What is a Payment Processor?

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A payment processor is a company that handles transactions for a merchant. Obviously, the merchant themselves can handle cash transactions. The payment processor handles payments involving credit cards, debit cards, and more recently, cryptocurrencies. Are there differences between payment processing solutions?

We’ll examine these. The best payment processors provide more than just the basic service. They can help you implement payment processing solutions, solve problems that arise, provide solutions to better handle chargebacks, as well as produce reporting that helps you analyze how your customers spend their money.

ETA Certified Payment Processing

Certified payment processing exists to act as a trusted and accountable mediator between your business and various financial institutions. The payment processing industry holds certain standards and requirements that enable financial institutions to feel comfortable entrusting many businesses with more extensive payment processing solutions.

Certified payment processing means that a processing company has been certified by the Electronic Transactions Association (ETA). This ensures you that a payment processor meets and maintains certain standards that are important to client businesses.  And, yes, Y2Payments is a long-time member of ETA.

High Risk Payment Processing

There are differences between payment processing solutions. To start with, many businesses are classified as high risk. Not all payment processors will provide their services to high risk businesses. If they do, their terms won’t be very favorable because this type of client falls outside their specialty.

A payment processor that handles high risk clients will often be able to provide better terms in your payment processing rates. Not only this, they’ll also be able to provide you more complete service. The best payment processors will help you implement all your payment processing tools, give you training so that you know how to use them, will respond to inquiries, can explain things, and will produce valuable reporting you can use to analyze customer habits and needs.

Payment processing deals with technology is first and foremost, but it excels when personal communication allows for the kind of flexibility that businesses need to operate within high risk industries.

For more information on Y2Payments payment processing, contact us today.

How to Reverse Chargebacks

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Handling chargebacks is a process fraught with frustration. You have to convince the bank that a chargeback dispute isn’t legitimate. It’s difficult – the system is built to favor customers for some good reasons. However, when credit card chargebacks should be reversed, it’s difficult to get it done easily. There is chargeback protection for merchants, like chargeback insurance. Let’s start from the beginning about what you can do.

Challenge the Chargeback

The most important step is to dispute credit card chargebacks when there’s a good reason to do so. If you absolutely know the customer’s in the right, and wasn’t provided a product or service, then don’t waste your and their time. However, if you’re in the right, then challenge that dispute. Most merchants either challenge fewer than half their chargebacks or never contest chargebacks. You should challenge every chargeback that you feel shouldn’t have been made. There’s evidence that this helps reduce the overall number of chargebacks you’ll face down the road.

Chargeback Insurance

Chargeback protection for merchants is available in the form of chargeback insurance. It was mentioned above that many chargebacks are made legitimately. These could be the result of stolen credit cards or credit card information, for instance. In this case, a merchant with chargeback insurance has protection. Such insurance policies may only cover transactions made through a particular payment processor, so be aware how and when you’re covered.

Chargeback Time Limit

Remember too that there is a chargeback time limit. Cardholders in general only have 120 days to file a chargeback related to fraud. There are time limits set up for every step of the dispute and challenge processes as well. Make sure you’re aware of all the time limits at play – they’ll vary by card and other factors – so that you’re able to assess the dispute’s legitimacy as well as your own timing and ability in responding.

For more information on Y2Payments Chargeback protection and how it works, contact us today at 888-693-1850.

Watch Trends in Online Payment Processing

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The world of online payment services has changed rapidly. Many of these changes could be seen coming years back. Others seem to take hold at surprising speed. What are the biggest online payment processing trends that can be seen taking shape today?

Methods of Payment

Credit cards are still popular in the realm of online shopping, but they no longer dominate the field. They account for 42 percent of online shopping payments. Electronic payments are just behind at 39 percent. The remainder is taken up by debit cards, but you can see just how much electronic payments have narrowed the gap with credit cards.

Third Parties

Younger shoppers continue to support third parties. They have more knowledge about how to protect their bank account information in online payment services settings. This makes them better equipped to identify safe ways of doing this, which makes them more flexible and more intelligent spenders online than older generations.

Interchange Pass Through

 Interchange pass through pricing has clearly become the most transparent form of credit card processing pricing. Interchange pass through allows the actual processing cost to be passed directly to your business.

Cryptocurrency & Blockchain

You’ll continue to see cryptocurrency normalized as a form of payment. Be careful with how and when you accept these forms of payment. Cryptocurrency values are extremely volatile and represent a high risk. Many online payment systems will still decline their use, but cryptocurrencies will only continue to expand into the realm of online payment methods.

When new technologies enable new approaches to online payment systems and online payment methods, they really do take hold fast. Expect blockchain technology, the digital ledger in which cryptocurrency exchanges are recorded, to reshape much of the field in the next five years. It’s estimated it will reduce the cost of accounting reconciliation up to 70 percent in that time.

