In this highly digital, online for everything, technologically advanced world we live in, it’s mind-boggling that there are still some companies that do not accept credit card payments as a method. Why is this? How are these businesses successful? The biggest complaint is the fees that merchants have to pay for credit card processing and many of them don’t want to cover those costs.
However, as we head further into 2019, as far as payment processing goes this is no longer a good business practice. It’s crucial, now more than ever, that businesses are available to accept credit card payments since so much revenue can be obtained through it. Businesses that don’t utilize credit card processing and are not set up for mobile credit card processing are hindering their development, long-term growth financially, and their competitive edge.
Here are a few of the prominent reasons that being set up to accept credit card payments as a form of payment processing is so very important for both online driven businesses and brick and mortars alike:
More People than Ever are Using Credit Cards
By 2025, the millennial generation (those born between 1981 and 2005) will make up over 75% of the workforce. Why does this matter? Well, they’re currently earning more money, which means that they’re spending more as well. How millennials invest their money and the ways they pay for products and services are hugely important.
It’s vital for the longevity of your business that companies like yours have the ability to process the kinds of payments that millennials prefer to utilize, which is typically not writing checks or carrying around large sums of cash, for the most part, the preferred payment methods are credit card processing and mobile credit card processing. Eighty percent of millennials have a minimum of one credit card, and 27 percent of millennials have said that more than half of the disposable income is spent using a charge card. That is a great deal of credit card processing, as well as many missed sales and chances for your business to capitalize if you do not accept credit card payments as a form of payment processing.
The majority of millennials do a lot of online shopping since it’s preferable for them to be able to shop anytime they want and wherever they want. Online shops use credit card processing as their primary source of payment processing (although other options, like gift cards, can also be available) because the ability to accept credit card payments is the easiest payment processing option.
It is more than safe to say that the development of online shopping will only continue to increase. It is estimated that, by the end of the year, that online shoppers will likely be spending a whopping $39 billion, and credit card processing is the only way into this market. For this reason alone, it is critical that credit card processing can be obtained with a merchant account gateway and can be done with processing fees that are manageable for any given business.
For those merchants that are considered to be high risk, you will need to apply for a high risk merchant account with a reputable expert like those at PayKings, who offer payment processing for your online business, even when you have been declined everywhere else. Online shopping is here to stay, and merchants should be engaging with this shopping strategy of online purchasing to remain competitive.
Providing Payment Processing Options
Everyone likes to have choices. Your business’s ability to accept credit card payments provides customers with the ability to choose the way they want to pay. Being given the option to pick their method of payment processing can boost customer loyalty. In this way you have not only given your customer the ability to choose, you have given them an easier way to pay – an option that is secure and cost-effective for them. All these factors conjure up brand loyalty.
A customer who can not pay with their preferred way of payment processing, whether that be by debit or credit card processing, Visa or American Express, a customer is more likely to stop buying with you if they don’t have the freedom to choose their preferred payment method – especially if your competitors are making it that much easier for them to shop elsewhere.
Credit card processing is a crucial part of succeeding in 2019 (and in the years moving forward) for any business, and the rise of the millennial generation has a heavy hand in that. Because millennials like to use credit cards to pay, and are even partial to mobile credit card processing, particularly when they have cards that give them cash back, this propels the growth of credit card processing and payments for online shopping. The ease of online shopping has prompted many individuals to get at least a minimum of one credit card – which just having it ensures that they use it often.
If your company is unable to process credit cards as a form of payment, then you are missing out on a huge slice of the revenue pie, and allowing for your competition to gobble up your portion. Applying is relatively easy to do, once you narrow down a reliable and knowledgeable payment processing company – that said, you can get started by clicking here.
When sales are up, so is fraud. Many credit card processors are still using antiquated systems, which can hurt your company, so it’s best to make sure to research prospective processors sensibly so that you do not get trapped in a long term, pricey contract with a payment processor who uses outdated equipment and provides poor customer service.
What happens if earnings fall and I have just one payment processor?
To consider another payment processor you must first examine their policies. Look at their warning processes to find out what the repercussions are for earnings falling or raising and ask them the hard questions to understand the liability amount – that may help you get to know them on a higher level.
