This is an update to the article in our newsletter that was sent out a few weeks ago.

There was some confusion, so we went back to our merchant bank and asked for further clarification.

The regulations require online stores to perform a 2 stage credit card transaction, first an Authorization then a Delayed Capture (which charges the credit card). The Delayed Capture is performed when you "Ship" an order in your QBaroo store.

Authorization Expiration - The authorization will be downgraded by the bank (thus higher % fees) if the card is not charged (shipped) within 24 hours. Furthermore, the authorization can expire anywhere from 7 days to 30 days. The issuing bank reserves the right to reject teh transaction after 7 days. This will result in an expired Authorization and an Error 3 in QBaroo. This can also result in a $25 chargeback fee to you on each order, if you are using your own online merchant account. If you are a percentage customer, you will not see any rise in fees, as QBaroo absorbs those fees for you.

Charges over Authorized Amount - Since December 2007, we have seen a rise in errors on orders that are being charged an amount greater than the Authorized amount. If the charge goes through, the transaction will be downgraded and you will be charged a higher % on the transaction if you are using your own online merchant account. If you are a percentage customer, you will not see any rise in fees, as QBaroo absorbs those fees for you.

We hope this clarifies the VISA regulations a bit better. As always, feel free to contact us with any questions. We have a 4 Mb PDF file that spells this all out that we would be happy to send to you.