Personal Guarantee on a Merchant Account?

A Merchant Account Personal Guarantee is a commitment made by a business owner or merchant, promising to be personally liable for any outstanding debts or losses incurred through the merchant account. These losses are always caused by chargebacks incurred by the business through unhappy customers or clients. Business owners are financially responsible for these losses and the “Personal Guarantee” is the legal language in the “Merchant Account Service Agreement”, outlining this responsibility.

Understanding the personal guarantee on a merchant account is important for businesses that want to establish a reliable and secure payment processing system. Obtaining a merchant account is crucial for businesses, particularly for those that are involved in online ePayments. A merchant account allows you to accept digital/electronic payments, e.g. credit cards, debit cards, etc. In this way, it makes it easier for your customers to buy your products and services. One key aspect of obtaining a merchant account is signing the merchant agreement with the “Merchant Account Personal Guarantee”, outlining the “Chargeback Liability” of the signer. Read on to learn its significance, reasons why merchant account processors require it, and more.

Why Do Merchant Account Processors Ask for a Personal Guarantee?

The reasons why merchant account processors ask for a personal guarantee may vary from one merchant services provider to another. But generally, they include risk mitigation, limited business history, high-risk industries, and unfavorable credit profile.

Risk Mitigation: For merchant processors, providing payment processing services involves certain risks, e.g. fraud, chargebacks, non-payment, etc. A personal guarantee adds an extra layer of protection to help the processor make sure it can recover losses in case the business is unable to meet its financial obligations. Here is some useful information on preventing chargebacks.

Limited Business History: New businesses or those with limited operating history typically don’t have sufficient creditworthiness to prove their financial stability to merchant processors. A personal guarantee holds the guarantor personally responsible for any debts. In this way, it helps offset the lack of business history.

High-Risk Industries: Many industries are considered high-risk by payment processors. These include (but not limited to) pharmaceuticals, travel, debt collection, online dating, fantasy sports, etc. In these sectors, chargeback ratios and potential financial liabilities are relatively high. Because of these factors, merchant account processors request a personal guarantee as a preventive measure.

Unfavorable Credit Profile: Merchant Account Personal Guarantee reassures the payment processor of the merchant’s commitment to repay debts. A business owner with a poor personal credit score or a history of bankruptcy might find it difficult to obtain a merchant account without a personal guarantee.

Is a Personal Guarantee on a Merchant Account Legally Binding?

Yes, a personal guarantee on a merchant account is legally binding. When a business owner signs a personal guarantee agreement, they willingly accept the responsibility for any debts or liabilities incurred through the merchant account. This legally binding contract ensures that the guarantor can be pursued for repayment if the business defaults on its financial obligations.

It is crucial for business owners providing the Personal Guarantee on a Merchant Account to carefully review and understand the terms of the agreement before signing. Seeking legal advice can also be beneficial to ensure complete comprehension and awareness of the potential liabilities.

Does Personal Guarantee Protect the Merchant Processor?

Yes, a personal guarantee offers significant protection to the merchant processor in various ways. These include the following:

Increased Confidence: The personal guarantee reassures the merchant processor that the business owner is personally invested in their business’s success and will take steps to prevent any financial losses.

Debt Recovery: If the business cannot meet its financial obligations or becomes bankrupt, the merchant processor can pursue the guarantor to recover outstanding debts. In this way, the merchant processor can reduce the risk of financial losses.

Mitigating Chargebacks: Chargebacks are one of the primary concerns for merchant processors. A Merchant Account Personal Guarantee can serve as an incentive for the business to maintain excellent customer service and mitigate chargebacks. More information on Chargeback Mitigation.

Compliance and Reputation: Merchant processors must comply with industry regulations and standards. A personal guarantee helps ensure that businesses operate responsibly and can maintain a positive reputation within the payment processing ecosystem.

Final Thoughts on a Merchant Account Personal Guarantee

The Merchant Account Personal Guarantee is a crucial aspect of obtaining a reliable and secure payment processing system. While it may seem like an additional burden, it provides benefits to both the business owner and the merchant processor. Choosing a reputable merchant processor can help simplify the personal guarantee process and ensure a hassle-free experience for business owners. By understanding the implications of a personal guarantee and selecting the right merchant services provider, businesses can establish a solid foundation for financial stability and growth.

POST UPDATED: August 17, 2023

About The Author

Mark Sands, co-founder of High Risk Merchant Account LLC, an authoritative expert in the high risk merchant account space. Mark has decades of experience in the payment industry & enjoys writing on entrepreneurial related topics.

The post What Is A Merchant Account Personal Guarantee appeared first on High Risk Merchant Account Blog.

What is the FedNow Service?

FEDNOW was introduced by the United States Federal Reserves, the FedNow Service is one of the latest and most advanced real-time payment platforms. It has been recently developed to cater to the increasing demand for more efficient, faster payment methods. The purpose of the system is to offer individuals as well as businesses the ability to conduct instant transactions 24/7. With such a facility, FedNow aims to enhance financial inclusivity, improve the overall efficiency, and speed of the payment ecosystem, and satisfy the rigorous demands of the evolving digital economy.

In addition to these objectives, FedNow also aims to reduce dependency on traditional payment methods where delays are a common occurrence, e.g. Automated Clearing House (ACH) transfers, checks, etc. Through FedNow, you can experience seamless and secure money transfers in real time. Overall, the system significantly improves financial services and facilitates more convenient, streamlined transactions for individuals, businesses, and institutions across the country.

