Merchant Account Payment Gatways
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Online Merchant Account
When looking for an online merchant account provider there are many considerations which come into play. Most importantly of which is understanding the charges or rates and what can affect these. Most online credit card payment providers deal via banks who offer specific merchant account services.
However, many of these will offer better rates for certain types of companies, be they small retailers based in the country where they bank, or complicated offshore companies who bank in different regions to where they trade, and often have their corporate offices based in offshore locations.
These are typically considered to be higher risk type companies and as such will be offered slightly less competitive rates to their lower risk counterparts. Though given their particular business models it is often beneficial for them to accept slightly higher rates. (more...)
Online Credit Card Processing
Processing credit cards online is slightly more complicated than using a company such as Paypal who offer a very elegant solution to online companies to accept payments. However, companies such as Paypal can be more costly than having an online merchant account and many people do not like to use Paypal for a variety of reasons.
If you're looking to process online credit cards then your in the right place. Here we can advise you on the most important factors to consider and provide access to the most competitive merchant banks who are offering the best rates right now.
Depending on your business model and sector, the number of transactions, the average amount, where you are located, bank and which countries you trade with, will all affect the charges which are offered to you by certain merchant banks. (more...)
About Payment Processing
One of the most important things to consider when setting up an online payment processing account is the rates which will be charged for the particular type of business you have.
Every company will have particular idiosyncrasies which will affect the rates they are offered. These range from the sector in which you trade, the history you have, the number of charge backs you have incurred and where you are located, bank and have your head office.
All of which will be taken into consideration by merchant banks who will all differ according to the particular bank. Therefor it is important to get a range of quotes from a variety of merchant banks. (more...)
What is a Payment Gateway?
Due to the rapid growth of internet commerce it has become more important than ever for businesses and consumers to protect themselves when they complete transactions online. When you make purchases on the internet, most of the time you are utilising what is known as a payment gateway .
The service is often provided by 3rd party agencies that charge e-businesses and online retailers a certain fee per secure transaction. The process is a simple one and is similar to buying an item in a store with a credit card. But because this is the Internet and hackers and scoundrels abound, it is necessary for businesses to protect their customers and themselves from credit card theft and fraud.
In fact, the primary function of a payment gateway is to encrypt sensitive credit card information, thereby ensuring a safe transaction. Then the secure information can pass from the buyer to the seller and the payment can actually be processed. (more...)
What is ACH Payment Processing?
Though you may never have heard of the Automated Clearing House (ACH) Network, in all likelihood you have availed yourself of its services. For instance, have you ever paid a bill online, made a bank transfer, used Direct Deposit, or sent an Electronic Cheque? If so, you have used ACH payment processing .
And you are not alone. In 2007, over eight billion consumer bills were collected via ACH. This is a growth rate of nearly forty per cent over the previous year. But what exactly is ACH? The Automated Clearing House Network is an extremely effective, efficient and reliable way to transfer electronic funds and payments for participating financial institutions. The reason that this service is popular with consumers is because it saves them time and money. For example, let’s say your credit card bill is due tomorrow and you have neglected to send in the cheque. Well, if you use ACH payment processing, which is also known as online bill pay, you can get the payment in on time and save yourself the ten or twenty pounds late fee.
Of course, ACH payment processing also provides many benefits for banks and financial institutions. The first and most important advantage is of course a financial one, since paper transactions not only take more time, but they are also more expensive. For instance, did you know that it costs nearly a pound to process the average paper cheque? By comparison, an ACH payment can be completed for less than half that amount. (more...)
Low Risk Merchant Accounts
All businesses, from brick and mortar retail stores to online e-stores must accept credit card and debit card payments. The simple fact is that the average citizen carries more cards and less cash than ever before. And if businesses do not accommodate their customers, they will quickly find themselves closing up shop.
But processing credit cards is not free, and before a company chooses to sign up for this essential service, they must determine the rates that they expected to pay and include them as a part of their business expenses. Companies that pay the lowest rates are, not surprisingly, the ones that are seen as low risk by merchant service providers.
How do you obtain low risk merchant accounts ? Generally speaking, a business must process credit card transactions in person, using a good old-fashioned card swipe machine, to be considered low risk by providers. The reason for this is simple: these companies keep a signed copy of all printed receipts, which is why they almost never have to deal with transaction disputes. (more...)
Travel Merchant Accounts
Though Internet commerce continues to grow year after year, many customers are not aware of the high cost of doing business, even for those companies that compete in huge industries like travel. Believe it or not, one of the most expensive charges for most online travel and ticket brokers is the cost of accepting credit card payments.
