{"id":9007,"date":"2020-11-23T06:15:09","date_gmt":"2020-11-23T10:15:09","guid":{"rendered":"http:\/\/staging.modulebazaar.com\/blog\/?p=9007"},"modified":"2020-11-25T02:08:20","modified_gmt":"2020-11-25T06:08:20","slug":"how-high-risk-payment-processor","status":"publish","type":"post","link":"https:\/\/www.modulebazaar.com\/blog\/how-high-risk-payment-processor\/","title":{"rendered":"Quick Guide to Important Features in Choosing a High-Risk Payment Processor"},"content":{"rendered":"\n<p>There are different <strong><a rel=\"noreferrer noopener\" aria-label=\"pricing models (opens in a new tab)\" href=\"https:\/\/www.modulebazaar.com\/catalogsearch\/result\/?q=pricing+models\" target=\"_blank\">pricing models<\/a><\/strong>, fee types, and features to look out for in high-risk payment processors. Review all of these qualities to understand the true cost to your business, rather than choosing based on the most visible costs.&nbsp;<br><\/p>\n\n\n\n<h2>Pricing<\/h2>\n\n\n\n<ul><li><strong><a href=\"https:\/\/en.wikipedia.org\/wiki\/Flat_rate#:~:text=A%20flat%20fee%2C%20also%20referred,usage%20or%20time%20of%20use.\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Flat-rate pricing<\/a><\/strong>&#8211; Pay the same rate for all transactions, regardless of the risk level of chargebacks or fraud. <\/li><li>Tiered pricing- Multiple tiers based on the level of risk, allowing merchants to pay less for safer transactions.<ul><li>Qualified Rate- Covers the most secure and least risky transactions, including in-person, chip-and-pin card payments.&nbsp;<\/li><li>Mid-Qualified Rate- Transactions that don\u2019t follow all standards for qualified rate level, and are charged a higher rate.&nbsp;<\/li><li>Non-Qualified Rate- Transactions with a high risk of fraud or reversal, including eCommerce credit card transactions and other payments without the card present.&nbsp;<\/li><\/ul><\/li><\/ul>\n\n\n\n<h2>Transaction Fee Breakdown<\/h2>\n\n\n\n<ul><li>Interchange fee- fees for processing payments from credit\/debit cards<\/li><li>Percentage Transaction fee &#8211; A percentage of the amount paid by a credit\/debit card.&nbsp;<\/li><li>Fixed Transaction fee &#8211; A fixed amount paid on each transaction processed.&nbsp;<\/li><\/ul>\n\n\n\n<h2>Different Types of Additional Fees<\/h2>\n\n\n\n<ul><li>Account fees- cover the costs of running your account, and may be billed monthly or annually.&nbsp;<\/li><li>Refund Fees &#8211; charged when you submit your customer\u2019s refund to the payment processor.&nbsp;&nbsp;<\/li><li>Chargeback Fees- Additional fee charged when customers issue chargebacks on credit card payments paid to you, based on your business\u2019s level of risk.&nbsp;<\/li><li>PCI Compliance Fee- Fees to encourage compliance with technical and operational standards for safeguarding credit card information.<\/li><li>Termination Fee- Charged if you terminate your merchant account early, either a contractual flat fee or liquidated damages, which penalizes you based on the amount of time left in your contract.&nbsp;<\/li><\/ul>\n\n\n\n<h2>Payment Processor Reserves<\/h2>\n\n\n\n<ul><li><strong>Rolling Reserves- <\/strong>A portion of each payment processed is held by the processor, then released after 6 months to a year to the merchant on a rolling basis.<\/li><li><strong>Up-Front Reserves- <\/strong>The <strong><a href=\"https:\/\/www.elitemcommerce.com\/features\/flexible-payment-options\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"merchant pays (opens in a new tab)\">merchant pays<\/a><\/strong> a specified amount when their contract begins, based on their anticipated monthly earnings, which is held as long as the contract lasts.&nbsp;&nbsp;<\/li><li><strong>Capped Reserves- <\/strong>Instead of paying up-front, a portion of each payment is taken until it reaches a threshold, which is held as long as the contract lasts.&nbsp;&nbsp;<\/li><\/ul>\n\n\n\n<blockquote class=\"wp-block-quote\"><p><strong>Read also :-<a href=\"https:\/\/www.modulebazaar.com\/blog\/choosing-payment-gateway\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Factors consider before selecting a Payment Gateway for your eCommerce store (opens in a new tab)\">Factors consider before selecting a Payment Gateway for your eCommerce store<\/a> <\/strong><\/p><\/blockquote>\n\n\n\n<h2>Additional Services from Payment Processors<\/h2>\n\n\n\n<ul><li>Fraud Prevention and Detection- Processors can offer various features, from support for the 3-D Secure credit card security standard to automated filters that detect likely fraud.