How Will FedNow Potentially Impact Debit Card Transactions?

The potential positive effects of the FedNow Service on the future of debit card transactions are huge. These include the following:

• A) Faster Transaction Speed: The FedNow offers a real-time alternative to traditional delayed processing. So, its implementation could mean a much faster pace of debit card transactions.
  
• B) Immediate Fund Availability: The instant settlement feature of the FedNow can offer consumers and merchants faster access to funds from debit card transactions. In this way, it can enhance financial liquidity.
  
• C) Evolving Consumer Behavior: The availability of instant payments via FedNow will likely shift consumer preferences towards using debit cards to enjoy benefits like more convenient and quicker transactions.
  
• D) Merchant Advantages: Thanks to instant funds from debit transactions that the FedNow Service facilitates, merchants can expect improved cash flow without the hassle of waiting for traditional settlement cycles.
  
• E) Potential Fee Adjustments: The competition introduced by FedNow could prompt debit card issuers to reevaluate their services and fees to stay competitive in a real-time payment landscape.
  
• F) Coexistence and Choice: The overall impact of the FedNow on debit card transactions will depend on individual needs and preferences. The potential for both payment methods to coexist is huge thanks to faster transaction times and more convenience.
  
  

Final Thoughts on FedNow Impacting Debit Card Usage in The Future

Overall, the FedNow Service is a game-changer in the payment processing industry. With its many features and benefits, it is set to transform the payment transaction landscape and positively affect credit cards, debit cards, and overall payment dynamics. By facilitating instant, real-time fund transfers, FedNow introduces new possibilities for financial interactions. The result is faster, more efficient, and more convenient transactions.

Competition-driven innovation and cost savings are the two key positive impacts of the FedNow Payment System on credit card transactions. The system’s influence on debit card transactions, on the other hand, will include factors like changes in consumer behavior, immediate fund availability, and changes in fee structures. As both systems coexist, individual preferences and specific transaction contexts will play a key role in determining their respective impacts.

Ultimately, the development of the FedNow means a significant positive shift in the payment industry that encourages stakeholders to adapt and innovate to meet the evolving consumer expectations and the demand for more accessible, faster financial solutions.

Get Debit Card Transaction Processing Today !!!!
Contact us today to get started at 1-877 493-4622

About The Author

Mark Sands, the co-founder of High Risk Merchant Account LLC, is an authoritative expert in the high-risk merchant account space. Mark has decades of experience in the payment industry & enjoys writing on entrepreneurial-related topics.

The post FedNow: Impacts on Debit Card Transactions appeared first on High Risk Merchant Account Blog.

What is a Rolling Reserve Account?

A rolling reserve account is a financial arrangement used by merchant account processors to manage risks associated with payment processing and transactions. It is a type of reserve fund held by payment processors, such as acquiring banks or high risk merchant account providers, to mitigate potential losses from chargebacks or other financial risks.

In this setup, a portion of a business’s revenue is held in a reserve account for a specific period, usually around 180 days. The reserve amount is typically a percentage of the business’s daily sales or transaction volume, and it can be adjusted based on the perceived level of risk associated with the business’s industry, chargeback history, or creditworthiness.

The term “rolling” refers to the continuous replenishment of the reserve. As each day’s transactions are processed, the oldest reserves are released and replaced with funds from new sales. This process ensures that the reserve remains active and ready to cover potential losses, while allowing the business to access some of its funds on an ongoing basis.

How Does a Rolling Reserve Account Mitigate Chargeback Losses?

Rolling reserve accounts offer protection to payment processors and act as a safety net against potential financial liabilities. They are essential for safeguarding payment systems like online banking ePayments, thus ensuring financial stability, especially in high-risk merchant account industries or for businesses with limited credit histories.

The rolling reserve account mitigates Chargeback Losses in the following ways:

• 
  1) Chargeback Protection: High chargeback rates can be detrimental to payment processors and merchants. By maintaining a rolling reserve, payment processors can cover potential chargebacks and other financial liabilities, reducing the risk of financial losses.
  
• 
  2) Risk Management: Some industries, like subscription continuity merchant accounts, are more susceptible to fraudulent activities and excessive chargeback ratios. A rolling reserve helps manage the risks associated with these industries, ensuring funds are available to cover unexpected losses.
• 
  3) Business Stability: Rolling reserves contribute to the stability of merchant payment processors by providing a financial buffer in case unforeseen chargeback losses occur, fostering a healthier payment ecosystem.
• 
  4) Limited Credit History: For new businesses or merchant account owners with limited credit histories, rolling reserves can help build trust and minimize risks. As the business establishes a positive track record, the reserve requirements may be adjusted or lifted.
• 
  5) Compliance and Regulation: Regulatory bodies or payment networks may mandate rolling reserves to ensure compliance with industry standards and protect consumers’ interests.
  
  

Why Is a Rolling Reserve Account Necessary?

Rolling reserve accounts help manage chargeback losses by providing funds to cover chargeback amounts and associated fees, offering a buffer during high-risk periods, and offsetting potential losses from fraudulent transactions. As the reserve is gradually replenished with new sales, it allows for a controlled release of funds, providing financial flexibility while maintaining a protective balance.

