High Risk Merchant Services for Small Business


High Risk Merchants

What’s a high risk merchant? Are you a high risk merchant?
High Risk merchants are businesses that sell things that payment processors, credit cards and banks consider to be risky. Generally if you’re selling something in the list below you are considered a high risk merchant. Quite simply these things either have (1) high chargebacks and refunds or (2) it is an industry that makes people squeamish and borders on the illegal. We want to explain how to (1) make your business less of a risk, (2) what you need in your website and (3) how to find the best deal for payment processing.

If you are a high risk merchant you need to run your business very tightly.  Here are the things that you need to do:

Monitor chargebacks carefully work to reduce them

What are Chargebacks? How is this associated with being a high risk merchant? Chargebacks are when your customer requests a refund from their credit card because of a problem. Normally this means that your customer requests their bank to give them a refund. You, the merchant, can dispute the customer’s request. One of the best ways is to make it easy for customers to get refunds. Your refund policy needs to be clearly visible in your website. You need a telephone number for the customer to request a refund and call. You will need fraud protection technology to help reduce fraudulent purchases.

How to find the best deal for payment processing as a high risk merchant account

You need to shop around. Be upfront with your payment processor and tell them about your business. Explain how you have taken steps to reduce chargebacks and fraud.

What are Merchant Services?

Exactly what is the distinction between a Merchant Services and a Payment Gateway?

A payment gateway is a solution that sends out settlement transactions to a credit card network such as Visa, MasterCard, or American Express. The payment gateway service gathers your money from your consumer and also sends out the cash to you (the vendor) by depositing the money to a checking account.

A merchant account is a service that maintains money gathered using a payment gateway until the cash is sent out to a typical checking account. A bunch of online seller accounts additionally have a payment gateway that accumulates funds from the consumer.

In this post, we are needing to check out on the internet seller accounts that have a payment gateway so you can begin to market online.

What do you need to think of when you pick a Merchant Account?

As you start your look for a merchant account provider, take into consideration the questions below. Your merchant account should be able to satisfy the one-of-a-kind needs of your company.
Do I need shopping carts?
Shopping carts are an ecommerce solution where the customer checks out your web site and also adds items they wish to acquire.

Am I marketing digital products that get downloaded and install instantly such as images, online games, or books?

What international currency do I require as well as desire to approve? Or am I delighted with just United States buck or Canadian buck sales?

Do I need recurring or membership payment functions? This permits me to bill my customer every day, weeky or month.

Do I desire my merchant account to procedure payments online only? Do I additionally wish to take bank card repayments personally with a mobile credit card visitor? Or do I additionally have a store front where I will intend to attach to sales register?

As soon as you find a few merchant accounts that meet your needs, ask yourself the following concerns about each of your selections.

Do I require an SSL certificate on my internet site to make use of with the payment gateway service?
Among the more crucial questions is does this service incorporate with my current web site or system? Or do I wish to utilize this opportunity to start over and also build an entire new web site and also incorporate with a brand-new ecommerce remedy?
Just how much are the processing as well as transaction costs?
How much are the yearly charges that I should pay the company?
Does the solution incorporate with my accounting software program such as Quick Books, FreshBooks or various other accountancy solutions?
An idea to locating the ideal merhant account company, is to concentrate on the really fundamental things that you require.

Here are a number of systems that support ecommerce integration

Look for merchant accounts that incorporate with your system if you already have a web platform that makes it possible for ecommerce transactions. Take into consideration utilizing one of the adhering to ecommerce systems to launch your store if you are starting from zero. Each of these alternatives provides combination with merchant accounts.


They also handle all the internet holding so you do not need to mess with that. They offer combination to many different settlement gateways. This is a great alternative for folks who are simply obtaining started selling online.


