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Reduce Your Transaction Integrity Fees

As I am working through statements from day to day, I started to notice that some restaurant locations were paying very steep discount charges. What I discovered was those same businesses were also being assessed a high number of TIFs (Transaction Integrity Fees).

 Just what does this fee mean and how does can it impact your business? Starting in April 2012, Visa introduced this new $.10 for each debit card that does not qualify for the CPS (Custom Payment Service) interchange rate. 

 You might be wondering how a debit transaction does not qualify? After all, you are simply swiping the customers credit card, right? Well there are several possibilities. 
  • Transactions are not settled (batched) within 2 days 
  • AVS (Address Verification) is not requested for key-entered sales 
  • Internet sales do not include order number of customer service number 
  • Hotels are not providing all the requested data 
Therefore, depending on your business practice, you could be assessed a TIF fee. Additionally, those sales will also downgrade to the EIRF or Standard interchange category, meaning you will be paying a higher percentage rate for those sales.   What can you do to reduce your merchant account fees. It’s simple. 
  • Make sure you batch out every day. All merchant account providers should be able to program a feature into your terminal that will auto batch each day after you close shop. 
  • Make sure to enter AVS information accurately for each card you manually enter 
  • If you run an online business, make sure to get the customer order or service number for each sale. 
  •  If you run a hotel, get everything required. 
By following these suggestions, you can qualify more sales for the best rates and more money in your pocket.

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