There are a number of online payment processing trends that you’ll see coming. You also need the flexibility to adapt quickly to the ones you don’t see coming. Ensure that you trust reliable online payment systems that offer interchange pass through, accountability, and provide thorough service.

For more information on payment processing, contact Y2Payments today.

The Popularity of Bitcoin Payments is on the Rise

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Bitcoin, Bitcoin Cash, Ethereum, Dash and other cryptocurrencies are set to completely change the method of online payment. Businesses that fail to accommodate this trend will take a big risk in losing a significant portion of their customer base.

At the same time, it can be difficult to wrap your head around cryptocurrency, blockchain, and other technologies that are re-shaping the world of online payment. What is bitcoin payment, where did the rise of cryptocurrency come from, and how do you find a reliable bitcoin payment processor? Let’s take each part of that question a step at a time.

What is Bitcoin Payment?

Bitcoin is what’s known as a cryptocurrency. These are currencies that exist digitally. There’s no physical currency that you put in a wallet. Transactions are simply recorded digitally in what’s known as a blockchain. The cryptocurrency does have worth. Because it’s such a new technology and rules of the market are volatile (and often easily manipulated), many cryptocurrencies can be invented, spike in value, and crash down to nothing in the space of weeks or even days.

More established cryptocurrencies such as bitcoin are safer than ones that don’t have a history of reliability and stability.

Rise of Cryptocurrency

Blockchain technology means cryptocurrency has accountability, but there’s no single institution that controls it. There’s no bank that manages it. It’s popular because it’s decentralized, it’s easy to set up, bitcoin payment transactions are transparent but accounts can stay anonymous, and transaction fees are small. It’s viewed as more agile than traditional currency, and a hedge against certain currencies that may depreciate.

How to Find a Bitcoin Payment Processor?

Many payment processors will be willing to deal in bitcoin and certain other cryptocurrencies. They won’t, however, all have the expertise to do so.

A reliable bitcoin payment processor should be able to explain bitcoin payment in a way you understand. They should be able to tell you which cryptocurrencies they accept, which they don’t, and why. This shows you how they’re judging which are established and stable, and which aren’t. They should have a plan for reporting the bitcoin payment segment of your transactions in a way you can analyze. This all shows that they don’t just provide the capability, but they also provide reporting, client service, and knowledge. That’s how you find a reliable bitcoin payment processor.

Contact Y2Payments today for your bitcoin payment processing.

Get Faster Payments with Credit Card Invoicing

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If you’ve ever managed a business’s accounting, you realize that the job gets misrepresented a lot. Accountants are often represented with their noses in spreadsheets, furiously sweating minuscule financial details. Sometimes that’s the easiest part of the job. The hard part is tracking down clients who still haven’t paid, and negotiating a path between a business that doesn’t want to lose that client but does need to get paid by them. Accountants are often diplomats just as much as they’re financial specialists. That job can be made easier with credit card invoicing and credit card processing.

Why Accept Credit Cards?

When you manage your own business or do the accounting for it, you’re also managing your time. Time is money. If you spend it chasing clients, you’re using up time that could be devoted to developing other aspects of your business. The more you can streamline your invoicing and processing, the more time you save.

You’ve probably heard that statistic, the one that says most businesses fail in their first two years. This usually isn’t due to someone failing to produce a good product or deliver a good service. By the time someone is ready to step into starting a business, they’re talented and knowledgeable enough to know how to deliver products and services well. Chances are, they’ve already been in that industry for years and their clients are already very happy with them.

Credit Card Invoicing Eliminates Wasted Time

The difference between a successful business and one that fails is where time gets wasted. When you’re waiting on invoicing and processing, in chasing down clients and reminding them to pay, they’re wasting your time. You can’t dump them outright. You walk that fine line between keeping a client with good payment potential, and getting them to actually live up to that potential.

And yet it doesn’t change the fact that every time you do this, they’re wasting your time. This holds you back from developing other aspects of your business, including product revision, adding services, customer service, and making your marketing more effective. That’s a big enough difference to make your business sputter and collapse before it gets its feet under it.

Rewards, Enabling Future Purchases, and Security

Credit card invoicing is quicker. It enables customers and clients to utilize credit card reward programs. You get paid right away, which eliminates both the time spent with your nose in a spreadsheet and the time spent playing diplomat with clients. Payment information is easily encrypted and stored, which puts customers and clients at ease about making future purchases.

Customized reporting and analysis is easy to produce, allowing you to analyze your customers’ and clients’ spending habits. Security liability shifts at this point from you to your credit card processing provider. Why accept credit cards? There’s a long list, and it begins and ends with making sure your time isn’t wasted, so you can choose how to spend more of it.

Contact us today to learn more about our interchange pass-through pricing model.

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!