Another good thing to ask your payment processor is if they have a hard or soft limit on earnings, and are there automatic caps? What if you go over these set limits? Will your payment processor still take them? There are requirements for multiple high risk merchant account payment processors and this could be due to in part to business partners, products, volume problems, etc.
How do payment processors compute risk?
Every payment processor will have their own criteria, so this is why you’ll want to choose wisely. Things that payment processors are watching for are the number of trades coming through, and even more so in the first 30-60 days for new clients. Are your trades suddenly coming in through the telephone or the internet?
It is important that you alert your payment processing company of any new changes in earnings in order to not break their faith. Once you update your payment processor of any modifications, they will upgrade your profile. Proactive communication is vital to alerting these changes before they eventually find out themselves.
Each payment processor has their own risk assessment system and will set parameters upon accepting a high risk merchant. A general rule is that as soon as you cross a certain threshold of continuous sales or another variable, the payment processor will not be scrutinizing your company as much.
What we often forget is that credit cards come with a lot of risk, so we ought to make a conscious attempt to stay aware of them with due respect. Particularly when cardholders pay their minimum monthly obligations for three or two years. Be mindful that this is a line of credit that has been extended for customers.
How do you reduce chargebacks?
First thing’s first. Improve your customer support and be responsible for your credit card descriptors. What will your customers read when they see their bank statements?
Adding a good phone number that will lead people right to your customer service center is just another way to keep in their good graces and avoid credit card chargebacks.
For more insight and an in depth look at chargebacks and how to avoid them, click here.
Accepting online payments as a direct response company is attractive for several reasons, but if you are a new small business owner with no prior payment processing history, finding the proper payment processor for you may seem like an intimidating experience.
Let us take you through the fundamentals of all that you will need to know and understand about payment processing as far as the obligations of the ecosystem, the known rates and fees, and locating the right payment processing company for your business.
The Payments Ecosystem
When making a payment, you simply swipe your credit card to pay… it’s like magic right? In the world of cellular and with other innovative payments technologies coming out daily, it’s easy to believe that nothing else goes into it. However, payment processing is composed of an entire ecosystem.
Merchant — A retailer is a business, such as you, that sells goods and services to customers. The merchant has a contract with an acquiring bank or merchant processor to take card payments via a merchant account.Gateway – A payment gateway offers merchants services to accept online payments with credit cards, debit cards, direct debit, bank transfers and real-time bank transfers via your merchant account.
Risk Control — Payments firms work to safeguard your business with risk management tools and services. These tools include security against chargebacks, that’s the alteration of a sales transaction formerly processed by your company; help using PCI compliance and tokenization, which is when credit card numbers are replaced with a randomly generated series of numbers and letters known as tokens, which can’t be used to create fraudulent purchases.
Processing – Payment processing can be placed on the processing of any sort of payment, also it has rules and regulations put from the payment systems. It’s the online procedure for the exchange of data and funds between the customer, credit card, merchant, the payment service provider and the acquiring bank.
Obtaining – An acquiring bank is an alternative to your payment bureau. An acquiring bank is tied to the merchant/business, and enables retailers to accept payments online through their online merchant account and support services. When a customer purchases something, the funds have been deposited to the merchant’s bank accounts, which can be held by the acquiring bank. They aren’t the card issuer, which can be tied to the consumer.
Charge Card Institutions or Payment Networks — This term identifies the four major card brands, Visa, MasterCard, American Express and Discover. These networks regulate card acceptance rules for example processing compliance demands and interchange for their member financial institutions.
Issuer –A card issuer is a bank or financial institution that issues credit cards to consumers on behalf of the card associations (payment networks).
Client — A customer uses a credit card, obtained in the issuer to purchase a service or product.
To comprehend how the ecosystem fits and flows collectively, Paysafe has produced an infographic that explains the series of events involved with online payments.
Recognizing Rates & FeesWhat exactly are the payment processing fees all about?
Payment processing charges are necessary because, as with any technology-heavy business, development and maintenance are costly. But, with all the millions of transactions worldwide, the impact on any one merchant is included.
Interchange fees are transaction fees that the merchant’s bank account must pay each time a customer employs a credit/debit card to create a purchase from their shop. Interchange contributes to the most significant portion of the credit card processing expense. The charges are paid to the card-issuing lender to pay handling costs, fraud and bad debt expenses and the risk involved with approving the payment. Interchange fees are also sometimes called Dues and Assessments. These are determined by the payment networks and are usually just passed along to the customer without any additional fees.
