An Efficient Credit Card Processor Plays a Pervasive Role

When any Business starts to be perceived as 'high risk',it pays an enormous charge back rate and acknowledges non card payments such as online payments, phone payments, etc. There are few types of businesses having more than average risk components than other businesses as
1) Telemarketing.
2) Online gambling and casino web sites.
3) Adult service providers.
4) Internet auctions. 5) e-cash businesses.
6) Advance booking web sites, etc.
Credit card processor normally takes higher charge for their services to businesses due to their high risk profile. Credit card processors facilitate safe and protected credit card transactions. Too many, the recent emergence of credit card processors has helped in doubling their business paradigm. 
Credit Card Processor-
Credit card processing is dealing out of any kind of credit card payment process. An internet credit card payment processing company will always put forward merchants' services for accepting payment online. A credit card processor is a third party vendor processing relevant credit card information.
Determinants of Processor-
Only a label of high risk should not make a business one-off. An efficient credit card processing organization could hold into arms the business in a holistic way. Merchants better haunt for those agencies that work gladly with high risk business concerns. A high-risk business generally pays a much higher charge for all of the transaction solution as compared to low risk businesses. However, the credit payment processor will like to spot these two factors-
1. Span of time in business.
2. Degree of charge backs.
Amount of Charge back-
If any business is operated for a considerable period of time, it is generally presumed that everything is fine and knowledgeable about business risks and uncertainties. Furthermore, low charge back brings forth the fact that high is being managed well. In addition to this, if the charge backs are low, the processor presumes the business of high risk must be doing something right. Many processors make a provision of reserve to guard the likelihood of losses.
Safer Dealings-
When any business starts to acknowledges online transaction payments by means of an e-commerce application, it becomes a variable object of frauds and scams. A high-quality internet credit card processing company keeps their en-suite mechanisms in order to perceive all the doubtful activities that are likely to cost forged transactions.

Safety and Security Parameter-
Payment gateways produce a unique Address Verification Service or AVS. The address is attached with an order and weighed against with the credit cardholder. Doubtful orders are deferred for guide's review.
Zeroing of Scams-
Every credit payment processors do not have the guts to work with high risk businesses organizations. Credit card processing agencies have shown their preference the ongoing businesses with low-level of charge backs. A responsible processing company strives to make scam free transactions.
Tolerance Zone-
Internet has speeded the business operations and the radius has expanded irrespective of country. Many processing organizations do not allow overseas businesses and prefer to stay back in home countries.
Go Slow-
Since the world has become a global village, the effectiveness of credit cards is being realized ubiquitously. The rules and regulations fixed the processing organizations often upset the apple cart. Opting for a good processor is surely an expensive affair that does not mean the selection of cheaper processor.

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Convenience of Credit Card Processing Services

Businessmen embark on a business venture with a view to earning profit. Since he takes a futuristic appraisal, the results may tend to differ. Consequently, a gap arises between the expected and actual. This gap is generally known as’ Risk'. The classical concept of risk says every business is risky venture.
Even if, there are cases of risk less business, but the component of risk never become zero.The magnitude of the gap determines the state of risk. Getting a tag of high risk deters many of the banking and financial institutions in approving their financial demand. In a global market, credit card processing services give an upper hand securing the order in the internet and give customers an easy going while purchasing in the internet.
In addition to this, credit card acceptance is seen as a specialty for on line business. Customers get a kind of impetus   if the business has a credit card facility. ‘High risk’ will be a mere term, if it is dotted with credit card processing services.  An efficient processing service releases all the risk element of such businesses and reduces the entropy.
Today, credit card is widely accepted as a medium of payment and a must for all types of business. A retailer finds fewer hazards in calling a merchant bank and praying for a merchant account. But few businesses belong to the high risk category by the processing organizations. They face all the difficulties in opening a merchant account and institutions charge a large amount for such services.
A high risk merchant is a merchant operating with a meager credit and/or runs a business that works in an industry that suppose to take higher than average charge-backs and there are a higher chance of fraudulent transaction. A few good examples of businesses that would be considered "High Risk" are as follows-

 1)  Adult Entertainment.
 2)  Pharmaceutical.
 3)  Traveling.
 4)  Online Tobacco / Cigarette.
 5)  Credit Counseling.
 6)  Credit Restoration/Repair Agencies. 
 7)  Collection Agencies. 
 8)  Loan/Mortgage Modification Services. 
 9)  Credit Card Rate Reduction Services
10) Financial Coaching/Restoration (Consulting or Software).
11) Sweepstakes, etc.

