August, 2018 | IBS Payment Solutions

Third Party Merchant Account Services

There are many different ways you can set up a merchant account, including through your bank or through an intermediary. Often these methods are complicated however and require that you prove your financial solvency. Thus, for many small businesses establishing a merchant account isn’t always easy.

Fortunately, that’s where third party processors come in. One example is Clickbank, a third party Merchant Account processor that provides a quick, easy and inexpensive setup for just about anyone. Some come with built in affiliate programs you can add to your website. One of the benefits of using a third party administrators is that any small business can usually sign up. There is a downside though… many pay less frequently, up to a month in between payments thus you may have to wait 30-45 days for funds to be settled. For many small businesses this leads to problems.

Disadvantages Third Party Merchant Account Processors

Third party administrators like intermediaries will also charge you a fee. There are various fee structures, including set monthly fees or per transaction fees. Third party processors usually charge fees higher than those that other merchant account providers charge direct customers. This sometimes limits your choices when it comes to a third party processor.

You may also find you have to send your customers to the third party processors website to make a purchase, which some worry will make their business look cheap or less professional. You will probably also have to use a pre fashioned order form with the third parties form rather than your own.

Do You Need Credit Card Processing Services?

Are your customers asking for credit card processing services? If so, you may want to consider adding this service to your company’s domain in order to provide appropriate payment methods that will bring back repeat business. Many companies today are going toward e-commerce industry, which means that if you want to avoid getting left behind, you should get ready to join the throng of professionals who are filing into the electronic age of doing business.

Although you may have depended on cash transactions up to now, you might find that is becoming more difficult to make correct change, accept checks that could bounce, and track delinquent payments, all while keeping track of each and every transaction? Some of these tasks works to hired help can be expensive, which is why you may be able to advantage from credit card processing services. If you organize business onsite at a primary ability, you can connect a Credit Card Processor and start taking credit card payments instantly, which are far less likely to bounce than personal checks.

But you will first have to open a merchant account before starting credit card processing services. Look for a long-lasting bank with a solid reputation, one who at present offers merchant accounts to dependable business owners like you. Then be ready to provide the mandatory documentation that confirms a stable credit history and a better business plan that depends on credit card processing services. Beginning with approval, It will come within a few days then you can start to purchase or rent credit card processing equipment and start accepting credit payments from your clients.

Credit Card Processing services can be established at your company’s Website. You do have a Website, don’t you? If not, that is the second important step into the 21st century that your company needs to take. Hire a Web designer or sketch a few ideas yourself. It need not be fancy or sophisticated, but rather a basic outline of your company’s services or products along with basic operating information. Then you will need to register a domain name for a small fee and then pay monthly rental fees to live your website in Internet. Hiring a designer or someone to maintain and update your site will cost a little more, although often you can find a high school or college student who can do this type of work at nominal cost. When your site is up and running and your merchant account is approved, you are ready to open the Website doors to current and new customers for business. They can look at their ease and pay by credit card without human assistance at every stage. You can do both make money and save money at the same time.

Accept BitCoins with High Risk Merchant Account

In order to flourish as an e-commerce merchant in this economy, it is mandatory to keep up with all the latest industry trends and consumer preferences.

A most recent and increasingly popular trend in the payments industry has been accepting Bitcoins as payments. Gone are the days when consumers only used cards & cash for purchasing items. Alternative Payment Solutions like Instant Bank Transfer, E-wallets, Mobile Wallets and Bitcoins are a hit, especially among the younger demography.

So what is a Bitcoin? Bitcoins are a virtual currency traded using a peer-to-peer system. This digital asset is non-regulated. Buyers and users of bitcoin are usually self-governed.

Because of its growing popularity as a mode of payment, several merchants have started accepting Bitcoins as payments. However, finding a bank or a processor to integrate bitcoin processing with your business can prove to be a difficult task.

A High-Risk Industry

Bitcoin Industry falls under the High-Risk category. Merchants accepting bitcoins are labeled as High Risk.

The fact that these digital currencies are non-regulated makes financial institutions extremely wary of processing them.

A common misconception regarding Bitcoins is that they are traded almost exclusively for criminal reasons. Another issue being merchants require a merchant account provider that can convert Bitcoins in real-time since there is always an issue of volatility.

Benefits of accepting Bitcoins

Apart from being a fast-growing payment method favored by the tech-savvy generation to buy products and services, accepting Bitcoins has several advantages to you as a merchant:

– Lower Transaction Cost: Bitcoin processing fees are lower than credit card transaction fees.

– No Chargeback Risks: This currency has an irreversible payment structure which means once the transaction is done, the payment cannot be reversed. No possibility of a chargeback. This is advantageous particularly to the high risk merchants.

– Minimal Security Risk: Unlike credit card processing wherein the customers’ card details are used, payment in bitcoin does not use personal information which lowers security risks & frauds significantly.

– Choice of Payouts: You have the choice to receive payouts in either bitcoins itself or any other currency of your choice.

High Risk Merchant Account for Bitcoin Payment Processing

Most merchant account providers do not understand the challenges and complexities of the Bitcoin industry and will provide merchant solutions that will not suit your payment processing requirements. This may affect your business in the long run and can eventually lead to account termination.

Here, it becomes essential to obtain a Merchant Account that will enhance and provide the right services required to process bitcoin payments smoothly.

Team up with a merchant account provider that specializes in High Risk Merchant Account solutions that will help you with smooth integration of bitcoin payment processor in your system. These processors will also provide you with a Secure Payment Gateway to accept other forms of payment.