Single Bank Risky for Ecommerce Merchants

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Don’t Depend on One Bank

The biggest risk to ecommerce companies is depending on a single bank to process payments. Card payments represent the largest sources of cash flow for internet companies.  But, if you rely on only one high volume merchant account, your cash flow is compromised when the bank processing your payments encounters difficulties.

The risk doesn’t reside with your company.  Nor does it matter whether your business is classified as a “high risk merchant”.The real risk to your payment processing comes from your bank.

According to the FDIC  “Many banks simply do not have the managerial expertise, resources, or infrastructure to safely engage in merchant processing…” When banks do not know how to manage payment processing “risks can be very problematic, and even lethal, to the bank.

The sad fact is that most banks simply do not know how to properly management merchant processing portfolios.  When a bank runs into difficulties, all merchant accounts processing with the bank are at risk.

And the changing banking climate world-wide is further impacting payment processing accounts.

Diversifying Merchant Accounts is Crucial

The banking industry throughout the world is evolving rapidly.  New regulations are requiring increased capitalization and more reserves.  As a result, credit is getting tighter.

A merchant account is nothing more than a short term line of credit that banks extend to businesses.  As lines of credit are drying up, payment processing is being affected.

Companies seeking payment processing discover it is challenging because fewer banks are willing to underwrite merchant accounts.   And ecommerce companies with existing lines of credit are shocked to find out that banks will not increase lines of credit to accommodate growth.

Additionally, banks are under pressure to control potential losses from contingent liabilities.  The banks are examining payment processing portfolios with an eye to getting rid of accounts that represent the slightest bit of risk from chargebacks or fraudulent transactions.

Ecommerce accounts, not matter what product or service is being sold, are considered higher risk because no card is physically present at point of sale.  And comapanies selling what were traditionally lower risk products, such as books and apparel, are being reclassified by the banks into high risk merchants because of fears of future chargebacks or fraudulent transactions.

Multiple Merchant Accounts Protect Cash Flow

Large ecommerce companies are aware of the strategic necessity to have multiple merchant accounts in order to protect cash flow and liquidity.   Additional lines of credit available through multiple banking relationships give companies access to virtually unlimited payment processing.

But, how does a company identify and establish multiple banking relationships?  And how can multiple merchant accounts be managed effectively and easily?


The simplest way to manage multiple merchant accounts is to use a payment processing gateway that lets you load balance between accounts.  View and manage all accounts individually or globally through a single login.

The payment gateway lets you easily establish accounts through the banks connected to the gateway. Simplifying account management.  And giving you access to high volume processing capacity to power your business growth.

Interested in protecting your ecommerce business by diversifying your payment processing accounts?

Contact today


Better Choice for Global eCommerce Payments

A company contacted us today seeking some advice with the following situation.

The business has payment processing established with well-known US bank.  The company does business world-wide and accepts payments from customers globally.

As the merchant explained it, the problem with his current payment processing is three-fold.

  • Expenses and uncertainties associated with currency conversion
  • Excessively long settlement times.
  • Costly cross-border payment processing fees

Business Challenges without International Merchant Accounts

To better understand the problems being experienced by this business, let’s take a look at the company’s European market.  The company has many customers located in the EU.  Naturally, these customers make purchases with their local currency, which is the euro.

Since the company’s acquiring bank is in the US, the euros need to be converted to US dollars for settlement.  But, currency conversions are in a constant state of flux.   Therefore, the company never knows exactly what conversion rates will be.  Account reconciliation is a nightmare.

Secondly, there are delays in settlement between the time the orders are processed and when the converted funds are available.  This makes cash flow unpredictable.

Thirdly, cross-border interchange rates are assessed when payments are made by EU customers.  Each order received from Europe and processed through the US bank means higher payment processing fees.  Adding significant expense to the company’s cost of sales.

Suggested Solution

In order to eliminate the issues above, we suggested setting up international merchant accounts with banks in the regions where the company does business.   The benefits the company will receive are:

  • Decreased operating expenses
  • Faster access to working capital
  • Reduced cost of sales
  • Simplify internal accounting functions

How an International Merchant Account Solves Currency Conversion Issues

International merchant accounts virtually eliminate currency conversion issues.  Expanding on the example above, EU orders are paid for in euro and settled in euro.  There is no need to covert currency, which saves foreign exchange expenses.  Settlement amounts are exact, there are no time delays,cash flow becomes predictable, and account reconciliation is simplified.

Get Rid of Cross-Border Payment Processing Fees& Other Ways to Cut Costs

The additional add-on fees charged for cross-border payments are simply cash cows for the card brands and the banks.  They make unnecessary profits by milking merchants out of hard-earned revenues.

Any company interested in saving money on global payment processing needs to establish international merchant accounts with banks in each region in which business is done.  For example, EU transactions should be processed through an EU bank.  US transactions through a US bank.  And so forth.

In addition to saving money on cross-border payment processing, international merchant accounts can reduce costs even further.  By sending transactions through a bank in the region where the buyer is located, companies take advantage of lower “intra-region” interchange rates.

For example, interchange in the EU is less than interchange in the US.  If EU transactions are processed through a European bank, rather than a US bank, the cost of sales can be reduced by 1% or more due to the difference in interchange fees alone.

Merchants in certain industry categories also find it beneficial to establish payment processing in multiple jurisdictions.  Banks in some parts of the world are friendlier to particular types of high risk merchants than are banks in other regions.  And offer special rates and terms to attract these business types.

You Don’t Have to Do It Yourself

You may be thinking that it makes good business sense to establish international merchant accounts with banks in different jurisdictions.

However, applying for accounts with banks in multiple locations can be an overwhelming task for any company without specialized knowledge.  First, a company must identify which banks in which regions will accept their business.  Then the company has to navigate through a complex application process with each bank.

Fortunately, there is a better way to establish your international merchant accounts quickly and easily.   And, it’s available at no charge to you.


The secret to establishing international payment processing is to use a network of banks.  All banks are in the network are integrated into a single payment processing gateway.  

Load balance all accounts through the gateway. View accounts individually or globally. Easily manage and reconcile all accounts with a single login.

Quickly obtain high volume merchant accounts. Get the payment processing you need to operate & grow your business. 

Are you interested in international merchant accounts to increase sales while decreasing processing expenses?

Contact today

Credit Card Processing for Doctor & Medical offices

Health care providers and medical billing companies have been accepting card payments for a long time.   Yet, it is surprising how few health care organizations or medical billing firms accept payments online.

In this day and age, offering patients the ability to pay online seems like a “no brainer.”  More than 60% of Americans already pay at least one bill online every month.  Customers like the convenience of paying online and are quickly becoming habituated to making payments over the internet.  In fact, 18%-28% of consumers prefer to make regular payments online rather than over the phone or mailing in a check.

But the potential for increasing revenues by offering online payments become crystal clear when considering consumer preferences in paying past due bills.  For bills that are 30-60 days past due, 27%-48% of consumers prefer to make payments online.  And for bills that are 60-90 days past due, 44-69% of consumers prefer to pay online.

This preference for online payments makes logical sense.  Most consumers would rather not talk to a live person or so they don’t have to speak to a ‘live’ person and go through the embarrassment or hassle of a call.

It is easy and free to set up a patient online payment portal.  Health care providers and medical billing companies that want more information contact