Role of Credit Card Processing-
High-risk merchant account provides credit card payment processing services. It is planned intentionally to offer merchants a one-stop solution for their e-commerce necessities. When a company offers accredited e-wallets or branded credit cards, for example Visa and MasterCard, a credit card payment processing service levers the daily online payment transactions-
1.Online payout-
The majorities of the payment-processing services are separately hold and are operating companies that have been managing business for years. They are tied to a number of banks all over the world and they issue debit card, credit card, and other payment processing to Internets almost all over the world. Most of the services are both licensed and accredited. The payment processing services have a management team having years of banking and e-commerce industry experience.
2.Low cases of fraud-
High-risk merchant account providers are very observant to all the possibilities of scam in online buying and e-commerce credit card transactions. All the credit card payment processors make use of fraud scrubbing to settle on the legitimacy of a transaction.
3.Organizational applications-
Many merchants of retail goods and some industries of service apply high-risk merchant accounts to route payments in a spot that is not located in a concrete store.

Inbuilt Problems-
The inherent problem with online transactions is that the card is not at all presented to the vendor which means ‘You”. This brings forth a risk component.
Top of the Mind-
High Risk Credit Card Processing services are galore all over the world. These services provide facilities with high risk merchant accounts. Better to talk to consultants before resorting to processing services.

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Offshore Merchant Account Is A Veritable Tool for International Business

 
A burnt child dreads the fire-
Likewise is the case of financial institutions and banks. Any business once flagged as high risk merchant account faces all the difficulties in operating the business. Financial institutions began to show sluggishness in accepting their proposal for opening bank accounts. Businesses that require a merchant account and are marked as a high risk may have to pay more fees or interest. The presence of risk component restrains the financial institutions to take a conservative approach. Overseas sales add to the complexity of the problems.

Offshore Merchant Account-
An offshore account is a special type of bank account in which one’s money is deposited with a bank that is situated outside the country or your fiefdom. This account lies with a bank situated even in abroad having offshore clientele base.
Accessibility-
An offshore account is handy and accessible albeit they are opened and set up in different countries. It greatly depends on the institution that manages the account. One could obtain a debit or credit card to access his/her funds. Besides, one can have internet access to view the details of transactions sitting from the cozy homes. These types of accounts give cable-transfer access too. One can also speak to banks over the phone, fax or e-mail.

Terms and Conditions-
Generally, the vast majority of offshore banking institutions will agree to open a bank account against a small amount as deposit. The interest the holder of such account would receive from an offshore account is much higher than that of a domestic bank account. It allows the holder in amassing more money when coupled with other benefits for example weaving of taxes that are locally collected.

Fee Structure-
Some amount of fees is required to be paid for opening an offshore merchant account. The starting cost ranges between $300 to $500.Processing fees, transport fees and other charges are added to the cost.

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Striking Advantages-
An offshore merchant account carries all the benefits that one intelligent and sensible merchant desires for his online business, like simple application, small to zero initial deposit fees and taxes, safety of accounts, security of accounts, fast payments, and many more.
Several businesses now recognize credit or debit card payment system due to its lots of advantages to the retailer and customers. It also produces a huge amount of profit by increasing sales and consequent cash flow in to the business. Today, more than 80% of customers now prefer to pay through their credit or debit cards.
An offshore merchant account opens up a Pandora of benefits. Some of them are as follows-

1. Simple Application-
It is very simple to apply dissimilar to a domestic merchant account. Offshore merchant account suppliers are not subjected to severe rules and guidelines. When it comes to question of applications they can allow maximum number of applicants since they don’t have any tough competitors. It is even possible to obtain even if the business is latest and don’t have any experience. It may require a week to set up the business though it greatly depends on the type of account.
2. Low initial deposit-
Many domestic accounts may ask huge amounts of money as initial deposit from applicants who can't even afford getting such. But in an offshore merchant account, merchants do not have to worry about any of it.
2. Reduced or zero taxes-
Generally, the providers of accounts are located in a different country than the claimant thus dispensation fees of credit or debit cards are not regulated with high taxes. They usually keep lower to zero tax percentage equal to 15% savings on tax payments.
3. Multiple Credit Card Currencies-
Having this account allows the retailers a potential to accept diversity of credit or debit cards, and of different currencies all over the world. Domestic merchant accounts might only be restricted to their local currencies which hold the business back to spread out internationally. However in an offshore merchant account, different types of currencies are greeted particularly that it is not limited to one country alone. But customers need not to be anxious about the currency conversion at the time of purchasing.
4. Safety and Security of the account-
Offshore merchant accounts are susceptible to high risks in frauds or scams. But with a systematic research one could find a provider that is genuine which will pledge one that the account will be safe and secure. Most of the offshore providers are at present applying newest security technologies and defense systems from scam and unknown encryptions to make certain all the account holders that their accounts to make financial transactions safe with greatest security.

