It is estimated that 1.61 billion people worldwide purchased goods and services online in 2016. International eCommerce sales totaled 1.9 trillion US dollars and are expected to rise to 4.06 trillion US dollars by 2020.
It is true that online retailers in the eCommerce sector make it much easier for consumers to be consumers and purchase goods and services. However, it may be difficult for these e-commerce merchants to process and accept debit and credit card payments.
What is the primary reason that eCommerce merchants should look for the best high-risk merchant account providers? Simply put, it is to do business with secure and reliable payment processing. Many high-risk merchant account providers have changed their business practices. They have increased their security measures to combat credit card fraud in recent years.
In the end, a retailer with perfect credit, an A+ rating, and virtually no customer complaints can be labelled as requiring a high-risk merchant account. Amald, on the other hand, specializes in High-Risk Payment Gateway solutions. We understand your specific industry standards and needs in order to provide you with the best payment processing solutions possible.
Let us understand the payment processing fee and interchange model.
Payment processing fees are required because development and maintenance are costly in any technology-heavy business. However, the impact on any merchant is included in the millions of transactions worldwide.
What exactly is interchange?
Interchange fees are transaction fees that the merchant’s bank account is required to pay. Each time a customer uses a credit/debit card to make a purchase from their store, the most significant portion of the credit card processing expense is due to interchange. The fees are paid to the card issuer to cover handling costs. It also includes fraud and bad debt expenses, and the risk of approving the payment. Dues and assessments are other terms for exchange fees. These are determined by payment networks and are typically passed on to the customer without additional fees.
What factors do payment processors consider when calculating risk?
Every payment processor will have its own set of criteria, which is why you should choose wisely. Payment processors are keeping an eye on the number of trades that come through, especially in the first 30–60 days for new clients. Are your trades coming in on the spur of the moment via the phone or the internet?
It is critical that you notify your payment processing company of any new changes in earnings in order to maintain their trust. When you notify your payment processor of any changes, they will upgrade your profile. Proactive communication is critical for alerting these changes before they become apparent.
Each payment processor has its own risk assessment system and will set parameters if a high-risk merchant is accepted. A general rule is that once you reach a certain level of continuous sales or another variable, the payment processor will no longer scrutinise your company as closely.
What we often forget is that credit cards carry a high level of risk. So we should make a concerted effort to treat them with caution. This is especially true when cardholders pay their minimum monthly obligations for three or two years. Keep in mind that this is a credit line that has been extended to customers.
What if my earnings fall and I only have one payment processor?
You must first examine their policies before considering another payment processor. Examine their warning processes to determine the ramifications of earnings falling or rising. And ask them the tough questions to understand the liability amount. This may help you get to know them on a deeper level.
Another important question to ask your payment processor is whether they have a hard or soft limit on earnings and if there are automatic caps. What if you go over your allotted time? Will they still be accepted by your payment processor? There are requirements for multiple high-risk merchant account payment processors, which could be due to business partners, products, or other factors.
Choosing the Best Processor for Your Company
To find the best payment processor for your company, look for one that meets your requirements and covers all aspects of the payment processing value chain.
Accepting card-not-present (CNP) payments and other electronic transactions is critical for your direct response business. Furthermore, it is critical to find a chip that has strong banking connections with a variety of banks in order to find the best bank for your company. Finally, it is critical to begin looking for a payment processor who can truly be your spouse and provide the best support and advice, as well as the infrastructure for growth.
The advanced products and services that a payment processor can provide determine the level of support for expansion. If they don’t have a market-leading product offering that can be tailored to your needs, they might not be the processor for you.
Amald is one of the best payment processors
If you find a payment processor that meets all of the requirements in the payments value chain, you may have found a winner.
Have you had enough of paying exorbitant fees to your current payment processor? Have you been let go by an aggregate payment processing company? Are you unsure how to get started with a new one?
Amald has the best solutions for your specific business needs if you need a payment processing provider that is experienced, knowledgeable, and expert in handling High-Risk Payment Gateway for your eCommerce business or the like.