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how do payment gateways work?

Discussion in 'Business & Tax Advice' started by Lauriat, May 27, 2013.

  1. Lauriat

    Lauriat Power Member

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    Do any restrictions apply to payment gateway use? Lets say i want to sell high risk products no one wants to deal with. If i have managed to get merchant account for this can i now take any payment gateway? Can they see where it is installed and what products i am selling through their gateway? If they do, are they bothered what i am selling?
     
  2. WayneInc

    WayneInc Senior Member

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    they will ask all the information at the time of applying..
     
  3. hiero717

    hiero717 Newbie

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    Once you get the merchant account you can run whatever you want as long as its in the pricing of products you submit to them. You say high risk so I assume its adult or over the phone biz op (most popular high risk) The high risk factor will be the likely amount of chargebacks you will receive. The person setting up your account will let you know if you fit in this category and they will most likely give you a high merchant reserve from 10 - 30% with holding from your gross transactions that they keep in case of these chargebacks. The secret is to prevent chargebacks is with good fulfillment. If its in your name you will want to gain trust with the merchant company so they can get familiar with your transactions then open other merchant accounts with your good merchant history, either with the same company or open others. What the big accounts (100k + a month) you will need a website with a simple price sheet of what you are charging and what products they are getting. If non tangible it will most likely have a reserve. Most big companies will give you the choice of what gateway to choose. Authorize is good and chargeback gardian is what I would recommend.

    This is actually my first day on blackhatworld, but if any other questions if you can pm me I would be glad to help. Good Luck
     
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  4. thatotherguy

    thatotherguy Power Member

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    I use payment gateways all the time. The problem is chargebacks with my online store. Besides that it all works out great. I still hate how they take a cut of the business.
     
  5. kayle.jason

    kayle.jason Newbie

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    Usually there are some gateways which always cause issues no matter if you have a merchant account or not. It really depends on what sort of business you have in the end.