Frequently Asked Questions

What are Merchant Services?
Merchant Services provides the ability to accept credit and debit cards for payment. However, we also provide gift cards, check protection services, terminal support and sales, PIN pads (debit), and everything that goes with accepting card-based payments at your business.

How quickly can I get a merchant account?
Once your application is received, allow us 1 to 3 business days to approve your application, load your account on our system, prepare the download and deliver any necessary equipment to you.

Is there an approval process or is my application accepted upon receipt?
There is a credit review and underwriting process with all applications. A personal credit bureau file will be pulled for owners and individuals listed on the application. Some business types may require additional information, such as financial statements, balance sheets, and tax returns.

What cards will I be able to accept?
Visa® and MasterCard® are included in the account. Additional card types, such as American Express®, Discover®, JCB, Wright Express, Voyager and others can be added to your account upon request. If you already accept additional card types, include the existing merchant numbers on the Merchant Services Application and we will include them in your account set up.

Can I accept debit cards?
Yes, as long as the debit card has a Visa® or MasterCard® logo. You can also accept ATM or PIN-based debit cards with the correct equipment (PIN Pad) and terminal programming. A Compass representative can help you determine if PIN-based debit is right for your business.

Will I be able to accept business, corporate, and purchasing cards?
Yes, as long as the card has the Visa® or MasterCard® logo you can process the transaction like any other credit. Certain card types may require you to input additional information such as tax amount, invoice numbers, and customer codes.

What other products might benefit my business?

• Pin based debit acceptance allows you to give cash back to your customers that they can use to spend at your business or as a service to your customers.
• Gift Card processing can be a valuable tool to increase sales and expand your business.
• Check verification can help protect your business if you have high check losses or are worried about the payment or collection on checks you receive.
• Fleet card acceptance can drive fleets to automotove related business by accepting Wright Express, Voyager, MasterCard Fleet, Phh etc.

A Compass representative can assist you in determining if these products are right for your business.

What types of processing are available?
All processing is electronic. Options include point-of-sale terminals, software, touch-tone, Internet, or virtual terminals. A Compass Merchant Services representative can help you determine which type is right for your business.

Do I take my receipts to the bank to receive credit?
Everything is electronically transmitted by your terminal. Once “batched” or “settled,” which should be done daily, you will receive next day funding on VISA, MasterCard and Discover transactions, additional card types may vary. You maintain receipts for your records and it is recommended that you keep all receipts for 3 years.

Once a card is approved am I guaranteed payment?
You will receive payment for approved transactions after settling your terminal for the day. However, the cardholder may dispute or “chargeback” a transaction for a variety of reasons. There are steps you can take to minimize your chargeback risk. You will receive information on reducing such risk in your welcome kit and Compass Merchant Services works with our merchants to prevent chargebacks.

If I receive a chargeback, what happens?
In most cases, you will receive a notice by fax or mail informing you of the chargeback and the steps you need to take to resolve the issue. Usually your checking account will be charged for the chargeback amount during the dispute. If you win, the funds will be credited back to your account upon resolution.

Are all transactions priced the same?
No! Visa and Mastercard determine the fee for each card type (Interchange). Generally, the least expensive transactions are where the card is present and swiped through the terminal. Key-entered transactions and transactions involving business cards generally are more expensive. Complete pricing disclosures are included in your application, or consult Compass Merchant Services representative for pricing details.

What is a “discount rate”?
A discount rate is the cost of processing a transaction and is paid by you, the merchant. For example: On a $100 sale, if your discount rate is 2% plus $0.20 per transaction, you would pay $2.20 (100 x 0.02 + 20 cents) to process the transaction, leaving you a net of $97.80 on that sale.

How am I charged these fees?
You receive full credit at the time of sale. In the example above, you would receive a deposit to your account for $100. At month-end all processing charges (such as discount rate, per item charges, monthly fees) are added together and charged to your account around the third day of the following month.

If these transactions cost me money, why would I accept cards?
If you are inquiring about merchant services, it is likely that your customers are demanding it. Being able to accept payment in the method your customers prefer helps you increase the number of sales and increase the average dollar amount of individual sales. Successful merchants will tell you that they include the cost of processing in the cost of goods when calculating prices for their merchandise.

