Three Reasons Business Merchant Accounts Are Declined

January 24, 2014 by  
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For some companies, finding a merchant bank to process their credit cards is difficult. Small business credit card processing has risks for merchant processors. Clients that go bankrupt or have an inordinate amount of chargebacks — essentially, customer requests for refunds — can cost merchant banks money. If a company falls into the category of being a high risk merchant account, they will have trouble finding a credit card processor that wants to do business with them.

While there are many reasons that a business might be turned down for a merchant account, here are five of the most common scenarios:

1. High Risk Business Types: Certain businesses are more likely to have chargebacks or other issues that can come back to hurt processors. This can include gambling sites, sites with adult content and video gaming sites. Processors are reluctant to provide online merchant accounts to these types of businesses.

2. Being on the MATCH List: The merchant processing industry keeps a list of businesses who have had their merchant accounts terminated in the past for unpaid bills, unethical business dealing or other reasons that would raise a red flag. Businesses on the MATCH List typically cannot get another merchant account.

3. Poor Personal Credit History: Along with checking to see if your business is on the MATCH List, a credit card processor will also check the credit history of the individuals associated with the business requesting the account. If the people who are signing on as principals of the account have poor credit ratings, defaults or bankruptcies, it will impact the business’s ability to accept credit cards.

If you are having trouble finding a company to process your credit card sales, contact Charge.com Payment Solutions, Inc. We excel in working with high risk companies to find solutions that let them accept credit cards.

This article is from Charge.com Payment Solutions, Inc.. Charge.com Payment Solutions, Inc.

gives business owners access to online merchant accounts with no long-term contracts.

How a Credit Card Transaction Works

January 22, 2014 by  
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Most businesses understand that they need to be able to accept credit card payments in order to provide a wide range of payment options for their customers. However, a surprisingly high number of business owners are unsure about how a credit card transaction actually works. It’s important for business owners to understand this process in order to plan for handling their transactions and to know when something is wrong.

If you are confused about the credit card transaction process, Charge.com Payment Solutions, Inc. can help you with a step-by-step guide:

  • When a person presents their credit card for payment, a business enters their credit card information into the system. This can be either by swiping the card on a terminal or, in the case of an Internet merchant account, by receiving it electronically through their eCommerce shopping cart.
  • The credit card information is then sent to a processing network associated with their provider of merchant accounts. The processing network then provides the merchant with an authorization that allows them to capture the funds from the customer’s credit card. If there are insufficient funds or other issues, the request is denied.
  • If authorization is approved, the business receives an approval with an authorization code. This is stored with the transaction information in the “batch” inside the terminal or computer. A receipt is either printed or delivered electronically for the client.
  • At the end of the business day, the business “closes” the batch. This means that all of the credit card transactions that were received during the day are sent over to the provider of credit card merchant services. Once this is received, the merchant bank checks to make sure that the amounts in the batch match up with the authorizations they sent out during the same time frame.
  • If there are any credit card sales that need to be voided or changed, the business owner needs to do this before the batch is settled. If there are no changes and everything matches up, the processing network sends a statement showing all of the credit card transactions that were approved since the last batch settlement. This can be broken down several ways including by type of card.
  • The business receives the funds from a batch settlement anywhere from 48 to 72 hours after it is received and approved by their payment processor. Any fees associated with the credit card processing are taken out of the final deposit before it reaches the business’ account.

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This article was provided by Charge.com Payment Solutions, Inc. Go to their website to find out more about how they can offer an Internet merchant account for a business of any size.

Get the Most out of Wireless Credit Card Processing

January 17, 2014 by  
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If you’re a business on the go, you will need a wireless credit card processing solution. That’s not a surprise for business owners who are used to taking their company on the road. Still, there are a few things to keep in mind when it comes to these convenient payment processing solutions.

Some merchant account providers can turn your cell phone into a “sell phone.” While there are many wireless credit card processing solutions on the market, the latest technology available for companies on the go is mobile credit card processing. Whether you own an iPhone, Blackberry, or Android, the mobile credit card processing software allows you to process debit and credit cards with your smart phone. This means that you don’t have to carry several devices while travelling for work.

In addition to offering your customers a convenient way to pay for your products and services while on the go, there are many benefits to mobile credit card processing. By turning your cell phone into a processing device, you can accept all major credit cards, including American Express and Discover. This means you will increase your cash flow immediately. Having mobile credit card processing also eliminates the need to send paper invoices in the mail. Finally, processing payments with your smart phone means you don’t have to deal with back checks anymore.

Charge.com Payment Solutions, Inc. provides merchant account services for all types of businesses. To accept credit cards via your smart phone, open a merchant account with Charge.com.