Square Payments is a merchant account that provides both online as well as in-person payments. Square is probably best recognized for its mobile credit card viewers. The mobile bank card visitor is called a “dongle” and also it plugs into your smartphone or iPad. When you make a sale your client hands you their credit card as well as you swipe the charge card via the dongle. The safe and secure deal is transferred within a couple secs as well as you receive a feedback back from the credit card network. A lot of sellers include more equipment to the Square credit card visitor. Several sellers include iPad Stands to hold their iPad, receipt printers that immediately publish out a receipt, automated cash drawers and also bar code scanners. This things could appear challenging to configuration however its not. Everything aid you provide an expert existence to your customers promptly and also quickly. If you’re a vendor at a craft show, or farmer’s market, for example, these points are have to haves when you’re marketing from your display.

There are many merchant account suppliers yet we’ve chosen two. These are a few of the most preferred companies in the market today. They are some of the most convenient companies to get begun with.


Paypal is probably the most well understood of the repayment gateways and merchant account companies. You’ll get a merchant account and also payment gateway in one solution.


Authorize.net supplies a ton of attributes. You’ll get a payment gateway, merchant account, mobile charge card visitor, persisting payments, pay kinds and much more. This company has beened around for well over 20 years and they understand how you can service the needs of small merchants and also companies that are simply getting going marketing. Authorize.net pumps in worth right into their offering. You’ll obtain repeating settlements for memberships together with scams detection and also prevention tools. Since they’ve been around forever and a day every ecommerce remedy on earth understands them and there are lots of pre-made combination options that are currently done for you.

Nonprofit Credit Card Processing

If you work or run at a nonprofit company you understand how vital it is to cut expenditures as well as handle expenses quite meticulously. There are lots of methods to conserve money and one manner in which you could wish to think about is to minimize your settlement processing costs.gift

Reasons Why Non-Profits Need Credit Cards

Accepting contributions is the life of a nonprofit. Credit cards, debit cards, PayPal, Venmo and etc. are preferred approaches for payments for many individuals. There are a number of reasons cash is generally undesirable for contributions while bank card are popular.

Charge card supply a document for donors to utilize when they do their tax obligations
Bank card supply a reward or some type of incentives program for use.
Bank card can be automated contribution repayments that take place on a monthly basis or year.
Let’s face it. Charge card are convenient and easy for individuals to use. Your possibilities of obtaining contributions could be greater when you provide credit history cards.

Credit card repayments could indicate much less help the non-profit also. Automated contributions are simpler to deal with and also do not require paper check or money handling. You could be able to companion with the bank card company or bank that issued the bank card to your benefactor. What kind of partnering? Well you’re a charity as well as firms are seeking good charities to help make the globe a better place. There is likely some kind of participation you can attain when the bank or credit rating card company knows that their clients are likewise your donors. Allow’s note the main points again.

Charge card payments could suggest less help your organization.
Charge card and debit card based donations can imply a lot more donation volume for you as opposed to cash just donations.
Financial institution that issue charge card as well as the credit card companies themselves may be prepared partners for some teamwork for your non-profit.
You can sometimes minimize your credit rating card processing prices simply by asking your payment processor if you are a not-for-profit company. You will need to reveal proof of your 501(c) standing but that’s easy to do.

How does charge card processing workHow Does Credit Card Processing Work?

Bank card handling costs can alter a great deal depending on the company that does the handling as well as exactly how the handling is taken care of by the company. Most repayment suppliers provide either tiered pricing or interchange-plus (often called cost-plus). Just what are these once again? Allow us clarify below.

Tiered prices groups purchases into pieces and costs expenses based on which portion the settlement falls into. Generally, you have actually a qualified tier with the most inexpensive processing price, a mid-qualified tier with a slightly greater price, as well as a non-qualified rate with one of the most expensive rate.

These are fees paid to the financial institutions that release credit cards to your clients and the charges paid to the credit card firms. You’ll see your consumer, you the vendor, financial institution processor (payment gateway, merchant account company, repayment processor) as well as after that the credit history card network followed by the bank. Interchange fees are set as well as are generally non-negotiable and these costs are paid to the bank who released the credit rating card to your consumer as well as to the credit card network.

