Merchant Account Blog & Credit Card Processing Blog

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Understanding The High Risk Merchant Account

Certain types of businesses are deemed “High Risk” by the card associations. These business types are for one reason or another, deemed undesirable and are very hard to get approved, if not impossible is some cases. The major reason’s are usually the particular industry has a High Track Record of Chargebacks or the Legality or Morality of That Industry, may be in question.

In any case, a high risk merchant account should be explored, if you’ve been Turned Down as a high risk merchant. Many times, just becuase one credit card processor has told you that you are “High Risk”, doesn’t mean that another credit card processor would not Assume That Risk. Another source may be an off-shore solution or third-party solution. 

Merchant should consult someone who specializes in these types of accounts, before taking a “Shot Gun” approach and applying with several credit card processors. These failed attempts can be seen by the next company and are have a “Negative Impact” on getting you approved.

We May Be Able To Place: 

• Adult Sites & Products
• Auto Rental
• Bail Bonds
• Buying Clubs
• Casinos/Gaming/Sportsbook/Lotteries
• Cellular Contracts
• Check Cashing Services
• Coin Shops
• Collection Agencies
• Computer Sales “Online”
• Contractors “High Ticket”
• Detective Agencies
• Door-To-Door Sales
• Downloads Of Software
• Escort Services & Massage Parlor
• Fireworks
• Gun Shops
• Hair Restoration
• High Ticket / High Volume
• Horoscope / Fortune Tellers
• Infomercials
• Insurance Products
• Investment Opportunities
• Jewelry “High Ticket”
• Kiosk / Flea Market
• Mortgage Services
• Multi-Level Marketing MLM
• Outbound Telemarketing
• Online Pharmacy
• Pawn Shops
• Seminars
• Ticket Sales
• Time Share Sales
• Travel Industry
• Used Cars
• Water Purifiers
• Weight Loss Products

We look at each business type on a case by case basis, taking into account many different variables. Once we have found an outsourced solution, we will gather all your paperwork for underwriting and submit it for approval.

Some Potenial Requirements For Approval:

• High Risk App Fee $295 - $795  ( After Approval )
• Rates From 2.35% - 5.99%
• Possible Rolling Reserve Account
• Financial Statements May Be Required
• Supporting Statements From Principals
• Business License & Articles of Incorporation
• Marketing Material…ie Price List, Brochure, Website, Script, ect
• Site Inspection May Be Required

Feel free to call me if you need help in getting a high risk merchant account placed.

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

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Consumer Credit Line Cutting Has Begun !!!!!!

Starting last December, credit card companies have begun to cut credit card limits on consumer credit cards. The cut backs seem to be across the board for all consumers, as even cardholders with +700 credit ratings are feeling the pinch. In an effort to reduce their risk, credit card companies will put a strange on the average business owner, by not only cutting their credit lines, but reduce the buying power of consumers and other business owners, as well.

These actions are sure to increase the pain of the current recession, by snowballing the slowing spending on both the consumer side and the business investment side. As spending slow’s, more jobs will be cut, more mortgages in default, and more folks seeking the social safety nets of welfare.

We firmly believe that things will get worse, before they get better.

Today, we had a new President sworn in, as the 44th President of the United States. We’ve handed the reins to a social idealist, with many Anti-Capitalistic Idea’s in his heart.

Not sure if this is a time for social change, when financial growth is the crisis that will destroy the well-being of every American.

SOCIAL CHANGE ??????  FINANCIAL CRISIS ??????

God Bless America !!!!!!       DIGG THIS NOW !!!!!!

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

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Free Credit Card Processing Software DownloadWe have partnered with the eProcessing Network to make an amazing offer to all new applicant’s looking to process credit cards, using pc software for their credit card processing. Merchant’s signing up for a merchant account with us can choose to download free credit card processing software. This amazing offer is for a limited time, so please act fast !!!!!

EPN’s JPOS SOFTWARE:

This Java-Based software, JPOS SOFTWARE,  will download quickly on any Mac or PC. Set-up is a snap, usually within ten minutes. With the new “Credit Card Terminal” interface, learning the software is quick and easy. Merchant can swipe or key-in credit card information and the transaction is processed via the eProcessing Networks Secure Network. Internet based transactions are processed faster than dial-up and merchants can rest assured that customer data is safe & secure.

Compared With PC CHARGE:

JPOS Credit Card Processing Software has all of the same benefits as PC Charge, accept the $179 Price Tag.

Other major benefits would be:

• FREE DOWNLOAD
• FREE TECH SUPPORT ( Lifetime )
• FREE UPGRADES  ( Never Charged For Upgrades

Anyone familaiar with PC Chargeknows that Tech Support is free for only 30 days. Then you must sign-up for paid support, with no acceptions. Secondly, anytime security changes are made, PC Charge forces you to pay for the software upgrades. These are key factors that set this credit card software apart from the rest. Set-up your merchant account today and dowload JPOS today !!!!

Retail Merchants - Credit Card Software

Retail merchants can add a magnetic stripe reader, to process credit cards at the point-of-sale. Simply connect the USB Cable in the computer where the program resides and you are ready to process retail transactions. Printers can be added to print customer receipts. Value added programs, such as food stamps, gift cards, ect, can also be added.

Phone Order Merchants - Credit Card SoftwarePhone order merchants can also utilize the software, by simply entering in the card data and processing from their computer desktop. Software offers all key fraud solutions, such as AVS Address Verification and CVV2 fraud solutions. Merchants can also set-up “Instant Email Receipts” to their customers.

