Powered by Blogger.

High Risk Credit Card Processing: An Overview

01:08 |


High risk credit card processing is for businesses involving a visible element of risk, due to which they do not qualify for standard merchant accounts offered by banks and third-party processors. However, in many cases, denial of an application is also due to poor credit rating or unpredictability in the functioning of the business. There are many businesses that suffer a lot due to this phenomenon and have no other choice but to opt for obscenely higher interest rates charged by some credit-card processors.
Factors that Deem a Business to be High Risk
  • Poor credit rating
  • Potential fraudulent charges
  • Uncertainty over long-term sustainability of business
  • Minimal capital investment and investment structure of business (For example: Small scale business and home-run operations)
  • Vulnerability to uncontrollable factors (For example: Any business located in an area prone to natural calamities).
Some other examples of high-risk businesses include gambling business, adult entertainment industry, seasonal businesses, dating services, etc.

The Drawbacks of Being Categorized a ‘High Risk’ Business

Rate structures applicable to high risk businesses invariably try to fleece out a higher premium that can be leveraged to offset the probable loss by transactions conducted by that particular business. What it boils down to is the fact that regardless of the type of merchant account approved for a high risk business, the discount rate and subsequent cost per transaction will be higher. In addition, the rates may be determined by the volume of transactions, rather than a predefined percentage.

The Way Out of the Situation

There is no point to keep giving independent processors exorbitantly high rates, nor is it advisable to completely eliminate the aspect of credit transactions. Another option is that high risk businesses can opt for an overseas entity to underwrite their transactions; however, this can be a risky option, more so if proper regulations are not followed. This procedure should be opted for only after extreme caution has been taken and the trustworthiness of the underwriting company has been established.

Fortunately, there are some high risk credit card processing companies that do not refuse any business on these dated terms as they have a proper structure in place to identify the risk/return ratio. Possessing in-depth knowledge about the way around the traps and crevasses of the credit world, these companies do not charge any extra fee or interest.

  • Digg
  • Del.icio.us
  • StumbleUpon
  • Reddit
  • RSS
Read User's Comments(0)
Posted by Unknown
Location: Florida, USA

Ecommerce: The New Way of Life

05:30 |



Ecommerce has become the new way of life, with more businesses incorporating it to boost exposure and sales. The evolution of online payment processing has been instrumental in this paradigm shift, as it has made it possible for businesses to accept payments over the web.
Benefits of Ecommerce

Leveraging ecommerce enables retailers to:
  • Broadcast their solutions and business to global audience
  • Gain new customers without investing a fortune on promotions
  • Lower operating costs, which can be passed on to customers in the form of discounts
  • Provide their customers with the option of comparison shopping
  • Provide ample product information to prospective customers
  • Instantly process customer transactions
  • Take orders round-the-clock

How to Accept Payments on an Ecommerce Website

Merchants need to have an ecommerce merchant account and a payment gateway in order to process credit card payments through their online stores. Therefore, if you own a retail business, then a reliable online payment solution is a prerequisite for optimizing sales.

Ecommerce merchant account

Ecommerce merchant account is a commercial bank account that allows you to accept credit card payments. It involves a transaction fee, which is a certain percentage of transaction value. This percentage may vary depending upon the volume of purchase. Higher volume accounts have a lower transaction fee percentage.



Payment gateway

A payment gateway allows your online store to connect to your ecommerce merchant account. It is a virtual terminal, in contrast to a card-swipe terminal. Some service providers charge a small amount of transaction fee and a monthly fee for this service.

In addition to the ones mentioned above, a shopping cart software solution for your website is also an important requirement for the success of your online retail business.

Conclusion

To conclude, it is worth mentioning that setting up a website to showcase your products is merely the beginning. In order to take your business to the next level of success, you need an ecommerce merchant account coupled with a reliable payment gateway.


  • Digg
  • Del.icio.us
  • StumbleUpon
  • Reddit
  • RSS
Read User's Comments(0)
Posted by Unknown

The Basics of Credit Card Merchant Account Services

05:24 |


A large number of businesses invest in credit card merchant account services in order to ensure seamless payment processing. However, for those who are new in business, obtaining the basic understanding of merchant account services becomes a requisite.



Credit Card Merchant Account Services: An Overview

Merchant account services promise an all-in-one solution for processing day-to-day business transactions. A merchant service provider is typically a bank or other financial institution that provides businesses the necessary tools such as special bank accounts (merchant accounts) and credit card terminal they need to start accepting payments via credit and debit cards.

