I’m doing a paper on merchant accounts for my economics class. any additional ideas will really be useful. Thanks!
Hi there!
Here’s what I was able to research myself, a volume cap is the maximum amount of tax-exempt private bonds that maybe issued during a calendar year. Most merchant accounts don’t limit the amount of processing.
Are e-commerce owners responsible for fraudulent orders placed on their online store. For instance, if a real cardholders files a charge back, is the business owner out of that money?
Anyone???!
Unfortunately, yes — online merchants are out of luck when fraudulent transactions are made on their website. You would think that online merchants are the victims here as well, but that’s how it goes.
If you are selling online and there is a fraudulent transaction, you:
- are out of the item if you have already sent the item to the scammer
- credit company takes out of your bank account the cost of the item; the money of which will be returned to the credit card holder
- worse, you get slapped with a chargeback fee which is typically around $20
And the really bad thing is that if you have a lot of chargebacks, you can even lose your merchant account.
So yes, the business owner is out of money. So as an online merchant you need to be EXTREMELY VIGILANT in terms of watching for fraudulent transactions. To help you sniff out fraudulent transactions:
- use software that could alert you of fraud such as Verisign
- make sure everything matches in the card: the address, zip code, telephone area code, IP address
- be on the lookout for huge transactions that want to be delivered to a PO Box
- or huge transactions that want to be shipped immediately
Merchant Account Credit Card Processing Added Feature In Shopping Carts
Has anyone in the UK tried using their Maestro card in the U.S. as a MasterCard?
I know how Maestro Card and MasterCard work but the U.S. has an odd set up.
In the U.S. Debit cards with a MasterCard and Visa symbol can be used at least two way. A pin transaction and a signature transaction. Both methods come out of a chequing account.
Since a lot of Merchants in the U.S. don’t take the Maestro card. I was wanting to know if a Maestro debit card would work at merchants that takes just Mastercard and you would sign for your purchase. The U.S. does not have chip & pin.
Sorry if wrong category.
Yeah my exbf did when he came to America from England and it worked just fine – on the tellers (cash points) here it has Maestro card picture on it and all the other cards it takes. Not sure what you mean about not having pin we use our cards with a pin number all the time. Unless you mean for Maestro but that’s because we don’t have Maestro but our MasterCards do have pin to buy something. hope that helps! xxx
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How to set up a merchant account to accept credit cards without a personal guarantor?
All of our buisness’ equiptment and vehicles have been financed without personal guarantor. We would like to accept credit cards for our services, but will not put our personal numbers on the contract.
Some merchant account providers will allow you to use alternative forms of guarantees in place of a personal guarantee. These options include:
1) A corporate resolution – your business provides documents (balance sheets, third party prepared financial statements) that shows the business is strong enough to guarantee itself
2) Provide a letter of credit – a letter of credit basically is a loan that your bank promises to give you at a future date. The catch is you don’t get to ask for it. The processing bank does, They can only invoke it if you owe them money and they are unable to get those funds from you. It is like an insurance policy.
3) A reserve – the processing bank will hold some of your funds in reserve to cover any exposure for loss they might have. 6 months or so after you close your account they give it all back to you. They may give it back sooner if you have processed for along time and shown to be a low risk merchant.
Keep in mind not all processors offer these alternative although most offer at least one of them.
How does an ebay store compare with a direct online “shopping cart” merchant system?
I am starting a business and want to sell online. I cannot decide between an ebay store and selling directly on my website accepting credit cards with a merchant account. Anyone have experience with these two options?
The difference is obvious, traffic. Ebay has the traffic, they have done a lot to get the traffic, by selling on ebay you use that traffic.
It’s like setting up a shop at a popular mall, you’ll get visitors.
Doing it on your own is like opening a shop in a part of town noone goes to, or opening up a shop in the middle of a field. It’ll take a lot more effort to get the traffic to come to you because it’s not naturally there.
I realize this isn’t what you’re looking for in an answer, but I thought I’d add it in.
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