Credit Card Processing Excel Template

Credit Card Processing : Reviews and Expectations

The primary costs to a merchant of merchant accounts are discount rate and transactions fees. The merchant account provider has a lot of latitude in the pricing structure.

Three tier pricing of Credit Card Processing  is one of the most common pricing schemes. Using 3 tiers pricing, the merchant account provider groups the transactions into 3 groups (tiers) and assigns a rate to each tier. The three tiers are qualified, mid-qualified and non-qualified rates.

A qualified rate is the lowest tier. It is what a merchant is charged when processing a consumer credit card in a way that has been defined as standard by the merchant account provider. The qualified rates is what is usually quoted by merchant account salespeople. A mid-qualified rate is what the merchant is charged if processing a transaction outside of standard parameters. A mid-qualified rate may apply to rewards or corporate cards, which can comprise up to 40% of the cards used for purchases. The Credit Card Processing, of course, has no control over what card a consumer uses.

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A merchant account is a type of bank account that permits businesses to recognize payments by debit or credit cards. A merchant account also serves as an agreement between a dealer, a merchant bank and payment processor for the settlement of credit card and/or debit card transactions.

There are three main types of merchant accounts that you might be able to choose from.

Retail merchant accounts - This type of account generally have the lowest transaction fees, but often have preventive rules. With this type of account, this requires that a very high percentage of credit card sales must be performed with the card present and that the card must be swiped through a physical credit card terminal. Businesses such as restaurants, grocery stores, and small hotels are usually linked with retail accounts. This type of account would be best for merchants who are not planning on handling business through the mail or online at any point.

MOTO merchant accounts - Mail Order - Telephone Order accounts has a tendency of charging a higher transaction fee and are used when credit cards cannot be physically swiped. Merchants usually process the payments of the credit card by entering the information of the directly into a terminal installed on a computer, or through the use of a Web browser to process transactions on a web site of the payment service provider.

Internet accounts - Internet merchant accounts are parallel to MOTO accounts, but are only used for internet transactions. A virtual terminal or payment service gateway is used by merchants who have internet accounts to process credit card payments. These payment service gateways are included with a good number of business web hosting packages, and have custom-designed HTML forms.

If you are in UK, you might have limited choices as to the variety of accounts open to you. Normally this type of accounts for UK and other European companies have very high rates. That is why it is important to choose the right type of account and payment processor for the type of business you will be handling. Although there is a great deal of service providers available these days, but you should always read their terms of service very carefully, for most of them charge excessive fees and have stringent rules regarding transactions. Do not hesitate to ask questions, it is important that you understand their terms and policies. Shop around and research different companies of accounts service providers. Consult people you know and ask if they could recommend this type of account's service provider with good rates. Before signing anything or agreeing to anything make sure that you do understand everything there is to know about their terms and policies.

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Credit Card Processing : Reviews and What to look for in a Merchant Account ?

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A High Risk Merchant Account is typically required for certain business types, that are deemed "Undesirable" by the card associations. These businesses include a whole host of different business types, including the adult industry, travel industry, and many others that we will cover below. There are various reasons why these businesses are "Undesirable", but for the most part the "Risk Of Chargeback" seems to be the underlying factor, as majority of these High Risk Business Types have a history of getting a high percentage of chargebacks vs other business types.

Chargeback is when a customer gets a particular charge "Reversed", by complaining about the transaction with their credit card issuing bank. Several complaints can get any merchant account shut down, sometimes shut down forever.

In closing, accepting credit cards in certain business types can seem impossible at times, but if you partner with an industry specialist, your odds of success are greatly increased. Keep in mind that your success is not guaranteed, as certain factors, such as lack of credit, lack of financial strength, or previous terminations of merchant accounts, can stop you from getting approved.

Good Luck.

1st National Processing may be able to assist you in obtaining a High Risk Merchant Account for your business.

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Credit Card Processing : Best Reviews of 2018

Merchant account is a contract between a business and a bank or a financial institution. This contract ensures that the bank accepts payments for the products or services on behalf of the business. These Credit Card Processing acquiring banks ensures that a merchant or company can accept payment from international customers for the products or services they deliver. Thus merchant accounts form a vital part of any E-commerce business.

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There are two types of merchant accounts. First is the normal account, where the Credit Card Processing can directly access the card and ensure that it is a legitimate customer, thereby the risk involved is minimal. The second type of Credit Card Processing involves the accounts where it is not possible to visually testify the customer. These types of accounts include adult entertainment merchants, online tobacco merchants, replica merchants, online gambling merchants, pre-paid calling merchants, VOIP merchants, multilevel marketing merchants, or any transaction that takes place with the customer physically not present. Thereby, the possibility of fraud activity is much greater with this type of business which results in classifying these types of accounts as “high risk” ones. Naturally, these high risk merchant accounts present the risk of the dreaded charge backs for the banks in question. It has been proved by various researches that these high risk processing transactions are more susceptible to fraudulent transactions.

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Credit Card Processing : Things to Note and Avoid

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So you want to start a website that will charge the visitors for membership through their credit cards? Such a site can not run unless you have a high risk merchant account. Here are some questions frequently asked by people who want to start accepting credit payments online.

Q. What are high risk merchant accounts?

A. High risk merchant account is a type of merchant account that is more inclined to encounter fraud. This is due to the fact that people who have such accounts run businesses that do not have any physical representation under the jurisdiction of the law.

Most of the time, people who have high risk merchant accounts run their business online. And with the number of computer hackers lurking around the net, they are not safe from people who could get into their websites without having to pay. Due to this, account providers who accept such clients will charge you with high rates that could hinder the growth of your business. Examples of these accounts are adult websites, online casinos, and pharmaceutical merchants.

Q. How do I get paid?

A. Each transaction will first go through the providers. Here, they settle the payments you have received with the credit card companies they are associated with. The time it takes for you to receive your funds varies among providers, but generally this process takes around three days to a week.

Q. How long does it take for me to get an account?

A. Depending on the information you give to your providers, the result of your application may come in as fast as one day or in a month. If you do not wish to wait a long time to get your account, then be sure to provide complete and sufficient information in your application.

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TheGrandFoundation.com Specializes in Reviewing Merchant Accounts

Credit Card Processing Excel Template