Merchant Account Blog & Credit Card Processing Blog

Welcome back!

High risk merchant accounts are an alternative you merchants who have been declined for credit card processing or that have been closed by their previous merchant account provider. High risk business owners may include certain business types, such as the travel industry which is noted for a high ratio of chargebacks, when compared to other business types. Another factor could be the past processing history of a particular business, which may include chargeback issues or questionable practices. Last a business owners lack of credit could also cause them issues.

We are currently sending all merchant account declines to www.risk-iso.com to apply for a High Risk Merchant Account. There experience and knowledge in the high risk merchant account arrena is vast and their ability to get merchants approved is impressive. They have several bank relationships both domestic and offshore, with several options for merchants to choose from.

If you are experiencing problems & looking for high risk merchant accounts, please feel free to call me with your questions. We are here to help and can usually put you on the right track.

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

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Intabill Closes It’s Doors - High Risk Merchant’s In A Panic

High risk merchant account provider, Intabill seems to have closed it’s doors.We received several phone calls today from merchants processing with Intabill who were in a complete panic. Merchants are concerned with Rolling Reserve Accounts, on hold by Intabill and not clear as to their futures.

Upon hearing the news, I immediately went to the Intabill Website, only to find the website shut down. We were aware of pending law suits against the company but were shocked to hear the news of the Intabill Implosion.

After the dust settled, we learned that existing merchants were thrown a life-line by a company called Payovation, who purchased the assets of Intabill. In a press release the new company stated, “A Payovation representative will be in touch with you in the coming days to answer any questions”.  Seems the company will attempt to keep Intabill customers, by offering a similar service.

If you have any questions on obtaining a High Risk Merchant Account, please give me a call to discuss more stable solutions, both onshore  and offshore.

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

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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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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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Credit Ratings & Merchant Account Approval

People sometimes do not understand why their credit rating is a factor that underwriters look at when approving a new merchant account application. Many times credit card processors will “Decline” a merchant soley based on their credit score.

Why The Credit Factor Is Important

Business owners must realize that appling for a merchant account, is like appling for a credit line. The projected “Monthly Volume” stated on a new merchant account application, is the amount of “Risk” the merchant’s processor is willing to accept. If you are asking for $20,000 in Monthly Volume and your credit scores are “Very Poor”, you may be declined an approval on your merchant account.

Understanding The Risk - In Credit Card Processing

Understanding the “Risk” in credit card processing should be understood by every new merchant. Accepting credit cards is not like accepting cash, as every cardholder has the right to call their credit card company and potentially get a charge “Reversed” in a “Chargeback”.

The risk for the bank is that the merchant may not have those “Reversed Funds” immediately available to complete the chargeback process. In this case, the merchant bank must cover the chargeback and then come after the merchant for the “Money Owed”.

This is why the financial responsibility is so important !!!!!!!

In closing every merchant application is on a case-by-case basis, with many other factors that are considered. If you have “Poor Credit” and need help in getting a merchant account, please 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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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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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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Saving Money On Your Merchant Account Fee’s !!!!!!!!!!

Saving money on your merchant account & credit card processing fee’s has never been more simple. We have put together a program to save you hundreds, if not thousands of dollars in fees, depending on your current monthly volume. Perfect solution for any business owner looking to cut cost’s.

INTERCHANGE PLUS PRICING - Start Saving Today !!!!!

In the past, this program has been reserved for High Volume Chains, such as Wal-Mart or McDonalds. We have opened the flood gates for any business size to profit from the savings. For those of you who are not familiar with the term “Interchange”, interchange is the cost passed on by Visa & Mastercard which accounts for the majority of your transaction cost’s. Interchange consists of several hundred catagorys which any transaction could fall under. Here and links to the most recent Interchange Schedule’s for Visa and Mastercard, as you will see this is quite complicated.

To simplify matters, most merchant account’s are on a “Tiered System”, consisting of Qualified, Non-Qualified, and maybe Mid-Qualified rate. These tier’s cover any downgrades by Visa or Mastercard in which certain transactions may fall. This simplifies “Interchange”, but alway’s cost’s more in credit card processing fee’s to a merchant on the Tiered System.

BOTTOM LINE - SAVING MONEY LIKE THE BIG BOY’S !!!!!!

We are now offering “Interchange Plus Pricing” to merchants of any size. Previously reserved for large corporations, this pricing schedule will saving you money on your credit card processing fee’s and is available to any merchant account, regardless of size.

Call us immediately for a cost analysis and began saving like the big boy’s.

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Merchant accounts processing with 1st National Processing can put there fears aside with becomming PCI Compliant with the complicated standards recently set-forth by Visa & Mastercard. We have simplified the process, making it quite simple for our merchants who process with us.

First, we have painless online survey which will walk you through each step of completing your Self Assessment Questionaire, required for PCI Compliance. Once the “SAQ” is completed, you will receive an email if you need to perform a “Quarterly PCI Scan” of your website or network. You will then receive instructions by mail for performing any required PCI Scans.

Lastly, if you are required to perform PCI Scans the cost is included in our Annual PCI Compliance Fee of only $30.00. This minimal fee is cheap when compared to other processors, who charge $79-$99 and expect you to become PCI Compliant on your own.

If you are looking for more information on PCI Compliance, here’s a great 10 Minute Video that will educate you on the subject.

1st National Processing Customers can begin the PCI Compliance Process by clicking here.

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

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