Just how Do You Get a Nonprofit Discount on Payment Processing?

If you currently approve cards, ask your cpu about ways to decrease your prices. You do not need to agree to this but it is something that you’ll desire to consider.

To optimize your cost savings, be sure to request for interchange-plus prices.

Before you do a new contract, however, you might intend to look around. This is a competitive business so it’s good to see exactly what various other cpus are providing.

A few seller provider work with nonprofits including the ones listed below here:

Dharma Merchant Services
Seller Focus
Payline Data

What Features Should You Look For?

Before you pick a settlement processor you should think through the important things that you need for your non-profit.

Do you accept on the internet donations? Make certain your merchant account supplier gives you the devices to quickly establish a “contribute” switch on your site.

Do you offer gratuities as well as memorials where your contributors can donate for another person? You need a checkout choice that allows you create fields for that information if so.

Do you accept annual or monthly contributions? Make certain your repayment processor supplies persisting billing if so.

Do you accept donations face to face? A digital terminal will come devoid of lots of conventional seller accounts. This enables you to approve settlements with your computer as well as allow to you to accept payments over the phone. You may require a USB card swiper to connected into your computer.

Do you sell product in a store or booth? Try to find a service provider that supplies affordable terminals, or the capacity to reprogram your existing equipment if you are already doing so. If your group travels a whole lot or a traditional register arrangement is also unwieldy, seek a merchant account that provides a mobile payments app. (Or think about using PayPal Here or Square.).

Do you offer products online? You’ll require a payment gateway and ecommerce software program that is suitable with your entrance and also your web site if so. There are several options right here. Some ecommerce software is complimentary and popular. Magento is a really robust as well as complimentary software as well as it’s one of our faves yet it’s not for everyone. You might intend to choose an all-in-one remedy that manages all the ecommerce, hosting as well as repayment handling for you. A couple of these options are Shopify and Volusion.

Just how do you keep your economic record maintaining? Look for a cpu that offers QuickBooks integration if you use QuickBooks.

Are You Ready to Start Saving Money on Payment Processing Fees?

It’s time to start inspecting those month-to-month statements as well as see exactly what your expenses are if you’re already approving credit rating card repayments.

With interchange-plus, you can compare handling rates among settlement suppliers. Be sure to look at the ordinary size of your donation when contrasting transaction costs. A portion charge can obtain expensive when your donation dimension is a larger amount.

Beware of placing yourself right into a long-lasting agreement or one that consists of an early discontinuation fee (ETF). It’s a good practice to obtain all negotiations you do with a potential repayment processor in writing.

Credit history cards, debit cards, PayPal, Venmo as well as etc. are prominent techniques for settlements for several people. You may be able to partner with the credit card firm or bank that released the credit rating card to your contributor. These are costs paid to the banks that provide credit cards to your clients as well as the charges paid to the credit history card business. You’ll see your client, you the merchant, bank processor (payment gateway, merchant account company, payment cpu) and after that the credit rating card network adhered to by the bank. Interchange fees are set as well as are generally non-negotiable as well as these charges are paid to the bank who released the credit history card to your customer and to the credit rating card network.

Selecting a Merchant Account

You’re missing out on sales and not delighting your Customers.

You have service or product and your customers are asking you if they could get it online. You have to inform them that they cannot buy directly from your web site due to the fact that you don’t provide a method for customers to purchase online. You are missing sales as well as making your clients dissatisfied.

We want to help you change that.

We have some info for choosing a merchant account as well as ecommerce solutions so that you could sell products online.

Exactly what is the difference between a Merchant Account and a Payment Gateway?

Before you go seeking an ecommerce option for your internet site, you should find out the distinction between a payment gateway as well as a merchant account.

A payment gateway is a solution that sends payment transactions to a bank card network such as Visa, MasterCard, or American Express. The payment gateway solution accumulates your money from your client and also sends out the cash to you (the vendor) by transferring the cash to a bank account.