What’s a processor fee?
A chip fee is charged by the payment processing company for its services. The charges can be computed in a variety of ways. Some payment processors using their own gateways have the choice of never charging a gateway fee to their client. It’s not uncommon for chips to charge unique fees for services like NSF, Chargebacks and Address Verification to list a couple.
Finding the Right Processor for your Business
To find the right payment processor for the own business you need to discover the one that fits your needs and covers all parts of the payment processing value chain.
The capability to accept card-not-present (CNP) payments and other electronic transactions is essential for your direct response company. What’s more, it is important to find a chip with strong banking connections with a number of banks so as to find the best bank for your company. And last but not least, it is vital to start looking for a payment processor that may truly be your spouse and provide the ideal support and advice, in addition to the infrastructure for growth.
The support for expansion is determined by the advanced products and services that a payment processor can offer. If they don’t have a market- leading product offering that can be tailored to your requirements, then maybe they aren’t the processor for you. Crucial products needed to process for direct response companies are: national and international omnichannel payment gateway and virtual terminal solutions that can process through the internet, phone, mail order/telephone order (MOTO), cellular, in-app, and in stores or on the move, and can easily be customized to integrate with any existing system.
If you find a payment processor that successfully meets all of the requirements in the payments value chain, then you might have found a winner.
To be direct, switching your payment processing company is really quite easy. Most retailers and eCommerce businesses endure unbearable service fees with their payment processors and don’t do anything about it, in fear of having to switch payment processors and that it might be a nightmare of a task.
However, if you’re unhappy with your payment processor, being slapped with heavy fees, or have been dropped all together by an aggregate payment processor (like PayPal or Stripe), here are the things you’ll want to understand:
Do I have my own terminals or are they leased?
Does the contract include a termination fee? If so, how much is it?
How can my contract require me to cancel?
Once you choose one, your new payment processing company will happily assist you in the transition process, which usually lasts less than an hour. And in a matter of hours, you can be set up and operational so you can continue with business as usual.
But how do you pick the perfect merchant account payment processing provider for your business?
Consider the following:
1. References — Most reviews and testimonials are meant to sell or market the company owners. Be sure phone a customer of theirs who operates a business in your industry, especially if you’re a high risk merchant needing a high risk merchant account. In this manner, you can acquire dependable and valuable information on the payment processing company.
2. Are they Registered? — Is your merchant accounts payment processing provider enrolled with Visa and MasterCard? Working with a trusted partner will make certain that you’re protected against fraud, and the like. Having made a financial commitment during the listing process, enrolled companies will most likely take better care for you and your business needs so that they too stay in business.
3. Recommendations — Do not go asking a lender representative who the best payment processing company is. A merchant account payment processing provider in good standing will represent many different banks as well as payment processing options, and because of this they’ll likely suggest the best possible solutions for your business’s payment processing needs.
4. Customer Care — Inquire about their customer services and partnership opportunities. Ask if the business will assign a specific Account Manager to keep an eye on your high risk merchant account and track its monthly progress. Figure out if they have a variety of payment processing options and if they construct long-term business rapports with their clients.
5. Confirm the Rates — Even though you might be searching for the lowest fees, remember that prices that are too good to be true, typically are. Verify on Visa and MasterCard to determine whether the rate mentioned by a merchant account payment processing provider isn’t lower than that what the major credit card companies list. The payment processor provider should mention all rates and fees at the beginning of setting up your account and give you updates on applicable changes each quarter.
Read more on the differences between high risk merchant accounts and a payment gateway by clicking here. To get started today with a quick, free quote with a reliable and reputable payment processing company, like PayKings, click here – we’ve got the lowest rates and the best payment processing solutions in the industry.
CBD oil is a huge market, one which is estimated to rise to around $2.1 billion by 2020. If you want a piece of the action, now is the time to get your foot in your door. There are plenty of chances to make big bucks selling CBD oil products to consumers, online and offline, but once you jump in, here’s what you will need to know.
01. Selling CBD Oil Online vs. Offline
There are two methods to sell CBD oil and other hemp-based products. Firms like CBD Giants market their products online, but if you would like to construct a local business, starting a retail shop might work better for you.
