How does the customer pay?

Your clients can choose between different means of payment. The process is the same as with other payments.

In case of one-time or periodic payments we have to comply with the law and legislation. Besides others, the periodic payments in Slovenia are regulated by Consumer Protection Act and Payment Services and Systems Law. Za stranke, registrirane v EU?

Your customer’s payment is executed based on your terms and conditions. Periodic payments or your client’s account debiting are automatically performed until canceled by either party.


What is KYC (Know Your Customer) and why is it needed?

Know your customer (KYC) is the process of a business verifying the identity of its clients. KYC processes are also employed of ensuring that proposed agents, consultants, or distributors are anti-bribery compliant and are important to prevent identity theft, financial fraud, money laundering and terrorist financing.

The PayWiser system demands that customers provide detailed anti-corruption due-diligence information, to verify their probity and integrity. This is done with fulfilled questionnaire and enclosed of a ID or passport and utility bill (bill for electricity, water, internet etc. and also insurance policy and bank statement) of the CEO and all 25 % or more shareholders (?). Utility bill document proves you live at the address, stated in your ID or passport.


System availability

The availability of our site is guaranteed within systems, which are directly influenced by PayWiser. All other subordinate or superior systems, which we do not have an authorization or control over, are excluded, as defined in terms and conditions (e.g. Internet connectivity, access to processing centers). In case of maintenance and other planned interventions our customers are informed in advance. Usually the maintenance is carried out when transaction frequency is minimal (between 00:00 and 04:00 PM).


Restoration in case of error

In case of error the time of restoration depends from type of error. We try to the best effort, thus focus all comprehensible attention towards eliminate errors while considering how the utilization of the system is disrupted.


What is the settlement?

Settlement is the transfer of payments collected on merchant’s account. Usually it is carried out once a month, depends on a need or request.


Unjustified complaints

Unjustified complaints are initiated by the merchant and while solving in, it turns out the responsibly or cause of complaint is merchant’s. Before complaint is given, the merchant has to consider the referring business process and at his own accord provide preliminary verification of eligibility in accordance with the good practice and available capabilities.

An example of unjustified complaint:

Based on your customer’s complaint about double charge of transaction you initiate the complaint. But in the review it is shown the request for transaction is not only one, as it should be, but two. This is a case of a reclamation which could be avoided if the reviewing process would be done in the guidelines of a good practice.


Recall of funds - difference between a chargeback and a refund?

Recall of founds is the amount for which transactions is repealed. For example: the purchase for 5 € with transaction cost 0,1 € is repealed; if it recalled with re-foundation than the additional expense is 0,45 €, but if the chargeback is requested, the additional expenses are 42 €.

refund is a payment operation initiated by the merchant, it refers to a specific card transaction and allows to return the whole or part of the transaction amount.

chargeback is initiated by the card holder’s appeal directly to the bank. It can (but does not have to) result in a return of funds. It’s the bank’s duty to determine whether such a request was reasonable.

 

You can try to avoid the chargebacks with:

  • use of 3D Secure (which is explicitly requested by some bank issuers)
  • exact “Terms and Conditions” and informing customers
    • it is necessary to have the proof of the service and maintain appropriate communication with customers in order to avoid the so-called “friendly fraud”.

Rolling reserve

A rolling reserve is a bank risk management strategy to protect itself from potential loss due to chargebacks. A portion of the credit card volume processed will be secured to cover for the potential business risk relating to chargebacks. Acquiring banks calculate the rolling reserve amount based on a certain percentage of each transaction (for example, between 5-15% on every transaction). Rolling reserves are kept on hold for a defined period of time (usually 180 days) and will be released at the end of this period.


In what time can be made the cancellation to refund after the complete transaction?

The transaction can be reversed within 30 days after the transaction. If chargeback claim has not yet been submitted, you can easily perform a refund and it only cost € 0.45.

If the chargeback is initiated this process has to be completed first (it is accepted or discarded). If discarded the refund is made, if it is applicable. Usually the customer should contact the merchant and make all arrangement, and only if this fails, initiate the chargeback.  But if customer does not have clear instructions usually chargeback is initiated. It is also important to detect the transactions that are not typical for the service.


What is friendly fraud?

Chargeback fraud, also known as friendly fraud, occurs when a consumer makes an online shopping purchase with their own credit card, and then requests a chargeback from the issuing bank after receiving the purchased goods or services.

This can be avoided by appropriate communication with customers, where customers are encouraged to first tell the merchant, if anything seems wrong.


How do you cope with abuses?

Issuing bank and Acquiring bank perform antifraud detection, thus stolen cards are blocked on transact network, since there is no list of “suspicious” cards. PayWiser system has restrictions (hourly, daily, monthly) of transactions, based on their frequencies and values. In any case the merchant has to take care for prevention of abuses. We highly recommend: Skimming Prevention: Best Practices for Merchants (https://www.pcisecuritystandards.org/documents/Skimming%20Prevention%20BP%20for%20Merchants%20Sept2014.pdf)


Unreasonable demands in Terms and conditions (e.g. The inspection of premises).

In case the merchant uses API access, it pledge the PCI DSS compliance which among other require also internal or external inspection. More in the guide to the PCI DSS standards. https://www.pcisecuritystandards.org/security_standards/


What if we exceed 1 million € turnover?

When you exceed 1 million € traffic the PCI DSS Level 3 is replaced to Level 2. As a trader you must complete the PCI DSS self-assessment questionnaire. You will find more specific in the manual for PCI DSS Compliance: http://www.applicure.com/solutions/pci-compliance.

 


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