High-Risk Offshore Merchant Account

The Bank has the right to Hold and Freeze the Merchant Account without prior notice. This is a step of precaution in case of any frauds. Here are some situations that can lead to potential Merchant Account Hold or Freeze. Before opening the Merchant Account, the bank asks the Merchant to sign the terms and agreements. And if the Merchant does not follow the bank norms, the bank has every right to freeze the merchant account. High Number of Chargeback – If your business is causing a large number of chargeback every month then the bank will investigate your business methods and discontinue your banking facilities. Dealing in Undisclosed Goods and Services – Before opening the Merchant Account, you must inform the bank about your business with a detailed description. In case, you are caught dealing in other goods then you can be subjected to Merchant Account Freeze. Suspect of Fraud – If you or your business is involved in any kind of fraud or illegal activity the...

It appears on the credit card statement or any other bank statement of the customer that contains details of the company and merchant involved in the particular transaction. The purpose of the merchant descriptor is to identify who the payment was made to. Whenever a merchant goes for the  merchant account , he or she is asked to provide the merchant descriptor as well.  WHAT ARE THE BENEFITS OF HAVING TRANSACTION DESCRIPTOR OR MERCHANT DESCRIPTOR? Having a transaction descriptor can save the merchant from a chargeback. This is the most important benefit of having the transaction descriptor. A descriptor gives clear information about the merchant and the purchase. This helps a customer to quickly identify the transaction. That also results in a low chance of the chargeback from the customer’s end. According to the various reports from the card networks, most chargebacks are filed simply because the customer did not identify the transaction. No...

Rolling Reserve Merchant Account : When it comes to new merchants and high-risk businesses , the bank takes all the possible caution to avoid any loss in their business. Due to which they have created a robust network of rules that need to be followed at all times so that economic and financial aspect of the business never sees any downfall. This is the reason that bank introduced the concept of Rolling Reserve Merchant Account. WHAT IS ROLLING RESERVE MERCHANT ACCOUNT? Rolling Reserve is a fixed percentage (generally 5-10%) of a merchant’s transacted amount reserved by the bank which can be used in case of an excessive chargeback. This happens for only a short time interval (6-12 months) until the business gets some stability. Upon completion of this time interval, the bank releases the amount to the merchant on the scheduled dates. WHAT IS THE PURPOSE OF ROLLING RESERVE? As we discussed, rolling reserves are applied for the merchants having a high-risk busi...

There was this particular merchant based in the U.S. and, by the time it contacted us, it had gone to some of the biggest U.S. processors to open several merchant accounts, a couple of which are still active. Now, this is one of the biggest mistakes that merchants must not make —opening several merchant accounts at once, and not keeping them live. If it’s done otherwise, processors get nervous and understandably so —the new  Merchant Account  You are applying dormant is either closed down or replaced. In the event, we asked our merchant to explain why it had gone through the pain of opening these many merchant accounts and received a satisfactory explanation, which is not a typical scenario. I should also add that the merchant had already received notices that its remaining two accounts would be closed within a month, which brings me to the next lesson — if you operate an online tech support business, the mainstream processor would not be a viable option — even if you do man...

What kind of things to working with collection Account/Agencies? Different determinant that prompt this negative conclusion held by Merchant account suppliers are the number of chargebacks that a business encounter. As most gathering office proprietors can let you know, there are a lot of individuals who guarantee to make an installment, and afterward call sometime later to their bank or Mastercard or Credit card Company and cross out it. Since this includes a considerable measure of income to and from business, banks get stressed that the gathering organization won’t have enough cash to pay its clients and that reimbursement will turn into the bank’s concern. The chargeback factor additionally prompts the danger of strength for debt collecting offices. Many have high representative turnover, caused to a great extent by work-related anxiety. Since numerous gathering organization representatives’ pay is attached specifically to rewards, many will leave in a hurry if a stea...

A Result, it can be a bit tricky for merchants starting up a membership site to do the very thing that makes the endeavor lucrative: collect membership fees from clients via a high-risk  credit card processing  account. Why subscription/Membership Sites are considering “High Risk”? Before MasterCard’s compact rules were implemented (Visa has also issued similar guidelines), several membership sites used techniques that were extensively regarded as misleading, or even deceptive. “Harmful decision” enrollment – in other words, the client makes a single payment for a product or service, but in doing so they are automatically signed up for a paid monthly subscription which they must actively cancel or opt out of to avoid being charged. “Free trials” that aren’t free – the client or member is promised something for “free” (including “conceded charging” or “just pay to ship!”), but the process of obtaining the “free” thing or service results in them unknowingly...

The vital goal is to evaluate the business’s level of high risk for the provider. Why? Because a merchant account is fundamentally a line of credit. If a business is strike with a chargeback but doesn’t have enough funds in the bank to pay it, the provider fronts that expenditure right away. Just before truthfully establish the  High-Risk Business  level, providers review the following: INDUSTRY TYPE Every business kind has its own level of risk. For example, a business that swipes cards is less likely to deception/fraud and chargebacks, and is, therefore, less dangerous, than a business that sells products on the web. The riskier the business, the more support documents and information required for review. MERCHANT HISTORY AND CARD ACCEPTANCE METHOD(S) Providers will need to know things like your business’s chargeback ratio (over 1 percent is a red flag), whether your business is or has been on the Merchant Terminated File and, if so, why. Most p...