The main benefit of selling on the internet is that it is cheaper. Launching a retail business costs significantly more money upfront than building and maintaining a website. On top of that, starting any business is risky. If the company fails, you will lose the money that you spent in that enterprise. Because of this, many prospective CBD retailers start off with an online store and then open a retail shop when the brand is well established.
The most important advantage of launching a retail store is that customers can see your merchandise and ask questions up front. This helps to put their minds at ease. Also you are able to stock a wider range of CBD oil products in your inventory. For example, if you open a pet store, you are able to sell CBD oil goods, especially for pets. CBD oil products work well as part of a larger wellness group.
Whether you decide to go the online or the retail route, you will need to look into payment processing solutions to accept credit card payments. Since the CBD oil industry is considered high risk, you will need to seek a payment processor and payment gateway to approve your CBD oil merchant account. If you’re looking for one, you’re in the right place. Click here to apply for a free quote for your high risk merchant account.
02. Keep it Legal
CBD oil is legal in the United States as long as it’s derived from industrial hemp. Every CBD oil product must contain less than 0.3% THC. Properly sourced CBD oil is good, but ensure your merchandise comes from a reputable provider, or you could fall foul of this law.
Always double-check whether merchandise from your supplier meets the legal prerequisites for resale in the united states. Products should include a Certificate of Analysis (COA) to confirm the purity, however, you are free to send them off to some third-party testing laboratory to double check. If you are using a new supplier, it is wise to do this for your own peace of mind.
03. Don’t Make Medical Claims
Bear in mind that you’re not allowed to invent questionable medical claims about any products you sell, even if anecdotal evidence indicates the product can do what it says on the box. The FDA does not support claims made by CBD oil supplies; be sure that this message is clearly displayed on your site and from the store (if applicable). Do your research and make sure your information on the latest discoveries, uses, and regulations come from reputable sources like this one from Farma Health.
04. Registration and Accreditation
Register your business and apply for all applicable permits before you start promoting CBD oil. You can normally do most of the online. Next, open a merchant account to process payments, but be aware that you’ll most likely need to utilize a high-risk merchant account provider, on account of the nature of the merchandise.
Lastly, if you choose to market online, consider using a content management system such as WordPress, as the drag and drop interface is very intuitive for beginners.
A chargeback is the effect of a dispute of a charge by the credit card holder. If the card issuing bank takes the dispute, it will instantly refund the charge to the card holder then file the chargeback via the acquiring system who will then draft the refund from your checking accounts and send you notification of their chargeback. You will then need 3-4 weeks to dispute the chargeback by providing documentation of this sale.
Online merchants are at greater risk of an unsuccessful dispute of a chargeback given the absence of a signed receipt which provides proof of a sale. There are both valid (e.g. duplicate transactions and damaged things ) and invalid (fraudulent) reasons for chargebacks. Merchants should take steps to prevent and minimize chargebacks, irrespective of whether the dispute is valid.
Top 8 Strategies to Manage Chargeback Risk
As stated before, there are various reasons a customer may dispute a fee. How a retailer manages the danger surrounding such disputes will determine whether it results in a chargeback.
Here are 8 common scenarios and approaches to mitigate risk:
01. Customer refunds —
When a client requests and is eligible for refund, make certain to do this fast to avoid a”charge not processed” chargeback. Furthermore, make sure that your refund finance policy is clearly mentioned on every trade, and the customer ought to be asked to click an”I agree” button prior to order is finalized. Only refund to the identical credit card used as using the initial purchase.
02. Implement diagnostic controls for fraudulent charges —
Since the card is not present throughout the trade, online transactions have higher fraud risk. Here are a few methods to reduce this threat:
Require the security code on the back of the credit card so as to process payment.
Maintain a record of problematic clients and block transactions from these customers.
Limit the number of transactions by the exact same customer for a particular time period (e.g. hour, day, week).
Maintain good records.
Track communicating with clients, and document customer IP addresses.
Use an address verification service. This will match the cardholder’s address to the card prior to approving the purchase.
03.Customer service —
When a customer cannot find your information when there is a question or criticism, they can go straight for their credit card company to dispute the charge rather than contacting you first. Make your customer support contact information easy to find.
Make it visible on your website, include it using the shipped merchandise and also have it on all mails. Respond to your customers fast. This may encourage the client to call you together with the dispute before going to their charge card businesses, supply you with the chance to correct the problem, and can also supply for a good reputation for customer service.
