A Chargeback occurs when a customer formally disputes a charge by contacting the issuer of the credit card. Customers usually dispute charges if they do not recognize the amount or business making the charge, or if they disagree with the transaction. Merchants can take steps to avoid Chargebacks by ensuring that the proper business name appears on the customers’ statements, providing itemized receipts, implementing fair return policies, and working cordially to resolve disputes before they become Chargebacks. If merchants feel that a Chargeback was unfairly issued, they can fight it by submitting proof that the customer approved the transaction. This can be done with signed receipts, invoices, or other tangible proof of authorization.

Merchants should work to avoid Chargebacks because too many can result in actions by merchant account provider such as placing holds on funds and terminating the account. Providers may also raise the transaction fees, or even place a merchant on the Terminated Merchant File if the Chargebacks are suspected to be caused by fraud. The typical fee for a chargeback is $25-$35 per incident.

A card not present transaction (CNP, MO/TO, Mail Order / Telephone Order, MOTOEC) is a payment card transaction made where the cardholder does not or cannot physically present the card for a merchant's visual examination at the time that an order is given and payment effected. It is most commonly used for payments made over Internet, but also mail-order transactions by mail or fax, or over the telephone.

Card not present transactions are a major route for credit card fraud, because it is difficult for a merchant to verify that the actual cardholder is indeed authorizing a purchase.

If a fraudulent CNP transaction is reported, the acquiring bank hosting the merchant account that received the money from the fraudulent transaction must make restitution to the cardholder - this is called a chargeback. This is opposed to a card present transaction, when the issuer of the card is liable for restitution. Because of the greater risk, some card issuers charge a greater transaction fee to merchants who routinely handle card not present transactions.

The card security code(commonly CVV2) system has been set up to reduce the incidence of credit card fraud arising from CNP.

The device connects to Wifi and has optional 3G capability. It also comes with a dock that allows for USB connectivity as well as an Ethernet port.

MOTO, or Mail Order/Telephone Order, is a type of card-not-present transaction in which services are paid for and delivered via telephone, mail, fax, or internet communication. Because MOTO transactions take place without the merchant or the card physically in the store, they are at a higher risk for credit card fraud than card-present transactions. MOTO merchants therefore will likely pay higher transaction rates to help offset the potential for disputed payments and chargebacks.

Although MOTO stands for “Mail Order/Telephone Order,” the diminishing popularity of those two technologies has resulted in MOTO being repurposed as a general term for all card-not-present transactions, including internet purchases.

Second "plus"; a margin added by the acquirer or payment provider (processor) for providing card processing services. This is the source of profit for providers, meaning these can vary from one to other. It is mostly based on provider's risk exposure and merchant's MCC category code.

First "plus"; this is a fee charged to the acquirer by the Card Scheme (Visa, MasterCard) for using their network. These fees are typically lower than interchange. POS and MOTO transactions. Same as interchange fee, the card scheme fee is based on transaction type, card type and geographical relation between merchant and cardholder's issuing bank.

For every card transaction, using a rate made of three components. Firstly, the basis is always the interchange percentage fee. On top of that, a card scheme fee is added, and lastly a fixed percentage is added by the provider. Sum of these three fees is the final rate that the merchant is being charged with for every transaction. The benefit of such pricing model over the fixed blended rate model is full transparency and thus normally results in lower overall fees.

Interchange is a percentage fee which the merchant service provider has to pay to the cardholder's issuing bank whenever they use their credit or debit card. This fee is paid for the benefits of accepting payments and covers handling costs including the risk involved in processing and settling the transaction.

If you have had an EFTPOS facility before, please include with your application a merchant statement not older than three months and identification documents (eg: Copy of driver’s licence, passport) for each signatory.

If you’ve never had an EFTPOS facility, we also require a recent bank statement on a bank letterhead that matches the business bank account you wish us to deposit your funds into. If you don’t have a bank statement, we require a copy of your current lease agreement for your trading premises.