Before signing a rolling reserve agreement, merchants should carefully assess the financial impact, review the release schedule, and understand the risk assessment process. They should also be aware of chargeback handling procedures, potential review and adjustments, rolling reserve disbursements, contract termination terms, and any alternative risk management options available, such as a Chargeback Alert Service, to assist in chargeback reduction.

Final Concerns on a Rolling Reserve Account:

In conclusion, rolling reserve accounts play a vital role in managing payment processing risks and financial stability for businesses. Merchants should thoroughly understand the terms and implications before agreeing to a rolling reserve arrangement to make informed decisions and safeguard their financial interests. Keep in mind that a Rolling Reserve Requirement is not really a negative, but will protect you from chargeback losses and mitigate a potential nightmare, To further reduce your risk of credit card chargebacks, look at our white paper, outlining chargeback mitigation.

About The Author

Angela De Steffano
Staff writer at High Risk Merchant Account LLC
Angela is a merchant account specialist and heads the marketing team at HRMA-LLC.

POST UPDATED: August 3, 2023

The post What is a Rolling Reserve Account appeared first on High Risk Merchant Account Blog.

As more and more people turn to online transactions for security and convenience, Online Banking ePayments (OBeP) have become increasingly popular in recent years. OBeP is a convenient and secure way to transfer funds digitally and has many different types, solutions, and implementation methods.

What Are Online Banking ePayments (OBeP)?

Online banking ePayments are an electronic payment method that lets you make payments directly from your bank account. OBeP transactions are secured by digital certificates and encryption protocols that authenticate the sender and recipient of the funds. Overall, it offers many benefits for users and businesses, making it a popular transaction method.

Its key benefits include:

1. Convenience
2. Speed
3. Security
4. Lower costs associated with handling payments
5. Improved cash flow
6. Accessibility
7. Environmental friendliness

Types of Online Banking ePayments: 

Online Banking ePayments; have several types. The most common types include the following:

1. Direct Debit – A direct debit payment is initiated by the merchant, who sends a request for payment to the client’s bank account. The client must authorize the transaction for it to process. Once it’s done, the funds are automatically deducted regularly. This type of payment is typically used for recurring payments, e.g. subscriptions, utility bills, etc.

• 
  Credit Transfers – In this type of online banking ePayment, the client initiates the transaction and sends funds directly from their bank account to the merchant’s bank account. Credit transfers are typically used for one-time payments, e.g. bill payments, online purchases, etc.

• 
  Prepaid Cards – This type of online banking ePayment is like credit cards, but, the key difference is that prepaid cards are loaded with a specific amount of funds beforehand. You can use a prepaid card for online transactions and purchases. This type of OBeP is a great option for individuals who don’t have a credit card or who simply don’t prefer to use one.

• 
  Mobile Payments – Mobile payments, as the name suggests, allow you to use your smartphone to make payments. You can use this method of online banking ePayment using mobile apps or other smartphone payment services. Mobile payments are a popular form of electronic payment thanks to their ease of use and convenience.

Apart from the different types of online banking ePayments, there are several OBeP solutions available. These include the following:

Mono-Bank Solutions:

Mono-bank solutions refer to an online banking ePayment solution that lets users make payments within the same financial institution or bank. Mono-bank solutions are typically more convenient and faster than multi-bank solutions. This is because there is no need to involve an intermediary.

Multi-Bank Solutions:

Multi-bank solutions allow users to make payments across different financial institutions or banks. Multi-bank solutions involve a third-party payment processor that facilitates the transaction and ensures that the funds are transferred quickly and securely.

Implementation of Online Banking ePayments:

Financial institutions, such as banks and credit unions, can implement online banking ePayments in several ways. The implementation method they use depends on the institution’s resources and the complexity of the system they want to offer. Common ways banks and financial institutions can implement OBeP include the following:

Developing An In-House System:

This is typically the primary method most banks use. Banks develop their own digital payment system in-house. This allows them to have greater control over the security and functionality of the system. However, it can be relatively more time-consuming and expensive.

Partnering With Third-Party Providers:

Many financial institutions and banks partner with third-party payment processors, e.g. Google Pay, Apple Pay, Stripe, PayPal, etc., to offer OBeP options to their customers. This lets them offer these services without developing their own systems, hence reducing the time and cost required to implement such systems.

White-Label Solutions:

Some banks also use white-label solutions. These are pre-built systems that the bank can have branded and customized for its specific needs. This approach can be a cost-effective way for banks and financial institutions to offer online banking ePayment services easily and quickly.

Steps Required for a Successful Bank Transfer Payment:

Here are the steps involved in making a successful bank transfer payment:

1. 
   Obtain The Recipient’s Bank Account Details: Before you initiate the transfer, you will need to acquire the bank account details of the recipient. The details may include their account number, routing number, sort code, etc.
2. 
   Log Into Your Online Banking Account: Once you have all the account details of your recipient, log into your online banking account using your credentials.
3. 
   Select The Option to Transfer Funds: Navigate to the option to transfer funds. It is typically located on the dashboard or in the menu.
4. 
   Input The Desired Amount: Input the amount of funds that you want to transfer. Then, review the transaction details to make sure that everything is correct. You may also have the option to include a reference or message with the transfer.
5. 
   Confirm and Authorize: Once you are satisfied with the transaction details, you can proceed to authorize and confirm the transfer. This typically involves entering a one-time password or some other security measure to ensure that the transfer is legitimate.
6. 
   Wait For The Transfer to Complete: Once the transaction is authorized, you will need to wait for it to be completed. This can take anywhere from a few minutes or hours to several business days in some cases.