04.Recurring transactions —
Recurring transactions are usually employed for subscriptions and are often times automatic. As soon as a customer cancels a subscription, then act immediately stopping the automated payment. This will avoid several chargebacks from the same customer.
05.Product not received —
A fee cannot be processed before products or services are provided. Using a delivery service which offers delivery confirmation will provide evidence of shipping. Here are ways to manage delivery scenarios which aren’t as straight forward:
06.Paying in Installments —
Make certain to disclose all terms of installment in composing and have customer accept those terms by using an”I agree” button. The first installment payment cannot be processed prior to the shipment of products.
07.Expedited delivery —
A payment could be processed prior to shipping when the sale is called”delayed delivery” in the terms nonetheless, you can’t process a deposit before shipping. Again, have the customer click an “I agree” button.
Top 3 Strategies to Respond to Chargebacks
When a chargeback does occur for any reason, follow the steps below to obtain a higher Prospect of successfully disputing the chargeback:
01.Respond into the dispute as soon as you get notification. If you don’t respond within the required interval, you are going to drop the wholesale plus any chargeback penalties.
02.Collect all documentation surrounding the sale, and give it to the credit card business. Including order confirmations, delivery notices, the client’s IP address and some correspondence with the customer.
03.Learn from each chargeback situation and react by setting up systems to protect against a similar occurrence.
Our experienced team has a wealth of experience helping merchants to better understand and mitigate chargebacks. Contact us today with questions regarding this topic or to set up a merchant account.
When merchants are looking for reliable payment processing for their eCommerce or retail businesses, there are some programs available through payment processing providers to help to lower your processing fees. Two of these programs are the so-called Merchant Account Cash Discount Program and Credit card Surcharge Fee programs. While negotiating a good rate is essential, the ability to defray and offset credit card cost with consumer participation is attractive to many merchants-to save BIG.
What is a Cash Discount?
A cash discount is when you post only credit card prices and provide a discount on that price for customers who pay with cash.
What is a Surcharge Fee?
A surcharge is when you post traditional “money” prices and charge another fee on top of that cost for clients who pay with a credit card account.
Cash Payment Discount vs. Credit Card Surcharge
In the situation of a cash discount, a client pays less than the listed price. In the case of applying surcharge fees, they pay more than the listed price.
If you charge more at the register than the listed price, it is a credit card surcharge fee, despite what processors may call it. Even if a merchant tells you that you are just adding a “service fee” or even a “non-cash adjustment” it is still a credit card surcharge fee.
While it may seem like a slight difference, it’s really very critical in terms of legality and compliance with Visa and MasterCard card brand rules. Getting it wrong means risking penalties or having your merchant account closed down.
Visa Rules for Cash Discounts and Credit Card Surcharge Fees
When asked about cash discounts, Visa advised people close to the payments community that a cash discount differs from a surcharge fee. The rule states the posted price must be for cards, nevertheless, merchants can provide a lower price for cash acceptance. Cash discounts are permitted by Visa. However, merchants are not permitted to post a price for cash, then charge a higher price for cards.
Visa clearly explains that a company that offers the cash discount is allowed, but that the posted cost must be for card acceptance. Businesses can provide a lower price from that posted (card) price as a cash discount.
Why do Visa’s Cash Discount / Surcharge Fee Rules Matter?
There are two reasons that the execution of a cash discount program matters: state law where surcharges are prohibited, and surcharge prohibition on debit cards.
States Where Credit Card Surcharging is Banned
To start with, while cash discounts in their true kind are permitted in all 50 states, a handful of states have legislation against credit card surcharge fee programs. Should you include surcharge fees in a state with a law against it, you are breaking the laws of that state. As of 2018, credit card surcharging is prohibited by law in Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, and Oklahoma.
Surcharge fee legislation has come under scrutiny in the last few decades, and many states have gone to court over the practice. State legislation where credit card surcharge fees are prohibited may change in the future, so be sure to consider this when looking into implementing cash discount programs. If you are adding a credit card surcharge fee into a debit transaction, even when you’re calling it a “non-cash adjustment” you’re risking your merchant account.
