Managing your high risk merchant account

Once you have taken the time to research the ideal
merchant account from a list of high risk merchant account providers and
have obtained reasonable rates, you need to protect your account by using
sound management procedures.

Article Body*: Once you have taken the time to research the ideal merchant
account from a list of high risk merchant account providers and have
obtained reasonable rates, you need to protect your account by using sound
management procedures. By managing your account with vigilance, you can make
sure that your rates do not escalate.
You will need to manage your chargebacks. Chargebacks are the refunds made
to a customer, normally instigated by the customer’s issuing bank, the
credit card company, by reversing a transaction up to two years following
the date of the transaction or expected delivery of the items paid for. If
you have a high volume of chargebacks, your online payment processing can be
jeopardized. This makes communication between you and your customers
important to reduce the chance of a chargeback being lodged against you by
the issuing bank. This can be reduced by encouraging customers to contact
you first rather than contacting the credit card company so that you can see
what you can do to put things right.
Make it straightforward for customers to get in contact with you by
including every possible route to get in touch with you by mail, email,
online form, telephone, etc. If the customer cannot contact you, then they
will find it easier to contact the issuing bank. You should not be concerned
that having your details available to customers will result in increased
volumes of chargebacks, as it is often not the case.
When customers purchase goods or services, they will see a short descriptor
on their credit card statement. Try to make sure that the customer can make
sense of the descriptor and that it includes the name of your company.
Online payment processing still requires regular contact with your customers
to help build a lasting relationship with them. Send regular status messages
about the processing of the customer’s order, provide tracking
information, confirmation of payment, contact details, and allow customers
the opportunity to cancel the order before it is dispatched.
Do not delay refunds unnecessarily, as chargebacks will cost you more in the
end. Managing your account from any of the high risk merchant account
providers makes it better to issue a refund rather than defend it as it will
still show up on your account statements and affect your ability to achieve
better rates when you move accounts.
Respond to customer disputes quickly and supply supporting information for
queries on a sale from the issuing bank. Consider customer fraud protection
by monitoring transactions and screen sales from certain countries or for
certain amounts unless verified by the customer or issuing bank. Also
consider validating the credit card details used in a transaction.
Finally, make sure you comply with the terms and conditions of your merchant
account. You may have online payment processing limits that you should try
to stay within the limits. If there are material changes in how you use your
merchant account, you should talk with your high risk merchant account
provider sooner rather than later. Give your merchant account provider as
much notice of changes in online payment processing volume because they hate
surprises.

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