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Every merchant account reseller wants to make maximum profit by selling a maximum number of accounts. No matter if you are reselling a dedicated merchant account or aggregated merchant account you need leads. This is pretty much fare but one must follow the best practices in the industry which are safe and secure.

We are in the business of reselling us high risk payment gateways. As per our experience we do not recommend buying leads from different leads providers. We avoid to buy merchant account leads because of multiple reasons. Here we are mentioning few of them.

Lead Acquisition Strategy Or Lead Source

When you buy leads from different leads vendors you are not sure how these leads are being acquired. What if the vendor is making unwanted phone calls to people. What if they are sending unwanted emails to Merchant. In both the scenario it can attract a serious penalty to the lead vendor and the purchaser.

Quality Of Lead

Lead vendors try to maximize the profit by selling the same lead to multiple merchant account resellers. This eventually results in the degradation of the lead quality. There is no guarantee that the lead which is coming to you is fresh and the merchant still needs a payment processing solutions.

Telemarketing Compliance Or Email Compliance

I am sure, most of the people in this industry know that you must have a prior authorization of the individual before contacting them. Nobody prefers unwanted emails or unwanted phone calls. In case, if you have purchased some leads and your team members start calling those number there may be a possibility that the customer may ask you that where did you get the number from. In that case, you are risking your reputation and potentially attracting legal implications.

Now that we have discussed the disadvantages of buying merchant account leads. let’s go ahead and discuss the best ways to generate leads for your business.

Create Massive Content For The Industry And The services.

As a merchant account reseller, you know that you can make a hell lot of money by selling the service. You can maximise your profit by attracting a lot of unique visitors to your website. The best way to attract traffic to your website is by creating attractive and valuable content for merchants. Try to create a regular blog post on your website. You know that there are merchants in almost every nation and there are acquirers in almost every nation. Try to create content for each industry and each nation. Who knows your next lead may be from Luxembourg, Belgium, Brunei or India.

Create Videos That Attract Merchants

Every merchant faces challenges in running the business. Some of these challenges may be common to merchants from different industries. Try to create videos that can help merchants to overcome these common problems. Since these problems are common to multiple Industries, You Can attract a huge number of traffic on your video sites or YouTube page.

Spread The Word On Social Media

Social media is becoming stronger every day. Try to spread your content that includes web pages, blog post, and videos on different social media website like Facebook, Twitter, Google Plus, LinkedIn. The social media pages are highly interactive and millions of users are connected to them. One viral post can help you attract massive number of traffic to your website

Before ending this blog post, We would like to tell you that once a merchant directly comes to your website and fill the application form he or she is anticipating a response from you. This is a hot lead for your business. You know that the merchant requires a solution. We all know that we should strike the iron when it is hot and this is the time for you to call the merchant. Over the due course of time, if you follow the best practices to attract leads on your website you will certainly see a massive growth for your company and as a business owner, you will certainly create a great reputation for yourself.

Word of caution for people in the payment processing industry. The payment processing industry is lucrative and sometimes you may get options that may not be ethical. We suggest you follow the ethical practices of business and refrain yourself from helping merchants from prohibited categories. The underwriting team at the processor location will certainly reject any leads that are not legit. Its good to pre-analyse the lead quality before sending it to the processing company.

Additional Tip:-

It is a great idea to maximise your portfolio. Why only resell one product. Offer multiple products to your customers. This may include merchant account, Payment Gateway, Chargeback alerts, Merchant cash advance, and prepaid cards. If possible assist merchants to set up recurring ach payment processing as well. Merchants from various high risk industries require recurring payments but most card processors say no.

This will help you to expand your target segment and you will also make good commissions.

When you talk to a merchant always try to identify the major pain points of the merchant. This will help you to understand his needs better and will also help you to close more sales.

Why You Must Use A Payment Gateway?

Payment Gateway helps the business owners to offer an easy method of shopping to the customers. Customers can visit the websites of the company and can make purchases online. If your products are not expensive then it may be a good idea to accept only cash payments.