Since every online business must rely on credit card processing services, they must pay a specific charge for each and every transaction. These fees are billed to the company and are based on rates that are determined by the risks associated with doing business in the industry.
In recent years, travel merchant accounts officially became high risk, which means that they are charged higher fees for each transaction. Why is this? The travel industry traditionally has high sales volumes and due to delayed and cancelled flights they must often offer full refunds. This costs money, which is why their rates have been raised and travel merchant accounts are considered high risk. (more...)
High Risk and Offshore Merchant Account
Whenever there is a financial transaction that involves a cheque or credit card, whether it is online or in-person, there is a service charge for the company that accepts the payment. However, some companies are charged at higher rates than others for each transaction. These companies are commonly referred to as high risk merchants as they often do most of their business online.
Conversely, low risk merchants are those that do their business in the flesh and actually swipe the credit or debit card and save a copy of a signed customer receipt. As you might expect, this record helps companies cut down on transaction disputes, refunds and chargebacks. But online businesses do not have this luxury. In the next few paragraphs we are going to discuss high risk and offshore merchant accounts and how they can reduce service fees and transaction costs.
Offshore financial centres have been attracting international investors at a record pace for many years now. We are talking of course about banks, trusts, foundations, hedge funds and insurance companies. (more...)
Adult Merchant Accounts
When it comes to starting a new online business, many proprietors do not realise that different businesses require different types of merchant accounts. They also often fail to anticipate how difficult it can be to locate a compatible merchant account service provider if they are competing in a controversial industry.
Probably the most controversial, yet lucrative online businesses these days are adult or pornographic websites. For years the growth rate of this online industry has been astonishing, but even so, many merchant account service providers will not accept their business, which is why adult merchant accounts have some of the highest service rates on the Internet.
Why is this? Well, there is no denying that one of the reasons that these businesses are often denied service has to do with moral standards, as many of the larger merchant service providers believe that doing business with these companies may reflect negatively on them. However, it is also a fact that many adult websites have an incredibly high number of chargebacks, which means that customers dispute transaction costs and fees. (more...)
Tobacco Merchant Accounts
If you are selling any type of tobacco product, such as cigarettes, cigars or chewing tobacco, you will need to obtain a high risk merchant account. What this means is that you will be charged a higher rate for credit card transactions than businesses that accept payments in person and keep signed customer copies of their receipts. These businesses are often referred to as low risk merchants and they customarily receive the best rates in the industry.
However, that does not mean that tobacco merchant accounts have to cost your company an arm and a leg. In fact, there are several things you can do to cut costs and ensure that you receive the lowest rates available.
Why choose a high risk merchant account? In short, because a tobacco seller who offers his wares online has next to no chance of securing a low risk merchant account. Not to mention the fact that the high risk account can provide your company with everything you need to succeed on the Internet. (more...)
Online Pharmacy Merchant Accounts
When we consider all of the online businesses that are often labeled as high risk, like adult websites or tobacco sellers, it is hard to comprehend why online pharmacies have been thrown in with these traditionally controversial sites. After all, they do not sell dangerous products and they do not display salacious material. But the simple fact is that most of these companies sell prescription medication without the need of an actual prescription, which is enough for them to be considered as high risk.
What does this mean? Well, a high risk merchant, just like any other online merchant, must accept credit or debit card payments to grow their business. And the 3rd party agencies that oversee and make certain that these transactions are secure get a service fee for each and every payment that is received. This fee is based on whether or not the merchant is operating in a low or a high risk industry.
And while the rate for online pharmacy merchant accounts is not quite as steep as for pornographers or tobacco peddlers, it is enough to cause concern for many new online pharmacies. The reason for this is simple: most credit card processing companies will not offer service to any company that has been deemed "high risk". (more...)
Internet Gambling Merchant Accounts
According to a recent study released by Merrill Lynch, Internet gambling will continue its astonishing growth until at least the middle of the new decade. The industry which began in 2001 with earnings of a little over a billion pounds a year is now raking at nearly fifteen billion pounds per annum.
As impressive as that is, the study estimates that the industry will see a massive surge in the coming years as more and more foreigners receive internet service. And as incredible as it sounds, the estimated haul for internet gambling by 2015 is a mind-boggling three-hundred billion pounds!
When most internet entrepreneurs see a number that large, they immediately consider establishing an internet gambling site of their own. But the truth is that the process is much more difficult than many businessmen anticipate. For starters, every online business that accepts credit card payments must have internet gambling merchant accounts . (more...)