Can I charge an additional fee for people who want to pay with cards?
Visa® and MasterCard® prohibit this action and it would be a violation of your Merchant Agreement with Compass Fleet & Merchant Services. Additionally, studies have shown merchants who add a “surcharge” or “convenience fee” for processing have reduced their sales as cardholders take their business elsewhere.

Can I set a minimum charge to accept cards?
This is also prohibited by Visa® and MasterCard® and would be a violation of your Merchant Agreement.

Do I have to purchase a terminal or can I rent or lease one?

Compass sells and rents a variety of terminals depending on your needs. Most terminals sell between $295 and $395 and rent between $25 and $35 monthly.  Compass Merchant Services doesn't lease terminals and suggests you be wary of any merchant company or bank offering you a terminal lease.

I have an existing terminal, can I use it?
Yes, most terminals are compatible with our affiliated processors.  A Compass Merchant Services representative can help you determine if your terminal is compatible. Note: Hand held PIN Pads used by your customers to enter PIN (personal identification numbers) always require a swap because of the internal encoding in them. If you already own a compatible PIN Pad we will send you an encryted pin pad to swap at a small encrytion fee plus shipping.

Does a terminal require a dedicated phone line?
No, but a dedicated line is recommended for high transaction volume businesses. In some cases you may use an existing fax line. In addition, newer terminals communicate through the Internet and can utilize high-speed DSL or cable modem, thereby eliminating the need for a phone line.

If I purchase or rent a terminal, what warranty is included?
When purchasing a terminal from Compass, a 1-year manufacturer’s warranty is included and every effort will be made to replace the terminal or provide a loaner as quickly as possible if repairs are ever needed. When you rent a terminal from Compass and that terminal malfunctions, we will repair or replace it, usually within 1 business day, at no cost to you.

How do I get my equipment and how will I be trained to use it?
Once approved, if you purchase or rent equipment from Compass, we will ship your equipment and welcome kit to your business by overnight express mail. In anticipation of receiving your equipment, our welcome center will have contacted you and set an appointment to walk you through set-up and training over the phone. If you have your own equipment, our welcome center will contact you to schedule a download and training.

If I have problems with my terminal or account, who do I contact?
The Compass Fleet & Merchant Services help desk is available 24 hours a day, 7 days a week to assist you with any terminal, technical, or account questions. Additionally, the Merchant Services department can be reached during normal business hours at (877) 335-4272.

How do I process transactions if the power or phone lines are out?
Compass Fleet & Merchant Services provides a back-up phone number to call for authorizations. Once power or phones are restored, you can input the transactions and authorization codes into the terminal for settlement.

Do I get a statement of my merchant account activity?
Absolutely! You get a monthly statement mailed to you that includes activity summaries and a breakdown of any fees. In addition, Sterling provides online reporting to all merchants at no additional cost. The online reports provide detailed information from monthly and batch totals to individual transaction details.

How do I find out about detail on my account?
Compass provides convenient online access, around the clock phone support, and monthly statements to provide you with details and to assist with reconciling your merchant account.

Can I be assured that all data is secure?
Visa®and MasterCard® require very strict data security and Compass, along with our processor, comply above and beyond the minimum requirements to ensure your transactions are secured and you are not putting your cardholder at risk. Data security begins with the merchant and Sterling Merchant Services is available to assist you in making sure you are in compliance with all payment card industry requirements for cardholder-data security.

I want to begin accepting payments with credit cards. What kind of hardware do I need?
Many factors determine the kind of hardware you will need, including: type of merchant account you want to establish (e.g., ecommerce, retail or direct market), the type of industry you're in, how many transactions you have a day, type of transactions you'll be processing, how many locations your business has, etc. Once we have all of this information, we will be better able to advise you on the type of equipment you'll need to be able to process credit cards. To get started, simply contact us and we'll help you evaluate your options.

I already have a credit card terminal; can I just reprogram it to work with Compass Fleet?
In many cases, you may be able to use the equipment you already own. To find out, simply call us at (888) 269-4523 and we'll work together toward a solution.

What kind of training do you provide?
We provide various training for our customers. We provide initial telephone training and continuing education for our merchants. You'll also receive training guides and user manuals to help you become acquainted with Compass Fleet's products and services. In addition to initial training, we'll also provide you updates on industry-related rule and regulatory changes.

What are Compass Fleet's technical support hours?
Our technical support never closes. We're here and ready to help you whenever you call. We are open 24 hours a day, seven days a week, 365 days a year.

