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ED July 2016

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28 July 2016 Club Bulletin www.EDpublications.com and cross all of your t's." Remember, this system is designed more to facilitate happy cardholders than happy merchants. The mechanics of dispute resolution with respect to MasterCard are materially identical to that of VISA. American Express and Discover differ only in that the issuer and the acquirer are all rolled into one. Auditors have an old saying: "If people can steal, they will steal." Plastic is no exception. The advent of the credit card brought with it a whole new field of scams the likes of which the world had never seen. Credit cards can be stolen and forged. Crooks have engineered a myriad of ways to make a quick grab of tons of money or, in some cases, mer- chandise, before anyone can figure out what has happened. By the time someone does figure out that something is amiss, the crook has long since looted the bank accounts and ridden off into the sunset with the cash in his saddlebags. Despite the fact that a card holder invariably can have a charge re- moved from his or her card without penalty, (1) it is a nuisance and (2) not everybody reads their card holder agreement so carefully as to know their rights. Cardholders can feel that they have been imposed upon, that their privacy has been invaded and that the card issuer has caused them a nuisance. The result of all of this is that the credit card industry is doing much to combat fraud in general, and chargebacks in particular. That is why merchant accounts are no longer carelessly issued. When you apply for a merchant account from an ISO, you will be presented with an application form. The application form includes many questions, some of which are very personal. Inaccurate responses can be fatal and will lead to having your merchant processing privileges revoked as you're stuck in the dreaded Terminated Merchant File. continued from page 26 Too many chargebacks, misrepresenting the nature of your business on the application, unauthorized processing for someone else and any of a number of other transgressions can garner termination of your merchant privileges. The worst part of this is that it gets you—any everyone associated with the business—added to the Terminated Merchant File (also known as "MATCH"), so you will be unable to obtain bank card processing anywhere else.

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