’s checking account is debited as if it were an actual debit transaction.

FAQ: If I can run my clients’ debit cards as credit transactions, why do I need to have a pin pad or a debit merchant account?

Answer: The cost savings to a merchant for debit versus credit can be significant .The maximum debit charge to the merchant is $.45. If you ran a $100 credit charge with 1.99% discount rate, your cost is $1.99 plus $.20 transaction fee for a total of $2.19. The savings to the merchant debit versus credit is $1.74. Merchants with high dollar purchases can quickly pay for a pin pad. Convenience and fast food stores with tickets under $15.00 have no incentive to offer debit for this reason.

FAQ: What are the necessary steps to set up an Internet business?

Answer: First and foremost you should secure a merchant account to process the credit card payments for your business. If you can’t accept electronic payments over the Internet, your venture doesn’t have much of a chance. Next you need a domain name registered, your Web store designed, and Web server software selected. Make sure that the payment software is compatible with the processor of your merchant account.

FAQ: I have a retail merchant account with a card swipe rate at my bank. I wish to do business on the Internet, but my bank is not interested in setting up an Internet merchant account. Can you help us?

Answer: Most banks do not have the expertise to truly understand all there is to know about gateways, shopping carts, and online stores. We know and understand Internet merchant accounts and have Web site designers who can assist you. We can provide you with an Internet Package and will throw in your retail account for free. No statement fees or monthly minimum for qualified select merchants on the retail account with the R&I Combo. This program was designed exclusively for those merchants who already have a retail account with their bank, and wish to add an Internet account. Ask for the R&I Combo by name and save.

FAQ: I have a restaurant and would like to accept credit cards on my PC-based cash register. Can you help me?

Answer: Yes, our primary bank will accept the following restaurant processing systems: POSitouch, Aloha, and Digital Dining. Each of these restaurant software products has unique features that may or may not work for your restaurant. dabowinc can put you in touch with a dealer who can explain the specific applications for their software. Once you have chosen your restaurant’s software application, dabowinc will provide your equipment and software vendor with the merchant account set-up information.

FAQ: What is a gateway?

Answer: A gateway is a combination of software and hardware that consolidates and translates payment transactions received from merchants operating Web sites on the Internet to the authorization and settlement systems. It facilitates a real-time authorization over the Internet.

FAQ: What is SSL?

Answer: SSL stands for Secure Sockets Layer, a security device that securely encrypts (scrambles) information to prevent eavesdropping, tampering, or message forgery over the Internet.

FAQ: Can you set up monthly recurring billing for Discover, MasterCard, and Visa?

Answer: Yes, we can and we have a good selection of software options to make it all happen.

FAQ: What is eCheck?

Answer: eCheck is a payment service of Authorize.Net that allows merchants to accept and process electronic check payments on the Internet. dabowinc is a reseller for Authorize.Net products.

FAQ: With a merchant account for credit cards, can I eliminate checks entirely?

Answer: Yes, you can, but remember 50% of American adults do not have a credit card. Checks are still the preferred form of payments and they cost less to take than credit cards.

FAQ: Can dabowinc set me up as wireless merchant?

Answer: Yes, and the cost of the technology has come down dramatically over the last few years.

FAQ: Why should a retail store need an e-commerce Web site?

Answer: Think of an e-commerce Web site as another store location without all the expenses, staffing, and inventory associated with a second location. It’s a very inexpensive way to expand your business without all the headaches, expenses, staffing, and inventory involved in opening a second store.

FAQ: What would an e-commerce Web site cost to set up?

Answer: It is like asking what a new house costs to build. However, a good e-commerce Web site, with features like database driven product selection, shopping cart technology, UPS/FedEx shipping options, today’s special and new addition sections, wish lists, site reports, inventory tracking, banner advertising, target marketing technology, and transaction processing, should run in the range from $5,000 to $10,000. As we stated above, when compared to opening another location a good e-commerce Web site is very inexpensive.

We work with several award winning and experienced Web site development firms and would be happy to work with you on creating your e-commerce Web site. Complete our contact form, and we will contact you within 24 hours. It’s free, and there is no obligation.

FAQ: Do you offer a card reader that the phone actually slides into?

Answer: No, when choosing what devices worked best, we found that most companies did not want an attached device that made the phone any larger than it already was. Our solution is to use connections from the phone to the credit card hardware. If you look at a competitor’s product you’ll find that when the card reader is attached, the battery cover is replaced and not easily removed. Our card reader models are made to be easily removed in an instant so you do not need to keep a battery cover with you.