When setting up a merchant credit card processing account most of us are not thinking about chargebacks or even know what a chargeback is. However, they can be a big factor and have the potential to eat up our profits.

There is an excellent article on the issue at Work.com. In it, that author writes:

When chargebacks get a chokehold on their business, typically my clients:

· Are surprised by their predicament.
· Need a rapid solution to avoid losing their merchant account and blacklisting by Visa and MasterCard.
· Are afraid to ask their current processor for help because they believe it will hasten closure of their merchant account.

Read the full article at Guide to Getting the Most Out of Your Merchant Processor.

Digitaltransactions.net writes that a startup, Metafos Inc., which formed only 18 months ago, is talking to banks and online retailers about a product it is working on that will allow consumers to pay Internet merchants through their online-banking programs—a concept also being pursued by NACHA, the rules-setting body for the automated clearing house network.

As with NACHA’s system, the Metafos product will depend on banks to authenticate their customers through online-banking logins. In both systems, the customer selects the payment method at the merchant’s checkout page, then uses her online banking program to authorize payment out of her checking account. In both systems, funds are guaranteed to the merchant and settled through the ACH.