Repercussions of Credit Card Surcharging
The consequences of credit card surcharging fees or for implementing a cash discount program that’s disguised as a surcharge program, without complying with the surcharge fee rules could mean serious repercussions. Processors can get their merchant accounts shut down with the major card brands for non-compliance. Additionally, both Visa and Mastercard have forms on their sites that enable cardholders to readily report being charged a fee for card use.
For the sake of your merchant accounts and your wallet, be sure that you’re on the ideal side of legislation and the card brand regulations prior to credit card surcharging or signing up for a cash discount program.
Should You Implement a Cash Discount?
Implementing a genuine cash discount program seems like a no-brainer, but remember that to do so, you’ll need to list credit costs on the shelves. If you’ve already priced your goods and services to account for the cost of credit cards, implementing a cash discount program is simple. You won’t have to modify your shelf or menu pricing and may simply offer a discount on those costs to cash customers.
For many companies, there is no harm in offering a cash discount in case you have set prices to account for cards. It simply means that you are passing the credit card processing fee savings onto your customer. But be aware that some customers think that cash discounts or companies that favor cash may not correctly pay taxes, which may negatively impact the perception of your company.
By comparison, credit card surcharge fee programs add a commission at the time of checkout. Some surveys indicate the consumers react negatively to added fees, which means you may find more hesitation to implement a surcharge fees program than to a cash discount program. Additionally, surcharges cannot be added to debit cards, so be aware that you will still pay the costs related to processing debit cards.
That being said, credit card surcharge fees and cash discounts are not automatically bad ideas.
However, credit card surcharge programs disguised as cash discount programs may open you up to unwanted consequences. If you want to take advantage of a cash discount program to decrease your processing fees, be sure to partner with a processor that will help you properly execute it. Avoid processors peddling surcharge fees under the “cash discount” name.
Spotting a Credit Card Surcharge Program
The tricky issue is that many processors offering a “cash discount” programs are actually offering surcharge fee programs but labeling them as cash discount programs.
How can you tell if a processor is offering a genuine cash discount program, or whether it’s a credit card surcharge fee program in disguise?
Reference to a “non-cash adjustment” or “service charge.”
If a processor states that customers paying with credit cards will be given a non-cash adjustment or service fee once they check out, it’s a credit card surcharge fee program.
Explaining you’ll post “cash prices.”
Processors offering credit card surcharge fees can describe that your business will list “cash prices” on shelves and also will add a fee for clients that don’t pay with cash. If you’re not posting charge card costs and offering a cash discount, it is a surcharge program.
Taking a look at the very first sentence with the phrase “customer service” removed shows more clearly that it’s a surcharge program. The sentence would read, “This program enables merchants to charge a fee to their clients who pay with any form of payment aside from cash…”
Charging a fee for paying with a card is, by definition, a credit card surcharge fee. Claiming that it is a “customer service” fee doesn’t change that.
Consulting with a payment company like Paykings and (potentially) outside payments counsel with the requisite information is essential. To properly implement a compliant Cash-Discount program or Surcharging, it is essential to do it right first time-to save fees and to avoid negative consequences for Card Brand repercussions. Done correctly, and where allowed by law, is a huge money saving benefit to merchants.
Guide Requirements for getting a High Risk Merchant Account Approval for Your eCommerce Site
The eCommerce industry is growing faster than ever before, and with so many consumers turning to the internet for their buying needs, the most important element for running a successful eCommerce business is the ability to accept an array of credit cards as a form of payment.
When seeking a high risk merchant account and reliable payment processing for your online business, keep in mind that card brands require certain information to be featured prominently or to be easily accessed on your website if you want to accept their cards as a form of payment.
The information is required by merchants to help customers make an informed purchasing decision. It also helps provide businesses like yours a way to reduce chargebacks and customer complaints.
We’re here every step of the way if you have any questions. If a compliance specialist reaches out to you about any missing gaps in your website, this handy guide will help you address the gaps quickly and easily to ensure payment processing success for your high risk merchant account.
To help you get started, we’ve put together this website compliance guide to help you navigate these mandatory card brand requirements for eCommerce businesses. There may be other state or federal requirements that apply to the information shown on your business website. Remember too, that if you’re in a high risk industry, and need a high risk merchant account for your eCommerce business that these requirements are absolutely essential.
