Right when you think you understand credit card processing and have the perfect merchant account for your business, you get the call that you have been shut off…Consider yourself lucky, many merchants don’t even get the courtesy of a phone call. Merchants are processing transactions one day and then wake the next to find that they have no processing options. This is happening more and more and it’s going to get worse before it gets better...
The obvious question being asked by merchants is: Why is this happening?
Patrick Daly, Vice President, MIDsource has the answer. “There are several reasons why this is happening; however it boils down to risk vs. reward for banks and processors. If the profit has been stripped from an account, it makes no sense to keep the accounts on the books. Processors are reviewing their portfolios and eliminating many restricted classes and less profitable accounts.” Mr. Daly goes on to say, “We have seen countless high risk merchants priced slightly above interchange lately. Many of these same merchants are now scrambling for a new merchant account.”
Moving forward in 2013 after the closure of thousands of high risk merchant accounts, it would behoove merchants, especially those in the e-commerce space, to understand the following:
1. If you have a high risk merchant account, don’t look for retail pricing. Selling products online and selling slices of pizza in the food court are two different worlds and should be priced accordingly. Pay (but don’t over pay) the proper amount based on the risk associated with your account. The account will thrive and your processing partners will love your business.
2. Provide good customer service. Your business will grow and charge-backs will be minimized. Charge-backs will kill your processing history and make it difficult to obtain other merchant processing accounts in the future.
3. Work with groups like MIDsource that have multiple processing solutions and have the risk and underwriting expertise to find the best merchant account for your business. Have the right industry professionals on your side.
MIDsource offers high risk merchant accounts for a wide range of industries. With an extensive network and banking relationships domestically and internationally, we pride ourselves in our ability to obtain direct merchant accounts and processing solutions for merchants worldwide.
Company Name: MIDsource
Contact Person: Patrick Daly
Email:Send Email
Phone: (866) 713-6437
Address:31324 Via Colinas #101
City: Westlake Village
State: CA
Country: United States
Website: http://www.gomidsource.com
1 comments:
Interesting blog. Thanks for sharing this information with us.
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