In case if you sell high ticket items that are expensive then you must use a payment gateway. We are sure you hate carrying massive cash to the bank every day. Payment gateway helps you to secure your wealth. No robbers can rob the money that is in your bank account.

Just by implementing payment gateway on the website a merchant cannot expect a sales boost. The merchant must take all measures to make his website popular among the existing and future customer base.

Payment Gateway Can Help Businesses Attract Maximum Revenue

It gives a new payment processing mode to the buyer. The buyer does not need to carry cash to buy the products from the seller. The buyer also saves a lot of time if they use an online payment gateway. This is a win-win opportunity for both. It helps the buyer and the seller saves time, money and energy.

It also helps the business owner to extend the sales network of the company.

Business owners can sell their products and services across the world. There is no limit to a company’s growth if they sell across the world.

With the Payment Gateway, a merchant can start selling a massive number of products without extending the size of the retail store. On a shopping cart enabled webshop merchants can easily add tons of products.

Merchants can easily integrate the payment gateway on the mobile app of the website. once the payment processing capabilities are added to a mobile app then the merchant can start getting orders from the app also.

When your products and services are available on the internet then your website can be accessed all over the world. There is no one who can restrict you in promoting your products and services. Most of the payment gateway companies will allow you to accept international transactions.

As a business owner, you can imagine that the global market is always bigger than the local or national market. We get only one life and we must take every step to help others in making their life better. A business owner like you must take steps to create a big team across the world and the global sales you will get from the website will help you achieve it.

You must get a payment gateway as soon as possible. Do not waste your time. There is a cost of every opportunity. If you don’t capture the opportunity at the right time then someone else will. Feel free to ask us how payment gateway can help your business grow.

Business owners will start seeing more revenue coming in and also will be able to lower their cost of business ownership.

Credit card processing for small business is truly a vital element in today’s world. Small businesses can grow bigger by going online and accepting credit debit transactions.

We hope that now you got the answer to the question “Why Payment Gateway is necessary”

Feel free to ask us if you have any questions related to the payment gateway and High Risk Merchant Account.

Credit cards are everywhere. No matter which country you travel to you will find people using credit and debit cards. There are hundreds of payment systems across the world, out of these the most prominent mode of transaction across the world is credit and debit card payment processing. A few decades ago the only way people use to transact was by cash. Various companies that depend a lot on the impulse buying were not able to expand. Customers used to lose interest in the long signup process.

With credit and debit cards customers can quickly make payments without carrying cash. A credit card issued in the United States of America works at most of the ATMs across the world. It is the same case with credit cards issued in most of the countries. While traveling carrying a massive amount of cash can be very challenging and most of the times not at all possible. Airport and customs authorities do not allow to take a tremendous amount of money. International travelers and business owners prefer to carry the credit and debit card when it will it travel. Prepaid debit cards also play a significant role in helping people to manage expenses accurately. Credit Cards Offer Multiple Benefits To Merchants.

1. More Sales.

By the time credit and debit cards have been introduced to the market merchants are making more sales. It is primarily because now customers do not have to go to the bank to withdraw cash and make the purchase. A small card in the wallet can store hundreds and thousands of dollars. Merchants who accept credit and debit cards can undoubtedly see better sales than those merchants who only accept cash transactions.

2. Convenience to the customer.

Who wants to carry cash in today’s world? Customers prefer to work with those merchants that accept all major credit and debit cards. Card acceptance creates a sense of comfort in the minds of the customers. Customers get buyer protection with most of the cards. Customers can easily dispute transactions if the product and services are not as per the commitment of the merchant.

3. Recurring billing

Many Merchants sell products and services that require recurring payments. Example of this can be an online dating site, Nutraceutical, Herbal Supplements, Web Design, PC Support and Professional services. With a Credit card, merchant account businesses can collect recurring and continuity payments. Customers prefer to make small payments every month rather than making a massive amount of fees at one time.

