If you carry a credit card with a merchant account, chances are the merchant will have a specific code on the back of the card that you can enter to make a purchase. This code is usually located on the back of your credit card, on the same line as the cardholder's name and address. You might find this code on an original credit card – in some cases the credit card company might have placed it there to help you identify your card at the time of billing. Others might have gotten it from security on the security code itself, or it may be a combination of both.
The merchant account holder will need to enter this code before the transaction can be processed. If they do not, the transaction will be declined. This is because without the code, the bank or company is not sure how to process the sale. They will either charge the price you are asking for your product or will simply tell you that the sale cannot be completed.
While the back of the credit card may say something else entirely, such as” Powered by Visa,” it's still important for the merchant account holder to enter the code. Without it, the bank will not know how to give you the money back or credit the sale to you. They will just report the sale as being a cash sale, which is what the company wants you to report to them.
The way merchants and banks to get around this is by putting a different code on each credit card. The first time you use the card, they put the standard merchant account code on the back of the card. Then when you insert more money into the machine, they put another code on the back of the card. It's similar to a jingle that you hear on TV. When you hear that annoying jingle at a store, you know it's time to go buy that item, or at least it's probably the next best thing.
Sometimes, the bank or merchant account provider puts a different code on the back of the credit cards than the one the customer puts on their application. This makes tracking inventory, taking orders and shipping merchandise much more difficult. Merchants are also concerned about this because it means that customers aren't getting their merchandise fast enough. In addition, the longer it takes for them to get the items, the more the price increases. If a customer has to wait 8 weeks for a product, then they aren't going to want to spend that extra money – even if it means the item is twice as much as it was when they purchased it.
You can usually see the information on the back of the credit card through an orange or yellow strip of plastic near the number. If it is colored, then you can be pretty sure that you are looking at the right code. If it is an ordinary black rectangle, then you may have some problems. Check your code and try to find out why it isn't working. There are lots of reasons why codes can come up out of nowhere.