In order to start processing payments online, go through our checklist of requirements included below and verify that your eCommerce website meets these criteria. If at any point, your website does not meet the criteria, or if you’re in violation of any of our Terms of Service, then your payment processing provider reserves the right to deactivate payment processing abilities for your high risk merchant account.
eCommerce Checklist for Web Requirements to Maintain your High Risk Merchant Account
Showcase the Name of your Business (DBA)
List your Products or Services with prices and descriptions
Display your Return, Refund, and/or Cancellation Policy
Secure your Website’s Order Page
Ensure customers know your Country of Permanent Establishment
Show your Customer Service Address (no P.O. boxes)
Post your Customer Service Phone # or Email Address
Advise customers of Delivery Method and Timing
Illustrate your Card Brand Acceptance Marks
*The examples shown below will provide a visual element as to what your eCommerce business’s website must include to keep your high risk merchant account in tact and and in good working order.
Showcase the Name of Your Business (DBA)
The name of your business (DBA) must be clearly posted on your site. The Business Name on your website and the DBA listed on your application should very closely match to ensure your customers understand with whom they’re conducting business.
List Your Products or Services with Prices and Descriptions
Provide a clear description of the products and services you offer, display your pricing, and always show the currency mark. Full transparency is important in maintaining payment processing options for your high risk merchant account.
Display Your Return, Refund, and/or Cancellation Policy
This criteria can be met in one of 2 ways:
Show the full refund/return policy (not a link to a separate page) near the checkout/submit button.
Allow your customers a way to manually accept your return/refund policy at checkout.
Note: Failure to display your return/refund policy per the locational guidance (above) could prevent you from successfully disputing a customer chargeback, and a high ratio of chargebacks could result in you losing your high risk merchant account and payment processing abilities as a whole.
Secure Your Website Order Page
The page where your customers enter their payment information must be secure and encrypted. Fraud is another element that can result is you losing your high risk merchant account, so always ensure that fraudsters don’t have access to your customer’s sensitive information.
Include Your Country of Permanent Establishment
Many businesses operate in more than one state or in more than one country. Please show your Country of Permanent Establishment to ensure your customers have a clear understanding with whom they’re conducting business.
Please note, the card brands require that this information is shown on at least one of the pages leading to checkout. Oftentimes, this requirement is met by displaying the information in the website footer. High risk merchant account providers look to this aspect of your website as a sign of legitimacy.
Show Your Customer Service Contact Information
Display your customer service contact information including an address (no P.O. Boxes), and an email address or phone number. This information is generally displayed in the footer of most websites. It is important that your customers are able to easily access this information.
Again, when it comes to avoiding excessive chargebacks and potentially losing your high risk merchant account, providing good customer service is key – if consumers can reach you directly and easily, they are less likely to file a dispute with their credit card company.
Advise Customers of Delivery Method and Timing
Some companies offer different shipping methods such as expedited shipping, or separated shipments. Some do not. Your company’s shipment policy should be featured prominently and provide an accurate estimation of when your customers can expect to receive each product they purchase.
If a shipment will be separated, due to a product placed on back order for example, please make this clear in at least one of the pages leading to checkout. This way, customer expectations can be set appropriately.
When it comes down to it, choosing the most reliable high risk merchant account from a reputable high risk payment processor, like PayKings, is critical to your eCommerce business’s longevity and long-term success.
eCommerce retailers that are categorized as needing a high risk merchant account needs to be aware of the hurdles they might face on their journey to securing a payment processing company, but by following the steps laid out for you above, the journey to secure credit card payment processing will be a far less rocky one.
As it would be called by a millennial, a digital contract, or commonly referred to as an eContract, is a contract that a retailer sends to a buyer electronically, similar to those sent out using DocuSign; and you definitely should not miss out on the benefits of this service. Requiring that a buyer sign an eContract prior to releasing a product or offering a service can help clarify the service or product, boost your merchant chargeback security, specify your terms of repayment, and safeguard you from legal issues.
Utilizing eContracts will significantly better your odds of winning fraudulent chargeback claims, when the merchant would otherwise lose in these chargeback instances. In short, an electronic contract means that you’ve adequately explained, in clear terms, your goods or services in addition to the agreement terms – in this case, the customer will have no significant defense for a chargeback claim. That being said, make sure the eContract is constructed by you for the best defense against chargebacks.
In fact, eContracts can increase your probability of winning a chargeback dispute to nearly 90% rather than in the industry’s typical 30%.