4. Cashback

Many credit card companies have tie-ups with major brands and retail stores. If the customer uses the card at select outlets, the customer may be eligible for cashback. This cashback concept was not available with regular cash and Bank wire transfer. Everybody understands that a Dollar saved is a Dollar earned and that is why people prefer to get credit and debit card that offer the maximum cashback benefits.

5. MOTO/Mail Order/Telephone orders

Many companies run large Call Centres, and they accept orders over the phone. Here credit card merchant accounts can play a crucial role. Customers can give the credit card information to the merchant, and the merchant can submit the same data into the virtual terminal provided by the payment service provider. Although getting a Virtual Terminal on Moto account is very difficult for most of the merchants, but some payment service providers in few geographies of the world may offer virtual terminal and moto facility.

A merchant is a business which is applying for a Credit Card processing account. The Merchant requests the payment service provider or merchant account acquirer for a Credit, Debit or ACH processing account. Merchant signs an agreement with the service provider. This agreement is called merchant account agreement. The merchant can accept transactions in two different ways. The first way is to accept transactions over the phone by utilizing the virtual Terminal or Moto. The second way is to accept payments over the website or over the email. merchants can easily send pay now link to the customers for order placement. We hope that the above-stated description clearly helps you to understand that “Who is a Merchant in Credit Card processing“.

The acquirer is a financial institution that takes the complete risk of on-boarding a merchant for Credit Card, Debit Card or ACH processing. This acquirer underwrites the merchant after a deep analysis of the merchant profile and the KYC documents. The Acquirer reserve the right to terminate the merchant account at any point in time in case if the merchant violates any term mentioned in the merchant account agreement. Acquirers can be direct acquires and they can be service providers as well. These service providers are popularly known as payment service providers.

The Full Form of API is the Application Program Interface. API is a set of rules and protocols designed by a software vendor so that this software connects properly with additional programs and plugins. API connectivity plays a critical role in the payment processing industry. All payment gateways and merchant account providers utilize API connectivity. Once the merchant account is approved the API is integrated into the merchant’s website.

A virtual terminal also known as Moto is a payment processing platform provided by payment service providers or merchant account acquirers. With the help of the virtual terminal, merchants can easily accept credit card information or electronic cheque information over the phone and then submit the same on the virtual terminal. It is not easy to get a virtual terminal these days because of the risk. Merchants utilizing electronic check as an alternative mode of payment processing to get the virtual terminal to process orders over the phone and from the inbound call center. Virtual Terminals attract more chargebacks.

Are you searching for the best payment gateway? But still confused, which type of payment gateway will best suit your business? Well, We are here to tell you about various payment gateways that best suit your business needs. Let us understand what a payment gateway is? A Payment gateway lets you accept money in a digital way. In today’s world, all businesses are moving from the traditional to the digital method. You can do this by integrating a payment gateway to your business site. Various types of payment gateways you can incorporate depending on your business needs. Let’s discuss all types of payment gateway one by one:-

Hosted Payment Gateway. The hosted payment gateway is external to your business site. When the user clicks on the payment page to pay you, it will redirect to the Service Provider page. After the transaction, it will redirect back to the merchant’s site. The transactions are secure and PCI compliant. The merchant has no control over the transactional information. Customer’s credit or debit card information does not stay on the merchant’s server.

Self Hosted Payment Gateway. In this type of gateway, the merchant’s website controls the transaction. The merchant collects the customer’s information on his site. It sends the information to the payment gateway to process the transaction. The gateway receives the data in a specific format, or some need a secret key or a hash key. The customer doesn’t get redirected to the gateway provider for payment. It enhances the customer’s experience and binds their interest to the merchant’s site. The merchant also has the advantage to store the information to his server.

