Virtual Terminal and It’s Benefits

Virtual Terminal: Virtual Terminal is an online application or operating system where a merchant can check all the transactions and get a detailed inquiry of it. By using virtual terminal merchant can accept the payment without physically using the credit card. It is contrary to physical payment where the credit card must be present at the time of the transaction. You don’t need an electronic machine (POS) or go through any hassle if you had opted for electronic payments. What you need to do is promote payment gateway, which will allow you to process your transaction without any inconvenience. You can get your payment even from miles away within a few seconds with the help of virtual terminals. Multiple companies are now offering these facilities one of them is IBM, PayPal, Linux and many more.

How does Virtual Terminal work?

As it is online, so it obviously requires an Internet connection. Usually, it is powered by the gateway, which means each and every transaction that the customer will perform would be processed by the gateway, which we are calling the virtual terminal.

For executing the transaction the gateway lands the customer to the payment page where he puts all the required card details manually, and then after getting a confirmation from the bank, the transaction takes place. For processing the transaction, the virtual terminal charges some amount, which is called gateway fees. Virtual terminal gives diverse options of payment to the customer. In case of recurring payments, the merchant can directly ask card details from the customer for the payment, which will allow deducting the charges till the subscription ends.

Benefits of Virtual Payments

Virtual terminal helps in processing a lot of transactions instantly. It is the solution that turns your computer into a payment processing device. It will allow you to accept your payment anywhere at any time without being necessarily present there. You can even process the transaction once you get the card details of your customer over the phone or e-mail.

Virtual Terminals also centralize data and make it more secure. So the chances of fraud or scam also reduce.

Unlike their physical POS counterparts, virtual terminals can handle recurring payments, easily.

How to get rid of poor merchant underwriting

Effects of Poor Merchant Underwriting

Your high-risk business may suffer from one or the other reason even without in-depth analysis and these are:

Incorrect Limit: You should set limits for your business as per requirement. It should not be too high or too low, as both will put your business at risk. Limits lower than required will hinder the regular processing of transactions. As a result, it may constrict the flow of cash or timely payments from the customer. If a limit is too high, this may lead to unexpected fraudulent charges.

Hidden Fee: An additional fee is there if the volume exceeds the limit. However, even if you have set your limit, some providers let it exceed without notification. And they also charge you with a penalty.

Downgrades: Once your high-risk merchant account is set, you are inclined to transaction downgrades if certain required features and security measures are not set along with the account. Although, setting up these features will cost you more. But it will help you in long run and enable smooth processing of transactions.

What Providers Check

Industry Type: Risk is in every kind of business but the level of risk varies from business to business. Few businesses are less likely to fraud and chargebacks as compare to others. Higher the level of risk, higher the amount of documentation.

Return Policy: Businesses that indulge in shipping products are risky because there are chances of non-delivery of product, wrongly delivery or delivery of broken product that might result in chargebacks.

Business History: If you are not new in the market and have applied for a merchant account, underwriting will involve reviewing of your credit history as well as chargeback history (to know chargeback ratio) before approving or rejecting your application.

Financial Stability: To check the financial stability, underwriting may include your bank statement and credit. This is very important for the businesses while applying for a new merchant account, as it directly affects the decision of underwriting approval.

Online and Offline Payment Processing | Advantage & Disadvantage

These payment methods are different in terms of advantages and disadvantages. In the next section of the article “Offline vs Online Payment Processing”, we will discuss a detailed difference between the both.

Advantages of Offline Payment Processing
There is a reason why most people around the globe still prefer to use cash for their daily money transaction. Some advantages of the offline method of payment are given below:

Being a traditional method of payment makes it more trusted. People still trust the bank checks and drafts and use them for payments.
TThe offline transactions are transparent. This means both the lender and receiver are sure about the transaction at the moment of the deal.
Offline mode of payment is direct and do not depend on any other source. For example Internet or payment gateways.
Easy to use and understand. Many people face difficulty with the online mode of payment.

Advantages of Online Payment Processing

In the war of Offline vs Online Payment Processing, the online method is winning so far. This is due to some advantages of this mode of payment.

Online method is quick and easy. You can transfer a big chunk of money with just a swipe of your finger.
You have the record of all the payments. This helps in reducing the payment frauds.
Speaking of frauds, the online methods are safer as the online payment gateway takes the responsibility of the money during the transactions.
You can make a transaction in any part of the world without facing the issue of currency difference.
Worldwide acceptance and 24*7 availability.

