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Get to Know if you Need a High Risk Merchant Account
While in the process of establishing your business, if you do decide to accept payments online, you will often be left with the dilemma of the merchant account.
Depending upon the business type or the clientele you may cater to, the type of merchant account has to be decided. It is important you do thorough research so as to ensure you choose the right option for the kind of business you want to take forward.
The requirement of a high risk merchant account is predicted on a number of factors. Of these, the following are the most important to be considered:
What Is Your Business Type – Certain types of businesses have been by definition declared as high risk merchant accounts. These businesses are usually the kind that are either in proximity to negative social reviews, or basically serve a sector that is altogether grey in the understanding (home based, adult etc).
The Chargeback Scenario – if your business is likely to be hit with a high number of chargebacks, a high risk merchant account is just the thing for you.
The Local Scenario – If local providers are hesitant in doing business with you, it is the right time to look for a high risk merchant account provider, because clearly, a normal account is out of your reach.
Currencies and Market – If multiple currencies is what you want to trade in, and are looking to therefore explore the international market, a high risk merchant account it just the thing.
Ways to Reduce Chargeback Risks Arising Out Of Unauthorized Transactions
No matter how good the high risk credit card processor, there will be chargebacks at one point or the other. This is the bitter truth in not just high risk but low risk industry niches too. High chargebacks can cause monumental losses to any business and also spoil the credit history of a high risk merchant. But reducing them is not an impossible task; it can be achieved by being smart and in control. Let’s read some more about how to reduce chargeback risks.
1. Respond Swiftly To All Transaction Copies Request
In a retrieval request, the merchant is asked to provide a copy of the transaction to the credit card issuer. As a rule, all retrieval requests should be responded to at the earliest or else the merchant looks not interested to settle the matter.
2. Be Aware Of the Procedure for a ‘Deadline Code’
Most merchants make the mistake of reducing the amount of transaction when they get a decline code. They should be aware that once a decline code is flashed, they should not try to make any more transactions with that card. He should ask the customer to give another card.
3. If the Card Looks Suspicious
If the merchant has even the slightest doubt about the card being illegal he should call his voice authorization center right away. They will generate a code 10 and block the card right way after answering a few standard questions.
Do not keep waiting until the time you become a victim. Take a decision today and prepare your staff to deal with unauthorized transactions.
Offshore Credit Card Merchant Accounts – Things You Should Know
There are plenty of questions and doubts that come to mind, when as part of a business you are tasked with decision to choose a merchant account. There is enough information available elsewhere to leave you confused and searching for the simpler realities. Here are a few things you should know about offshore merchant accounts.
About safety
Offshore merchant accounts are safe for both the merchant and the customer. Merchants entitled to benefits of such accounts provide fraud detection tools along with card processing programs. Such tools ensure the transactions are carried out safely. Furthermore a high risk merchant conducts enough research beforehand to ensure there is stability and an element of reliability for transactions in the future.
Who can open an account?
High risk businesses that encompasses the likes of small startups, high volume merchants, international e commerce vendors etc can open merchant offshore accounts by simply filling their online application forms.
Rates/Offices
The merchant need not have an office presence in offshore, to integrate an offshore account. As for the rates they depend on the associated risk and the type of business. Most offshore account providers will provide a rate chart once the online form has been submitted.
Cases of Poor credit history
If you have a poor credit history it doesn’t matter. Offshore account providers usually approve such exceptional requests with an approval rate of 95-100%.
Currencies and Cards
Most offshore accounts process all major currencies. GBP, EURO and USD are readily accepted. As for cards, all credit and debit cards are accepted.
Before Choosing a Merchant Account Provider: The Checklist
It may sound complicated, but selecting a merchant account provider for your business is not an uphill task. A business owner needs to have clarity when it comes to his needs, exact paying capacity and most importantly, business model.
Here’s a checklist that you should go through before finalizing a low or high risk merchant account service provider:
- The merchant needs to ask if he will get the flexibility to process credit card transactions off and on-line via the Internet.
- He needs to understand the procedure in detail and also have clarity on the fees involved at every step.
- The merchant needs to know about the credit cards that he can accept and the ones that should be avoid. He should also know the procedure for accepting club cards, online checks and currencies.
- The merchant account provider should support him at every step of the way in setting up the account.
- The fee break up should be explained clearly to the merchant (Yearly fees, charges for monthly statement and chargeback ratios).
- Will the fees be constant or change with time, is an absolutely necessary question to be asked.
- The hidden charges clause should be thoroughly inspected in order to avoid any surprises later on.
- The merchant should know the term of the contract and also about any fees that might be charged in case he needs to terminate it. Always agree to a contract that suits you and not the provider.
- The gateway should be compatible with all latest software and shopping carts. There is no point in installing an older version.
- The merchant must ask for a list of the companies that are compatible and since when.
6 Smart Tips on Choosing the Best Merchant Account
How easily, safely and cheaply you can process payments (whether at a local store or on the Internet) will determine your profit margin as well as the probability of success. So, make sure you do not haste when you are out looking for a high risk merchant accounts.
Consider the following pointers.
What Is The Procedure For Processing Credit Card Transactions?
The merchant should know the whole process of a credit card transaction, step by step.
The system should provide him portability; hence he might also consider investing in a wireless merchant account if the need be.
Seasonal Businesses Should Ask For a Seasonal Rate
Fair and square! Businesses that remain dormant for certain periods of the year, should try to negotiate a monthly fee structure or a minimum fee structure for the dormant months.
But such special favors are available at an extra cost. There are some additional transaction fees involved.
Have Complete Clarity on the Ticket Size of Each Transaction
Businesses with high volumes should negotiate a low-ticket rate even if the transaction fee is relatively on a higher side. Businesses with small volumes can demand a low transaction fee and higher discount on the rate.
Processing Volumes Allowed Per Month
The merchant needs to know as to how many transactions are allowed per month (without inviting a penalty). The transaction fee is directly proportional to the volume of business.
Businesses That Might Require Multiple Merchant Accounts
Businesses that process credit card transactions in different ways should opt for independent merchant accounts. Certain providers might provide a lower fee for one or an add-on account for free.
Do You Really Need a Merchant Account for Credit Card Transactions?
Before thinking of applying for a low or high risk merchant account, the business owner needs to ensure that he really needs a merchant account. Only when sales are expected through credit cards, should this additional cost be considered.
High risk merchant account 