API Hosted Payment Gateway. API or Application Programming Interface is a software intermediary. It allows two applications to have communication with each other. Website, Operating system or database system interact via API. Payment Gateway API helps the smooth payment transaction flow on merchants’ sites. It helps in validating and authorizing payments. API hosted payment gateway gives full control to the merchant. The SSL Certification and PCI Compliance is merchants responsibility. All the transaction processes happen on the merchant’s site.

Local bank Integration. The gateway is best for a startup or small companies who need a simple and one-time payment model. The customer redirects to the bank’s payment gateway for the transaction. After the transaction, it redirects back to the merchant’s website. This type of gateway is not recommended for wholesalers. These solutions don’t support recurring payments options.

To be competitive in the global market merchants require credit card processing solutions. To accept Credit Card transactions, Merchant must have a merchant account and a Payment Gateway. Let ‘s quickly understand what is needed to get a merchant account. To accept credit card transactions, you must have a registered business. The payment processing company will ask for the details of your business that includes the business license, DBA, and details of the shareholders. Your company must have a valid business license. The company must be active in the government records of the country where the merchant is registered. Your company must be legal and should not be the part of any of the prohibited industries. Merchant account acquirers may consider offering Credit Card processing solution to few high risk Industries, but they will not onboard merchants from prohibited industries. You can request the Acquiring bank or PSP for a detailed list of prohibited industries. Most of the time this list is visible on the business website of the payment service provider or Acquirer. For the settlement purpose, the acquirer will need the details of your business bank account. For your information, most of the time’s merchant accounts are only available for businesses. Sometimes sole proprietors can also get a merchant account. The payment processing company transfers the funds to merchants business account after few days of the transaction. This is done to reduce the credit risk and also to effectively manage the fund’s reconciliation. If you want to accept orders over the internet, then you must have a business website. The Website should have all the policies listed. Most common policies include Return Policy, Cookie policy, Terms condition and privacy policy. Your website should have clear details about the pricing and specification of each product. Your merchant account provider will also ask you to display the logo of various card brands that you wish to accept. For your website to be connected with the API of the payment processing company you will have to install an SSL certificate on your web server. SSL certificate helps in ensuring confidentiality and encryption of the transaction information. To accept online ach payment processing on your website you should comply with the above stated recommendations. ACH is an effective way of reducing the over all processing cost. If you want to accept transactions in person, then you will also need an EDC machine or a point of sales terminal. With this terminal, you can swipe the credit card for transaction processing. This kind of transaction is known as card present transaction
Credit Card processing loans are also know as merchant cash advance. Traditionally this kind of funding is known as MCA. Let us quickly understand what a Credit Card processing loan looks like. There are three parties involved in executing a Credit Card processing loan. A Merchant which is a business entity that it is interested in getting funding for Business expansion or any other business related activities. Credit card processor the entity that provides Credit Card processing merchant account to the business. A Lender or a funding organisations that is a licensed and shows interest in providing financial assistance on specific interest rates to the merchant. Traditionally merchants used to contact the lender directly for funding. lending organisations only had the option of providing funding with limited security based on merchants good financial standing and credit report etc. Modern funding solutions like Credit Card Processing Loans for merchants are a bit different. Here the lending organisation signs a three party agreement. These parties are as follows Lender The Merchant The credit card processor. The Merchant and the credit card processors agree to regularly send specific volume of funds to the lender on daily basis after settlement of daily transactions. The lending organisation and the merchant account provider may have their own business arrangement we are not going into that. Credit Card processing loans are extremely beneficial for merchants as they can start making part payment on everyday basis which helps businesses to overcome debt in a better way. For a lending organisation getting regular installment on daily basis through the merchant acquirer offers a better credit control.
The payment industry has been a victim of fraud from the start. In the ecommerce age fraudsters use advance methods to cheat the payment system and push losses worth millions of dollars to the ecommerce ecosystem. To reduce the risk of fraud transactions modern high risk merchant accounts use an advanced method called fraud scrubbibg. With this technology each card transaction is checked for various factors. CVV AVS Bad Card Database check IP Check BIN Check and many more including velocity check. In simple terms fraud scrubbing is a technology that helps merchants reduce fraud credit card transactions on the gateway.

