Everyone is exposed to high-risk credit card processing. The fraud syndicate does not select high risk credit card processing merchant account fees victims based on age, gender or nationality.
The riskiest credit card transactions are usually those transactions that are not made face-to-face between the merchant and the high risk credit card processing merchant account fees holder. An example is an e-commerce or internet transaction.
Cardholders are adequately protected
As a credit card holder, you should not feel at risk or worry about processing a credit card that is too risky. As long as you follow the card usage procedures established by the issuing banks, you are more than 90% protected. The procedure and conditions for using the card are specified in the agreement signed with the banks that issued the card. If you don’t have one or have misplaced your copy, you can always easily get another copy from the issuing banks.
Liability for fraud
Banks responsible for all fraudulent transactions arising from your cards, provided you have followed usage procedures and have fallen victim to a fraud syndicate. Most banks have very sophisticated computer systems and fraud control procedures to protect against fraudulent card transactions. Although these controls and procedures may not completely eliminate fraudulent transactions, they can minimize them.
Is it safe to use?
Credit cards are safe to use for all consumers. When used properly, they offer a lot of convenience and goodness to consumers. The financial world is currently looking to plastic money as a future financial instrument. Cash will be phased out gradually.
The money of the future
Although many experts have argued that mobile money is booming aggressively and may surpass the credit card. Mobile money is still in its infancy and needs a lot more work and technology development to truly compete, especially in the areas of fraud control and security.
Credit card processing fees are an advanced topic, so it’s no surprise that the typical business owner has difficulty navigating the requirements of credit card processing companies. Credit card processors use a few types of pricing models, and all claim that their method is the most affordable.
Fortunately, credit card processing fees can be simplified a bit.
It all starts with understanding where those fees go. As a business owner, the fees you pay are actually divided into three categories: about 4% goes to MasterCard and Visa, almost three-quarters goes to the card-issuing banks (this part is called the interchange fee), and the rest goes to the card-issuing banks. to the processing company.
As you can see, most of the credit card processing fees are known as commissions. To save money when accepting high risk credit card processing merchant account fees, it’s crucial to understand how fees work.
What are commissions?
Brokerage fees actually consist of more than 140 categories assigned to transactions on collateral. The higher the risk of chargebacks or fraud, the higher the corresponding fee. The brokerage fee may also be based on the amount of information the merchant collects, the presence of the cardholder, and the type of card used, as business cards and rewards cards often have higher fees.
Interchange Plus pricing
If your credit card processing company or merchant account provider offers you the Interchange Plus pricing method, they will pass you the exact commission, plus a small markup as profit. This is the most affordable system for most merchants, although it can seem more confusing.
To truly understand the benefits of Interchange Plus pricing, it is necessary to understand the two other types of pricing models used by merchant account providers: tiered pricing and fixed pricing.
Tiered pricing is almost always the most expensive method and can end up costing up to three times more than Interchange Plus pricing. This pricing model takes those 140+ Interchange categories and aggregates them into three categories: Qualified, Mid-Qualified, and Unqualified. As a merchant, most of your categories will be relegated to a category whose corresponding fee is higher than what you would normally pay if you were told the exact commission.
This model allows credit card processing for high riskcompanies to hide the actual interchange fee and charge you at the higher end of the scale. Many will also quote you rock bottom in an attempt to hide the true cost of their service. Only highly secure transactions with a present customer receive a qualified rate, while most transactions are discounted.
Fixed pricing, on the other hand,
is common with providers like PayPal and Google Checkout. With this model, you pay exactly the same fee for all transactions, regardless of risk or security. In order to generate higher profits and cover high risk transactions, this fixed discount rate is usually quite steep.