&nbsp;<\/li><li>24\/7 Payment Success Rate Monitoring &#8211; Get monitoring of all transactions to get alerted when payments are not processed successfully for any reason.<\/li><li>24\/7 Chargeback Monitoring &amp; Alerts- Get notified when chargebacks occur so you can dispute them as quickly as possible.&nbsp;<\/li><li>24\/7 Tech Support- Get tech support to prevent technical obstacles to payments and reduce downtime on your merchant account.&nbsp;<\/li><li>Chargeback Support- Get help when disputing fraudulent chargebacks to keep your chargeback rate low.&nbsp;<\/li><li>Multiple Currencies &amp; Languages- Sell better globally with language and currency support for customers using <strong><a href=\"https:\/\/www.modulebazaar.com\/catalogsearch\/result\/?q=payment\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"payment (opens in a new tab)\">payment<\/a><\/strong> gateways and processing services.&nbsp;<\/li><li>Support for Mobile &amp; In-App Payments- Get a payment processor that integrates with mobile devices and apps without any inconvenience to the customer.&nbsp;<\/li><li>Convenient, Fast Checkout- Get a payment gateway that completes transactions quickly without overusing redirects and pop-ups, and enables 1-click purchases.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>There are different pricing models, fee types, and features to look out for in high-risk payment processors. Review all of these qualities to understand the true cost to your business, rather than choosing based on the most visible costs.&nbsp; Pricing Flat-rate pricing&#8211; Pay the same rate for all transactions, regardless of the risk level of chargebacks or fraud. Tiered pricing- Multiple tiers based on the level of risk, allowing merchants to pay less for safer transactions. Qualified Rate- Covers the most secure and least risky transactions, including in-person, chip-and-pin card payments.&nbsp; Mid-Qualified Rate- Transactions that don\u2019t follow all standards for qualified rate level, and are charged a higher rate.&nbsp; Non-Qualified Rate- Transactions with a high risk of fraud or reversal, including eCommerce credit card transactions and other payments without the card present.&nbsp; Transaction Fee Breakdown Interchange fee- fees for processing payments from credit\/debit cards Percentage Transaction fee &#8211; A percentage of the amount paid by a credit\/debit card.&nbsp; Fixed Transaction fee &#8211; A fixed amount paid on each transaction processed.&nbsp; Different Types of Additional Fees Account fees- cover the costs of running your account, and may be billed monthly or annually.&nbsp; Refund Fees &#8211; charged when you submit your customer\u2019s [&hellip;]<\/p>\n","protected":false},"author":48,"featured_media":9051,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1147],"tags":[1007],"yst_prominent_words":[3456,1509,3458,1504,3450,3457,3455,3449,3451,3447,1956,1327,1295,3359,3452,3453,2983,3454,3459,3448],"_links":{"self":[{"href":"https:\/\/www.modulebazaar.com\/blog\/wp-json\/wp\/v2\/posts\/9007"}],"collection":[{"href":"https:\/\/www.modulebazaar.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.modulebazaar.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.modulebazaar.com\/blog\/wp-json\/wp\/v2\/users\/48"}],"replies":[{"embeddable":true,"href":"https:\/\/www.modulebazaar.com\/blog\/wp-json\/wp\/v2\/comments?post=9007"}],"version-history":[{"count":1,"href":"https:\/\/www.modulebazaar.com\/blog\/wp-json\/wp\/v2\/posts\/9007\/revisions"}],"predecessor-version":[{"id":9053,"href":"https:\/\/www.modulebazaar.com\/blog\/wp-json\/wp\/v2\/posts\/9007\/revisions\/9053"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.modulebazaar.com\/blog\/wp-json\/wp\/v2\/media\/9051"}],"wp:attachment":[{"href":"https:\/\/www.modulebazaar.com\/blog\/wp-json\/wp\/v2\/media?parent=9007"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.modulebazaar.com\/blog\/wp-json\/wp\/v2\/categories?post=9007"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.modulebazaar.com\/blog\/wp-json\/wp\/v2\/tags?post=9007"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.modulebazaar.com\/blog\/wp-json\/wp\/v2\/yst_prominent_words?post=9007"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}