Prerequisite Lessons

Name Added On Description
Creating a Merchant 08/20/14 In this lesson you will learn how to create a Merchant and configure its remmittance and processing settings.

Managing common merchant activity

Added On:  09/24/14
Role: Merchant
Status:  Active
In this lesson you will learn how to perform the most common tasks that most of the merchants perform on daily basis.

Lesson Plan

  1.     Description Action
  1. 01 Common merchant tasks are:
    • creating a transaction;
    • issuing a refund/void;
    • uploading a batch/billing file;
    • locating a merchant statement;
    • handling a chargeback case.

    Let's learn how to perform these tasks as well as review some terms and guides related to them.
  2. 02 We will start by learning some terms related to transactions.
  3. 03 Sale is an operation used to withdraw specific amount of money from the supplied credit card or bank account.
  4. 04 Credit is an operation used to refund specific amount of money from the supplied credit card or bank account.
  5. 05 Void/Refund is an operation used to reverse a previously processed sale transaction.
  6. 06 Batch is a collection of transactions that are processed together. Batch processing is used in two situations:

    • Realtime batches - are used for settlements of pre-authorized transactions.
    • File batches are used to process together card not present transactions (authorization and settlement) of recurring nature such as bill payments, subscription payments, etc.
  7. 07 Let's proceed by practicing tutorials around sales and refunds.
  8. 08 Practice How to create a sale tutorial.
  9. 09 Practice How to issue a credit tutorial.
  10. 10 Practice How to locate a transaction tutorial.
  11. 11 Practice How to void/refund a transaction tutorial.
  12. 12 Practice How to upload a batch file tutorial.
  13. 13 Practice How to upload a billing file tutorial.
  14. 14 Practice Generating Transaction Export report tutorial.
  15. 15 Let's proceed by learning more about merchant statements.
  16. 16 Merchant statement is a summary of a merchant's activity for a set time interval. Includes transaction submissions, deposits, reserves, processing and monthly fees.

    Merchant statements can be of two types – deposit statements and reconciliation statements:
    • Deposit statement - a type of merchant statement that accompanies and explains remittances associated with all of the merchant’s batches processed on a given business day. Basically, deposit statement enables merchant to understand the deposits in their bank account that result from transaction processing.
    • Reconciliation statement - a summary statement that explains remittance activity and shows all of the associated processing fees over a defined time period, usually a month. Basically, reconciliation statement helps merchant to understand what merchant fees are charged and why.
  17. 17 Practice How to locate a merchant statement tutorial.
  18. 18 Now let's dive into the topic of chargebacks. We will begin by learning some terms.
  19. 19 Chargeback is a financial mechanism allowing a cardholder dispute over particular amount of money that have been charged illegitimately or as a result of an error. The crucial decision of this case makes card association. If cardholder disputes successfully, particular amount of money is withdrawn from Merchant's bank account and returned to cardholder. But this decision can be overruled through an arbitration process. Notwithstanding whether the decision is made in favour of cardholder or Merchant, chargeback fee is applied. The important issue relates to Merchant's chargeback rate. If it exceeds 1%, Merchant gets on Terminated Merchant File and loses the ability to process transactions.
  20. 20 Reversal is a financial mechanism used to notify a merchant that a disputed chargeback has been temporarily ruled in merchant's favor. The decision can be further appealed by cardholder and resulted in subsequant orbitration process.
  21. 21 To understand the mechanism of chargebacks even better, let's review Chargeback Handling guide.
  22. 22 You can also review Payment Gateways: Chargeback Information article that provides some additional business context around the concept of chargeback.
  23. 23 Now you have sufficient knowledge to get your hands dirty by practicing some tutorials.
  24. 24 Practice Locating Chargeback Cases by 'reply by date' tutorial.
  25. 25 Practice Handling Chargeback Cases tutorial.
  26. 26 Now you are equipped with all of the knowledge you need to run your daily merchant activities.

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