What is Compass Fleet's role in processing transactions?
Compass Fleet is a payment processor. We enable your business to authorize and transmit transactions by credit card, debit cards, fleet cards, private label cards, electronic gift cards and corporate cards, etc. We also settle the funds through the card Associations (e.g. MasterCard® and Visa®) and deposit funds to your checking account. In addition, we handle adjustments, chargeback processing, merchant billing and account activity reporting.

What is check verification? Do I need it?
Check verification is a service that provides merchants with varying degrees of insurance against bad check losses by verifying the authenticity of each check and/or its presenter. Checks are verified through a national database gathered from retailers who upload bad check information. While check verification service is not required, this service does help keep your business losses to a minimum.

What are interchange fees?
Interchange fees are transaction-related costs that Compass Fleet pays to the issuer of the card as compensation. These fees are established by MasterCard and Visa and are based upon how a transaction takes place and in what type of industry.

As a merchant, what types of credit cards can I accept?
Compass Fleet allows your terminal to support MasterCard, Visa, American Express, Discover, Diners Club/Carte Blanche and JCB cards. Although we can support all credit card types, we only have the ability to process settlement (payment to you) for MasterCard, Visa, DC/CB and JCB. When processing occurs, each transaction must be authorized, the data must be captured and settlement/payment made back to the merchant.

What is the difference between online debit and offline debit?
The difference between these two debit choices is whether a PIN (personal identification number) is used at the point of sale. When a PIN is used the transaction becomes "online" and funds are immediately withdrawn from the cardholder's available funds. When an offline debit transaction occurs, funds are not withdrawn until the transaction processes - usually 2-4 days after the sale. Debit card transactions are the fastest growing point-of-sale payment method today. The acceptance of this payment method continues to remain popular because customers and merchants both appreciate the convenience and ease of using debit cards to purchase merchandise and services.

What are commercial cards?
Commercial cards - corporate, business, purchasing - are issued to businesses as an alternative way of financing expenses such as supplies, T&E, etc. (often replacing purchase orders). These cards also provide users with specific reporting advantages. By using a commercial card, cardholders get itemized records of all their purchases, which simplifies reimbursement procedures and helps track expenses. This specialized reporting is possible because specific data is captured at the point of sale. MasterCard and Visa each provide issuers with the ability to issue commercial card products.

What is a private label card?
A private label card is a credit card issued under the name of a particular merchant organization. Merchants offer it as an incentive for cardholders to spend money at their businesses. Cardholders receive benefits (special discounts, deferred payment schedules, frequency points, etc.) for using the private label card instead of Visa, MasterCard or American Express. Private label cards carry the insignia of the merchant issuing the card.

What is a stored value program?
A stored value program allows you to offer your customers a proprietary card pre-loaded with value for future purchases. Although there are many different applications for stored value cards (Gift Card, Merchandise Return, Pre-pay), they all share some common components:

• Magnetic Stripe Cards - The merchant gives a consumer an electronic stored value card in exchange for some kind of pre-payment. Typically, the card includes a magnetic stripe, the merchant's name or logo and an account number.
• Transaction Processing - The merchant can process stored value transactions from the point of sale. These transactions are delivered to Compass's authorization system for processing in real-time, which is where account balances are maintained for all cards.
• Merchant Reporting - You will receive reporting that provides information about the transactions processed during a period of time and the outstanding balances of your customers.

What is Electronic Benefits Transfer (EBT)?
EBT is the automation of cash or cash-like benefits through electronic authorization, data capture and settlement processes. This is accomplished with the use of plastic magnetic-striped cards at the point-of-sale terminal. The end result is the elimination of coupon benefits distribution. The electronic process results in increased security, thereby reducing fraud and benefit misuse.

The US Government has mandated that all federal financial support services and entitlements be distributed through direct electronic deposit by the year 2002.

What is Electronic Check Processing (ECP)?
ECP is a transaction via ACH (Automated Clearing House) or facsimile draft sent by a merchant to directly debit or credit a customer's checking or savings account. ECP processing is often used for recurring payments, such as monthly membership fees and are available in the United States and Canada.

Compass Fleet & Merchant Services is a registered ISO/MSP of Chase Paymentech, Bank of America and Wells Fargo Bank, N.A., Walnut Creek, CA.