PayConnect works with both Card Present and Card Not Present transactions. There are two types of transactions in the credit card payment world:
- Card Not Present - on-line transactions where the merchant is not presented with a physical card or a valid signature.
- Card Present - almost all of the transactions in the retail world are Card Present transactions. In this setting, the merchant gets to swipe the card through a magnetic stripe reader which reads the track data from the back of the card and sends it off to the bank for verification. The merchants are also required to verify the signature on the receipt against the one on the back of the card.
If the card is NOT present, as in the case of a MOTO (mail order, telephone order) or online transaction, and the card-holder asks for a charge-back on the grounds of fraud, the merchant doesn't get the money. If the case is an Internet order, then additional fees and limits apply — besides a MOTO case.On the other hand, in a Card Present transaction, if the merchant authorized the card and has a signature slip, the merchant keeps the money and the bank absorbs the cost (provided the merchant can dig up the receipt and present it to the bank when the charge-back dispute comes in). PayConnect offers a complete end-to-end solution for signature/receipt/check image capture and retrieval system that completely eliminates this problem.