How does Direct Debits work and what is the cost?
Direct Debit fees will be a flat rate of $0.99 per transaction and $10.89 for dishonoured debits (inc GST). We provide a direct debit form template for you to download. Each customer must approve the form and a signed copy must be uploaded in the Add Payer screen of Payment Manager. Direct Debits take 5 banking days to clear and so clear funds are settled to your nominated account after the clear funds are received by SQID.
Why do some card types incur different charges to others?
You may notice that some transactions are have different fees applied. This is because the rates are based on standard domestic cards and all other cards are rated as premium. Premium cards often have a rewards program and include Business, Platinum, World etc. The card schemes charge additional fees for these card types, called an interchange fee, and examples can be found here http://www.mastercard.com.au/merchant/getting_started/interchange_rates.html
SQID, like most of the Australian banks, averages these interchange fees to simplify the fee structure.
What fees can I expect?
SQID deduct fees and any refunds or chargebacks before we settle any funds to you. The transaction rate that is specific to your account is detailed in our “Application Approved – Welcome to SQID!” email that was sent to you. Please keep that email handy for your future reference.
So that we maintain our transparency with fees, here are other charges that may apply to your account if you incur them (inc GST):
- Pre-auth Fee: $0.33 per transaction (* This fee is if you use our service to make a temporary charge on your customers credit card to ensure funds are available or make sure the card is valid)
- Declined Fee: $0.33 per transaction
- Refund Fee: $0.33 per transaction
What is a chargeback, and how SQID can help your business reduce chargebacks?
Chargebacks are when a transaction occurs and the card owner disputes that they made the purchase with their bank. This is the responsibility of the merchant to resolve.
We will do whatever we can to assist you to prevent and manage chargebacks, so you should consider us as a resource. SMS receipting is a highly effective way to reduce chargebacks. The first step is to be sure to advise all your customers that their card statement will say SQD*YOUR BUSINESS. If they wish to check a transaction then they can go to this page to look up transactions http://sqidpayments.com.au/find-a-transaction-here/
You can activate SMS receipting within your merchant account (settings page of Payment Manager).
What is my transactions limit?
SQID reserves the right to limit the size of transactions to manage risk in the future. This also assists in containing the scale of the risk to you for any potential chargebacks. Your account has an initial transaction limit for each individual payment in AUD. Any exceptions must be applied for in writing to SQID, and may or may not be accepted based solely on SQID’s discretion.
What cardholder information is required to reduce fraud?
You must lodge with each payment processed accurate contact details for every customer including delivery address, email address and phone number. You authorise us to audit your transactions randomly by contacting your customers to verify the information accuracy in each transaction.
Reviewing your Merchant Account to support your business and help improve performance
SQID will monitor your account and provide support wherever we can to improve your business performance. These merchant arrangements will be subject to regular review and you will be notified of any changes and date of effect.
What is a Security Reserve and why it is important?
An initial refundable security reserve is based on the information provided, current risk profile and prepayment exposure. A security reserve review may be required at any time in the future if the risk profile of your account changes. Increases in risk rating can occur for a number of reasons, such as –
- increase risk in your industry sector for example due to chargebacks or defaults
- your own chargeback history and statistics
- the historical card types you are processing
- the geolocation of your card holders
- the size and frequency of your presented card payments
- the amount or proportion of prepayment exposure
The impact of this is that we have higher transactional costs due to the increase in risk profile of your merchant account.
A refundable security reserve based on the information provided, risk profile and prepayment exposure. This reserve is separate to your normal obligations to providing payments of refunds or chargebacks. The reserve will be accumulated by deductions out of settlements until the reserve limit is achieved based on daily transactions volume. Once the reserve is met it will be monitored monthly and adjusted based on recent transactions volume. Reserves are refunded when the refund and chargeback liability expires less any fees or penalties.
Please note: The Bond Amount can reviewed at any time as deemed necessary by SQID Payments.
Further Fraud Education Information for your reference
We also strongly suggest that you visit the following website for ECommerce Training that is supported by Australian Payments Clearing Association (APCA), Australian Crime Commission (ACC) and Australian Federal Police (AFP)
- Introduction fraud awareness video at : http://vimeo.com/49355830
- Online training at: http://www.apca.com.au/getsmart/online-card-fraud/
- Also see the following website: http://www.scamwatch.gov.au
- Reporting fraud is best done at http://www.acorn.gov.au/
Attached are some other merchant related material that may be useful in the management of your merchant account.
What is a BIN Search (Bank Identification Number)?
To assist you with locating where a credit card has been issued from, this link below allows you to input the first 6 digits of a credit card number and this will show you which bank has issued the card and from which country.
By using the merchant service you accept any terms and conditions in this email and any attachments, together with any terms and conditions on our website as updated from time to time.
If you need to cancel your merchant agreement
You can cancel this agreement at any time with 10 days written notice. SQID also has the right to cancel this agreement without notice, if you violate the terms of this agreement, or SQID’s Merchant Agreement (MA) or at SQID’s absolute discretion. SQID’s Merchant Agreement is available on its website here https://sqidpayments.com.au/merchant-agreement/SQID will update its Merchant Agreement from time to time and it is your responsibility to check it often to make sure you are in compliance. In cases of minor violations, SQID will give you an opportunity to become compliant, but SQID can cancel this agreement or take any other action SQID feels is appropriate if you do not comply. Serious violations by you or any of your referrers or upon notification by any of the card associations or regulatory agencies to discontinue accepting transactions will result in SQID cancelling this agreement immediately.