A merchant account is a solution that keeps cash collected by means of a payment gateway up until the cash is sent to a regular savings account. A great deal of on the internet vendor accounts likewise have a payment gateway that collects funds from the customer.

In this write-up, we are needing to look at on the internet merchant accounts that have a payment gateway so you can start to offer online.

What do you need to think about when you choose a Merchant Account?

As you start your search for a merchant account company, think about the complying with questions. Your merchant account have to be able to date the special requirements of your company.

Do I need settlement types. These are types are where the client inputs their charge card details.
Do I need shopping carts? Purchasing carts are an ecommerce remedy where the customer checks out your website and also includes items they want to purchase.
Am I marketing digital items that get downloaded and install quickly such as images, video games, or publications?
What international currency do I require as well as desire to approve? Or am I pleased with simply US dollar or Canadian dollar sales?
Do I need repeating or membership billing features? This enables me to demand my client every month, day or weeky.
Do I want my merchant account to process payments online just? Do I likewise wish to take charge card payments face to face with a mobile credit card viewers? Or do I also have a shop where I will want to attach to sales register?
Ask on your own the complying with inquiries regarding each of your selections once you locate a few vendor accounts that satisfy your demands.

Do I need an SSL certificate on my web site to utilize with the payment gateway service?
Among the more crucial concerns is does this solution incorporate with my current website or channel? Or do I intend to use this chance to start over as well as build an entire new web site and also integrate with a brand-new ecommerce remedy?
Just how much are the handling as well as transaction costs?
How much are the yearly costs that I should pay the service provider?
Does the service incorporate with my accountancy software program such as Quick Books, FreshBooks or various other bookkeeping remedies?
An idea to finding the appropriate merhant account provider, is to concentrate on the extremely basic products that you require.

Below are several systems that support ecommerce combination

To offer online, you need more than a payment gateway to accumulate money as well as a merchant account to hold cash. You need an ecommerce site or purchasing channel that enables individuals to search, choose, and purchase.

Look for vendor accounts that incorporate with your platform if you currently have a web channel that enables ecommerce purchases. If you are starting from scratch, think about using one of the adhering to ecommerce platforms to release your store. Each of these choices provides combination with seller accounts.


Shopify is profoundly popular. It’s simple to obtain begun with as you could make gorgeous and expert web sites with no technical abilities. They offer pre-made layouts so you can merely select from a theme and also begin including your items and also logo design. They additionally take care of all the webhosting so you do not need to mess with that. They offer integration to lots of different repayment portals. These individuals won’t bust your pocketbook as you could get begun really inexpensively. This is a wonderful choice for folks who are just obtaining began marketing online.


Square Payments is a merchant account that offers both online as well as in-person settlements. Most vendors include more devices to the Square credit rating card reader. If you’re a merchant at a craft program, or farmer’s market, for instance, these things are should haves when you’re marketing from your display.


Ecommerce has taken off with WordPress and also one of the reasons is the ease and also accessibility of Woo Commerce plugins. This plugin allows you take on-line repayments. It incorporates with lots of various settlement entrances.

The Top 5 Merchant Account Providers

There are numerous merchant account suppliers but we’ve culled the listing to 5 carriers. These are several of one of the most prominent service providers on the market today. They are a few of the most convenient providers to obtain started with.


Paypal is probably the most popular of the repayment gateways as well as merchant account providers. They’ve been around for more than twenty years. You’ll obtain a merchant account and also payment gateway in one remedy. You’ll likewise obtain the ability to take charge card settlements in person with a mobile charge card visitor that connecteds into your iPad or mobile phone. Consumer trust PayPal and also their brand name can help you make sales.


Red stripe is ending up being a leading seller option due to its powerful API alternatives, which allow individuals to personalize it to match an internet site or app’s special payment gateway needs. If you already have an ecommerce remedy such as Shopify, Magento, WordPress, Prestashop or most any type of various other option out there, don’t fret. If you want to employ a designer or you on your own have technological abilities, you’ll be pleased by all the job that Stripe has put right into their pre-made code libraries, API layout and clean documents.


