The volume of retail sales in the United States increased by 18 percent between June 2020 and June 2020, making merchant accounts more valuable than ever for retailers wishing to conduct online transactions. Although the use of MOTO (Mail Order/Telephone Order) payment methods has declined in recent years, some consumers still opt for this mode of ordering when placing orders via mail or phone call.
When opposed to card-present transactions, such as those performed at a brick-and-mortar store, card-not-present transactions are regarded to be at higher risk of fraud and chargebacks. This is due to the fact that they are seen as less secure because it is more difficult for the merchant to verify the cardholder's identity.
Exactly what is it about MOTO accounts that makes them so dangerous?
A high-risk merchant processor is required in order for businesses to take MOTO payments, as this provides additional security and ease. At the time of purchase, the client may not be present, as is the case with purchases made using mobile platforms or payments made utilizing chip or pin-encoded payment terminals. Bank fees are therefore greater when using MOTO processing.
Furthermore, when an individual manually enters financial information rather than the client, there is a greater chance of an error occurring. A merchant bank account will be held liable for the cost of a MOTO transaction if there is a fraudulent transaction. If you conduct your purchase in person, however, the cost is paid by the issuing bank of your credit card.
Disputed MOTO payments can be extremely difficult to resolve if there is no documentation of a valid charge, such as a signature or a PIN number.
You can add an address verification service (AVS) to MOTO transactions to make them more secure by ensuring that the billing addresses are the same. When a transaction appears suspect, delaying the acquisition of the data can assist you in canceling it.
Preparation is key before selecting a merchant provider. Understanding how MOTO credit card processing works will enable you to negotiate the most favorable contract lengths and avoid being surprised by any hidden fees.
Frequently Asked Questions about High-Risk Merchant Account
So you want to build a website where visitors would be charged for membership using their credit cards. What do you do? Unless you have a high-risk merchant account, it is not possible to run such a website. If you're thinking about collecting credit card payments online, here are some questions you might want to ask.
High-risk merchant accounts are exactly what they sound like.
An account with a high risk of fraud is a sort of merchant account that is more likely to be compromised. Due to the fact that those who own such accounts operate enterprises that do not have a physical presence in the country where the legislation applies, this is the case.
Individuals who have high-risk merchant accounts conduct the majority of their transactions online. They are also vulnerable to anybody who could gain access to their websites without paying a fee, given the large number of computer hackers lurking around the internet. Therefore, account providers who accept such clients will charge you extremely exorbitant fees, which will have a negative clash on your company's ability to expand. Adult websites, online casinos, and pharmaceutical merchants are just a few examples of the types of accounts that are open.
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What is the procedure for obtaining one of these accounts?
In addition, the amount of documentation you'll have to complete will make the process of acquiring such an account time-consuming and stressful. Because of the nature of the request, which is considered "high risk," providers will always think twice before granting such requests to any of their applications. Fortunately, there are organizations available to assist you in simplifying this extremely intricate process. These partners can assist you in obtaining accounts with major credit card issuers by assisting you in the establishment of these accounts. Furthermore, these organizations may be able to assist you in the setup of a payment procedure that is integrated into your account with your financial institutions.
Q. Do I have to pay a huge sum of money in order to open an account?
Unluckily, this is true. It is possible that providers will charge you a hefty cost because of the danger involved. Some service providers, on the other hand, will not force you to pay a costly application fee; but, be aware that they may charge you a hefty premium to keep your account.
I'm not sure how I'll get compensated.
A. Each transaction will first be routed through the service providers' systems and databases. The payments you have received are settled here with the credit card companies with which they are affiliated. The time it takes for you to get your funds varies depending on the supplier, but on average, this process takes three to seven days.
I'm wondering how long it will take for me to receive a username and password.
According to the information you supply to your providers, the outcome of your application could take as little as one day or up to a month to be completed. A. Providing complete and appropriate information in your application is essential if you do not want to have to wait a long time to receive your account.
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