Chargebacks can have negative implications for merchants. They result in financial losses as the revenue from the sale is lost along with associated fees. Dealing with chargebacks also requires time and resources, creating an administrative burden for the merchant. Here is an article on chargeback statistics for further reading. Excessive chargebacks can damage a merchant’s […]
Future delivery is an important situation for some merchants in payment processing. It’s good to know how to deal with it and your payment processing account. In the payment processing industry, future delivery is considered higher risk. Therefore, the underwriting process to get a merchant account is a little more in depth. To start, future delivery […]
Payment aggregators (aka third-party processors) are service providers that allow other businesses to accept credit cards without having to set up a merchant account. They make money by taking a percentage of credit card sales and also a transaction charge. Payment aggregators are a business on their own. They need to get approved for a […]
It has happened to many businesses before and it’s not a good experience. You are halfway through a busy day and a colleague tells you that all credit cards are being declined. It was working in the morning, but now it’s gone haywire. You call your payment processor (hopefully they have phone support) and they […]
If you know why consumers do chargebacks, you can work on preventing them. Chargebacks are one of those things that you should pay attention to as a business owner/operator. They cost you money and higher chargeback rates mean customers are unsatisfied. The first step to solving the problem is defining the problem. You should be […]
You want to get an understanding of how people are paying for things. Here’s a set of stats to give you the lay of the land. All these numbers are approximate so take them with a grain of salt. Also remember, statistics can be easily skewed in many ways. To get a real picture of […]
Payment processors and ISOs (Independent Sales Organizations) mostly sell the same products and services. In the end, ISOs resell products and services from processors and they may build additional services on top of processors. There are some ISOs that are huge and many are small. However, in general, they are smaller than processors. Banks are […]
When getting a merchant account, many payment processors will ask for a personal guarantee. There are some cases where this may not happen, for example in businesses that have been around for many years or a business that is very low risk. It is understandable to feel a little uneasy when signing a personal guarantee. […]
PCI is an industry standard set by the PCI Security Standards Council. PCI stands for Payment Card Industry. Essentially, it provides a set of things that every business needs to do if they are involved with credit cards. Merchants, software developers, payment processors, etc all need to pay attention and abide by PCI standards. It […]
It is tough to determine the best payment processor. All merchants want the best and the best really depends on your business. We believe the main criteria to determine the best merchant services provider (payment processor) are the following. Customer support: At some point, you’ll need to call customer support, they need to be available, […]
