Simplified Compiled High Risk Merchant Reports

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The lack of credit card processing options for high risk merchants is frustrating. When the only high risk merchant accounts available are themselves riskier prospects, it doesn’t exactly help decrease that risk. High risk merchant accounts should give merchants the tools that help them understand their business, decrease their costs, understand high risk merchant customers, and lower their risk.

Better Reports for High Risk Merchants

This is one of the goals of Y2Payments’ Conduit Reporting system. It puts everything together in one place so that you can easily track how payments are processed and reconciled. Payments can be run over six different channels, but will all show up on a single report. This includes credit, debit, ACH/EFT payments.

These are the kinds of tools and reports that should be normally provided to high risk merchant accounts. Yet there’s an attitude that this extra work shouldn’t be done for high risk merchants? And why not?

When information can be compiled and broken down in high risk merchant reports, you have a better chance to understand your customers, their spending habits, and when and where chargebacks happen. This can help you make more informed decisions. That helps decrease your risk as a business over time.

Why shouldn’t Y2Payments perform the back-end work and provide you the reports that can help you run more efficiently and effectively. Isn’t in Y2Payments’ interest as well as yours to help you decrease the risk you take?

Saving You Time and Stress

High risk merchant reports are easily downloaded, and they can be tailored to match your organizational structure. This saves you time from having to re-organize or re-compile the information. It already comes arranged how you’ve instructed. These reports and the Y2Payments Conduit come with robust research tools that help you break down the data and analyze it all in one place.

Automating the delivery and tailoring the structure of these reports saves you time and helps avoid potential errors or oversights by giving you simple, straightforward access to all your data in one place. High risk merchant customers aren’t understood all that well, and it’s time they are. It’s also time that high risk merchant payment processors started seeing the wisdom in helping high risk merchants lower their risk.

Credit Card Companies Dropping Signature Requirement

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Businesses are always looking for ways to make checkout faster. With advancing technologies and a need for faster credit card processing, many credit card companies have decided to drop the need for signatures on payment slips and checkout terminals. This makes your payment processing options even faster.

Dropping Signature Requirements

Mastercard, Discover, American Express, and Visa have all dropped the signature requirement as of April 2018. Technology and anti-fraud capabilities have advanced far enough that signatures are no longer necessary to fight fraud. This is because they’re no longer among the most effective pieces of evidence considered in anti-fraud work.

This isn’t a radical or sudden idea. It’s long been considered and weighed as an option. If anything, credit card companies have waited longer than they have to before doing away with the need for signatures.

What about Chargebacks?

The ACH payment system has no real use for signatures either. Regardless of ACH and the decisions companies are making about credit card processing, some businesses are still taking things step by step. This is especially true for high risk merchants, since signatures are still used as evidence when considering chargebacks.

There will likely be a period of time until the approach to chargebacks catches up with the dropped signature requirements. Many businesses have reported this, and so are still requiring customer signatures.

Chip cards help eliminate the risk of this, but not everyone uses them, and there’s still a need for some departments to get on the same page. When weighing whether to request customer signatures or not, try to balance your risk of chargebacks against your need for speed in your payment processing options.

Balance Your Needs

If you need to accelerate customers through credit card processing, dropping signatures achieves this. If your business risks a higher rate of chargebacks, you may wish to keep requiring signatures for the time being. Credit card companies should catch up on this sooner rather than later.

Contact Y2Payments today at 888-693-1850 for a free no risk statement review & audit!

The Difference Between Chargebacks and Refunds

difference between chargebacks and refunds y2payments

Various types of high risk merchants need to be aware of the difference between chargebacks and refunds. The best high risk processors will offer high risk merchant accounts that acknowledge these kinds of risks but still treat them fairly. First, let’s start from refunds. Chances are you already have a good idea of how refunds work, since most of us have had to ask for one from a business at some point in our lives:

Refund – A refund occurs when a customer asks for funds to be returned to the customer’s credit card and the merchant agrees. This usually occurs when the customer returns goods, or the merchant fails to provide goods or services for which the customer has paid.

Partial refunds typically occur when a customer has been provided goods or services, but is unhappy with them, or a particular element was never provided.

Chargeback – A chargeback happens as a result of a dispute. Typically, the cardholder disputes a charge on their credit card statement with the bank that issues the card. This can happen as a result of:

  1. Fraud: The card was used without the customer’s authorization.
  2. Failed Refund: The customer attempted a refund through the merchant, but the merchant either failed to respond or refused to provide the refund.
  3. Inaccuracy: The goods or services that were provided were misrepresented to the customer.

What are High Risk Merchants?

Many types of high risk merchants must pay particular attention to these elements because they can reduce the number of processors willing to give you a good deal on your payment processing.

Businesses that see a high number of refunds and especially a high number of chargebacks can very quickly be labeled high risk by payment processors. This is because chargebacks serve as a red flag that a business is either failing to provide refunds or is misrepresenting their goods or services.

There are many high risk merchant accounts, but they’ll often charge you much higher rates and fees than you should be charged. The best high risk processors will reduce these rates as much as possible, and will specialize in these types of accounts.

With more than thirty years of payment processing experience, Y2Payments can help you save some of that money from your current statements and have it go directly to your bottom line! Contact us today to learn more.

What are Credit Card Surcharges

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Credit card surcharges involve the addition of a small fee added to a transaction. They’re added to cover the cost of processing a credit card transaction. This is why businesses often have a minimum purchase amount if you intend to pay with a credit card. Credit card surcharges are often unfair to the consumer, and surcharge models are always unfair to businesses.