Acquiring bank is a financial institution that develops a relationship with the merchant. The purpose of this relationship is to help merchant accept credit and debit card transactions. The Acquiring Bank opens a merchant account for the business. The Acquirers transfers funds received by the card issuer to the merchant account. After final calculations, Fees deduction and reconciliation, the funds are settled by Acquiring bank into the merchant business bank account. Acquiring banks may directly develop a relationship with merchants and sometimes may also involve other organizations that may include regional banks, PSP’s and ISO’s. The Acquiring Bank initiates settlement no matter what kind of relationship it is direct or indirect.

An agent bank is usually a small size bank that participates in the merchant acquiring activities of a large acquiring bank. Small banks usually only handle the activities that involve connecting merchants without acquiring banks. Most of the time small banks are not liable for any financial losses incurred by the acquiring bank because of the referred merchant.
What is AVS or Address Verification System? To reduce fraud transactions merchants use address verification system(provided by the processing organization) to match the address on the card account with the address provided by the cardholder. AVS can be used for card present as well as card not present transactions.

A Merchant Account Agreement is a legal binding agreement between the Merchant and the Payment Processor. This agreement mentions all the clauses that are required to be followed by the acquirers and the merchant. Most of the time’s merchant account acquirers can take strict action on the account if the merchant is found violating the terms.

Once the merchant swipes the card over the credit card terminal, the merchant gets an authorization approval code. Without approval code, the transaction generally does not go through.

The credit line is the line of credit offered by the card issuer to the cardholder. The limit of the credit line is usually increased if the cardholder uses the card as per the terms of service and ensures timely payments of the dues.

On the back of most of the credit or debit cards, these numbers are present. These numbers are unique and are required for the successful transaction. Most online payment gateways will need the CVV or CVC value to be typed by the buyer for the transaction to be completed

Referral banks are usually small banks or local banks that participate will a larger acquiring banks in the merchant acquiring process. These referral banks usually send the merchant leads to a large acquiring banks. Referral banks usually are not held responsible for financial losses arising because of the merchant’s activities.

An authorization is a process in which the card issuer confirms the approval of a specific transaction initiated through the merchant’s website, Virtual Terminal, Moto, IVR or POS Terminal. The acquiring bank is responsible for the settlement of the received amount into the merchants account after deducting transaction charges and other fees.

It is an extensive network of Financial Institutions working together for credit and debit of funds in batch mode. Usually, in an ACH transaction, multiple parties are involved that includes Payer, Receiver, ODFI, RDFI and Third party ACH Payment processing company.
What is Backroom Operation in Credit Card processing? Multiple activities that are taken care of by the credit card issuer as well as acquiring banks together is called a backroom operation. some of the activities that may be part of backroom operations are Authorisation, Settlement of funds, Authentication, fraud scrubbing, Returns and Chargeback Management.

We all see different brands of cards these days. These may be credit cards, debit cards, prepaid cards or charge cards. All of these cards are from different brands. These brands(or organizations) are called Bank Card Associations. They are also sometimes referred as payment card schemes or card schemes. Merchant account acquiring banks and card issuing Banks must have valid licenses and membership with the bankcard association to be eligible to offer card issuing and merchant acquiring services for specific card brands.

The purpose of the merchant contacting acquirers is to accept credit and debit card transactions. In case if the merchant fails to provide the product or service as per the commitment, then the cardholder can initiate a chargeback request by calling the card issuer. In the case of chargebacks, the merchant gets limited time to offer proof of service delivery for proof of product delivery. In case if the merchant is not able to provide substantial evidence of product delivery or service delivery, then the merchant is liable to return the money to the cardholder by initiating return via the merchant account acquirer. Acquiring banks or merchant acquirers follow strict guidelines and rules to keep the chargeback ratio of any merchant below the prescribed chargeback percentage limit recommended by card brands.

