Merchant Services : 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 Merchant Services 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 Merchant Services, of course, has no control over what card a consumer uses.
In today's high risk e-commerce industries, there are several credit card payment solutions available for dating, foreign exchange, gaming, replica, travel and web hosting merchants. Merchants should always consider partnering with a payment service provider (PSP) known for credible payouts, customer service and that can provide a technically sophisticated gateway. All these factors assist a merchant to process without interruptions, minimize fraud and more importantly, increase their revenue.
Merchants should work with a payment service provider who not only presents the gateway solution that facilitates credit card payments but a live merchant account. The merchant should know in which bank the merchant account is held and be given access to it. This ensures reliable and secure settlements. This also enables the (PSP) and merchant to forge a relationship based on trust. A reputable payment service provider will be accommodating in extending full disclosure to their merchant(s).
Dating merchants can benefit tremendously if their payment service provider provides rebilling while gaming merchants should always consider a payment service provider who offers affiliate management. Both these services are instrumental in increasing revenues. A merchant should always strive for long term processing and incorporate ant-fraud mechanisms to ensure their volume grows.
A merchant can be successful in partnering with a credible (PSP) and Acquiring bank to ensure all their needs are met.
Merchant Services : Reviews and What to look for in a Merchant Account ?
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.
1st National Processing may be able to assist you in obtaining a High Risk Merchant Account for your business.
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