Merchant Account Blog & Credit Card Processing Blog

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 Offshore Merchant Account For High Risk Merchants

Offshore merchant accounts may be the last resort for many business types that are deemed “High Risk” by most card processors. These business types have a history of a higher than acceptable chargeback issues and are unacceptable by most credit card processors. An offshore merchant account  is probally the only solution. These business types include, but are not limited to:

ONLINE PHARMACY
TOBACCO SALES
ONLINE GAMBLING
ADULT CONTENT

This partial list shows the most diffecult business types, but there are many other types which would fall under the “High Risk Catagory”. Again these are pretty much “Untouchable” by most credit card processors.

These merchants are forced to seek an Offshore Merchant Account that specializes in high risk merchants. Rates are typically much higher to justify the high risk nature of the business. Rates can range from 8% - 12% and can be a very expensive proposition, but an necessary evil if credit card acceptence is necessary.

You may not need a High Risk merchant Account, so the best advise would be to call me to see if you would qualify for a traditional merchant account. This could save you thousands.

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Credit Card Mahines At Wholesale Prices

Found a new website offereing credit card machines at fantastic prices to the public. Both new and refurbished credit card machines are available. Great opportunity for existing merchants replacing a terminal or new merchants looking to accept credit cards.

They also offer credit card machines for mobile merchants looking for a wireless terminal. These will process credit cards virtually anywhere a signsl is available. The benefit would be to actually swipe a customers card and give the customer a receipt, on the spot.

Company also provides credit card printers, contactless readers, and electronic check readers.

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High Risk Credit Card Processing

High risk credit card processing is a solution for certain business types that are deemed high risk by the industry and often declined for processing by most processors. Typically these business types have proven over time to produce a high average of “Chargeback” and present a high risk of default to the merchant bank. Below are some examples:

* TRAVEL RELATED BUSINESS
* ADULT WEBSITES
* BAIL BONDS BUSINESS

Another problem is a business that is either illegal or perceived to be illegal:

* ONLINE GAMBLING
* ONLINE PHARMACY
* ONLINE TOBACCO SALES
* ONLINE GUN SALES

Every high risk business type has it’s own variables. Certain banks may be willing to accept some of these accounts, but most would not. A merchant would need to have many favorable items to be considered and have a chance of approval. These are some points to be considered.

* CREDIT RATING OF THE PRINCIPAL
* CURRENT PROCESSING HISTORY ( NO CHARGEBACKS )
* FINANCIAL STRENGHTH OF THE MERCHANT

These are just a few things to consider when seeking ”HIGH RISK CREDIT CARD PROCESSING“. We may have a solution for your business, so if you would like to discuss your possibilities, please feel free to give me a call. We look forward to speaking with you.

MARK SANDS
1st National Processing
http://www.usa-merchantaccount.com
1-866 828-8683

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Merchant Processing - No Start-Up Costs !!!!!!!!!

Merchant processing has never been more simpler and affordable, as banks are competing for your business. With many merchant processors offering low rates to win-over your business from other processors, the competition among banks is creating the perfect enviorment for business owners to save big.

Depending on your current monthly credit card processing volume, your saving can be substantial. especially if your merchant account is several years old and you have not shopped rates since you opened your merchant account.

Another key factor to consider is that many processors will waive certain fees to gain your merchant processing business and get you to switch. This can be an additional saving’s for the business owner. These fee’s may include statement fees, annual fee’s, and monthly minimum fees.

Lastly, in recent years many banks are offering FREE TERMINALS to encourage you to switch processors. This is a great way to up-grade your equipment at no cost. Many merchants are using out dated equipment for their merchant processing & probably paid several hundred dollars to purchase it. Another great savings.

If you are looking for Merchant Processing or are looking to save money on your current merchant processing costs…please feel free to give me a call for a free savings quote.

MARK SANDS
1st National Processing
http://www.usa-merchantaccount.com
1-866 828-8683

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MARK SANDS
1st National Processing
http://www.usa-merchantaccount.com
1-866 828-8683

If you enjoyed this post, make sure you subscribe to my RSS feed!

