Charge-Back Alerts - Protect Your Merchant Account With Charge-Back Alert Service
How will the Cuѕtоmеr Pау?
What Merchant Account are you looking for - When Customers will buy goods on your websites in a Card Not Present Scenario (This is commonly referred to be E-Commerce as the Customer is not physically present when the transaction takes place). Another Card is not present transaction scenario is where a transaction is taken over the telephone and keyed into a Virtual Terminal. This is referred to as a MOTO transaction. Other businesses may need to accept E-check or ACH processing.
Other Merchants will also look for third-party processing or alternative forms of payment such as an E-wallet. The most important point is to really consider which payment methods will suit your customers the most appropriate.
Any financial projections have a direct influence on the rate and terms that you will be offered during your search for a Merchant Account. Smaller businesses may be charged high fees due to the size of volume so it is important to find a provider that does not discriminate in this sense and values your business for what it is. You will need to understand how to manage monthly sales, volumes, increases, and such and indeed how fluctuations affect your merchant accounts.
It is very important to be aware of the security protocols in place set by the Payment card Industry(PCI) Data Security Standard, referred to as PCI DSS. Interestingly PCI DSS originally began as five separate programs operated by the different card schemes (Visa Card Information Security Program, MasterCard Site Data Protection, American Express Data Security Operating Policy, Discover Information & Compliance & the JCB Data Security Program).
The Council was formed on 15th December 2004 in order to ensure that all Merchants meet minimum levels of security when they store, process and send card holder Data. Along with PCI DSS - Merchant should consider Fraud Screening & Be Scrubbing feature provides by their Acquires, Gateway PSP's or Third Party Merchant Account Providers in order to protect their Business from Fraud, Charge-back & other items.
Preferably any package offered would include tools to help in early identification and indeed prevention of fraud.
Merchant Discount Rates (also known as Processing Fees) are costly and a drain on your resource, there is no way of getting around that. However, fees can vary wildly - depending on the sector of business you are in. High-Risk Merchant Accounts is often very expensive as the Acquiring Banks have to take into account what of known as the Risk Factor.
For example, if you are shipping Goods - there is a Risk of Non or Late Delivery which can then lead to Charge-backs or even non-tangible goods such as online advertising or similar where you can also be the risk of Charge-back. The lower the fee the better for you.
It is important to find a transparent provider & make sure you have the facts and figures down in writing before you begin. Ensure you understand all associated rates, fees, transaction fees and any other hidden costs such as Charge-back costs and additional costs for going into the Charge-back Program, Retrieval Request fees etc. If the Merchant Account Provider quotes you a price based on tiers - ensure you ask for a clear breakdown of exactly what this is based on.
A Charge-Back is when money is returned to the Customers because something has gone wrong with the transaction. Well-known cards brand has sets of Reason Codes for Charge-back to cover the reason for the Charge-back - such as Reason Code 30(card name) services/Merchandise not received.
It is very important to provide information and documentation to fight or contest Charge-backs to prove that the card holder received the services or merchandise - or the information about the Reason Code that you receive. If your Business Model is likely to have a large number of Charge-backs then you are most likely to be classed as a High-Risk Merchant. Well-known cards brands have a ratio of Charge-backs acceptable to a Merchant(CNP).
There are Charge-back Programs for Merchants with Excessive Charge-back with associated costs, fees and fines. The merchant with very high Charge-backs could also find their account terminated and on the Match Program so they need to be taken very seriously.
You need to make sure that the Company you are considering has a dedicated Customer and Technical Support & Staff. E-Commerce processing is a business 24-hour, If your Customers can not make payments on your site then you will be losing money. This is not a 9 to 5 business. Ensure that you have all access to necessary information and technical support to keep your business running smoothly and to be able to resolve any issues that arise as soon as possible.
Applications can often take weeks to go through the Acquiring Banks. Know Your Customers and the Business Model first must be taken into consideration. Then the Business Plan & Processing History will be thoroughly reviewed along with other documentation and required items. The Application then goes to Credit and Risk and the underwriting department before you receive an offer or rejection. It is important to show any information during the submission of your application.