Online Casino Merchant Accounts
When most internet investors discover just how lucrative online casinos can be, they are anxious to get a piece of the pie. But establishing your very own virtual gambling hall is not nearly as painless as it seems. To begin with, you must acquire a gambling license. If you do not have one, it is nearly impossible to run an online casino.
Once you have obtained a license, you must then apply for an online casino merchant account. What is this? Every online business must offer their clients secure transactions when making credit card payments, and this goes double for online casinos, since they often make far more daily transactions than the average online business.
Online casino merchant accounts are backed by financial institutions that take responsibility for transferring credit and debit card payments from customers to clients. For this service they receive a small commission for each transaction. This fee varies greatly based on the risk of the industry the client does business in. (more...)
Replica Merchant Accounts
Replica businesses often sell items such sunglasses, handbags, shoes, clothing, and watches. These goods are often imitations of more popular, visible brands and they are almost always sold online. The reason for this is simple: the goods can be cheaply produced in Third World countries where labour costs are cheap and then sold online to consumers in wealthier nations.
For investors and businessmen who are interested in establishing their own replica business online, the last thing they must do before they open their virtual doors is to obtain a merchant account. These accounts allow customers to make online payments with their credit or debit cards without having to worry that their information will be intercepted by thieves.
But replica merchant accounts are not easy to come by, since the industry is considered high risk by the financial institutions, or merchant service providers, that take responsibility for all transactions. For this, the service provider receives a small commission for each transaction. This fee is based on the risk of the industry the client competes in. (more...)
UK Merchant Account Services
Due to the rapid growth of Internet commerce, many UK business owners have started selling their goods online. This often results in higher monthly sales, increased visibility and more enquiries. The internet also affords them the opportunity to sell their wares all over the world.
But selling goods online requires more than just a website. All businesses that accept credit or debit card payments must first obtain a UK merchant services account. These accounts are backed by financial institutions that actually process the credit card payments you receive.
What to look for? Because a merchant service provider receives a fee for each transaction that is processed, it is imperative that you locate a provider that offers competitive rates. Of course, these rates will depend on the risk of the industry that you do business in. If you are not involved in a risky industry like gambling or adult entertainment, it should not be difficult to obtain rates as low as 2-3% per transaction. (more...)
European Merchant Accounts
While countries in the UK and in North America have been responsible for most of the growth of internet commerce in recent years, that trend is slowly starting to change as more and more Europeans gain access to the internet. As incredible as it might sound for residents of the UK, the rest of Europe has been slow to catch on to the obvious benefits of shopping online. And while part of this was due to the simple fact that they did not have internet access, slow growth in Europe, especially in EU nations, can also be attributed to cultural differences.
For example, only one in every ten Italians made an online purchase last year. It is also a fact that only about sixty per cent of the residents of EU nations have internet access. But this number is steadily increasing, which means that there is an awful lot of room for growth in Europe when it comes to online shopping.
That may be why a record number of UK businesses are applying for European merchant accounts . These accounts give sellers the ability to process online credit and debit card transactions. Well, actually it is a financial institution that does the processing and for this service they charge sellers a commission. (more...)
Merchant Account Services USA
When it comes to internet commerce, nobody does it better or more frequently than Americans. According to a recent poll, over eighty per cent of Americans bought something online in the last six months. These numbers have been steadily increasing for more than a decade now.
That is why the overwhelming majority of large businesses presently sell their products online. And everyday more and more small businesses get in on the act. However, that does not mean that consumers are happy with the system. Yes, they believe it is convenient and that it saves time, but they also have a number of pressing concerns that sellers would do well to take heed of.
In another recent poll, three out of four online shoppers in America did not feel confident about giving a company their credit card information as they worry about identity theft and fraud. The best way for a new business to allay some of these common concerns is to obtain a merchant account services USA . (more...)
Israel Merchant Accounts
When a company makes the decision to sell products online, there are a number of important considerations. First and foremost, they must create an attractive and easy to use website. Then they must arrange for a reliable shipping service and make certain that their inventories are up to date. But one essential step that many new businesses do not devote enough time to is the selection of a merchant service provider.
This is especially true in countries like Israel, where accounts are much harder to come by. The financial institutions that manage these accounts are responsible for processing all of the credit card transactions for online purchases. Without them it is impossible to do business because consumers will not be guaranteed secure payments, which means that they will not buy.
But since most merchant account service providers reside in the US or the UK, they often will not offer special services or reduced rates to foreign companies. This means that many Israeli based companies are forced to pay exorbitant transaction rates for Israel merchant accounts . The transaction rate is actually a small commission that service providers charge to process your payments. (more...)