Surcharge Structures Overwhelm and Confuse

Credit card surcharges are often modeled to unfairly qualify some businesses with high processing rates and fees. This means they either have to absorb these fees or punish their customers with higher costs – which can lose customers. There are hidden fees, tiered pricing systems, and other elements that can make it confusing to understand just what your business is signing up for.

Many of these cost elements have a legitimate foundation, a reason for existing. As they become overwhelming, many are in there simply to make businesses throw their hands in the air and figure this is the best surcharge situation they’re going to be able to get.

Many Businesses Need an Alternative

You can choose a more modern alternative. Credit card surcharges subscribe to a model of end-point sales that hasn’t really caught up with today’s market of online sellers, referral services, small-cost marketplaces, or even the business-to-business economy as it’s evolved. Because of this, surcharges and fees can grow to high-risk territory for businesses that just aren’t high-risk.

If your business sells a low volume, you shouldn’t be punished so that you make even less from it. If you rely on high-cost sales, you shouldn’t have a chunk of that taken out. Neither should you have to pass costs on to customers that risks them going elsewhere. The old surcharge model has not adapted quickly enough to the way the world works today. It’s fallen behind for too many who are working too hard.

Interchange Plus Pricing

Interchange plus pricing is a more reliable and predictable model for many who fall into these categories, or who just don’t find credit card surcharging fair. You know your fees up front. There are no hidden fees or added rates. There’s no three-tier structure for punishing hard-working businesses. It’s simple, easy to implement and engage with, and it’s client-oriented.

You have options beyond simply signing up with the least damaging processor. It’s worth it to investigate what else is out there. Contact Y2Payments today at 888-693-1850 for a free no risk statement review & audit!

Streamline For Better Payment Processing

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Credit card processing fees aren’t always fair. Payment processing can seem limited, and built to punish small businesses, low volume sellers, and the business-to-business industry. These businesses need better payment processing options that can fully cover a range of payments, including ACH/EFT payments.

Better Credit Card Processing

The solution is interchange plus pricing. This model is less complicated and more straightforward than traditional credit card processing. It’s also more flexible in terms of satisfying many modern requirements that businesses have.

The best approach is to compare the two options. For many large volume sellers or large franchises, they see beneficial credit card processing deals with friendly rates. Their payment processing options are beneficial to them because processors want to secure their business long-term.

Even Footing for Small Businesses

For most businesses outside this range, they just don’t see the same benefits offered to them. Processors are less confident in these businesses and so they look to make more money out of them in the short-term, unconcerned with the impact on a long-term partnership. This benefits them, but not your business.

Interchange plus pricing is an approach to credit card processing that relies on giving you the information you need to make a decision up-front. You can even see an audit of your current fees and compare these to what they’d look like under Y2Payments.

Y2Payments Conduit

Our platform is called the Y2P Conduit, manages these payments. It’s fully PCI DSS compliant. You can securely run transactions across six payment channels. This includes payments made by internet or phone, by mail, or at point-of-purchase, whether it’s through credit, debit, or ACH. Reporting according to your organizational structure is rolled into this. This allows you the benefit of increased analytics and reduced risk on purchases, transactions, and chargebacks.

With the Y2P Conduit, you don’t have IT implementation expenses or changes in how your staff performs their jobs. Other credit card processors aren’t concerned with your quality of service.

The Y2Payments method of better payment processing, payment structures and the Y2P Conduit’s ability to quickly reduce transaction fees, gives you more control over your business and gives your business a better deal than with other processors.

Contact Y2Payments today at 888-693-1850 for a free no risk statement review & audit!

The Different Types of Credit Card Processing

different types of credit card processing y2payment systems

No matter what the industry, you need a fast, convenient way to accept credit card payments. These days, almost everyone carries a credit or debit card, and whether you’re working online or you have a brick and mortar location, customers expect the ability to pay with their cards.

Businesses that don’t accept cads lose a huge chunk of the market. Nearly half of all transactions last year involved a card, and those are sales numbers you don’t want to ignore.

For example, Visa has done studies where they conclude a merchant will experience a 30-40% sales increase merely by accepting cards as payment. When it comes to credit card processing, though, what are your options?

Take a look:
– A Standard Terminal:  This is the type of credit card processing almost everyone considers. It’s typically a cash register with a credit card machine build into it. The payments industry refers to this as the Card Present environment. This is the best option for business owners who have a physical location and do plenty of credit card sales each day. Most of them are equipped with swipe and chip capabilities. This means additional payment options for customers. The technology can be an expensive investment, but it can also be worth it if you know you’re going to have customers who need your services and products, and you know they’re coming to you to get it.
– A Mobile POS System:  Mobile phone technology has been nothing short of amazing for business owners, and it’s developed to the point where you can now use your phone to process payments. If you have a smaller business, or you do quite a bit of trade show business, this is the best option for your company. It’s small, inexpensive, and you can literally turn any of your devices into a credit card processor instantly.
–  E-Commerce Processing:  Doing quite a bit of business online? You’ll still need to accept credit cards, but you’ll need to do it virtually instead of swiping the card. E-commerce is a great way to reach customers who can’t make it to your location, but they’re still interested in your goods and services. Here the industry identifies this as Card-Not-Present (CNP) since your sales staff does not make visual contact with the cardholder. As one would expect, CNP fees are more expensive than their Card Present cousins. The best credit card processor will often help you navigate the murky waters of privacy legislation, even if you’re accepting cards online.

No matter what type of credit card processing you want to do, we can help. Contact us today to learn more about our merchant services and payment Conduit.