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Looking for a Merchant Account can be a difficult subject especially for small businesses that are looking for the first time. Terms and jargon can often be confusing.
The recent boom in E-commerce has made it absolutely necessary for traders to be able to offer its customers a safe and secure way to purchase goods and services online, using debit their credit card .
Here are some factors you should consider when you are comparing prices, terms and offers.
1) How will the Customer Pay
What Merchant Account you are looking for – will customers be buying products on your website in Card not present scenario (this is commonly referred to as E – Commerce) the customer is not present when the transaction occurs. Another Card Not Present transaction scenario is where the business is taken over the phone and brought into Virtual Terminal. This is referred to as a MOTO transaction. Other companies may need to take e-checks or ACH processing.
Other merchants will also seek third party processing or other forms of payment, such as e-wallets. The most important point is to really consider what payment will suit your customers the most appropriate.
2) Processing Volume
Any financial forecasts have a direct impact on prices and terms that you will be offered in your search for the seller. Smaller companies may have to pay high fees because of the size of the volume so it is important to find a provider that does not discriminate between this sense and values of your business for what it is. You need to understand how to manage monthly sales volumes, increases and so – and indeed how changes affect merchant accounts.
3) Security
It is very important to be aware of security protocols in place set by the Payment Card Industry (PCI) Data Security Standard, referred to as PCI DSS. Interestingly PCI DSS originally began as five separate projects operated by different platforms card (Visa Card Information Security Program, MasterCard Site Data Protection, American Express Data Security Operating Policy, Discover and compliance and JCB Data Security Program). The Council was established on 15 December 2004 in order to ensure that all merchants meet minimum levels of security when they store, process and transmit cardholder data.
Along with the PCI-DSS – Traders should consider Fraud Screening and scrubbing features acquirers their Psps Gateway or a third party Merchant Account Providers in order to protect their business from Fraud, Chargebacks and other items. Ideally, any package offered would include tools to assist in the early identification and prevention of fraud indeed.
4) Costs
Merchant Discount Rates (also known as processing fees) are expensive and drain on your website, there is no way to get around it. However, charges can vary greatly – by sector of business you are in High Risk Merchant Accounts are often very expensive as the acquiring company Banks need to take into account what is known as a risk factor .. For example, if you are shipping goods – there is a risk of Non or late delivery which can then lead to chargebacks or even tangible goods, such as advertising or similar where you can also be at risk of reversal. Lower fee the better for you. It is important to find a transparent and to ensure that you have the facts and figures in writing before you start. Make sure that you understand everything related to rates, fees, transaction fees and other hidden costs such as reimbursement costs and additional costs for going into chargeback Program, retrieval request fees, etc.
If the Merchant Account Provider quotes you a price based on tiers – make sure you ask for a clear breakdown of exactly what this is based on.
5) Chargebacks
reversal is when the money is returned to the client because something has gone wrong with the transaction. Visa and MasterCard both have a different set of reason codes for chargebacks to achieve a reason for reimbursement – for example, Reason Code 30 (Visa) – Service / Merchandise not received.
It is very important to provide information and data to fight or competition chargebacks to prove that the cardholder’s services or goods – or information based on the reason the rules you get.
If your business model is likely to have a large number of chargebacks, you are likely to be classified as high risk merchant. Visa and MasterCard have ratios Chargebacks acceptable to the Merchant (CNP).
Visa calculate chargeback ratio during the same month, the number / volume of chargebacks shared with Conveyor | rslunúmer / MasterCard volume and calculate chargebacks compared to the previous month Conveyor | rslunúmer / Volume share reimbursement Number / Volume.
There are also reimbursement Programs for Merchants too chargebacks with associated costs, fees and fines. Traders have very high chargebacks could also find their Account deleted and Match Program so they need to take very seriously.
6) Customer / Technical Support
You have to make sure that the company you are considering has dedicated customer and technical support department and staff. E-Commerce processing is a 24 hour business if your customers can not make payments on your site then you will be losing money. This is not 9-5 companies. To ensure that you have all access to the necessary information and technical support to keep your business running smoothly and to be able to solve all the issues that arise as soon as possible.
7) Merchant Account Applications
Applications can often take weeks to go through the acquisition of the company bank. Know your customers and Business Model First, to take into account. The Business Plan and processing history will be thoroughly reviewed, and other information required items. The application then goes to credit and risk and underwriting department in before you receive and offer or rejection. It is important to disclose any information during the submission of the application.
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Source by Rebekah A Goudman