Overall, bank transfer payments are a convenient and secure way to transfer money. It is important to make sure you have the right account details, and that you take the necessary steps to protect your account information and banking credentials.

Summing Up Online Banking ePayments (OBeP) for 2023:

Online Banking ePayments are a secure and convenient way to transfer funds. They have several different types, solutions, and implementation methods. OBeP services offer many benefits, such as greater convenience, reduced risk of fraud, faster processing times, and more. It is recommended that you familiarize yourself with best practices for online banking ePayments so you can ensure a secure and smooth experience. Some tips include keeping your personal information and banking credentials private as well as using reputable and trusted payment providers. By taking these steps, you can enjoy the various benefits that OBeP solutions offer.

About The Author:

Author: Chris Fernandez
Small business authority and entrepreneurial journalist.
Freelance Contributing Writer.

POST UPDATED: May 19, 2023

The post Types & Implementations of Online Banking ePayments appeared first on High Risk Merchant Account Blog.

No PCI Compliance Fees

PCI Compliance refers to a set of security standards that have been created to make sure that all merchants and businesses that accept and process credit card data maintain a secure environment for transaction security. Complying with PCI standards is mandatory, and there could be a number of severe consequences for being non-compliant. If there’s a security breach and the merchant or business is found to be PCI non-compliant, they may be subject to some heavy fines. Apart from fines, payment processors may also charge a monthly fee. It is possible to get a merchant account with No PCI Compliance Fees.

Different types of businesses will have to meet different requirements to maintain PCI compliances. Following are some ways to stay PCI compliant and avoid non-compliance fees:

Determine Your PCI Level and Scope

Merchants that process over six million transactions on annual basis are considered level 1, while those that process 1-2 million transactions are considered level 2. Level 3 merchants process 20,000 to a million transactions on annual basis. Anything less is designated level 4. Each level must follow certain PCI compliance requirements.

Apart from determining your merchant level, you will need to determine your compliance scope as well:

1. Scope involves any component, person, or process that processes, stores, or transmits cardholder data
   
   
2. Components include computing applications and devices, routers, networking devices, servers, etc.
   
   

Determining compliance scope will help you learn about the entities that handle your credit card data. After all, you can’t protect and secure what you don’t know. It is also recommended that you document any changes in your business’s security and review the documentation on regular basis to make sure that no errors are made.

Complete a Self-Assessment Questionnaire

You can find self-assessment questionnaires at the PCI-SSC website. Different types of businesses will have different relevant questionnaires. Each questionnaire has a series of yes or no questions that can help a business determine how closely they meet the PCI DSS requirements. Any “No” answer indicates a red flag and will require appropriate action. Generally, businesses lag behind in PCI compliance in the areas of failed SSL certificate verification, outdated security protocols, and vulnerable authentication credentials. Once you submit a formal self-assessment, you should face no pci compliance fees but are always legally and financially responsible for customer losses incurred by a Data Breach. This is a very important fact that is typically overlooked in business owners’ thinking. So beware, as the consequence could be devastating. !!!!

Encouraging your employees to become certified under CompTIA Advanced Security Practitioner will equip them with advanced technical skills, high-level security knowledge, and will ensure that they can optimally self-assess the security position of their organization.

Create and Maintain a Secure Network

It is highly recommended that you find an IT contractor that you can trust. With little technical expertise, it would be a good idea to leave the important tasks of network firewalls and security to those who specialize in it. PCI compliance requires businesses and merchants to use systems that stop unauthorized access by unknown, untrusted factors. Once you implement firewall:

1. Create a reliable password program.
   
   
2. Change all the default passwords.
   
   
3. Make sure to change passwords from time to time.
   
   

Last but not least, always keep your firewall up-to-date and operational.

Train Your Staff

About 60% of data breaches occur due to the negligence of employees. Employees are often the weakest security link. Unfortunately, many businesses don’t invest enough time and resources to properly train them for security. Creating customized programs for individual roles of employees is the best way to train them. For example, an operational manager will require different training than a front-desk officer. Since humans tend to forget easily and repetition is the best way to retain information, it is recommended that you train your staff on a monthly basis instead of a yearly basis.

The CompTIA Advanced Security Practitioner Certification is a great way to make sure that employees that handle critical data are equipped to understand, retain, contrast, and compare security procedures and policies based on business requirements.

Hire a Security Professional

Consider working with a qualified security assessor or a security expert to ensure full PCI compliance. These trained professionals understand all the detailed requirements of PCI-DSS and data security and have the required technical knowledge and expertise to guide you through the entire process. You may not need a PCI-DSS audit if you are a small business, but it would still be beneficial to consult with a PCI professional.

Conclusion

PCI Compliance is one of those things that are easy to overlook, particularly for small business owners who want to accept credit card payments. Failure to follow the PCI standards can result in heavy fines and fees. Not to mention it also makes your business vulnerable to serious security breaches. So, use the above-listed guidelines to ensure that your payment systems are safe and secure. It is also highly recommended that you hire a high-risk merchant services provider that is PCI-compliant for added peace of mind and convenience.

Get Help With No PCI Compliance Fees Today !!!!
Contact us today to get started at 1-877 493-4622

About The Author

Mark Sands, the co-founder of High Risk Merchant Account LLC, is an authoritative expert in the high-risk merchant account space. Mark has decades of experience in the payment industry & enjoys writing on entrepreneurial-related topics.