For more information, please don’t hesitate to call.

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

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Understanding Your Merchant Account Responsibities !!!!

If you are shopping for a new merchant account, you need to understand what you are getting into. Many times business owners are in a rush to set-up credit card processing for their business, they overlook the fact that they are entering into a contract that has many responsibilities and rules to abide by.

Many times merchants will find out the hard way, by being fined or getting their merchant account shut down. In some instances, merchants are “TMF’d” which means they lose their privilege to accept credit cards in the future. It surely make more sense to understand your responsibilities and model your business to conform with the rules set-forth by Visa and Mastercard.

Accepting Credit Cards - A Privilege:

Understand that being accepted to accept credit cards is a privilege, not your right !!!! Should you take this lightly, you could find yourself losing this privilege, permanently. That’s right, permanently !!!! You could personally be banned from ever accepting credit cards, for any business endeavor in the future. 

Unhappy Customers Can Destroy You:

An unhappy customer can create havoc on your business. Credit card holder’s have the right to call their credit card company and dispute a transaction on their credit card. These disputes have the potential of becoming a “Chargeback” to your business. A chargeback is simply a reversal of the charge, from your bank account, back to the customers card. These reversals come with very stiff fines to the business owner and could get your account terminated. Here some key points to avoiding chargebacks.

• Offer A Superior Product Or Service
• Quickly Resolve Customer Service Issues
• 100% Unconditional Return Policy
• Toll Free Customer Support
• Maintain Signatures + Shipping Records

Exceeding Volume Limit’s:

Every merchant account agreement has an “Average Monthly Volume” amount for Visa & Matercard. During your approval process, this amount is underwritten by the processor and is usually based on the credit scores of the merchant. If you are approved for that amount, you must process within the limit.

Should the limit become an issue, you must call in to ask that it be re-evaluated by the underwriting department. If your credit scores are too low, you may not get an increase.

If you simply ignore this limit, at some point your account will be shut-off.

Exceeding Ticket Limit’s:

Every merchant account agreement has an “Average Ticket” amount for Visa & Mastercard. Again, during the approval process, this amount is underwritten based on your credit scores. From an underwriting stand point, the higher the ticket, the higher the risk. If your account is approved for a certain ticket amount, you must process within that limit. Occasional “High Tickets” should be disclosed on the application, prior to underwriting. Contacting your “Risk Department”, prior to running high tickets is advised.

If you simply ignore this limit, your account could be terminated.

Honor All Cards:

Every merchant account agreement has a “Honor All Cards” Claus. This means as a Visa / Mastercard Merchant, you are bound to honor every credit card transaction presented to your business. That tiny sign at your local diner that states, “$10 Credit Card Minimum” is in direct violation of the terms of the merchant account agreement.

You cannot charge a “Surcharge” on credit card transactions either, this would also be in violation of the merchant agreemnet, as well.

Reserve Account:At any time, at the sole discretion of the bank, the bank has the right to place funds on hold in a non-interest barring reserve account. Reserve account is to protect the bank from future losses due to fines, chargebacks, ect that may come through your merchant account. Hold time-frame will be determined by the bank and is usually for long enough time period to cover future customer chargebacks.

In Conclusion:

As you can see, “Your Privilege” to accept Visa & Mastercard comes with many duties and responsibilities. Failure to comply, could prove to be very costly and cause your account to get “Terminated” and potentially lose your credit card processing privilege in future business endeavours. Play it safe, understand the rules and play by them.

If you have any questions, please feel free to give me a call.

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

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Understanding Different Merchant Account Types

Today we are going to discuss different types of merchant accounts for credit card processing. Their are different methoods of payments, such as face-to-face retail sales, telephone orders, fax orders, ecommerce orders, and wireless point-of-sale transactions. We will discuss each transaction type in detail below.

RETAIL - Face To Face / Swiped Card Transactions

We are all familiar with making a credit card purchase at a retail location, where our credit card is physically swiped through a credit card machine. Card information is transmitted via phone-line or tcp/ip internet connection. Card is authorized and the transaction is approved or declined. Customer signature is required and maintained by the merchant for future reference.

These transaction types receive the Best Rate for the merchant, as the card is present and signatures are verified at the point-of-sale.

KEYED - Telephone Order / Fax Order

A “Keyed” credit card merchant account is for businesses that take’s credit cards from customers who are not present to swipe through a credit card machine. Customers card information is manually keyed into a credit card machine, credit card processing software, or online virtual terminal. Card data is transmitted and verified, including customer address, zip code, and cvv2 information.

These transactions are of higher risk of fraud and typically cost slightly more in fee’s.

E-COMMERCE - Internet Sales / Order Entry

Ecommerce transactions are originated on the interent. Going to an online store, adding things to a shopping cart, and finally clicking “Check-Out”. The customer enter’s in the card information, address information, and the cvv2 code from the back of the card. Information is securely passed and authorized in real-time. Merchants as a rule, never see the customerrs card number for added security.

These transactions are of higher risk of fraud and typically cost slightly more in fee’s.

WIRELESS - Mobile Merchant / Off-Site Sales

Lastly we have a Wireless Merchant Account, where the merchant processes credit cards using a wireless point-of-sale device. Credit cards are swiped through the terminal and data is passed through a wireless signal, which is enqripted for security purposes. Transaction is approved or declined and a signature is required on the receipt. These devices are also becomming popular at restaurant settings, where the device is handed to the customer and the card never leaves the customers hand.

These transactions are considered “Retail”, as the card is present and swiped through a machine.

If you have any questions, please feel free to give me a call.

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

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