VISA MASTERCARD INTERCHANGE INCREASE

Visa Changes ( April 2009 )

Commercial Cards
Visa is making two adjustments that will affect U.S. transactions processed under all three commercial products:

• The Level II data incentive interchange rate will be increased.
• The Standard interchange rate will be increased.

Additionally, Visa is making adjustments specific to Visa Corporate and Visa Purchasing products:

• For Visa Corporate products, Visa is reducing the Retail interchange rate and increasing the Electronic interchange rate.
• For Visa Purchasing products, Visa is increasing the Retail interchange rate, the Card Not Present interchange rate, and the Electronic interchange rate.

Changes for GSA Purchasing Card Transactions
Visa will allow GSA Purchasing Card and GSA Fleet Card transactions accepted at Non T&E* Merchant locations to be eligible for the Level 3 Interchange Rate program

• Transactions must meet the existing level 3 rate criteria to qualify
  • There are no changes to the existing Level 3 data requirements
• Today the best rate is Level 2

*T&E MCCs include: 3000-3999, 4112, 4411, 4511, 4722, 5812, 5814, 7011, and 7512

Visa will increase the existing GSA Large Ticket Rate for GSA Purchasing Card.

• Visa will delete the minimum transaction amount of $5000 and will delete the GSA Large Ticket I rate program

New Debt Repayment Fee Program

• Visa is introducing a new interchange fee program and rate for domestic debt repayment transactions
• Only transactions for collectible consumer debt on auto loans, credit card payment, mortgage payments, and student loans are allowed
• Only domestic consumer debit card transactions from the following MCC’s are eligible
  • 6012 —Financial institutions–merchandise and services
  • 6051 —Nonfinancial institutions–foreign currency, money orders (not wire transfer), and travelers cheques

New CPS/Debit Tax Payment Fee

• In the October 2002 business release, Visa announced a pilot program for U.S. federal, state, and real estate property tax payments which is scheduled to end in October 2008
• With the expiration of the tax pilot, Visa will implement a new interchange rate program for Visa consumer debit card transactions submitted by acquirers from a participating tax authority or third-party service provider accepting payments on behalf of the tax authority

MasterCard Changes ( April 2009 )

Consumer Bill Payment
Consumer Bill Payment

• Utility Rate Program Changes
  • MasterCard will no longer require the “U” code to qualify for Utility Interchange nor are they requiring registration
  • Utility (MCC 4900) consumer card qualified sales will only be eligible for the Utility Interchange rate program(s)
• MasterCard will no longer allow the Merit 3 or Service Industries break-even
• Service Industries Rate Program Changes
  • MasterCard is removing the following Merchant Categories as eligible MCCs to qualify for the Service Industries program (SIP)
• 4812 (Telecommunication Equipment/Sales)
• 5960 (Insurance - Direct Marketing)
• 6300 (Insurance Sales, Underwriting, and Premiums)
• UCAF (Full and Merchant), Merit III and Merit I Debit Program Changes
  • MasterCard is removing the following Insurance merchant categories as eligible for the UCAF (Full and Merchant), Merit I, and Merit III Consumer Debit interchange programs
• 5960 (Insurance - Direct Marketing)
• 6300 (Insurance Sales, Underwriting, and Premiums)
• MasterCard will no longer allow Real Estate (MCC 6513) to qualify for Merit III (Base) and Merchant UCAF Consumer Debit Rate programs

Chargebacks

Revised Standards for the Quick Payment Service Program

• MasterCard is requiring all QPS merchants, regardless of Merchant Category Code, to obtain full authorization in order to be chargeback protected
• The following MCC’s that previously received chargeback protection with no authorization required, will have to obtain full authorizations
  • 5814 (Fast Food Restaurants)
  • 7832 (Motion Picture Theaters)
  • 7523 (Automobile Parking Lots and Garages)

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Mastercard Grows Business On The Debit Side

NEW YORK (Reuters) - MasterCard Inc (MA), the world’s second-largest credit-card network, will launch a debit card with U.S. regional bank KeyBank on Wednesday, in MasterCard’s latest bid to tap demand for payment systems that do not involve borrowing.