Disadvantages of Offline Payment Processing
There is also some disadvantage to the offline payment that makes the user go for the online method. Here is some notable disadvantage of offline payment method:

The offline method is limited by many factors by distance and acceptance of another party.
It’s not safe at all. The party on the receiving end will have to check and recheck the received payment.
Not recommended for the transaction of a large amount.

Disadvantages of Online Payment Processing
There is a reason why the offline payment method still exists even when the online method is winning in the Offline vs Online Payment Processing. This is because the online method is not as good as it sounds.

Card frauds – All of us heard about the credit card and debit card fraud reports.
Identity theft can cause the loss of money and data of an individual.
The online method requires the person’s identity in order to make the transactions.

Few Factors to Consider While Choosing A Payment Gateway For Your Online Businesses

You can follow this article to compare the Payment Gateway provider in the market. For more information, you can contact Merchant Stronghold for the assistance. Also, we can help you choose and compare Payment Gateway Provider.

Factor 1 – Fees and Additional Fees for the Services

The transaction processing fees and other fees for the services can affect your profit. As a merchant, you should compare the payment processing fees of the services and then get the one that is required. Here are the different fees or charges that a payment gateway service provider can ask.

• Monthly fees
  Termination Fees
  Setup fees
  IRS (Internal Revenue Service) fees
  Batch fees
  Contract Fees
  Annual fees
  Customer service fees
  PCI (Payment Card Industry) compliance fees
  Statement fees

These are the list of fees that a payment gateway provider can ask. There could be more than what are available in the list above.

Factor 2 – Allowed Card and Payment Types

Types of cards and payment types should be allowed while accepting the payment to help the merchants to compare Payment Gateway provider. Here is the list of popular Card Service Providers:

• VISA
  MasterCard
  American Express
  Discover
  JCB
  Diner

You must choose the card acceptance according to your customers. Also, compare Payment Gateway provider depending on the majority of card payments you get.

Questions that you can Ask while comparing Payment Service Providers – Merchant Stronghold

• Which is the best payment gateway for your business?
  How to add your website with payment gateway
  What is payment processor fees in the current market?
  Which is the best payment gateway for micropayments?
  What is payment gateway charges in the USA?
  Which is the best payment gateway API?
  What is the best payment gateway for Bigcommerce?
  Payment gateway providers list
  Which is the best payment gateway for small business?
  The best online payment processor for your business?
  What are available online payment gateways?
  Which is the best payment gateway for international transactions?
  Credit card processing comparison chart

You can use this guide to compare payment gateway provider. If you are looking for more details then feel free to contact Merchant Stronghold for the assistance.

Instant Approval Merchant Account For Your Business

There are benefits of getting a Merchant Account Provider for Business:

Better Money Management

No matter how small or large enterprise you have, money management is one of the very important aspects of a business. Without proper management of money, you won’t be able to see any profit. This is how a merchant account helps:

You get a merchant account, which is connected with all the modes of transaction available.
Now, if a customer makes the purchase using the credit card, debit card, or other cashless modes, the money will be directed to your merchant account directly.
Also, you can easily track the flow of money and make your business better.

Customer Satisfaction

There are many people who do not carry a large amount of cash anymore. Also, they prefer card mode of payment when it comes to expenditure. Coming back to the merchant, they need to equip their business with the tools to accept such payments. A merchant account provides such services.

A merchant also provides the tools to accept various kinds of card payment.
This provides flexibility to the customer, as they have the option to choose from multiple modes of the payment.
If you have an online platform to make business then you can also add payment buttons to the website for the customer.

No Fake Currency or Bad Check Hassle

In the case of cash or check transaction, the merchant is always worried whether the money offered is genuine or not. Sometimes, these little frauds can lead to a great loss for the merchant.

By using the cashless transaction, the merchant can avoid cases of fake currency and bounced checks.
A merchant account also offers payment modes for the recurring transaction of products and services.

Growth in Number of Sales

As we discussed, a great number of individuals are opting for the card payment as the mode of transaction. And introducing the cashless transaction can actually bring more business. With the growing security, the number of card customers is increasing exponentially.

Few Ways to Choose Merchant Service Provider

In this blog, we will try to focus on some important factors that can help you to choose the best merchant service provider for your business.

1. Clear and Transparent Fee Rates

This is the most important thing to study before selecting a merchant account. Many times, a provider will charge you very less processing fees to entice you to open an account with them but may charge very high fees in the name of other fees. A PCI fee is one such fee that a merchant has to pay to safeguard both merchant’s and customer’s account information. So, you need to consider all the rates and then finally choose best merchant service provider with transparent fees structure.