Merchant Account Services: The Workflow

The merchant account services act as a mediator between the business and the credit card issuing bank. Merchant account services process payments in a secure manner and confirms that the money is properly withdrawn from the card holder’s account and gets transferred into the credit card merchant account. Once all the processing protocols are clear, the money can then be transferred from a merchant account to the business’s regular account.



Services to look for

If you are planning to hire a merchant services provider to processes card payments for your business, there are several factors you must consider. These include:
  • Time taken for payment approvals
  • Set-up and monthly charges
  • Customer-service options
  • The equipment offered

In addition to the above, it is advisable to rope in a merchant services provider that offers a virtual terminal and payment gateway as well, as both of these are essential for accepting online payments. Ultimately, you need to be careful when making the choice. Make sure you go with a provider that offers efficient payment processing solutions at reasonable prices and has a credible reputation in the industry. Although, pricing plays a vital role in the selection, make sure that it is not the only one. The provider should also have in-depth experience in the domain and adhere to the PCI data security standard.

  • Digg
  • Del.icio.us
  • StumbleUpon
  • Reddit
  • RSS
Read User's Comments(1)
Posted by Unknown

Types of Online Merchant Accounts

05:13 |


Customer buying behavior is changing with more people turning to the web for all types of needs, making it essential for direct sales businesses to setup online merchant accounts, and this is where payment processing service providers come into the landscape. Leading players in the segment provide all-in-one online payment solutions that streamline all aspects of online payment processing. This write-up gives you a detailed account of various types of merchant accounts.

Online Merchant Accounts: Prerequisite for Retail Businesses

Online merchants can open a merchant bank account either with their existing bank or a third-party merchant account services provider. Having a merchant account allows merchants to accept credit cards online. Once a funds transfer gets approved by the card issuing bank, the merchant services provider transfers the money to the merchant’s bank account, after deducting a small processing fee.

Merchant Accounts: The Types

Retail Merchant Account: This type of merchant account is chosen by businesses with a physical point of sale. Such an account enables merchants to accept payments via credit and debit cards by physically swiping them through a credit card terminal.

Online merchant Account: As the name suggests, this type of merchant account is used by online merchants. It allows online sellers to accept credit or debit cards and process the information from their ecommerce website.

Mail/Telephone Order Merchant Account: There are some businesses that take payments via telephone or direct mail. A mail or telephone order merchant account is well suited for such type of businesses.

Apart from credit card processing services and merchant accounts, payment processing service providers also offer various other business tools, including equipment to accept card payments.

Precautionary Measures

When opening a merchant account with a third-party provider, it is imperative to ensure that the company you select is able to offer a suitable merchant account as per the nature of you business. Moreover, the merchant service providers should strictly follow the Payment Card Industry Data Security Standards (PCI DSS); describing the rules and regulations stipulating how credit card information should be handled, used and stored.

  • Digg
  • Del.icio.us
  • StumbleUpon
  • Reddit
  • RSS
Read User's Comments(2)
Posted by Unknown

Online Credit Card Payment Processing: An Overview

02:25 |

Online payment processing, a fundamental requirement of ecommerce websites, involves processing credit and debit card payments through a web-based online payment solution, which can be either a merchant account/ payment gateway combo or an all-in-one online payment solution. However, in order to find the credit card processor, it is not compulsory to have intimate knowledge of the inner-workings of the bankcard system. However, you do need to possess a basic understanding of how credit card transactions work and the fees associated. By having cognizance of the payment processing framework, you will be able to identify the areas of possible savings.

How it Works

Technology has done a marvelous job by revolutionizing the banking system, and facilitating bankcard networks to ferry billions of transactions. In credit card payment processing, all information relevant to a transaction is passed by a card terminal or software to a processor, and thereafter, through to the card issuing bank for approval. Subsequently, the issuing bank sends an authorization through the card network to your processor before the approval is sent to your terminal.

