Common Misconceptions of Credit Card Processing in High-Risk Payment gateway Industry

1. CommonMisconceptionsofCreditCardProcessingin High-RiskPaymentgatewayIndustry ItisquitemisleadingforsomepeopletogetintothemythsaboutCreditCardProcessing.These myths create a misconception in the minds of the merchant about what to choose or not. Before movingahead letfirst understand whatCredit Card Processingis. CreditCardProcessing Creditcardprocessingallowsthetransactiontobeacceptedthroughcreditcards.Thecreditcard information captured by the merchant business is first transferred to the payment gateway and then to the acquiring bank which verifies whether the customer has the required payment in the account or not. If yes, then acquiring bank transfers the approval to the payment gateway which again transferstherequesttocreditcardcompaniestodebittherequestedpaymentfromtheissuercredit card account. Thus, the entire transaction gets completed and the payment is transferred to the merchantaccount. eMerchantProisoneoftherenownednameswhenitcomestoCreditCardProcessingServicesin USA. We are providing beneficial merchant account services irrespective of the low or high volume ofthemerchantso thattheycanprocess smoothandflexibletransactionsfor theirbusiness. PopularmisconceptionsofCreditCardProcessing Therearevariousmisconceptionsormythsregardingcreditcardprocessingcompanies.Letus takea brief look at someof them.

2. Hardtokeepthedatasafe AnybusinessthatneedshighersecuritystandardsneedstobePCIDSScompliant.Thisstandsfor “Payment Card Industry Data Security Standard”, PCI DSS standard says that any business that is upholding the customer’s sensitive information must comply with PCI DSS. A merchant unable to havecompliancecanwithstandthechargesandfinesfromtheacquiringbankfornon-compliance. Expensiveprocessingfee Many things are running behind per transaction. Many parties are involved in making and accepting business transactions. These entities are a cardholder, Merchant, Merchant bank, payment processor, cardassociation,IssuingBanks,IndependentSalesOrganization&MembershipService Providers.Hencetheseinstitutionscharge fortheirroleinthe transactionprocessandthese Charges are cumulatively known as credit card processing fees. Though few of the credit card processorsarenotoriousandaddextracosttothebills,expectingthatmerchantswillnotthinktwice about it. So rather than just blindly accepting the terms from the credit card processing company, get in contact with the professional to ensure that they are charging authenticate charges. eMerchantPro has more transparent processing fee structure as compared to any other merchant accountservice provider. CreditandDebitCardFeesAreSimilar Mostofthepaymentprocessingcompanieschargemoreforthecreditcardfeeascomparedtothe debit card. The charges may depend on various factors and risk is one of the factors. It is just that theprocessingpaymentforthedebitcardislowwhileitishighincaseofcreditcardprocessing. PaymentGatewaysholdontotheClientsMoney Mostpeoplehavethismisunderstandingthatthemoneyfromtheclientholdsonwiththepayment gateway. However, this is not true at all. The payment gateways have their role, it collects the paymentinformationand storesit securelyand thenpassit onto theacquiring bank. Theacquiringbankinitsturnpassestheencryptedinformationtotheissuingbankforauthorization and approval. Once the request is approved then the request is traced back to the customer. The customer gets approval from the merchant for having a successful transaction. This is the simple processthat goes through thepayment gateway. PaymentGatewaysprovideBankingSolution Thisisamongthemanymisconceptionsaboutthepayment gateway.Thoughthebankhasitsrolein processing the payment. While the processor is just the interface between the merchant and the bank. And in many cases, the payment gateway has its place under the acquiring bank and does its workaccordingly.

3. PaymentGatewaysTakeNoResponsibilitiesfor Customers’and Merchant’sPrivateData Gatewaysdohaveamajorroleinprotecting thesensitiveinformationofthecustomer.Theyaim to protect the merchant from fraud activities or any other data prevention leaks. It is also responsible forthe security standards ofthe merchants. Lowerprocessingratesarebetter As far as lower pricing rates are concerned, don’t fall into the trap with the lower rate service provider. Lower rates should not be your determining factor at all since you may get bad customer services, longer waiting time for the funds processing. The other most important factor is that different companies offerdifferent rates. Someprovidethe servicesat aflatrate irrespectiveof the transactions however others provide the services at discounted rates. Try to get into the entire picturebefore you settle oncertain rates. It’simpossibletoswitchprovidersduetothecontract It is also a myth that most people have about online payments. If the merchant gets into the contract withoneoftheserviceproviderstheymaynotswitchinbetween.However,themerchantcanswitch to other gateway services. It may be possible on certain terms and conditions that some payment gatewaywants to negotiate with each other to provide the merchant with the flexibility to switch to other gateway services. It may also be possible that other payment gateway providers may want to buyout your gateway’s merchantsby providing lower rates,So BeAware!! Allserviceprovidersarecrooks Merchant account service providers may try to take benefits from all the businesses. But certainly, not all the payment gateway service providers are crooks. Most of them are very professional and youcanlookuptothematthesitessuchasBusinessBureauandMerchantMavericktoensurethat itis safe to collaborate withthem. LocalBankswithgoodratesarebetter It may happen that your local bank is providing you a low rate. But it is usually good to look for the bestratesthatyoucanget.Ifyouaregettingthebestratefromyourlocalbankthenyoumust gofor it. Thebiggerthebrandbettertheservices

4. Noteverybiggercompanywillprovideyouthebestrates.Itmayalsobepossiblethatsmallerfirms may provide you with the best offers. Reach out to the ones that consider you as a customer not anothernumber in their list. Creditcardsarecost-prohibitive Ifyoudotheanalysisthenyouwillgettoknowthatitisnecessarilynottrue.Includingthecreditcard optionin your business willenhance your business. Creditcardsarenotharmfulforthefinancialhealth Thisisaworldwidefactthattheglobalpaymentmethodofpaymentcardsandespeciallycredit cards are always upon a certain risk on the behalf of your consumer or the cardholder due to this particularmisconceptionmerchantsusuallytendstotakecreditcardprocessingasdamagingtotheir own business but this is false. Since all the factorsof risk such as this can usually be handledby yourpayment serviceprovider keeping youand yourbusiness out ofreach. Banksaretheonlyserviceprovider Most banks provide payment gateway services for you but there are also payment gateway service providerswhocanprovideyouwiththepaymentsolution.Itisuptoyouwhereyoucangetthebest offer. Don’t hesitate to go for the private ones if they are providing you the best processor that suits your business requirements. Also, you can get more flexibility with the private institution as comparedto the banks orfinancial institutions. PaymentGatewaysandBankingMethodsaresimilar Banksareresponsibleforprocessingonlinetransactionsparticularlyfore-commercesites,whilethe role of payment gateway is different from that of the bank. The payment gateway serves as the mediatorwhile the bankis in charge ofhandling the payment. Every business requires a payment method for accepting payments from customers. This includes small businesses, retailers, or any online business. Don’t get into these myths that stop you from takingyourbusinesstoexponentialheights.Although,wehaveseenallarenotmisconceptionsand somearefacts.PaymentGatewaysarecomplicatedmachinesintegratedsolutionsthatmanagethe financial transactions and perform other important financial tasks. Hence you need to pick your option well before choosing the right payment solution for your business. Get along with expert advice for feasible processor services. eMerchantProis providing the one-stop solution for the merchant who is dealing in High-risk businesses by providing them with the High-Risk Payment Gatewayin theUSAfor allowing themto acceptcreditcard payments.