2. Study the Fraud Detection Program

We have seen a lot of evidence of fraud happening in the cyber world in recent times. Fraudsters are now moving toward the small and medium-sized merchants because they are considered to be an ‘easy target’. So, one needs to be aware of the data breach security program covered by the service provider.

3. Stay Away from the Misleading Advertisement

Advertisement can really be a disguise. The basic idea of an advertisement is to enlighten customers about a company’s product with proper information. But it doesn’t seem to be happening all of the time. Many times companies hire individuals’ agents having no relevant educational background or no interest. Well, there are other reasons too, which led them to promote their product in a non-transparent way. So, try not to fall into any such trap. Conduct proper internet research and choose the best merchant service provider, which fulfills all of your needs.

4. Post-Sales Customer Service Assistance

It’s not just about your hardware or software products that you require a customer service assistance after the purchase of the product, customer service for presales and post-sales is required for almost each and everything that we buy or buy from. It can be in various forms. Some companies will assist through email and chat, some may even provide you with a dedicated representative for your account.

5. History of the Merchant Account Provider

Last but not least, you need to figure out the behavior of the merchant account provider with the proper market research. Proper market research will guide you in terms of examining the previous background of the provider. So, we hope that this article will give you a good idea on how to choose the best merchant service provider for your business.

Merchant stronghold specializes in high risk and offshore merchant account. For more information on merchant services, Payment Gateway you can reach out to us via email @ info@merchantstronghold.com

Save Time & Money ACH Payment Processing

The ACH stands for the Automated Clearing House, which is an electronic payment system. It is an electronic network for the financial transaction in the United States. The ACH processes huge transaction amount that is debited or credited. Also, the most common uses of ACH are online bill payment, mortgage and loan repayment, and direct deposit of payroll.

The Credit Transfers are also pushed to the merchant account by ACH by quickly processing the transaction.
ACH is a direct payment that uses the electronic method, which makes it fast and efficient.
It makes easy for the merchant to handle and manage the transaction.
This method is proved to be the most secure transaction method for both merchants and customers.

How does ACH Payment Processing Save Time?

The ACH is proved to be faster than other payment modes. This is because, when using the ACH, a unique routing number is provided that initiates the transaction. The money is then taken from the customer’s account and put into the merchant’s account. It is somewhat like a paper check but faster.

Generally, the ACH takes 2-3 working days to complete, from customer’s account to the merchant account.
Same day processing is also available for the merchants.
Also, the authorization is fast and secure that is attracting many merchants.

For more information, we recommend you to contact an expert. Call at the toll-free number+1 (888) 622 – 6875 of Merchant Stronghold and get an expert to guide you.

Now we know that the ACH processing saves time. It also saves a huge chunk of money as well. When using a credit card, the merchant has to pay a fixed amount to the credit card processor to use their credit card service. The ACH removed this fixed charge because this service is between the merchant and the customer.

Authorize.Net Credit Card Processing Services For Merchants

The Features Provided by Authorize.Net

Here are the features of Authorize.Net that are discussed in brief. For more details or any query get Merchant Stronghold executive to assist you.

 

Advanced Fraud Detection

Authorize.Net also offers IP address, regions or transaction from a specific location.
There are various filters and transaction filters that can be added to avoid frauds.

Secure Customer Data

By using Authorize.Net services, the customer can save their payment information and use them every time they make payments.
And, the data entered or stored by the customer remains safe from any exploitation.

Payment Types

If you are looking for expanded payment methods then you can choose authorize.net.
They offer EMV chip cards, digital payments, major credit cards, signature debit cards, e-checks and more.

Recurring Payments

Recurring Payments can give the sleepless night to a merchant as they have a high chargeback rate.
It also gives independence to the customer to make payments anytime without the hassle of entering the details again and again.

Account Updater

It updates monthly credit card transaction details.
This helps the merchant to avoid the interruption due to lost transaction details.

Invoicing

The customer gets the direct email of the recent purchase on their registered email address.
Also, it sends the email regarding any overdue payment to the customer as an alert.

The merchant should get Authorize.Net Credit Card Processing after looking at their plan very carefully. You can contact Authorize.Net to gather the information you seek.

Get Authorize.Net Credit Card Processing

Firstly, you need to register yourself as a merchant to Authorize.Net. After that, create a merchant account there as well. Here are the detailed steps that can help you get through the process:

Start by checking the pricing and plan offered by Authorize.Net by visiting the website.
After that, you need to check the requirements to get the services.
Click on Apply Now button to get the service you need.
Enter the details related to your company including the geographical location information.
Once your verification is complete, you will be given the services you want.
Authorize.Net will send you an email regarding your application and its status.

You will also be provided a merchant account to manage and handle data associated with your business and get Authorize.Net Credit Card Processing.