It is the process in which the credit card issuer receives the transaction details regarding a specific transaction. These details include vital information about specific charges as well as currencies of the sale. The acquiring bank sends this information to the card issuer. Card issuers post this information on to the card account of the cardholder.

It is a card issued by the card issuer, and the cardholder can only use the funds that are available in his/her bank account or card account. A debit card is different from a credit card. On a debit card, the cardholder uses the funds that are already there in the card account or bank account. The cardholder uses his funds using ATM withdrawal, POS payments, and Web payments, etc.

The merchant pays a specific percentage to the Acquiring Bank. MDR is a collective fee that includes various charges.

In today’s world businesses have started selling their products and services online. These businesses create websites and sell their services and products online. These websites are used by customers to buy products after submitting the credit or debit card information. These kinds of sites that allow the merchant and the buyer to perform a business transaction online are called E-commerce website. In simple terms, E-Commerce is the process of buying and selling on the internet via a website.

When the cardholder gives the card to the merchant for swiping on the credit card terminal the credit card terminal captures electronic data information from the magnetic strip of the card. This process of collecting the card information and sending to the processor’s infrastructure is called electronic data capture.

Some industries the service delivery may not happen instantly this may include Hotels, Airlines, Cruise Liners, Seminars, Custome made tangible products. On most of these business models, service delivery is not done immediately. These kinds of products and services where the customer receives the delivery after a considerable time interval may be considered as future of the delayed delivery products and services. Merchant account acquirers or acquiring banks prefer to work with merchants who deliver the product to the customer in the shortest time possible. Faster delivery ensures better customer satisfaction, and that is why for these types of businesses getting a merchant account may be difficult.

In the modern world different kind of gifts available. There are multiple gift cards available. To buy these gift cards, people usually visit local supermarkets or departmental Stores. After paying the money to the cashier, the buyer gets the card. Sometimes the buyer may have to activate the card online or by calling a support number. Most of the gift cards can be used online as well as on the point of sales devices.

Reserve is a risk mitigation step in the payment processing industry. Fixed Reserve holds a specific amount usually for 180 days. In case of Rolling reserve, the acquirers may deduct a particular % from each transaction. The reserve amount is held to handle future disputes and chargebacks.

ISO stands for Independent Sales Organisation these organizations work with the acquiring Bank for the objective of connecting merchants with the acquiring banks. ISO also handles various activities that include pre-approval, Activating Reserves, Helping the merchant with integration, etc. Acquiring Banks are liable to register their ISOs with the card brands or bank card Associations.

The term ISC stands for Independent sales contractor. QuadraPay is an ISC and works independently to assist payment processors in finding the merchants. The role of the ISC is only to introduce merchants to processors. The processing company reserve the right to accept or reject any application.

Interchange is the technical infrastructure that powers payment processing between different Financial Institutions.
What is interchange fee or Interchange cost? It is the charge that is paid by the Financial institutions in the process of credit and debit card transactions. The MDR usually includes the interchange fee.

It is a database that is maintained by a credit card scheme. The acquiring banks and acquirers submit information to this database about merchants and their activities. In the underwriting process, the underwriters can try to fetch information about a potential Merchant and identify if the merchant has a bad history of operations. This database was previously known as Combined Terminated Merchant File or CTMF. Sometimes it’s also referred as TMF or Terminated Merchant File.

In a Credit or Debit card transaction, the buyer receives a buyer protection feature from card brand. In case if the buyer confirms that the transaction was fraudulent and was not authorized then a retrieval request can be generated. The merchant is supposed to send the copy of the authorization. In case if the authorization is not available then the transaction may turn into a chargeback. If the merchant did not provide the proof of authorization the buyer would win the chargeback case.

A settlement is a process in which the card issuer gets the information about payment request from the Acquiring Bank. It also involves funding the merchant’s bank account from the merchant account.

Disclaimer:- The above information may have errors and shall never be considered accurate.