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What Can I do to Lower my credit card processing rates
What Can I do to Lower my credit card processing rates
Before you can begin to understand processing fees, you need to know about the parties involved with them. Consider these the financial “middlemen” between a customer and merchant. They include:
Before you can begin to understand processing fees, you need to know about the parties involved with them. Consider these the financial “middlemen” between a customer and merchant. They include:
Credit Card Associations: These are obviously the companies that create the credit cards, like Visa, MasterCard, and American Express. These are the guys that set the rules.
Credit Card Associations: These are obviously the companies that create the credit cards, like Visa, MasterCard, and American Express. These are the guys that set the rules.
Credit Card Issuing Banks: These are the financial institutions that issue the credit cards, like Chase, Citi, and Wells Fargo. Some card associations take on the role of a bank as well, developing and issuing their own cards. Examples include Discover and American Express.
Credit Card Issuing Banks: These are the financial institutions that issue the credit cards, like Chase, Citi, and Wells Fargo. Some card associations take on the role of a bank as well, developing and issuing their own cards. Examples include Discover and American Express.
Credit Card Processors: Also known as Acquiring Banks aka Acquirers, these institutions act as messengers between merchants and credit card associations. They pass batch information and authorization requests along so that merchants can complete transactions in their businesses. A merchant may encounter several acquirers for one transaction – one that creates monthly statements, one that handles technical support, and one that issues money to a bank account.
Credit Card Processors: Also known as Acquiring Banks aka Acquirers, these institutions act as messengers between merchants and credit card associations. They pass batch information and authorization requests along so that merchants can complete transactions in their businesses. A merchant may encounter several acquirers for one transaction – one that creates monthly statements, one that handles technical support, and one that issues money to a bank account.
Merchant Account Providers: These are companies that manage credit card processing (e.g. sales, support, etc…), usually through the help of an acquirer. They could be financial institutions, independent sales organizations, or double-duty acquirers, depending on the situation.
Merchant Account Providers: These are companies that manage credit card processing (e.g. sales, support, etc…), usually through the help of an acquirer. They could be financial institutions, independent sales organizations, or double-duty acquirers, depending on the situation.
Payment Gateways: These are special portals that route transactions to an acquirer, usually in the case of an online shopping cart.
Payment Gateways: These are special portals that route transactions to an acquirer, usually in the case of an online shopping cart.
Credit card processing fees are extensive, complicated, and somewhat overwhelming. Nevertheless, you have to pay them if you want to process credit cards through your business.
Credit card processing fees are extensive, complicated, and somewhat overwhelming. Nevertheless, you have to pay them if you want to process credit cards through your business.
Rather than paying these charges blindly, you might as well make an effort to understand them. That way, you can dispute any costs you think are unfair or get a better understanding of what your true overhead is. Hopefully, this guide will help you do just that.
Rather than paying these charges blindly, you might as well make an effort to understand them. That way, you can dispute any costs you think are unfair or get a better understanding of what your true overhead is. Hopefully, this guide will help you do just that.
In the processing world, some business types and industries are considered “risky.” Are you one of them? Have you already been turned down by a few credit card processors? Did they tell you that you’re deemed a “high-risk merchant?” Well, all is not lost.
In the processing world, some business types and industries are considered “risky.” Are you one of them? Have you already been turned down by a few credit card processors? Did they tell you that you’re deemed a “high-risk merchant?” Well, all is not lost.
Luckily there are plenty of high risk merchant account providers that specialize in exactly what you need.
Luckily there are plenty of high risk merchant account providers that specialize in exactly what you need.
About High Risk Credit Card Processing
About High Risk Credit Card Processing
The first thing that you need to understand is that while one provider might consider you high risk…another may not. It all depends on their risk department (underwriting) guidelines. If the guidelines are strict, then you won’t get approved. If the guidelines are relaxed, then you’ll have yourself a merchant account. It’s that simple.
The first thing that you need to understand is that while one provider might consider you high risk…another may not. It all depends on their risk department (underwriting) guidelines. If the guidelines are strict, then you won’t get approved. If the guidelines are relaxed, then you’ll have yourself a merchant account. It’s that simple.
Furthermore, if the provider you apply to specializes in high risk merchant services, then you’ve already won the battle. Congratulations, they’ll probably approve you. BUT, keep in mind that there are some providers that don’t specialize in high risk, but still have relaxed guidelines.
Furthermore, if the provider you apply to specializes in high risk merchant services, then you’ve already won the battle. Congratulations, they’ll probably approve you. BUT, keep in mind that there are some providers that don’t specialize in high risk, but still have relaxed guidelines.
Don’t skimp on reviewing the details of your contract. For every 1 ethical and reliable high risk processor, there are about 325 unethical ones that are just waiting to take advantage of you. And, since you are in fact stuck between that rock and that hard place, your judgement might be a bit cloudy. Make sure you read your contract.
Don’t skimp on reviewing the details of your contract. For every 1 ethical and reliable high risk processor, there are about 325 unethical ones that are just waiting to take advantage of you. And, since you are in fact stuck between that rock and that hard place, your judgement might be a bit cloudy. Make sure you read your contract.
Make sure you check for termination fees and other incidentals as well. Do they want you to give them a rolling reserve? If so, how much and for how long? Most high risk processors want some sort of reserve so they can cover their own behind should you close up shop, get a crazy amount of chargebacks or commit some sort of fraud. Keep that in mind.
Make sure you check for termination fees and other incidentals as well. Do they want you to give them a rolling reserve? If so, how much and for how long? Most high risk processors want some sort of reserve so they can cover their own behind should you close up shop, get a crazy amount of chargebacks or commit some sort of fraud. Keep that in mind.
There are a number of reasons why a provider would consider your business as high risk. Maybe your industry is known for having a high instance of chargebacks or fraud.
There are a number of reasons why a provider would consider your business as high risk. Maybe your industry is known for having a high instance of chargebacks or fraud.
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