What Are Common High Risk Merchant Industries

high risk merchant industries y2payments

Ever been denied the opportunity to work with a credit card processor because you’ve been deemed a high risk business? You’re not alone. Many companies deal with the same label every single day, and often it’s a label that comes with very high fees and frustration. Wondering why you’re considered a high risk merchant account? There could be a number of different reasons, but in some cases, it’s the industry in which you work. There are a number of high risk merchant industries.

What Are High Risk Merchants?

Generally credit card processors consider industries high risk if their services or products have a history of excessive charge backs. Similarly, industries with services or products that have longer chargeback liability periods, like annual memberships, end up with that same high risk label. Sometimes, it’s just the reputation of the industry. Take a look at a few types of high risk merchant industries:

• Nutraceuticals
• Timeshare and Travel
• Gambling
• Firearms and ammunition
• Adult Products
• E-cigarettes

There are other risk factors as well. If you do business outside the United States routinely, for example, you may end up with a high risk label. If you’re not in a high risk industry, but you work with high risk clients, that could also mean a similar label. Bankruptcy attorneys, for example, often end up with a high risk label, as do bail bondsmen.

You Can’t Change Industries, So Now What?

If you love what you do, and you don’t want to change industries, you’re not out of luck just yet. There are still a few things you can do to get great rates. The single best first step you can take, though, is to contact us. Y2Payments offers processing services to companies in a variety of industries, even those deemed high risk by so many other companies.

To learn more about what we can do to help, give us a call at 888-693-1850.

Should I Accept ACH/EFT Payments?

ACH Payments electronic checkbook y2payments

If you’re like many merchants today, you may be searching for one more way to allow your customers to pay for your goods or services. Offering your customers an extra option or two can sometimes mean the difference between completing a sale and losing out to another merchant. ACH/EFT payments are one choice to consider adding to your current payment processing menu.

What Are They?

First, it may help a bit if you learn more about this type of payment. ACH stands for Automated Clearing House. It’s a system of moving money between banks, and it is federally regulated. It began as a system to replace paper checks, and sometimes, it’s called an e-check. Employers use it to directly deposit payments to an employee account.

This type of payment can be used, though, to move money from a customer to a business in almost any industry. EFT is an acronym that is used almost interchangeably with ACH, and for good reason. EFT stands for Electronic Funds Transfer, and  it’s a broad idea that includes any type of electronic payment, including ACH.

The Benefits of ACH Payments

Besides offering your customers one additional payment choice, there are a number of reasons to consider accepting ACH payments. It’s typically fairly quick, but you can also set up recurring billing cycles with ACH payments. More than that, though, it’s also quite a bit cheaper to process this type of payment versus a credit card payment. While the exact amount depends on your card processor, it usually ranges from about .5% to 1% of the overall transaction. Sometimes, it can be as low as $0.25 per transaction.

Not all potential customers have a valid credit card account, but most of them will have a bank account. If that’s the case, they may choose your company over another if you offer ACH payment processing.

Learn more about our ACH/EFT payments service and how we can help you. Contact Y2Payments today.

Why Does Swiping Lower Merchant Fees?

merchant fees swiping credit card Y2Payments

Read almost any blog about lowering your credit card processing merchant fees, and you’ll quickly discover that one of the top tips is to swipe a customer’s card over keying it in. Why the simple act of swiping a card versus keying in the numbers is a mystery to some, but the explanation is fairly simple.

Risk Averse

Credit card processing companies tend to be fairly risk averse. In other words, they don’t want the merchants they work to be part of an industry that may be dangerous, they don’t want them working with customers who may not be legitimate, and they generally don’t want to associate with merchants who will cost them any extra money. Credit card fraud is at an all-time high today, and processing companies are sometimes held responsible for that fraud. As a result, they’ve developed a method of business that can only be described as awful.

The Swiping Debate

So, why does it matter if you swipe a card or key it in? Swiping is a safer method of card entry. Card numbers can be bought online in bulk. Physical cards, though, are harder to come by. Because card companies are so risk averse, they would rather have you swipe a card than key it in. If you’re swiping a physical card, the chances are far lower that you aren’t dealing with a stolen card, and because of that, they can offer lower merchant fees and rates to companies that choose to swipe over keying them in.