The post How to Avoid PCI Non-Compliance Fees appeared first on High Risk Merchant Account Blog.

What is Merchant Account Load Balancing?

Load balancing a merchant account allows for the dynamic division of transactions across multiple merchant accounts. With load balancing, a high volume merchant can manage several merchant accounts on a single dashboard. This ensures easy management of accounts, helps to minimize risk and boost processing volumes.

Load balancing gives you the peace of mind knowing that if you meet any challenges related to your merchant account along the way, it would not be catastrophic for your business. If your account with one processor is frozen, you will still have another account to manage your transactions. Further the parameters can be pre-set to meet both processing limits and ticket sizes, ultimately keeping you out of trouble with your credit card merchant processor.

Load Balancing Your Merchant Account – Keeping You Out Of Trouble

If you own a restaurant or retail store, one credit card processor is all you need. Unfortunately, if you run an high volume business or offer high ticket items, merchant account load balancing can come a great asset for your business, especially if you have multiple high risk merchant accounts with various monthly processing caps. This technology would allow you to run multiple merchant accounts with automated processing parameters.

Relying on one bank for your high risk credit card processing needs is, in itself, a big risk. The underwriting guidelines set forth on your account include volume caps and ticket size caps. Processing outside of your merchant agreement can cause financial holds and possible termination of your account. that govern financial institutions change. Also banks merge or get acquired. And under any of these conditions, a bank could decide to opt out of a merchant agreement.

To minimize your risk and protect the company’s operations, business owners set up more than a single merchant account. Still, it is important that all merchant accounts are boarded in a single payment gateway to ensure balanced business operations. This is where merchant account load balancing comes in and makes good business sense to explore.

In addition to helping to mitigate risk and track sales volume, load balancing helps to reduce chargebacks. Merchant with high sales volume and sales transactions can benefit from load balancing by dividing their processing volume across different acquirers.

Load balancing can also offer massive benefits to your business if you own more than one product or sales website. Yes, load balancing can help you provide more accurate descriptors linked to each website and product line. This way, you’ll be better able to reduce chargebacks, cardholder confusion, and disputes. Load balancing can also protect you from the risk of chargebacks, especially associated with a breakdown in the supply chain or a failed product lunch, by ensuring the damage is limited only to the account attached to the failed product line.

If you work with multiple affiliate networks, load balancing can help. You can use it to better identify affiliates that could hurt your business and protect yourself from the potential fraud of these affiliate networks.

Benefits of Load Balancing

1) One of the key benefits of load balancing is that it allows e-commerce merchants manage multiple accounts across a single payment gateway, ensuring improved account management functions.

2) Since load balancing allows transactions to be managed via one dashboard, an e-commerce merchant only needs a single login and password, allowing for effective management and reconciliation of accounts.

3) Load balancing allows ecommerce merchants view their accounts individually or globally. This eliminates redundancy of function and improves productivity.

Closing Thoughts On Merchant Account Load Balancing

The phrase “don’t put all your eggs in one basket” comes to bare when managing an online merchant account is concerned. By spreading your transactions across different merchant account channels, you can better manage high chargeback volume occurring on a single account. You will also be better equipped to manage all accounts in a simplified manner, saving your time effort and money in the process. Diversification is the key, combined with account parameter management.

About The Author

Mark Sands, co-founder of High Risk Merchant Account LLC, an authoritative expert in the high risk merchant account space. Mark has decades of experience in the payment industry & enjoys writing on entrepreneurial related topics.

The post Merchant Account Load Balancing appeared first on High Risk Merchant Account Blog.

Getting A High Risk Merchant Account For WooCommerce

Deciding the payment method for your business is key to ensuring a seamless customer experience and efficiency of the business. Like a credit card terminal, a payment gateway allows business owners accept payments through their websites. But there are lots of payment gateway options available, so it is important that you choose one that suits the needs of your business.

WooCommerce is free and flexible ecommerce shopping cart software for WordPress that allows business owners sell products online and create unique and secure shopping experiences for their customers while ensuring the organization of the ‘behind the scene’ operations of the business.

Whether you’re just launching your ecommerce business or you’d like to improve your existing online store, the WooCommerce payment gateway offers real value. But WooCommerce offers even more: it is a great payment solution for merchants in high-risk industries.

Integrating A Merchant Account with Your WooCommerce Store

WooCommerce offers its users a variety of integrated payment solutions, referred to as “core payment gateways”. These payment solutions include PayPal, Stripe, and Klarna Payments, among others. However, some merchants are categorized as “high risk”, and in this case, finding a payment processor willing to offer merchant account services at a reasonable rate can be difficult, but with WooCommerce, it is not impossible.

Merchants in the high-risk industry will need to work with high risk merchant account provider like HRMA-LLC to get there business approved for credit card processing. Once merchant account is approved the payment solution should seamlessly integrate with the WooCommerce platform via a payment gateway login that would be sent in your Welcome Email. Two of the best payment gateway solutions that can be integrated with the WooCommerce platform include:

Authorize.net Payment Gateway


Authorize.net will integrate with your high risk merchant account, that allows customers make payments through the echeck on your website or their credit card. The payment process through Authorize.net is especially unique because it allows customers enter their shipping and payment details without getting redirected to another web page. More so, the payment process is streamlined and secure.

