Upon starting a relationship between a merchant and a merchant processing company, the parties sign a Merchant Process Agreement. A merchant processing agreement is a contract between a merchant and a payment processor that outlines the terms and conditions of accepting electronic payments. This agreement is necessary for merchants who want to accept credit card or debit card payments from their customers.
A merchant processing agreement defines the relationship between the merchant and the payment processor, including the responsibilities of each party, the fees involved, and the security measures in place to protect both the merchant and the customer’s sensitive information. The agreement also outlines the terms of dispute resolution and liability in the event of fraud or other disputes.
Some of the key elements of a merchant processing agreement include the types of payments that the merchant can accept, such as credit cards, debit cards, and ACH payments. The agreement also specifies the fees that the merchant will pay for processing payments, such as transaction fees, chargeback fees, and monthly account fees.
In addition, the merchant processing agreement includes important security measures to protect the merchant and their customers from fraud. This includes the use of secure socket layer (SSL) encryption to transmit customer data, as well as PCI DSS (Payment Card Industry Data Security Standard) compliance requirements to ensure that the merchant’s payment processing system is secure and meets industry standards.
It is important for merchants to thoroughly review their merchant processing agreement and to understand all of the terms and conditions before signing. A merchant processing agreement is a legally binding contract, so it is important for merchants to understand the obligations and responsibilities of each party and to be aware of any potential risks involved.
In conclusion, a merchant processing agreement is a crucial document for merchants who want to accept electronic payments from their customers. It outlines the terms and conditions of the relationship between the merchant and the payment processor, including the fees involved, security measures, and dispute resolution. Understanding this agreement and its terms is essential for merchants to ensure a secure and successful electronic payment processing system.
The experienced attorneys at Beress & Zalkind PLLC can assist merchants and merchant processing companies with all facets of the merchant processing relationship.
Reach out by calling 212 390 0325 or 718 513 3588 or by email at info@bzlawgroup.com.
Our attorneys are licensed in New York, New Jersey and Florida.