5. Dependable payment gateway-
The credit and debit card processing routes are always steady and functioning. Merchants and customers have difficulty in downtime. By means of this account, the business will be able to accept credit and debit card payments within a short period with fast updates.
6. Speedy payments-
Merchants need not to hang around for days for payments transfers as it would only take a few minutes for payments to be processed and the payment will be made right away.
7. Global customers-
With the concept of globalization, business has no longer restricted to one country and enhanced the potentials of business. It is obtainable worldwide so worldwide customers can enable to purchase the products and services with limitless transactions.
These accounts are well-suited with writings that facilitate shopping carts or 'one-click buy' utility to merchant's online on web stores.

At the present era, lots of businesses are growing and reaching into the international business. These businesses need these accounts to accept credit or debit card payments from worldwide customers as local merchant accounts are perfect only in the domestic area. At the same time, it is not also true that these financial records are scams like some people say. Security systems are tightened and wired in Offshore Merchant Account.

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Tentacles Truncated of High Risk Merchant Accounts

Some businesses are perceived as ‘high risk’ if it has a enormous charge back rate and generally accept non card payments such as online payments, phone payments, etc.These types of businesses have more risk components than others such as,-

1) Telemarketing.
2) Online gambling and casino web sites.
3) Adult service providers.
4) Internet auctions.
5) e-cash businesses.
6) Advance booking web sites, etc.

Credit card processors normally impose higher charges for their services to businesses containing a high risk profile. Credit card processors facilitate safe and secure credit card transactions to high risk merchant accounts.A High Risk Merchant account is a distinctive account offered by banks to online businesses with high credit velocity or a business that has high revenue.

High Risk Factors- Following factors push the business into high risk sector-
a) poor credit rating index,
b) towering turnover,
c) customer dissatisfaction rate high,
d) money back policy,
e) susceptible business process exposed to credit card scams


Credit Card Processors- A label of high risk does not essentially mean that a business is isolated. These businesses get all the bless of credit card organizations.A credit card processing organization could help these businesses in a holistic way.Merchants are in a lookout for those agencies that work happily with high risk business.High-risk business normally charge a much higher rate for all of the processing solution compared to low risk businesses. The credit payment processor search for the following two factors-

•       Duration of business.
•       Amount of charge backs.

If the business runs well for a while, merchant presumes that one is adequate knowledgeable about credit card scams and can decipher a potential threat. Additionally, if charge backs are small, the processor presumes that the business of high risk must be doing everything right.Many a payment processing firms retain a reserve fund to guard themselves from possible loss.The amount vacillates with risk profile of the business and the corresponding market.

Safety Multiplied- If a business admits e-transaction payments by means of an ecommerce application, it becomes a happy haunting ground for scams and frauds. High-quality internet credit card processing companies maintain integral mechanisms in order to identify doubtful activities that likely to spawn fake transactions.The transactions can be put off for manual approval.Many credit processing organizations request customers or the industry to confirm the legitimacy of the transaction before handling any transaction.

Adds to Security-All the payment gateways create an Address Verification Service or AVS. This address is annexed with an order and evaluated with that of on folder for the credit card possessor. Doubtful orders are deferred for manual review.
Many internet credit card processors  supply advanced services such as IP address blocking, shipping address verification filters, IP shipping address mismatch filters, CCV handling filters, amount filters, etc. The more sophisticated and secure solution takes much higher cost.

Zero Scams- All credit payment processors are not tailor made to work with high risk businesses. But there are many processors who will charge a high cost. Among high risk businesses, credit processing agencies have a propensity to favor those who are in the business for sometimes with lower charge backs. Dependable and safe payment processing solutions lessen the risks of fraud and defend the business and its customers from any likelihood of loss.

Suitable Zone- Internet has made it possible to live in a society that is proficient to do business with people in countries throughout the world; as long as those people are living in the acceptable countries. Many credit card processors do not consider many countries to be good enough and generally do not authorize offshore credit card processing services. This has made the availability of goods and services harder for these countries falling outside the suitable zone.