“Debit remains a priority for us,” Patricia Preston, senior vice president of U.S. debit product management and development of MasterCard Worldwide, told Reuters in an interview.

The World Debit MasterCard will offer rewards, discounts, and savings in an effort to attract customers.

Cleveland-based KeyBank, a unit of KeyCorp (KEY), will be the first of many partners the credit card network expects to adopt the new debit card.

KeyBank plans to issue 25,000 of the cards by the end of March, and 60,000 by the end of the first year, said Carl Stauffeneger, senior consumer product manager of KeyBank.

He added the bank, with almost 1,000 branches in 14 states, was targeting clients with an annual debit spend of around $7,500.

MasterCard said it expected to promote the new debit card in the United States before exporting it to other countries, but declined to give further details.

The company prospered in recent years as fast-spending consumers used their credit cards more. But with many Americans trying to curb their borrowing, the use of debit cards is likely to increase as consumers stick to stricter budgets.

In the United States, credit transactions represent 60 percent of the gross dollar volume of MasterCard, while debit cards make up the rest. But debit cards volume grew 13 percent last year in the United States, while credit cards shrank 2 percent.

In contrast, rival Visa has a bigger presence in the debit business in the United States, with 53 percent of Visa’s total volume in debit cards, and 47 percent in credit cards.

MasterCard has 126 million debit cards in use in the United States, while Visa has 314 million debit cards.

(Reporting by Juan Lagorio, editing by Matthew Lewis)

MARK SANDS
1st National Processing
http://www.usa-merchantaccount.com
1-866 828-8683

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Gas Station Owners - Save Money At The Pumps

Gas station owners should be feeling the lower cost of pay at the pump transactions, with the decrease in interchange cost passed on by Visa last fall. Visa lowered the interchange pass-through at the hieght of the gas crisis last fall. This savings at pay at pumps stations was hoped to be passed on to the consumer.

We are finding that many gas staion owners who are not on a Interchange Plus plan with their merchant account provider, have not seen any savings. These merchant’s are on a Teired Rate plan and the savings is being lost to their merchant account provider.

Owners should look to switch their gas station merchant account to an Interchange Plus merchant account to maximize overall savings on cost. With many business travelers utilizing the pay at pumps, the savings could be signifigant. The higher your sales volume, the higher the savings.

For more information on saving money on credit card processing, please feel free to give me a call to discuss your options.

MARK SANDS
1st National Processing
http://www.usa-merchantaccount.com
1-866 828-8683

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Obama Nationalizing US Bank Fears Investors

Wall Street is getting hammered today with bank stocks leading the way south. Industry giants like Bank America ( BA ) and Citi Bank ( C ) are trading like “Penny Stock’s”. Fears over President Obama’s plans for both the Banking Industry and the Real Estate Market are whewing on investors hopes for any kind of recovery. Treasury Secretary Tim Geithner needs to take some action to claim the market. 

Market levels have broken levels set back in 1997 with the S&P Index approaching a dangerous level, set back in November. Rumors that the Obama Administration may loosen “Mark-To-Market” accounting rules over the weekend, may cause a major turnaround on Monday, but no one seems to be betting on this President nor his cabinet at the moment.

Ken Lewis, President of Bank Of America stated again this afternoon that, “Nationalization” of Bank of America makes absolutely “No Sense” !!!! This is echoed by the price-action on Wall Street today, screaming to President Obama, this would be a mistake.

All eyes will be on the Obama Administration over the weekend.

MARK SANDS
1st National Processing
http://www.usa-merchantaccount.com
1-866 828-8683

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CNBC’S RICK SANTELLI SENDS OBAMA A MESSAGE

Rick Santelli of CNBC Fame made it clear to the country where people stand on the Obama Housing Rescue Plan this morning on the floor of the Chicago Mercantile Exchange, in Chicago.

Opponents of the plan fear that President Obama is “Ni Eve” and “In-Experienced” in thinking that cramming our grandchildren with debt to rescue over-extended homeowners is good for this country.

Where is the sanity ?????? 

Obama Will Destroy The Banking System With This Plan !!!!! 

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