Do You Really Know What A Dedicated Merchant Account Is?

QuadraPay Brings To You Feature Rich Dedicated Merchant Account Solutions.

Businesses in various regions like Apac, EU and North America can now use our Dedicated Merchant Account Solution. This provides a massive range of benefits to merchants. Before we discuss the benefits, let us first understand what exactly is a dedicated merchant account.

Here is the definition. A Dedicated Merchant Account is created especially for the applicant merchant by the acquiring institution.

The Merchant gets access to all the features and benefits of the solution. This solution offers the ability to add new payment methods to the system. If the acquiring bank provides the ability to add other connectors, then the Merchant may add APMs. The Dedicated account also provides a more transparent control than an aggregated merchant account. Merchants get the ability to switch on and switch various filters.

Application Process Of Dedicated Merchant Account

Merchants are supposed to send a filled application form with KYC documents. Since it is a dedicated solution, the requirements of KYC documents may be a little more. We advise applicants to provide copies of all the relevant KYC documents asked by the acquiring bank. If the KYC copies are delivered together, the chances are that the account will be approved quickly.

Underwriting Process For Dedicated Merchant Account.

When applying for a dedicated solution, merchants may have to wait for a couple of days. The compliance team can also request the merchant for additional documents since the account offers more considerable control, so underwriting is strict. The underwriters check for merchant credit worthiness, reputation, past businesses, political exposure, industry type, credit risk, and other factors.

Setup Time Frame. How Long Does It Take To Get Approved For A Dedicated Payment Solution

A dedicated merchant account involves more risk, and that is why merchants may have to wait for a couple of days to be approved. The underwriting team looks at multiple factors that include credit risk and reputation risk. The compliance team may ask the Merchant to make modifications to the website, and the website must comply with the requirements of Card Schemes and Acquiring banks. Most of the time, merchants from High-Risk Industries cannot get a dedicated merchant account, and high-risk merchant can try to apply with offshore payment processors.

Settlements Terms For Dedicated Solution

With a Dedicated Merchant Account, funds are settled faster to the merchants business bank account. To reduce the risk factor, sometimes processing companies may delay(arrear) in settlement (on a case to case basis). The processing company mentions all the terms related to arrears on the merchant account agreement or the term sheet.

The rate of the transaction – The MDR/TDR.

Business owners can negotiate with the processors to get better rates. Rates may vary depending on the industry, Sales Volume, Average Ticket Size, and merchants with good processing history can expect better rates. Some may even qualify for Interchange ++ Pricing. Others may have to accept fixed pricing.

Full Control

With the dedicated merchant account, the business owner will have more control over the solution. Merchant will be better positioned to manage the performance and take measures like maintaining a low chargeback ratio.

Integration Process – Connecting Gateway to Merchants Website.

No matter what kind of account it is, the service provider will help you with the API information. The API documentation can be utilized to integrate the payment processing solutions to the business website. Some processors may have ready-made payment gateway plugins.

Risk factors and Risk Mitigation.

The Merchant is 100% responsible for the solutions usage, and nobody else uses this account. This ensures that the Merchant is in a better position to use it for a long time.