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Merchant Account

Discussion in 'Business & Tax Advice' started by ittechs310, Jul 27, 2010.

  1. ittechs310

    ittechs310 Junior Member

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    Can someone suggest me a good merchant account that will not put your account under review after only 1 chargeback. My current merchant account provider will put your account on hold for 3 business days if u have one or two chargebacks.

    Thanks.
     
  2. GreenGoblin

    GreenGoblin BANNED BANNED

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    o wow please don't tell me your using card services international..anyway i might be able to help u send me a pm
     
  3. bryanon

    bryanon Executive VIP Premium Member

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    There's a big difference between 1 chargeback out of 3 sales and 1 chargeback out of 200 sales so it would be good if you'd let us know your expected chargeback _percentage_.

    In general though, almost every reliable merchant account provider gets suspicious whenever your CB rate exceeds 1%. This, for you, means either an increase in reserve or in worst case the termination of your contract.

    If that's the case then what you're looking for is a "high risk merchant account". Google for it. But be careful and look for reviews as many high risk merchant account providers aren't very big on .. umm .. business ethics, so to say.
     
  4. ittechs310

    ittechs310 Junior Member

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    Well I had about 150 so far and 1 irate customer file a chareback, I dont get what the big deal is with chargebacks and these merchants. It was never like this way with paypal. I had my funds held for 3 days then finally re-instated, I just dont want to go through all that again. Maybe I can do direct to my bank and get a merchant account? Any advice?
     
  5. ittechs310

    ittechs310 Junior Member

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    150 sales only 1 chargeback so far.
     
  6. bryanon

    bryanon Executive VIP Premium Member

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    1 chargeback out of 150 sales is quite alright.

    The big deal, by the way, is that most credit card processors (incl. Visa and MasterCard) put strict maximum chargeback limits on merchant account providers. Meaning that whenever the global chargeback rate of your merchant account provider (your bank, for instance) exceeds a certain amount (only a few % btw!) they lose their contract with CC processors. Hence the need for them to be VERY careful as to who they accept as their customers.

    Another problem, obviously, is chargeback that come at a later date. Most banks keep a reserve for this purpose (hold a certain percentage - usually between 5% and 10% - of your funds for 3 to 6 months) but if your CB rate is, say, 10% and you disappear after a few months of activity then they would be the one who would have to eat up the losses, including fees associated to chargebacks.

    But on to your question -

    Yes - contacting your own bank would be a good start. Especially as you probably already have some history with them and therefore they're more likely to approve you.

    EDIT: Btw. I wrote about this earlier to day in another thread as well: http://www.blackhatworld.com/blackhat-seo/1961078-post15.html
     
  7. ddcash99

    ddcash99 Newbie

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    try RBS
     
  8. tbrizell

    tbrizell Junior Member

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    Occupation:
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    i can help send me a pm
     
  9. p3merchant

    p3merchant Newbie

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    Still looking for processing? Let us know via PM.