Founded in 1996, Authorize.net has evolved to take its place as a leading credit card processing solution. Not only is Authorize.net known for integrating with WooCommerce, but it is also compatible with lots of third-party applications, and even more shopping carts than other payment gateways. The payment gateway can also different currencies, including those from the U.S., U.K., Europe, Canada and Australia, and it even works well with mobile card readers for card-present transactions.

NMI eCommerce Payment Gateway


Network Merchants Inc. (NMI) is an advanced payment solution platform for businesses of varying sizes. Though NMI is another popular payment gateway, it has not yet as widely known as Authorize.net since it is still relatively new in the payments industry. Like Authorize.net, NMI secures customer information with a token vault and comes along with similar features like ACH transfer payment options, subscription billing, a payment button, mobile card reader add-on for card-resent transactions, electronic invoices sent using email as well as fraud protection services.

As is the case with the Authorize.net payment gateway, the WooCommerce integration process for NMI is easy and seamless.



Should A High-Risk Merchant Work with a Classic or Modern Payment Gateway?

Authorize.net and NMI are typical examples of classic payment gateways, while the WooCommerce core payment options such as PayPal, Square and Stripe can be referred to as modern payment gateways. So, which payment processing option is right for you?

Classic payment gateways provide unique services like PCI compliance support, fraud and chargeback prevention support, and next-day funding. And since this payment processing type is typically managed by a dedicated merchant account provider, the services are customized to fit your business model.

Payment processing via modern payment gateways usually takes weeks after the process was started, so shutdowns could occur unexpectedly. This is especially true if your business is deemed high risk by the payment provider’s criteria. The transaction fees of modern payment gateways are also higher and services like fraud/chargeback or even personalized support are absent.

While a modern payment gateway is ideal if your business does not manage heavy transactions, it is far from the best option for businesses considered high risk.

If your business accepts payments on a large scale, a classic payment gateway is the way to go as it will help you take advantage of its many options like accounting reconciliation, invoicing and reporting, as well as enjoy reduced payment processing costs.

Closing Thoughts

As an online merchant, your ability to process transactions is crucial to the survival and growth of your business. Since you do not qualify to work with traditional payment processing providers as a high-risk merchant, it is important that you evaluate your options and select a suitable high-risk merchant account service that fits your business needs. WooCommerce is an excellent ecommerce shopping cart that is fully compatible with a high risk merchant account from HRMA-LLC.

About The Author

Mark Sands, co-founder of High Risk Merchant Account LLC, an authoritative expert in the high risk merchant account space. Mark has decades of experience in the payment industry & enjoys writing on entrepreneurial related topics.

The post High Risk Merchant Account For WooCommerce appeared first on High Risk Merchant Account Blog.

Chargeback Reduction Plan For Your Business

Taking credit card payments at business while being an easy payment method could become a disaster sometimes when card users dispute payments and a chargeback or reimbursements occur. Reimbursements also called Chargebacks became a norm when card users demanded protection which is a costly affair for business outlets whilst also utilizing costly manpower to handle it. Here is more on the topic of preventing chargebacks and may help.. Such regular occurrences could dent a business outlets credibility to maintain a merchant account whilst Chargeback rates could become steep and accepting card or ACH payments with frequent disputes could bring high fines and Chargeback rates, which makes it necessary to reduce Chargebacks crucial.

Creating A Chargeback Reduction Plan

It is imperative that a business outlet finds out the cause of it where some disgruntled customers might want a Chargeback without conveying their problem to the business outlet.  Other instances could be where the Chargeback is caused by a “friendly fraud”, where the customer whilst receiving the product still wants the money back. The other could be that the credit card was used fraudulently and the customer wants the money back hence finding out what the real issue is and being innovative could reduce Chargebacks but not eliminate it.

Key Elements Of A Chargeback Reduction Plan

A) Communication Is King
In any business open and good communication with customers is essential for the smooth flow of your business and this would ensure that the customer is aware the price he has to pay and what he would get in return for it. He should also know what your policies are whilst doing business with him and the rights that he has as the customer especially your return policy and warranties. He should not have any apprehension about any additional charges or costs that he is called to pay whilst transacting business with you and everything should be clear and precise. If you an online retailer it is that much more important to ensure that the customer has all the information he needs and they must know exactly what they are getting for the money they pay you. Clothing retailers should provide all details that they could about the product not limiting information only to size, they could add all measurements needed, type of material, country of manufacture and all other information available to make the customer fully aware of what they are paying for and this would lead to less Chargebacks. Answer all customer questions and keep the communication detailed and precise and provide all possible information, like your email address, telephone numbers, and most importantly your address, social media pages.

B) Handle All Customer Issues With A Smile
If a disgruntled customer has a problem sort it out immediately and find the best solution and if there is no way you could convince the customer offer a refund and solve and end the problem without it aggravating further. Handling the customer at your end would avoid a Chargeback which could bring additional problems to you and the business. Refunds may not be conducive for business but you may have to bear in mind that once a customer decides to obtain his money back he is going to ensure he gets it and would go to any length to get it. Even the customer is going to gain confidence knowing that doing business with you would be good for him and he will come back to you but if you get into a dispute he is going to talk about it for a long time.

C) Fast Response To Customer Issues

Once a customer has made the payment respond quickly by providing the service or product any delay on your part would irritate the customer and culminate in a Chargeback. If you need time to process the order for some reason or other keep then keep the customer informed through every step and ensure that he gets his money’s worth soon.