The following is a guide to accurately executing a merchant eContract for buyer clarity and chargeback protection:
1. Explain the Purchase Process in Detail
Your eContract should describe, in depth, the specific price of the item or service including any fees, taxes, cost of shipping, or additional charges. The customer should understand what they are paying for and your charge card issuer should clearly make sense of your terms and regulations when moving through an eContract in the event of a chargeback dispute.
Narrowing down the buying process is essential because sometimes buyers claim an overcharge in a chargeback dispute and forget the expense of service or a particular product. Ensuring that the customer signs an eContract will give you an upper hand in a chargeback dispute.
2. Acquire Proof that the eContract reached the Client
That copy of your eContract is only helpful if the merchant receives it, goes through it, and signs it. There’s no question that the eContract software should record the contract time and date of the eSignature, as well as the IP address and the buyer’s signature.
This proof can help you win chargeback disputes against shoppers that claim not to have seen a copy of a receipt or the eContract.
3. State that the Credit Card type employed for a transaction in your eContract
An eContract must prominently display the card type (Visa, Discover, MasterCard, AmEx) together with its last four digits, expiration date, and CVV number. Doing so is helpful in identifying which card was used without revealing sensitive customer data, and may minimize the chances of you facing a “card not approved” chargeback dispute.
4. List your Full Refund Policy on the eContract
Even though you may fully disclose your refund policy on the company website, you still need to have it explained, at length, in your eContract. In the scenario of you adding it solely on your website, a customer can file a chargeback claiming to have never been informed of the refund policy. We have seen tens of thousands of retailers have to issue client refunds they shouldn’t have, due to illegitimate chargeback claims, simply for not prominently displaying the refund policy.
To be sure you aren’t forced to comply with unwarranted chargebacks, add your return policy on your site’s order page, but also have it shown on the electronic contract that a buyer signs. In the policy, mention the time limit, terms and conditions, and any restocking fees that will apply for a return.
All in all, successfully using eContracts can allow you to reduce your company’s chargeback rates by almost half.
It is estimated that 1.61 billion people worldwide purchased goods and services online in 2016, when international eCommerce sales accounted for 1.9 trillion US dollars, and has been projected that this amount will reach 4.06 trillion US dollars by 2020.
Payment Processing for eCommerce Retailers
It is a fact that online retailers in the eCommerce sector make being a consumer and purchasing goods and services so much more convenient. But it might be tough for these eCommerce merchants (especially for those that are high risk merchants) to be able to process and take debit and credit card payments.
Secure and reliable payment processing is the primary reason that eCommerce merchants should seek out the best high risk merchant account providers to do business with. The past several years have shown that many high risk merchant account providers (and low risk providers alike) are changing the way they do business and have upped their security measures to mitigating potentials for credit card fraud.
Among the reasons that finding the right high risk merchant account provider can be challenging has to do with which providers can perform the specific requirements and conditions needed for your business to get set up your merchant account.
eCommerce merchants are often faced with high rates and countless fees for things such as new account set up fee, equipment fee, and a new merchant gateway charge – these are only a few of the hidden fees that merchants may find with some payment processing providers, and this does not include monthly support fees, access fees, and more.
The Ideal High Risk Merchant Account with PayKings
Have you had enough of paying excessive fees to your current payment processing provider? Have you been dropped from an aggregate payment processing company like PayPal or Stripe and don’t know how to get started with a new company?
For those merchants that need a payment processing provider that is experienced, knowledgeable, experts in handling high risk merchant accounts for your eCommerce business or the like – PayKings has the best solutions for your specific business needs.
Choosing the most reliable high risk merchant account from a reputable high risk payment processor, like PayKings, is critical to your business’s longevity and long-term success. Retailers that are categorized as high risk merchants need to be aware of the hurdles they might face on their journey to securing a payment processing company.
When it comes down to it, a retailer with perfect credit, an A+ rating with the BBB, and virtually no client complaints can nevertheless be labeled as needing a high risk merchant account. PayKings, however, specializes in high risk merchant accounts and knows your specific industry standards and needs to offer you the best possible payment processing solutions.
PayKings offers a proven platform, a reliable payment gateway, service excellence, quick and painless application process, and the lowest possible rates in the industry. Reach out today for a quote – it’s free – and we can have your business up and running with accepting debit and credit card payments in a matter of hours.