Processing cards not present payments optimally ensures the processor and merchants get the lowest fees, and most secure transactions. When a payment is not processed optimally the transaction can be ‘downgraded’ by the card networks, resulting in a higher interchange fee for processors and merchants.
Stale authorizations
A stale authorization is one that has surpassed the allowable time between authorization and settlement. Authorizations must be settled in order for a business to receive money from a transaction. Interchange category qualifications dictate how much time is allowed to pass between authorization and settlement. If too much time passes, the transaction is said to be stale, and it will downgrade.Many interchange categories require an authorization to be settled within 24 hours, so ensure your batch of authorizations is being settled at least once every day to avoid downgrades due to stale authorizations..
Failing to use AVS
AVS stands for address verification system, which is a fraud deterrent tool that tells businesses whether the address provided by a cardholder matches the address on file at the cardholder’s issuing bank. Address information (the customer’s five-digit zip code) is required for card-not-present transactions to qualify to target interchange categories. If a customer’s zip code is not provided, the transaction will downgrade.To avoid downgrades related to AVS, be sure to provide a customer’s billing zip code with each transaction.