If you handle e-commerce transactions and shipping is involved in processing the order apprise the customer of the time likely to take to process the order and be specific about the time period. If you are offering services that would take time to complete it would be in your best interests to ensure that payments upfront could cause unnecessary conflicts hence being prudent in such type of businesses would be in your favor. The time period between collection of payment and completion of sale should be as short as possible.

Prevent Credit Card Fraud With Tools

Stolen credit card would place the business and the holder of the credit card in an awkward position and whilst the card holder would initiate a Chargeback the business outlet would have months of anxiety trying to sort out the matter. The most prudent thing would be to ensure such incidents do not occur though it could be said that it would be impossible to stop all credit card frauds being perpetrated by unscrupulous individuals. For instance a business could request for identification from the card presenter to check his credentials when the product or service is purchased at a point of sale. For e-commerce payments it may be difficult but there are some aspects that could be followed to prevent credit card fraud. Every business should be aware of the alarm bells when it rings especially when there are bulk orders from sources that you have not done business before. Any purchase that come with overnight delivery schedules and orders from different mailing addresses, or any other suspicious behavior on the part of the buyer. Large orders would also need scrutiny and any slight suspicion has to be checked out thoroughly before you ship the goods because you may lose your money in the excitement to procure the sale. It is advisable to have CVV or CVV2 codes for all online purchases which are three or four digit codes on the card to see that the card holder has the card with him whilst making the purchase. This is very important as most credit card fraud occurs with fraudsters using credit card information without having the card with them physically at the time. Avoiding transactions over the telephone or email would save you a lot of trouble and also anxieties which would hold you in good stead when you really would like to do your business in peace and not get involved in conflicts.

CONCLUSION

Chargebacks are costly and time consuming for any business hence prudently processing credit card payments would be in your best interests. It may not be possible to prevent all credit card Chargebacks but minimizing them is a possibility if not your business could be at wits end to ensure that all credit card payments are bone-fide and genuine. Putting in place certain prudent policies for credit card payments at your business and educating your employees how to collect payments and handle disgruntled customer would be one way of avoiding Chargebacks. Good customer service and being always alert to what is happening in your business when it comes to credit card payments would be in your best interests. Providing exemplary service coupled with a product of good quality could save you from much of the headaches that you may encounter in your business and also to prevent regular fraudulent payments that could dent your credibility in the credit card business. A little effort and you could prevent nuisance to you and your business from Chargeback problems which if given to escalate could bring your business down too.

Update For 2020

We have added a Chargeback Reduction Plan Template to assist you in completing your plan. Remember, a sincere analasys of your entire sales process is necesarry and honest changes must be made, for your plan to be taken seriously.  With new chargeback thresholds presented in the Fall of 2019, now more than ever is the time to address these issues.

About The Author

Angela De Steffano
Staff writer at High Risk Merchant Account LLC

Angela is a merchant account specialist and heads the marketing team at HRMA-LLC.

The post What Is A Chargeback Reduction Plan ( 2020 Update ) appeared first on High Risk Merchant Account Blog.

Understanding ACH Payments

In order to perfectly understand how these kinds of payments are made, it’s essential to comprehend them entirely, as well as to know what they are for. So, what are ACH payments? It’s sounds like a foreign language, right? Don’t worry, it’ll just be like that at the beginning. ACH payments are electronic payments that are created and processed through the ACH network. ACH means “Automated Clearing House“.  Whenever you are buying and or paying for something, the funds from your checking account move from one bank to another without you even noticing.

The payment processing tends to be inexpensive, as it is done by automatized computers, or as some other people would say; “robots“. These kinds of procedures are very beneficial for both consumers as well as for the companies. They are very safe as well because they have an automatic record-keeping so that everything can be easily accessible. Today everyone uses ACH payments all around the world, but the real mystery revolves around the technical jargon. This is something very important that you might not be familiar with.

ACH processing is responsible for the employer’s pay wages that go through the direct deposits. The ACH is also responsible for the bills that were paid electronically. These payments represent a huge part of the money movements, the Electronic Payments Association calculated that more than 25 billion payments were made last year only, and that is exclusively in the US. ACH is also responsible for some of these uses: the deposit of money of an employer onto the employee’s bank account. The deposit of a costumer when this one is paying a service provider. When a costumer changes banks. When a business pays a supplier for its products.

Why would you want to use it?

Most of the times, employers want you to use this method in order to achieve several things;

• The account number
  
• The name and entity of your bank
  
• The type of credit card and bank account that you are using
  
• The bank’s routing number
  

Once the employer know this information, a payment can be created and transferred to the right account in a fast and efficient manner. This method can also be used in order to make withdrawals from different accounts.

ACH payments are usually electronic from the beginning onto the end. There are some exceptions though, like checks turning into electronic payments. In this case they are being transferred through the ACH system.

What are the benefits of the ACH payments?

• They are electronic. Everything online is super easy and fast to use. It’s much cheaper because you don’t need to pay for anything. It’s easier to handle for absolutely everyone.
• Keeping track of them is really easy, and a smart thing to do. You can access the transaction history in order to keep account of your personal finances and information.

Why is this a good idea for businesses?

It’s very easy to handle. Costumers just pay and the email arrives to the company. It’s as easy as that. There is absolutely zero risk. It is extremely cheap. You don’t have to worry about paying anything at all! No plastic, no paper, no cards. Overseas payments are not a problem anymore. It’s really fast, almost immediate.

