High Risk Merchant payment processor
this is good FAQ qouted from merchantaccountus.com
This section is intended to be more than just an F.A.Q. section for our own services, but rather a comprehensive guide to the merchant account process. If there is a question you don't see an answer to, please feel free to contact us and we will add it to our database.
Q. What is a merchant account, and do I need one?
A. A merchant account is set up with a financial institution to allow you to accept credit card payments directly from your clients. Unlike with most third-party services, money collected through your merchant account is deposited directly into your checking account within 2 to 3 business days. You need a merchant account if you want to take credit card payments from your clients using your own business name, and having the money deposited directly into your business checking account.
Q. Do you offer merchant accounts to businesses outside the United States?
A. No, not at this time.
Q. How do I accept credit cards online?
A. You have two options for online processing. One is called "real-time", where your customers are actually connected to a server and their credit cards are charged immediately when they place their order. The other is off-line processing, using merchant account processing software to process the orders yourself. In either case, MasterCard and Visa require you to use certain products that are compliant with their regulations. All the products we offer are compliant with the latest regulations. If you are having trouble deciding which product to use, we will be happy to help. Simply fill out our Free Quote form and we'll be in touch!
Q. Do I Need a Shopping Cart for Online Sales?
A. Most online merchants do use shopping cart software to make the sales process easier for customers. You can choose from many different shopping cart programs. We recommend using OS Commerce software it is a very powerful, flexible and customizable ecommerce solution. If you are the hosting customer of www.2globalmart.com
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will offer you the most reasonable price and the most professional service.
Q. I don't have a website. What if I want to process sales offline?
A. You have several options. You can use a terminal to "swipe" credit card sales as they happen (card present sales). Or you can use software to process cards if you do mostly mail order and/or phone order sales.
Q. How long does it take to get set up?
A. From the time we receive your application, it generally takes 24 - 48 hours to receive your approval. It then takes about another 24 hours to receive your real-time login information. If you are ordering a software product or terminal, it is shipped out upon approval, and will generally reach you within 3 to 5 business days. You can begin processing as soon as you have received your designated product.
Q. What if I don't get approved?
A. We have a 98% approval rate, so it's very unlikely that you wouldn't get approved. We will go over all the details of your business before you apply, so we will do our best to be sure that you will get approved. If, for some reason, you are denied, you will be refunded your setup fee, less a $25 processing charge.
Q. Are there any businesses that you do not allow to apply?
A. Yes. Businesses outside the United States and accounts where a principal business owner has an open bankruptcy are not allowed to apply. We also maintain a list of unacceptable, or "high-risk" and conditional merchants. Conditional merchants may apply if they meet certain restrictions. The bank may also impose some additional holdbacks or require an up front security account to approve these merchants. For a list of unacceptable, or conditional merchants, click here.
Q. How long does it take to receive our funds once an order is processed?
A. Funds are deposited directly into your checking account, usually within 3 business days.
Q. Why are there different rates for different accounts?
A. The rates for merchant accounts vary based on the amount of risk involved in the transaction. The accounts with the lowest rates will always be the ones where the customer is present and the card is swiped in a face to face transaction. The credit card companies view these types of transactions to be fairly low in risk for fraud, whereas internet transactions and transactions where orders are taken by phone or mail are generally considered high risk, since the customer is not present and the card is not in hand.
Q. What is a Chargeback?
A. A chargeback is when a customer disputes a charge on their statement by contacting the credit card company instead of contacting you. If a customer does not recognize the charge on their statement, or if they believe the amount was wrong, they may call their credit card company and ask them to investigate. Thus begins the chargeback. To be quite frank, chargebacks suck. The merchant bank will charge you a fee for the retrieval of information, and if it is determined that the customer is right, there will be another fee for the chargeback itself. The customer will be refunded their money directly through the credit card company instead of through you. The merchant bank will keep track of the amount of chargebacks on your account, and if there are too many, you will be in jeopardy of losing your account. When dealing with internet transactions, unfortunately the card companies will usually charge back first and ask questions later. The more you do to protect yourself against chargebacks, the better off you'll be. There is a great forum for merchants to join at merchant911.org. It's absolutely free and they will provide you with tools and information to help you cut down on the amount of chargebacks.
Q. Please explain the monthly minimum?
A. The monthly minimum for your merchant account is derived from your processing fees. The minimum of $25 should be collected in MC & Visa fees. The actual amount of processing to achieve that minimum will depend upon your discount rate. For example, if you have a discount rate of 2% and you process a transaction for $100, then $2.00 in processing fees will be taken from that transaction and applied towards your monthly minimum of $25. If, at the end of the month, you have not processed enough transactions to cover the minimum fee, then you will be charged the difference.
Q. What is the difference between qualified, mid-qual, and non-qual transactions?
A. Qualified discount rate is applied for all transactions meeting the "normal" operating guidelines as outlined below: * All Merchants Close batches daily
* Retail Merchants Magnetically swiped & electronically authorized charges
* Internet / MOTO Merchants Electronically authorize charges using AVS and including order numbers for Visa and MasterCard transactions Mid-Qualified discount rate is applied for all transactions meeting the operating guidelines as outlined below:
* Retail Merchants Manually keyed orders using AVS & order number on Visa and MasterCard transactions.
* Internet / MOTO Merchants There is no mid-qual rate for Internet / MOTO merchants. Non-Qualified discount rate is applied for all transactions meeting the operating guidelines as outlined below:
* All Merchants - Not Closing batches daily - Not using AVS & providing order numbers on manually keyed or Internet transactions for Visa Cards - High Risk Merchants (Visa Transactions Only) - Following Card Types:
: Corporate Bankcards
: MasterCard/Visa Business Bankcards
: Procurement Bankcards (Government)
: Visa Signature Cards
: MasterCard World Cards
Q. What is the statement fee?
A. The statement fee is charged by the bank each month to process and send you your statement. Your merchant account has a $10 statement fee.
Q. What is the gateway fee?
A. The gateway fee is charged by the real-time processor you have chosen for your account. It is $15/month for authorize.net.
Q. What is the AVS fee?
A. The AVS fee is charged by the processor to allow you to use the Address Verification System on your Internet and MOTO charges to protect against fraudulent orders. The fee for your account is .10 per transaction. This is in addition to your regular merchant account fees.
Q. What is the Overlimit fee?
A. When you apply for your merchant account, you indicate how much monthly volume you expect to process. As such, your account is approved for that amount and if you go over you may be subject to an overlimit fee. You can avoid the overlimit fee in any given month if you believe your sales will be over the top by calling customer service and letting them know in advance. If your sales will continue to be over the limit for the following months, you can simply ask them to bump you up to the next level.