Today’s anthem has been world is a global village.The value of credit cards is being felt all over the place.The acceptance of credit cards has multiplied the sales figures and revenue curves are found to be rising. In a global market, even if one is having excellent product portfolio, the customer will never come to pick the product from their territory.The marketing aspect is running the show.Often; the rules set by the processing organizations play a killjoy making us feeble.The requirement of a right processor is becoming inevitable in order to recognize the credit cards to the entire world.There was a time when the processing services were not accessible at all and when the gate was thrown open,it turned into a costly affair.Finding out the right processor with rational fee for processing services is the best possible solution to the high risk merchant accounts.

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Bothering Butchered in High Risk Businesses

It has never been difficult for land-based or online businesses which is having a lower risk profile to acquire own account in getting an account but problems start making headway as the high risk merchants are always deprived of  the privilege of owning high risk merchant accounts by most of the domestic merchant account providers.Maintaining a merchant account for receiving credit card payments is getting imperative.   

Merchant accounts facilitate the credit card processing and other instruments. Merchant accounts are generally allotted by elected domestic banks, credit card processors and other account providers.
  
Sensitization of High Risk.
A number of online businesses is operated by apparently high risk merchants that are tremendously prone to risk due to a number of reasons including high quantity of sales and the resulting vulnerability to scam and frauds. Such high risk merchants make huge profits and run into substantial problems in accepting online payments due to non-availability of high risk merchant accounts. If any of these features are found in any business, the same can be flagged as high risk -
      1. The business is not registered as per legal guidelines.
      2. The vendor or the business is flagged black by merchant account providers/credit card
          processing companies for different reasons of bankruptcy, fraudulent dealings or etc.
      3. The merchant is having an inconsistent credit history.
      4. The merchant operates any business such as telemarketing, travel, online pharmacy, gaming,
          ticketing, entertainment, downloadable software, etc.
      5. The business is able to generate bulky sales resulting in large number of financial transactions.
          Such a situation is expected to lead the chances of fraud and declare the vendor as a high risk
          merchant.  
      6. The business is petty with very insignificant volumes of sales and small numbers of  
          transactions. Such a business is simply unable to pay for the heavy expenses involved with
          purchase of fraud screening software/tools and other miscellaneous traits plus making required
          payments towards third party processing fees.

Obtaining High Risk Merchant Accounts
A merchant account can be obtained from a in-house merchant account provider such as a designated bank or a credit card processor or from any international/offshore agency engaged in similar activity. Nevertheless, in case a business has a high risk component, it becomes almost impossible to procure a standard online merchant account at all. A vendor running a high risk business is by no means allowed to open his own high risk merchant account by most of the merchant account providers. Given this scenario, it is advisable to go for high risk merchant accounts from international or offshore places.

Business Warranted
A high risk merchant account is a necessity for any business that has a very soaring turnover with large volumes of sales and has a tendency towards enhanced risk of fraud. Even though there is a band of such online businesses which calls for procurement of a high risk merchant account. The most important ones are:
        1. Online casinos and other gaming/ gambling agencies including sports wagering.
        2. Adult services and products.
        3. Pharmaceutical products.
        4. Travel services.
        5. Telemarketing businesses.
        6. E-wallet and E-cash.
        7. ISP and hosting services.
        8. Online cigarette or tobacco vending.
        9. Online auctions and debt services.

Customers Expectations
When running a high risk business one need to understand what is a merchant account and why is it needed. One may like it or not but if one is going to open a merchant account in a bank, he/she will have to go through authentication and evaluation system during which a bank categorizes his/her  business as high or low risk. Although this procedure is unpleasant for most business owners, it still brings some advantages. The merchant account provider will in fact make clear why a particular type of business is considered as high risk group. This information is essentially used by business owners in financial decision making. Most of the times, the business owners and online marketers identify that they operate a high risk business only when applying for their merchant account.
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One does not need to be concerned about penalties and collapse of the business if sales volumes grow unpredictably. The customers will also have a chance to pay one by mail, phone of the Internet. In case of refunds one will get an opportunity to solve the business problems without facing any serious problems. Moreover, one is free to take manual or automatic transaction mode and let the account bears the buck.

Fee Structure
Whether one may like it or not, but if his/her business is referred to a high risk then one is possibility to pay more. A merchant account provider will take higher fees in comparison to usual merchant accounts. A high risk account propels processing of most credit card types which is a big advantage for an online business, especially the one aiming on a global market. Even though one is paying higher fees one will enjoy the greatest benefits of a high risk merchant account – processing of credit cards.

The contributions of merchant account in high risk business need not to be over emphasized. At the same time it would be unfair to say all the online businesses characterize high risk. High risk merchant account is truly a friend in need and deed too.

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