What is Rolling Reserve & Why is It Important to Merchants?

Rolling Reserve Merchant Account: When it comes to new merchants and high-risk businesses, the bank takes all the possible caution to avoid any loss in their business. Due to which they have created a robust network of rules that need to be followed at all times so that economic and financial aspect of the business never sees any downfall.

This is the reason that bank introduced the concept of Rolling Reserve Merchant Account.

WHAT IS ROLLING RESERVE MERCHANT ACCOUNT?

Rolling Reserve is a fixed percentage (generally 5-10%) of a merchant’s transacted amount reserved by the bank which can be used in case of an excessive chargeback. This happens for only a short time interval (6-12 months) until the business gets some stability.

Upon completion of this time interval, the bank releases the amount to the merchant on the scheduled dates.

WHAT IS THE PURPOSE OF ROLLING RESERVE?

As we discussed, rolling reserves are applied for the merchants having a high-risk business. The idea of introducing the rolling reserve is to avoid any loss of revenue in case of excessive chargeback in the business.

What are the traits that result in high-risk business?

Excessive Number of Chargebacks – Most of the credit card networks have established 1% criteria where chargeback ratio of more than 1% will state as an excessive chargeback. Upon exceeding this limit, again and again, can make the business as a high-risk business.
Merchant With Poor Personal Credit– If you are a merchant with a history of bad credits in previous terms then you can face consequences while getting the merchant account. This means might be denied from a merchant account or get the Rolling Reserve Merchant Account for your business.

There are some businesses that are considered as the high-risk businesses, for example:

Online Gambling Or Casinos
Computer Software And Hardware Business
Bitcoins Or Forex Trading
Dating Services
VoIP Or Telemarketing
Pharmaceuticals Or Drug Stores
E-Commerce
Adult Materials, Products Or Services
Airline Tickets
Magazine Subscriptions

If you are a merchant of those businesses or similar businesses then you will be provided with Rolling Reserve Merchant Account.

Merchant Stronghold offers account services for the merchants with high-risk businesses. You can contact our experts by placing a call at the toll-free number.

If you have a high-risk business then rolling reserve is inevitable. However, you can work on other strategies to maximize the profit so that it won’t affect as bad as it may seem.
Furthermore, you can work on strategies to minimize the chargeback in the business. And finally, use the best business practice to eliminate any situation that can harm the reputation of business in any way.

Fraud Prevention Information Resources Steps for Small Businesses

OTHER FRAUD PREVENTION INFORMATION RESOURCES

Here are helpful sources that can provide more information and assistance on avoiding credit card fraud in your high risk business.

Online

• http://www.visa.com – Includes tips, regulations, news and fraud features from VISA. (Choose the option for merchants/businesses.)
• http://www.mastercard.com – Includes tips, regulations, news and fraud features from MasterCard. (Choose the option for merchants.)
• http://zip4.usps.com/zip4/welcome.jsp – United States Postal Service website to validate an address physically exists. This does not confirm that a person lives at the address but does confirm the address is real.
• http://www.ic3.gov – Internet Fraud Complaint Center (IFCC) The IFCC is a partnership between the FBI and the National White Collar Crime Center. This site allows victims of Internet fraud to report fraud online to the appropriate law enforcement and regulatory authorities.
• http://www.forwarders.com – This is a list of freight forwarders. Many times international criminals will ship to these addresses and have the order sent on to its final destination(s) by the freight forwarding company.

Phone

• VISA Merchant Verification Service 800-847-2750 AUTOMATED
• Option 1, Address Verification: enter in the numeric portion of the street address, zip code, and VISA card number and it will advise you if there is a match. Option 2, Issuing Bank Phone numbers: enter the VISA card number and it will provide you with the 800 number for the issuing bank if available.

• MasterCard Assist 800-622-7747

  Select your language preference, then Option 2. Enter the MasterCard card number and it will provide you with the 800 number for the issuing bank if available.

• Discover Address Verification 800-347-7988 AUTOMATED

  You will need your Discover Merchant number. Enter the Discover card number and address information, and it will advise you if there is a match.

• American Express Address Verifications 800-528-2121

  Option 3 allows you to verify the name and address of a particular AMEX card number.

These Fraud Prevention Tips are not an amendment to your Merchant Processing Agreement, the Terms of Service, or the Merchant Operating Guide, governing your processing relationship with Merchant Stronghold. These Fraud Prevention Tips are provided to enhance your awareness of circumstances in which potential fraudulent activity may occur and offer suggested measures to combat, reduce, or minimize the impact of the acceptance of fraudulent transactions.