High Volume Credit Card Processing - Keep it, Don't Lose it!
HIGH VOLUME CREDIT CARD PROCESSING – KEEP IT, DON'T LOSE IT!
By Gerri Bryce
Obtaining a merchant account for high volume credit card processing is nothing new. A lot of merchants find themselves compelled to apply for one as soon as their businesses boom. Before they know it, they are already transacting payments that began from $10,000 on monthly volume up to several million dollars. Most of them may have applied for offshore merchant accounts, too, depending on the nature of their businesses. Of course not all high volume businesses are considered high risk. The very reason why they eventually get translated into high risk is when they begin accepting higher than normal transactions and possibly encountering chargebacks and customer complaints.
WHY SHOULD YOU GET A HIGH VOLUME MERCHANT ACCOUNT?
Lower rates. Is this possible? Sure. Many high volume merchants would tell you that the best reason why they are out to avail of high volume credit card processing is the fact that they can get lower discount rates and fees. But wouldn't this be a little unprofitable on the part of the merchant account provider? Not really. Simple math will reveal that the sheer volume itself will make up for the lowered discount rates so both the merchant and the provider win.
HOW IMPORTANT IS MAINTENANCE?
Now here's the tricky part. Okay, you got your merchant account, end of the story. Not yet! In fact, it's just the beginning of your relationship with your high risk merchant account provider. It's like finding the right seed, soil, and environment for your future tree. Once you planted it, do you just let it grow by itself? Being wise means establishing a good long term relationship with your provider. It means maintaining your merchant account so that your high volume credit card processing capability doesn't get suspended.
Sounds complicated? Not really, if you would just take the time to read and keep notes.
WHAT CAUSES SUSPENSION/FROZEN ACCOUNTS?
Frozen accounts begin from negligence but it can be prevented. To find out more about it, check out Best Tips to Avoid Frozen Accounts with Your High Risk Merchant Account Provider. If you care about your business, the least you can do is to watch out for chargebacks. These “snafu” transactions will reach the underwriter's desk in no time and will accumulate to create a bad record before you know it. Chargeback incidences will also hurt your business to the point that not only will your account be frozen, your assets may also be taken from you as loss repair, and you may find it difficult to be accepted by a new merchant account provider again. Don't be a victim!
Egg or chicken, which came first? Suspended accounts are mostly caused by chargebacks and refunds which are mostly caused by poor customer service and inferior products or service. The bottom line is if your company offers first rate goods you will have protection against unreasonable complaints and refunds. You can prevent the snafu cycle to happen if you really want to.
Now, frauds are another issue. One thing you can stand your ground on with your high risk merchant account provider is their ability to give you with secure credit card processing. They may use geo-location, IP detection, SSL encryption, or whatever industry standard anti-fraud tools are available. It is their responsibility to watch out for your customers' credit cards, so find a provider that is technically adept with online transaction security.
HOW DO YOU MAINTAIN YOUR HIGH VOLUME MERCHANT ACCOUNT?
The best way to grow your tree (i.e. maintain a good long term relationship with your high risk merchant account provider) is to watch out for important notices of possible rate/fee increase. Rates, security issues, and new rules are part of looking out after your merchant account's life. It's also a way of keeping a good name for your high volume business.