Authorize.net offers a ton of features. You’ll obtain a payment gateway, merchant account, mobile credit card viewers, repeating payments, pay kinds and also far more. This company has actually been in business for more than 20 years as well as they understand how to service the requirements of small sellers and also businesses that are just beginning offering. Authorize.net pumps in worth right into their offering. You’ll obtain reoccuring payments for subscriptions along with scams detection and also prevention tools. Because they’ve been around forever and a day every ecommerce solution on the planet knows them and also there are numerous pre-made combination solutions that are already done for you.


A PayPal business, Braintree gives alternatives for all the fundamentals plus some new purchase approaches such as Apple Pay, Venmo, Coinbase, JCB, and Diner’s Club.

You will certainly no much longer dissatisfy your consumers when they ask if they could get your product or solution online when you set up a repayment processor that meets your needs. You’ll have the ability to send them to your online channel and also start introducing extra profits as they make purchases straight from your site.

Do I desire my merchant account to procedure settlements online only? Square Payments is a merchant account that provides both online and in-person payments. Paypal is most likely the most well known of the payment gateways and also merchant account service providers. You’ll obtain a merchant account and payment gateway in one remedy. You’ll get a payment gateway, merchant account, mobile credit history card viewers, reoccuring payments, pay kinds as well as a lot more.

merhant accounts

creditcardsIf you sell online or in person, you need to take credit card payments from your customers. Let me help you understand some fundamentals concerning credit card payment processing. Credit cards have been around for a while however how they work is not open an secret. Let’s cover that rapidly so you have some information to aid you. For those who don’t want to read through the details, here are links below.

Finding a Merchant Account Provider

High Risk Merchant Accounts

Non-Profit Credit Card Payment Processing

How do credit cards work?

Most of us have a charge card or credit card from our bank. When we pay our regular monthly bank card bill we pay our financial institution. There are other people in the credit card business that get paid. There is VISA, MasterCard, Discover, American Express, JCB, UnionPay as well as other credit cards. Here’s how it all works. You the business or merchant sell items online. There is a company that connects you to the credit card networks. This business is normally called a payment gateway, merchant account provider, merchant services provider. Let’s talk about the payment gateway right below.

Payment Gateway

The Gateway is the entrance or portal to the network of credit cards as well as financial institutions. When your client buys something from you, your customer enters their credit card number as and this is passed by your payment gateway to the credit card network and bank that provided the credit card. The financial institution determines whether the client can pay with credit card or not and sends a message to the credit card network. This message gets back to you in a few seconds. If the customer is ok to pay with their credit card then this is called an approval.

The Payment Gateway has an obligation to pay you for the acquisition price of the item you sold. The gateway has a duty to make certain that you are a trustworthy business and not some type of bad person up to no great. The Gateway do not constantly offer to you often they will use other means to offer bank card payment handling. They will certainly use affiliate salesmen or resellers. These companies often have the strange name “ISO.” Many of the time you be dealing with a Gateway so that is where will certainly focus many of the details to assist you discover and obtain the finest deal for your business.

Merchant Account Provider

The merchant account provider offers the bank account where you will receive your money. They also investigate you as a business to make sure you are legit. They also monitor you to make sure you run your business in a reputable and legal manner. You can’t do payment processing without a merchant account.

Merchant Services Provider

A merchant services provider is nearly the same as a merchant account provider.

Charge card Number Safety and security

The payment card industry (PCI) has stringent guidelines for any individual that collect repayments from consumers making use of charge card. These policies are PCI guidelines. If you collect credit card numbers you have to comply with these guidelines as well as go through assessment annually. The rules need you to shield the charge card numbers as well as maintain them encrypted as well as limited access by your organization. Right here is a link to find out more regarding PCI.