Advantages of Credit Card processing:

  • Fast Payments
  • Secure
  • Convenient
  • Cost-effective

Key Players
  • Customer/ Cardholder
  • Merchant
  • Merchant Bank (Acquiring Bank)
  • Issuing Bank (Cardholder Bank)
  • Card Associations (MasterCard/Visa Card)

Credit Card Processing: Framework
  • Merchant receives payment information from the customer
  • Authorization request is the sent to the card issuing bank
  • Approval is received from the cardholder bank (Issuing bank)
  • Transfer of funds is initiated from the consumer’s credit card account to the merchant’s account
  • Whole day transaction is sent to the Merchant Processing Bank and from there to corresponding card issuing bank for payment
  • Approximately after 1-2 days, funds are transferred to the merchant’s account 

As per the above framework, obtaining an authorization for a transaction is just the first step. As in whole, a credit card transaction is a 2-stage process consisting of authorization and settlement. It is imperative to understand these processes as different fees are incurred at each stage, and a minor glitch or partial failure can result in increased costs as credit card sales may not be deposited. 

  • Digg
  • Del.icio.us
  • StumbleUpon
  • Reddit
  • RSS
Read User's Comments(4)
Posted by Unknown

E-Commerce Merchant Account: A Prerequisite for Z-Gen Businesses!

06:10 |

Already have a merchant account? You still need online processing capability!


Merchant Account vs. eCommerce Merchant Account

A merchant account is a bank account that allows companies to process credit and debit card payments. The merchant is a direct account-holder entirely accountable for all transactions. Business owners require either a merchant account of their own or a third-party payment processor.


An ecommerce merchant account enables businesses to process card payments over the web. Hence, any business that requires online credit card processing capability needs an ecommerce merchant account coupled with a secured payment gateway.

Charges of an eCommerce Merchant Account

A percentage of each purchase is charged as a transaction fee which is indirectly proportional to account volume i.e. a low transaction fee percentage is levied on high volume accounts.

Advantages of eCommerce Processing
  • Enables merchants to bring their business online
  • Quick, easy, and safe electronic payments
  • Increased online sales and cash flow
  • Flexible payment options
  • Faster checkouts
  • Low-rate internet transactions
  • Improved customer service
  • Increased customer retention
  • Immediate and easy account verification

E-Commerce: A Development Factor for Every Business

Merchants today are profitably availing ecommerce credit card processing services to take their businesses to the next level. You, as a business owner, have the option to integrate your ecommerce merchant account with major shopping sites, which not only enhances your sales figures, but also enables you to streamline transaction information and ensure precise reporting.

A fundamental requirement pertaining payment processing is to protect your business and customers from all kinds of online payment risks. Hence, it is extremely important to ensure that the merchant account you procure uses a secured payment gateway.

The Conclusion ecommerce merchant account has become a necessity for all direct sales businesses that aim to ride the wave of the virtual revolution. Investing in it will definitely deliver a great ROI for your business, as long your have promising offerings for target customers.

  • Digg
  • Del.icio.us
  • StumbleUpon
  • Reddit
  • RSS
Read User's Comments(1)
Posted by Unknown

What is eCommerce Shopping Cart?

05:51 |

If you are planning to start an online business, besides an appealing website design, inventory management controls, order tracking capability and the right set of marketing tools, you also need an eCommerce shopping cart to get up and running. A shopping cart software solution gives you a centralized platform to process the order placed on your website.Basic Features

A shopping cart, also known as a shopping basket, is similar to a physical shopping cart. It allows online shoppers to select and accumulate a list of items for purchase. The key advantage of having an ecommerce shopping cart is that it allows you to accept credit cards online. In fact, you can also accept customer payments via internet banking. Moreover, it helps you escape from the limitations of traditional store builder software.

The Benefits
  • Comprehensive inventory control
  • Customer management tools
  • Tax and shipping calculations
  • Simple order management 
 Additionally, most shipping cart applications help you market your site with integrated features for affiliate programs, social network marketing and sales through other venues, as well as online sales features that attract and retain customers.

Current Scenario Shopping cart is undoubtedly the backbone of ecommerce. It has evolved beyond the basic online store. There are numerous shopping cart applications available, where you have extensive choices related to software solutions, both free and paid. Various free web shopping carts make your job easy by just adding “Buy Now” buttons to your existing product pages and start taking orders straight away. When a customer clicks on this button, they are taken to their ecommerce shopping cart Here, they can choose to edit their order, continue shopping or move on to the payment section.

One of the best features of shopping cart software is that most applications are customizable. You can choose the add-ons or functions that you want to implement on your site, and pay only for those. Given its versatile functionality, it would be safe to say that a shopping carts software solution is a necessity in order to start selling online.

  • Digg
  • Del.icio.us
  • StumbleUpon
  • Reddit
  • RSS
Read User's Comments(0)
Posted by Unknown
Subscribe to: Posts (Atom)