Australia Merchant Accounts
As online sales continue to grow, more and more companies are choosing to do business online. Though the process is not quite as easy as many business owners expect, when things are up and running there are a number of obvious benefits, such as increased sales, reduced costs, and more foreign buyers.
But getting back to the difficulty of establishing an online presence, there is one crucial step that often trips up new online sellers and that is locating a credit/debit card processing service. These financial institutions are the ones that are actually responsible for processing the online payments that businesses receive from their customers.
And while finding a bank to process credit card receipts is not impossible, it is much harder when you do business in a country like Australia. You see, most of the credit card processing services are based in the US or the UK. That means that foreigners should expect to pay slighter higher fees for each transaction. As you might expect, this can make finding the right Australia merchant accounts quite challenging. (more...)
Indian Merchant Services
Though access to the internet is increasing all over the world, there is no country that is growing quite as quickly as India. According to a recent report, the country that is home to the second largest population on earth experienced an internet growth rate of 153% in 2008. This is an incredible number that warrants closer investigation.
While not all numbers or statistics have been verified, we do know that the average Indian has increased access to the internet and that he is also using these new services more than ever as technology continues to improve and costs decline. For these reasons, and many more, the queue for merchant service providers is growing by the day.
What are Indian merchant services ? As you may know, when a company does business on the internet the only reliable payment options they can offer consumers are credit or debit cards… obviously, they cannot accept cheques. This means that the company must hire a qualified credit/debit card processing company to handle all of these transactions. (more...)
How To Set Up An Offshore Online Business?
Setting up an offshore online business is a complicated process which can be made simpler by understanding the problems and solutions in advance. The most important factors which must be considered is the payment processing gateway as this is the start of the process and everything else will have to fit around this.
Companies who process credit cards are known as Payment Service Providers and have to adhere to strict compliance regulations. This is in effect to prevent money laundering and terrorist financing. These companies have to comply to the regulations with specific regard to the aspect called 'know your client'.
The compliance regulations of the Payment Service Provider or merchant bank require that they have a complete set of documents about you and your company and they also like to see recent evidence of your companies transaction history (looking for any charge backs). (more...)
How to Prevent or Reduce Chargebacks
For any company that does business on the internet one of the most important concerns is securing payments. After all, if you don’t get paid, you can’t keep the doors open, even if they’re virtual doors. This means establishing a merchant service account. These accounts ensure that businesses will have their credit card payment processed in a fast and efficient manner.
There’s only one problem. These companies, or merchant service providers, receive a commission for each and every transaction they process. The rate of these commissions are based on several factors, most importantly it depends on the riskiness of the industry the company competes in; and this risk is determined almost entirely by something called a chargeback.
What is a chargeback? Basically, it is a fee that the service provider is hit with when one of your customers disputes a charge you made to his credit card. After a dispute has been filed, the credit card company will contact the service provider, since they are responsible for processing payments, and they will often demand restitution. Once they have been repaid, they will slap a chargeback fee on the provider, which is designed to compensate the credit card company for the time they spent recouping funds. This fee will then be passed on to you. And since these charges sink many new businesses, it is important to know how to prevent or reduce chargebacks . (more...)
PCI DSS Compliance For Small Businesses
Going shopping using real money would seem to be dying out. Increasingly, we are paying for goods with debit or credit cards. In fact, there are stores in the USA which are quite unable to process cash at all.
Although we take this payment method for granted, there is constant concern about the safety of the data on our cards. It is to ensure the safety of credit card data and avoid fraud, that the PCI DSS was set up. The Payment Card Industry Data Security Standard applies to all businesses which transmit, process or store payment card data.
PCI DSS Compliance for small businesses is slightly simpler than for larger ones. The definition of a small business is decided, in this case, by the number of card transactions the company handles each year. There are 4 levels: (more...)
Competitive Merchant Account Card Rates
Every company that does business online or in person needs a merchant service account. These are accounts that allow them to accept credit and debit card payments. While the process is a bit more complicated online than in person, the main difference is the price or commission merchants are charged for this essential service.
How does it work? When a person buys an item with a credit or debit card, either online or in person, the business must have these transactions processed. The companies that provide this service are usually banks or financial institutions who receive payment directly from the credit card companies. They then take a small commission for processing the payment and send the rest to the merchant.
But competitive merchant account card rates can be difficult to find, since these rates are based on the risk of the industry the company competes in, they vary. It is also a fact that online businesses typically have much higher rates than real brick and mortar businesses. (more...)