Why Is this a good idea for consumers?

The payments are very easy and fast. You don’t have to spend a lot of time and energy writing checks when there aren’t any left. You don’t get charged any extras.  Everything is in autopilot, you really don’t have to make any effort.

Accepting ACH checks from your clients

You’ll going to have to count on the payment processors, without them you won’t be able to obtain any money and or checks from your business. Ask your service providers if they can actually manage the ACH payments.

• You can ask your bank.
• Go to the company that processes your credit card or past payments.
• Look for a payment processor.
• Your software provides and or other providers.

Be careful with the monthly fees. In case your business is safe, you’ll be able to obtain all of the benefits without being charged, but as the risk increases, so do the taxes. It might still be affordable in case you make a couple of transactions each month.

What are the actual costs?

The system can fit any business, it doesn’t really matter if it’s a small one or a tiny one. Obviously the bigger the business, the more transactions you’re going to have. The usual costs per transaction are 11 cents, so it is not much when you look at it from a perspective, but if you sum it up… it really does make a greater difference. The smaller the business, the higher the transaction rates tend to be, why? It’s a mystery. No, actually is to maintain our capitalistic system. If your business is very small, you can even be charged five times that amount of money per transaction. We’re not even counting what is the credit card processing going to cost after the ACH payment.

Now you might be thinking that the best option, at first. Would be to start with non-electronic payments, but that is actually even more expensive than the ACH payments.

ACH for personal use

You can actually utilize the ACH system for personal reasons. If you want to, you can receive money through this method without any problem. Obviously, they are going to charge you the established quote per transaction.

• You can make these transactions easily and in a very favorable way through several third-party apps and payment services.
• Bank offers. Some banks offer some special packages in which you can take advantage for these benefits.

Faster ACH Payments

Today this is completely possible. It all began two years ago, now the payments are starting to be faster and faster. Before that, you could only get your money within 2-3 business days without even counting weekends.

Conclusion:

ACH is replacing paper checks and becoming the norm in today’s business landscape. The perfect solution for billing customers remotely, for payments on good and services. Employers love it for payroll as it streamlines processes, reduces overhead, and is environmentally friendly. The Federal Reserve is speeding processing times and in many cases the norm is same-day clearing. If you are considering the benefits of ach processing for your business, give us a call to discuss your needs.

About The Author

Angela De Steffano
Staff writer at High Risk Merchant Account LLC

Angela is a merchant account specialist and heads the marketing team at HRMA-LLC.

PLEASE BE SOCIAL:

The post How Do ACH Payments Work ? appeared first on High Risk Merchant Account Blog.

What Is The Dreaded TMF File

To the average person, the words “terminated merchant file” does not mean much, but for a business using merchant account services, it can mean utter ruin.  Landing yourself on this list could all but halt your business’ ability to process payments electronically.  The best thing a business can hope for is to never end up on the list at all, but in the case you find yourself neck deep in it, what options do you have? if any.

To put it plainly, the terminated merchant file is a list of merchants who have been blacklisted for transactions that land them outside the standards agreed upon for the service.  If the standards are breached, the merchants identification number is added to the TMF.  This warns potential service providers that this merchant is extremely risky and the chances of them being able to use account services becomes slim to nonexistent.

The following, are a few things a business should look out for in order to avoid landing on this list:

Too many chargebacks
Unpaid Chargeback Liabilites
Depositing an excessive amount of counterfeit sales
Participating in excessive and consistent fraudulent activity
Money laundering
Identity theft
Merchant collusion

Out of all the possible ways to land on the list, the one to be most vigilant of, is chargebacks.  They are the most common, and likely, the easiest way to end up on the TMF if you are not careful.

History Of The Terminated Merchant File ( TMF FILE )

The TMF was designed to protect banks from dishonest operation, merchants taking part in risky industries and businesses simply not correcting internal issues.  Some would consider the use of the list, at least in terms of modern eCommerce transactions, as a bit outdated.  Over the years, because of the development of newer and better technology, security has become heightened and policies have changed.  A couple of these developments include the use of EMV chips (seen in newer cards), the tokenization of customer data and the initiation of zero liability policies which are aimed at protecting the cardholders.

So, in the unlikely case that you happen to find yourself on the TMF, is there any way to get taken off the list?  The unfortunate answer is, not likely, with a couple very distinct exceptions.  The first possibility would be if you are listed on the TMF in error.  The bank who got you added to the TMF would have to report an error, the list is then corrected and you are formally removed, salvaging your reputation.  Another possible exception would be correcting a noncompliance to a requirement by the PCI/DSS.  Lastly, rectifying existing chargebacks with the bank and ensuring that future ones do not continue is another possible way of removing yourself off the list.

Conclusion:

The reality of it is that there are slim chances of finding your way off the list, once you are put on it.  There is however, a potential, tiny light at the end of the tunnel.  There are some processing banks that MAY be willing to take on the risk of handling your merchant account services if you find yourself on the dreaded TMF.  How selective they will be, and whether or not you will actually be able to attain merchant services is a whole other issue.  Best advice that can be taken away from all this… Do all you can to avoid getting on the list to begin with.  No good can come from it.

Author: Chris Fernandez
Small business authority and entrepreneurial journalist.
Contributing writer at HRMA-LLC
1-877 493-4622
hrma-llc.com

PLEASE BE SOCIAL:

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