High Risk Merchants Chargebacks

High risk merchants are presented with significant challenges in dealing with chargebacks, many of which are beyond their control.  One of the biggest issues is that some of the largest processors in the US have woefully inadequate reporting systems to notify merchants that chargebacks have occurred.

You may not even know that a chargeback has occurred because the reports are so bad. That is, if reports are even available to you.  Often times, all you see is the deduction of the chargeback fees from your business bank account.

It is often not clear what the deductions are for because the labels on the transactions do not specify chargebacks.  There is no way to correlate the information with specific transactions orders.

And, by the time the notification is received and the information presented figured out, it is too late for you to respond to the chargeback.  Leaving you out in the cold.

Depending upon your payment processor alone to provide you the tools you need to manage your chargebacks is a recipe for disaster.  Choosing the right partner to help manage chargebacks is one of the best business decisions a high risk merchant can make to safeguard payment processing accounts.

Early Warning Chargeback Alerts

Keeping chargebacks low is important to protect your high risk merchant account. If chargebacks exceed 1%, your high risk merchant account can be jeopardized.  

An early warning chargeback alert gives you the opportunity to immediately issue a refund to the customer and thus avoid a chargeback all together.  

When a consumer contacts the issuing back to dispute a transaction, you are immediately notified.  At this point, you can refund the customer.  The dispute is then successfully resolved.  Since the customer has been issued a refund, there is nothing further to dispute.  And a potential chargeback is successfully avoided.

The service provides an interface for cardholder institutions to use, which communicates directly with you by instantly obtaining a refund for a transaction that was at risk of becoming a dispute.

Conclusion

Early warning chargeback alerts are one important tool in keeping chargeback ratios low and protecting your high risk merchant account.  Although chargebacks can never be completely eliminated, early warning systems are a big help in keeping chargeback ratios low.

Are you a high risk merchant interested in reducing chargebacks?

Contact info@paynetsecure.net today.

 

Big Opportunities in Global Ecommerce  

Global ecommerce is projected to grow to $1.4 trillion by 2015.

The relentless expansion of global ecommerce represents an outstanding opportunity for companies who are savvy enough take advantage of it.   Online shoppers are moving across national borders to buy products and services.

For example, Threadless, a company that sells t-shirts online, began expanding internationally in 2010 after noticing an increased interest by customers located outside of the US.  By 2011, international buyers accounted for 60% of sales.

Companies that are seeking to expand sales globally need a way to process payments from buyers.  Establishing international merchant accounts in in targeted marketing jurisdictions is part of an overall strategy to increase sales from a global customer base.

How International Merchant Accounts Decrease Expenses

Interchange rates vary throughout the world.  Processing local transactions through a local acquiring bank gives merchants the ability to take advantage of lower interchange rates within a particular country or region.

In addition, companies can paying local vendors and vendors from settlement funds from the international merchant account in local currencies.  This eliminates the need for costly foreign exchange conversions.

Setting up an International Merchant Account

Applying for an merchant account offshore is similar to applying for a domestic account.  An application is filled out by the merchant and submitted, along with due diligence documents necessary to underwrite the account.

Most direct accounts with acquiring banks will require a merchant to establish a corporation within the jurisdiction where the bank is located.  This is simple to accomplish.  You can wait until the account is approved prior to incorporation.

Approvals for offshore merchant accounts generally take 2-4 weeks, due to time zone differences.  Once established, an international account is as safe and secure as a domestic account.

Alternative Payments Increase Orders

In addition to credit card processing, merchants are wise to add local payment methods such as bank transfers to the checkout page.  While card use is growing internationally, many global buyers still prefer the convenience and familiarity of local bank transfers and other alternative payment options.

Alternative payments can increase sales up to 40%.  Payments like bank transfers are similar to cash transactions, with virtually no risk of chargebacks.  This is helpful for merchants who are keen to expand internationally but want to control the risk of chargebacks.

Conclusion

Global ecommerce represents the fastest growing opportunity to increase online sales. Shoppers around the world are seeking to buy your goods & services.  

International merchant accounts are important to get more orders from international buyers.  Multi-currency processing keeps shoppers concentrated on making a purchase rather than figuring out how much an item costs.  

Offer alternative payments to get more sales. Localized payments give buyers a way to buy without using a card. And one of the fastest way to increase orders.

Are you interested in increasing sales & profits with intenational payment processing?

Contact info@paynetsecure.net today

Alternative Payments Boost Sales

Alternative payments account for 22% of global ecommerce transactions today and are expected to grow by 13% within the next 2 years. By 2015, the growth in alternative payments will be greater than growth in card payments.

Merchants that want to expand ecommerce to international markets find that alternative payments are an important element to success.  Although cards are the  most popular payment option in the United States, in other countries cards have limited penetration.

Any merchant that is serious about squeezing profits from international expansion should consider adding additional payments to their checkout page.  Alternative payments that have no risk of chargebacks are among those most beneficial to high risk merchants.

Bank Transfers:  Guaranteed Payments, No Risk

The primary reason merchants are classified as high risk is the greater statistical likelihood of chargebacks occurring.  One of the most compelling alternative payment options for high risk merchants is bank transfers.

Bank transfers provide guaranteed payments and fast settlement of funds to merchants.  Consumers are comfortable using bank transfers to make payment, primarily due to the increased use of online banking and online bill payments.

At checkout, buyers chose to pay with a bank transfer.  A list of banks is displayed.  The buyer choses the bank and is directed to the online banking site where the buyer logs in.  The buyer authorizes the transaction and is then redirected back to the merchant’s site.  The merchant receives confirmation that the payment has been made and the order can be fulfilled immediately.

Bank transfers are available in almost nearly forty countries throughout the world.  The ability to accept payments from international customers with no risk of chargebacks makes it easy for high risk merchants to expand global ecommerce.

High Risk Merchants Benefit from Bank Transfers

• Adult merchants have long been innovators in payment processing solutions and bank transfers are an excellent solution.  There are three reasons that bank transfers are useful for adult merchants.  First, consumers of adult content desire privacy in transactions.  For example, a man may not want his spouse to know about a transaction for adult content.  Secondly, adult merchants have targeted markets throughout the world.   Thirdly, the risk of chargebacks for adult oriented transactions is high and merchants need a way to guarantee payments without chargeback risk.
• Travel and airlines are excellent prospects for bank transfers.  These are high ticket items booked far in advance.  And the international nature of travel makes bank transfers a natural add-on payment option that save money and stabilize revenue flow.
• Telecom companies, particularly those that offer “top-off” services find bank transfers increase sales.  Many of these companies market internationally and need to provide payment options, such as local bank transfers, that are the preferred method of online payments in many countries.
• Online ticketing companies find bank transfers are a good fit.   The advance purchase necessary for online tickets increase the likelihood of chargebacks for credit card transactions.  Bank transfers are a good alternative.
• Ecommerce merchants with international customers benefit from bank transfers.  It is especially helpful for merchants selling higher ticket items.  And for merchants in P2P auction sites.  However, any online merchant that has international customers is wise to add bank transfers to the checkout page.

Conclusion

Take advantage of global ecommerce opportunities. Adding local bank transfers to your checkout page is the fastest way to get more order from international shoppers.  

Millions of shoppers around the world regularly used local bank payments to purchase goods & services online. 

The more ways customers can pay you, the more sales you make.

Are you interested in alternative payments to get more sales from international shoppers?

Contact info@paynetsecure.net today.