Sometimes the consumer will complain that they did not make the buy from you. When this occurs the client grumbles to their bank and the financial institution begins a “chargeback” process. The bank will ask for information about the purchase as well as if you are incapable to offer info, give inusufficient info the bank will certainly alert your gateway that will certainly take the money back from you. This is called a “chargeback.” If you have a lot of chargebacks you can be identified a high risk merchant and also consequently you will certainly want to reduce chargebacks.

But there’s more to offering credit card payments online.

Shopping Carts, Ecommerce Solutions, Redirects, Widgets

All sites that sell online have shopping carts. Just what is a shopping cart? A shopping cart is software program that enables your client to pick products from you web site and also spend for them at check out. Appears quite basic yet it can be complicated sometimes. Your customer might stop going shopping before checkout as well as leave your website. When they return to your website you will want to the products they selected to be in their cart so that they can purchase. Your client will certainly choose one to two products, include them to the cart and also check out. The shopping cart tallies the price of both items, calculates the tax obligation and shipping then sends out the complete acquisition price to the repayment entrance. Buying carts were usually contributed to sites that were built separately from the shopping cart. There are still many of these purchasing carts around.

Ecommerce Solutions

This may sound complicated but there are some truly easy options that do not cost much and also make it very easy to obtain started. The ones we such as are Shopify, Magento, Volusion as well as Big Commerce.

Merchant Account Blog Presents: D.C. Taxicabs and Credit Card Readers

In August, D.C. Mayor Vincent C. Gray, unveiled his plan to modernize D.C taxicabs. In every cab a meter with GPS, merchant account readers and a television screen was to be installed in every taxi. The cost to the taxi drivers has been debatable between $150-$500 per cab. Now, the modernization plan has been halted due to the cab drivers suing the city over the suspicious circumstances that this law was passed. Council member Mary M. Cheh (D-Ward 3) who introduced the legislation described the halt as “unfortunate.”

This delay stalls a winning $35 million bid by Verifone to be the equipment installer of 10,000+ taxicabs. The losing bidders, Creative Mobile of New York and Ride Charge of Alexandria, VA are in favor of the delay. So far, District Cab Fleet is the only company moving forward with 30 units installed out of 650+ cabs.

The reason the taxi drivers are angry is simple math. Cab drivers are charged a 15% surcharge from their brokers in order to accept credit cards. Many other taxicabs are instructed to charge $2-3 in “convenience fees” to accept credit cards. The drivers see none of these surcharges or fees. After speaking to a few owners in the taxi industry, neither do the cab companies! [So the question lies…”Where does the money go?”]

Fortunately, MerchantAccount-Blog.com was given a credit processing statement from a major taxi company (which will remain unnamed). In the statement, we noticed that the average cab fare is $50, and the average taxi earns $2,000/month in credit card processing. If we were to follow the taxicab driver’s union, and allow drivers to select their own system (for example Square or Phone Swipe) the charge would range from 2.75% to as low as 10 basis points. That means out of the $3 surcharge cost would be $1.38 (out of a 2.75% worst case scenario). That leaves $1.62 in revenue for every cabbie that accepts credit cards. Using the fore mentioned averages, that means the cabbies are losing $64.80 a month in revenue on average. Obviously Councilwoman Cheh and Mayor Gray are aware of this. [This is not even mentioning the potential monthly credit card residual profit share].

It would be irresponsible or (at least) inept for a government official to miss potentially $648,000/month in collective revenue. Remember, in History of Capitalism 101, the founding principle was laissez-faire [individualism: the doctrine that government should not interfere in commercial affairs]. Now 10,000+ small businessmen and women and the taxi companies are taking a loss when officials use faulty math to a corporate giant’s advantage.

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Lending & Merchant Account Cash Advance

During a speech at George Washington University Federal Reserve, Chairman George Bernanke stated, “small businesses have…found it difficult to get credit.” [Now, if banks make money by giving loans, what is the cause? Possibly, Bernanke, to a small degree?] According to FDIC statistics lending has reduced dramatically. Perhaps, merchant account cash advances are an option?