Accepting Credit Cards Online
Purchasing goods is becoming much easier in today’s society. A few decades ago the only way in which we could buy goods was to go to the store and physically purchase them. This involved either a cash, cheque or credit card transaction. Now, we have several methods in which we can have goods delivered to our homes.
The easiest way to buy goods now is online. Ever since the internet has begun accepting credit cards online , the shopping realm was changed forever.
No longer do people have to wait in lines at the grocery store or hardware store. Now we can virtually browse a store’s inventory at our own leisure and use a virtual check-out. These virtual check-outs allow us to input our credit card information as a means of purchase. (more...)
Accepting Online Payments and Credit Card Processing
Due to the astonishing growth of internet commerce, many businesses in the UK have started selling their wares online. But becoming an online merchant takes more than just a functioning website, businesses must also obtain a merchant services account. These accounts make accepting online payments cheap and easy. Well, at least they make it easy.
What are they? A merchant service account gives online businesses the ability to accept credit and debit card payments. It also gives clients the confidence they need to complete transactions because they know that all merchant accounts are backed and insured by a reputable financial institution, often a bank.
It is these institutions that actually process the payments and ensure that the transaction runs smoothly. For this service the merchant service provider takes a small commission, often only about two or three percent. But this is always quite a bit higher on the internet. The reason for this is simple: when a credit card payment is made in a store, the merchant has a signed copy or PIN of the original receipt. But online sellers have no such evidence. (more...)
The Biggest Flaw In The PCI DSS Security Regulations
Online security is taken more seriously today than ever before. In years gone by almost anyone could accept credit cards. If you were trusted enough to have a credit card, chances are you would be trusted enough to accept card payments.
As of April 2010 new regulations have become mandatory for all companies wanting to accept payments online, this is known as PCI DSS Compliance. To comply with the new regulations, even the smallest online companies have to be regulated by over 300 separate protocols, which range from how you handle the card data to how you host your servers. On top of this 'penetration testing' is required where your servers are scanned for over 3000 known vulnerabilities four times per year by an approved security standards council PCI scanning vendor.
The regulations and checks are one of the most daunting tasks facing new and old online companies who are now being forced to become compliant over the next few months. The sheer depth of knowledge required about server security and the regulations means that in the vast majority of cases, online companies will have to bring in expert knowledge and companies to handle PCI compliance for them. (more...)
The Importance of PCI Scanning
Any company that sells goods or services on the internet must have access to a reliable PCI scanning system. What is it? The acronym PCI standings for Payment Card Industry scan. The service is provided by approved scanning vendors on the internet. It is their job to regularly scan all of the IP addresses related to you website and to ensure that unauthorised users do not have access to them.
How do they work? Generally speaking, a bank or merchant service provider will request an online company to perform a PCI scan. This is to guarantee that all IP addresses that can be accessed by customers are virus-free and that they cannot be hacked. Failure to perform a PCI scan will almost certainly result in termination of a company merchant service account.
PCI scanning is also important for consumers who worry about criminals gaining access to their credit card information. For even though commerce on the internet is up, many shoppers remain apprehensive about entering their information online. (more...)
Self Assessment Questionnaire for PCI
The days when businesses could simply throw up a website on the internet and start collecting payments from grateful shoppers have long since passed. Today, the average internet shopper is aware of the fact that credit card theft is quite common online. That is why they are wary of any site that is not protected by an online security company.
One of the most important security services an online business can avail itself of is PCI scanning. PCI stands for Payment Card Industry scan. The service is provided by vendors on the internet whose job is to scan IP addresses that are related to your website and can be accessed by the public.
More often than not, a company's merchant service provider will request or demand that a business perform a PCI scan. A successful scan will let them know that all IP addresses that can be viewed by internet users are uncompromised or virus-free. The merchant service provider may also ask the company to complete a Self Assessment Questionnaire . (more...)
Online Payment Processing
When you go into any retail establishment and swipe your credit or debit card, the merchant is charged a small fee. This fee is based on the general level of risk in the industry. What do we mean by risk? Well, the most expensive single fee for merchants is called a chargeback. A chargeback is when a customer requests a refund for an item he purchased.
If a chargeback is approved, the bank with which the merchant has an account will be forced to offer a refund to the customer’s credit card company. When this happens, the bank will not only charge the merchant for the refund, but they will also issue a fine to compensate them for the time they spend resolving the case.
In this article we will discuss online payment processing. We began with the chargeback for one simple reason—it is the single most obvious obstacle to success on the internet. You see, chargeback fees on the internet are out of control. For some online business, chargebacks are simply a way of life. (more...)