Online Merchant Accounts : 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 Online Merchant Accounts 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 Online Merchant Accounts, of course, has no control over what card a consumer uses.
A High Risk Merchant account is a special account provided by banks to online businesses that have a high credit rate or a business that has a high turnover, large volumes of sales along with enhanced risk of fraud.
There is a horde of online services that ensure acquiring a high risk merchant account for the high risk businesses. Today there are a number of offshore merchant account providers providing such businesses with fully tailored merchant account services. These websites offer both high risk and low risk merchant accounts and credit card processing services for all kinds of businesses globally. Such services hold tie- ups with banks around the world to provide the best merchant account for high risk and low risk businesses anywhere. We also have an international gateway.
The charges/ rates applicable for are high risk merchant account are relatively higher compared to a standard merchant account. However, the offshore merchant account providers can assure that the setup fee is charged for the high risk merchant account whereas fees for the other type of accounts are very small, sometimes with no setup fee at all. They also assure speedy delivery of funds.
Online Merchant Accounts : Reviews and What to look for in a Merchant Account ?
High Risk Account is referred as a legal contract between a financial institute and a bank. This contract guarantees that the bank will accept all payments or services by that particular business company. Merchant banks make sure that the account company receives payment for its services or products. This account holds immense significance for you, if you want to run a successful online E-commerce business. Currently, there are two different two kinds of accounts. 1st is an average account that allows account holder to directly access his credit cards as a legal customer. In this account there is minimum risk of any legal formality as the account holder is a legitimate customer. However, things get little complicated in the 2nd kind of merchant account. This type requires lots of investigation before legally processing of credit cards.
These reasons significantly decrease the number of banks and other financial institutions processing merchant accounts. These badly affect the in setting payment processing accounts of any company. Generally, many applications are declined or banks impose high restrictions on the processing Merchant Account transactions. These restrictions make it almost impossible to carry out regular business.
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