Business loans under $1 million fell 13% between June 2007 and June 2011. In addition, the amount lent has dropped 19%.

In observance of Federal Reserve incentives, banking lending standards have increased. Therefore, fewer companies can qualify for loans.

Increasing their lending standards for risky mortgage loans, banks have relegated business loans as collateral damage in an effort to improve lending practices. This, ultimately, is a scar left behind by the financial crisis.

Small business loans and mortgage loans are inexorably linked together since many small businesses use home equity to finance their companies. Obviously, forcing the Fed to loosen standards would force us to revert back into the ballooning crisis we just got out of. So, the predicament lies as to where do we find funding for America’s small business?

To get suggestions, I emailed commentators, repliers and subscribers to my blog for answers. The replies were almost choral; because everyone had the same response…Merchant Cash Advance.

Small business owners who need cash infusions into their businesses are turning more frequently to this 10 year old industry. Cash providers, who generally charge premiums of 30% or higher are trying to promote a universal standard in order to avoid regulatory restrictions.

Businesses receive cash advances from providers [Note: I did not say lenders!] in exchange for future credit sales. The caveat, however, is that (because these companies may have little or no credit) businesses are charged interest rates (normally) ranging from 60% to 200% APR. Again, these transactions are not considered loans. They are regarded, none the less, as a purchase of future revenue. Therefore they are not regulated, and can collect from daily credit card processing proceeds. In addition, because some businesses are seasonal, payments are lowered during slower months.

According to Marc Abbey, managing partner of the consulting firm First Annapolis, there has only been a 10% penetration in this $5 billion dollar industry. Responsible cash advance companies, make a conscious decision not to collect too much too soon, so that client businesses can survive.

As mentioned before, this is a newer industry, being only 10 years old. Even now, lines are being drawn in the form of legal battles in heavy merchant advance states like California. Requiring cash advance companies to obtain state licensing, merchant capital advance companies now have expanded parameters for collection and terms.

Through expansion and newer innovation, MCA’s can now provide cash advances in the form of loans, lines of credit, funding on credit cards, and support leases. It can also complement bank funding.

In regards to salespeople and independent sales offices, be very careful. Before you enter into this arena, it is prudent to be well educated about the industry. I suggest you refer to the Electronic Transaction Association. You can find a detailed white paper on Merchant Cash Advance basics, there.

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How To Get A Merchant Account

In the past interchange rates were restricted to members of credit card associations and merchant account / credit card processors. In easy speak; interchange is simply the cost of doing business. In addition, credit card processing companies add basis points and fees to interchange in order to mitigate their company cost and add profit.

To see an example of interchange rates, you can do a simple search engine query for Visa USA Reimbursement Fees.

The good news is that merchant account holders can “peak behind the curtain” and negotiate from an informed platform .The bad news is that many merchants have no idea how and what costs to add to the equation. Credit card processors and ISO’s make their money from the previously mentioned basis points, equipment, and fee charges. Many less honorable companies take advantage of unsuspecting merchants promoting savings with low percentages for transactions that you will never perform, while overcharging for your company’s method of card acceptance and type. Another trick performed, most commonly, is not fully disclosing all the fees (thus the hidden fee heartache begins). However, my favorite method is the “free terminal” promotion. Yes, the terminal is free as long as you are a client. However, you find yourself paying for services and fees that you had never seen before. Think about it. Can a merchant account holder give away it’s most expensive asset to a customer in hopes that they will continue to shop in their store? No! It’s bad business. Nothing of any worth is truly free.

The question for you Mr. or Mrs. Merchant, is do you want something for nothing? Is your business a glorified hobby?

Then why would you expect other companies to conduct business that way? Even though it may not sound as appealing, the truth is typically the best way to conduct business.

The two questions a merchant should ask a merchant account service provider is:

(1) Are you a wholesale or third party provider?

(2) “Do you have an approval rate above 85% for retail business?” Why question #2? This is because many companies that provide free equipment hope that the merchant has previous processing. Not only previous processing, but processing above five thousand dollars a month. That way, whether it is a hidden fee, a customer support / technical support fee, or an annual membership with some obscure club; their investment is returned.

Those that are not in that category are put through more restrictive underwriting. Thus, making your chances of approval, a rigorous process to say the least (if approved at all).

So far we have learned the “what’s and how’s” in regards to interchange and free equipment. In my next article, I will teach you the four basic platforms you can use to tailor your merchant account… Hope to see you soon.

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Consolidating the Business Debts for Merchant Credit


Debt consolidation is the option in which you may be able to get the interest rate lowered. In addition, the number of debts which you have gets rolled over as a single debt. Now, fact is that it is not only the personal finance related debts which can be consolidated. If you are having problems with regards to the business related debts, you can consolidate your business debts too. This is a great way to clear the problem which you may be having with regards to the business related debts opening the door to leverage your merchant account/credit card service rate. There are various ways in which you may be able to consolidate your business debts.

Options on business debt consolidation

The different options, with regards to business debt consolidation, of which you can take help, in order to be able to consolidate the business debts, and pay down the same, are:

  1. Consolidate the business debts of your own – There are various way in which you can consolidate and pay down the business debts of your own. These are:
  • Balance transfer – Balance transfer is the option in which you will be required to transfer the balance from all of the business credit cards or any other such unsecured debts to a credit card related to the business, which have a low interest rate. This is going to help you with paying down your business debts with ease. As the interest rate lowers, and as the number of debts gets lowered, it becomes easier for you to maintain the payments.
  • Taking out consolidation loan – The consolidation loan can either be secured or unsecured. You will be required to shop for the consolidation loans in such a way, so that, you can get better loan offers, with low interest rate and longer loan term.
  1. Take help from business debt consolidation agencies – If you think that it won’t be possible for you to consolidate the business debts of your own, you can opt to take the help of a business debt consolidation agency. Not all of the merchants can have either the time or the energy to work on paying down the debts. The consolidation agency analyzes the business debt problem you are in and then, starts negotiating with the creditors.

So, this is how you can consolidate and pay down your business debts, and save it from going bankrupt.

However, if you think that you have some assets with regard to the business, you can also use some of those, in order to pay down your business debts. You can simply liquidate the assets in such a way so that you can pay down the debts, without having to borrow more.

This article was contributed by Yazmine Wilson of http://www.debtconsolidationcare.com/

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Non-Profit Credit Card Processing

There are several reasons why cash is generally unpopular for donations while credit cards are popular. Credit cards offer a record for donors to use when they do their taxes. Credit cards offer an incentive or some sort of rewards program for usage. Credit cards can be automated donation payments that happen every month or year. So your chances of getting donations could be higher when you offer credit cards. Credit card payments can mean less work for the non-profit as well. You may be able to partner with the credit card company or bank that issued the credit card to your donor. So there is likely some form of cooperation you can achieve when the bank or credit card company knows that their customers are also your donors. Credit card payments can mean less work for your organization. Credit card and debit card based donations can mean more donation volume for you as opposed to cash only donations. Bank that issue credit cards and the credit card companies themselves might be willing partners for some cooperation for your non-profit. If you are a nonprofit organization, you can sometimes reduce your credit card processing rates just by asking your payment processor. Credit card processing fees can change a lot depending on the company that does the processing and how the processing is handled by the provider. All card payments are assessed an “Interchange” fee. These are fees paid to the banks that issue credit cards to your customers and the fees paid to the credit card companies. Look in our diagram and you’ll see the parties involved in a credit card transaction. You’ll see your customer, you the merchant, bank processor and then the credit card network followed by the bank. Interchange fees are set and are generally non-negotiable and these fees are paid to the bank who issued the credit card to your customer and to the credit card network. If you already accept cards, ask your processor about ways to lower your rates. You may need a USB card swiper to plug into your computer.

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