Other Ways to Lower Processing Costs

If you’re a company that can’t swipe a card, though, that doesn’t mean you don’t deserve low rates. instead, you simply have to choose a processor like Y2Payments that can help you get the pricing model similar to the rates government agencies — you deserve that.

To learn more about how we can help you deal with high processing costs, contact us today.

Fighting the High Risk Merchant Account Label

High Risk Merchant Account Y2Payments

It’s happened to many businesses.  Don’t worry – it’s not just you. You’ve applied with a few credit card processing companies, and time after time, you’ve been turned down.  Endlessly, the label “High Risk Merchant Account” has been thrown around in the paperwork.  How can you dump that label for good and begin processing your customers’ credit cards?  It’s easier than you think.

Understanding the Label

A high risk merchant account is one that the processing company doesn’t trust.  There could be a number of reasons for a label like this one.  It’s possible the processing company is just a bit risk averse.  It could also be the industry you serve.  Non-traditional sales and marketing tactics can make a company concerned about your ability to do business.

Working within an industry that has a high instance of chargebacks may be the key behind the label too.  Adult entertainment companies, for instance, are often labeled that way.  Gaming companies are too. And collection agencies.   One other reason you may have gotten that label is your own personal credit profile.  If you’ve worked with a processor in the past and gotten a high number of chargebacks or you simply have bad credit, a traditional processing company may not be willing to work with you.

Start Doing Business Now!

Fortunately, the label doesn’t have to stay with you for very long.  Even if you’ve been turned down by several companies, it is possible to move forward and begin processing your customers’ cards right away.  Y2Payments specializes in working with customers who have been previously labeled as high risk by other processors.

The Future

To avoid a label like “high risk” in the future, there are some steps you can take. Working with Y2Payments is a good step forward, but another one is to ensure that you avoid chargebacks if it’s possible.  You lose profit.  You lose merchandise, and you’re responsible for the chargeback fee.  it really is a lose-lose situation, and ensuring that it doesn’t happen to you is a must in the world of credit card processing.  And Y2Payments has an exclusive chargeback handling algorithm that can eliminate them.

To learn more about how we can help, no matter what your industry or current risk profile, contact us today.

Y2Payments Secure Payment Solution Processes Six Unique Payment Channels

Y2Payments Conduit Payment Processing payment channels

There are numerous issues for companies with today’s payment processing options. From excessive fees to slow processing time, it’s tough for many businesses to keep up with card payments, and that can mean real budget difficulties. Y2Payment Systems, though, is offering a better solution – Conduit 3.0.

Conduit 3.0 simplifies the entire transactional life cycle. With the ability to run transactions multiple payment channels and turn them into one concise report, businesses get the help they need to make credit, debit and ACH/EFT payment processing virtually seamless.

“The real benefit here is that Conduit translates practice management systems output file data into the format of the gateway provider, executes absolutely all of the transactions, and coverts it back to the native file format in just a few seconds. It takes other systems hours to do the same, and that’s lost time you could be using elsewhere,” said Ron Viemont, Exec Chair of Y2Payment Systems.

With real time payment processing, the speed involved here is the major selling point, but there are a number of other advantages to this system as well. You can either process bulk/batch transactions or one-at-a-time transactions in both HTTPS format and FTP submission format. There’s built in support for the software used across industry lines, and it interfaces with absolutely any credit card processor. The reporting features in this are amazing as well. Available reports are extensive, customizable, easy to download, and they include robust research tools to help companies do more.

Here’s a payment industry first—Conduit 3.0 now captures and reverses credit card chargebacks before they are debited from the merchants bank account. The system effectively becomes a revenue enhancement to our clients—and it’s an exclusive feature of Y2Payments.

As expected, it is 100% secure and PCI DSS compliant, helping to protect businesses from fraud and the hefty fines that come with noncompliance. Moreover, there’s no IT implementation expense, and companies don’t have to change their current job functions. With a minimized learning curve thanks to the intuitive interface, this is easily the best way to change the way you process transactions and simplify your life now.

Y2Payments is working to ensure customers have access to an easy to use payment system that cuts transaction fees, and the Conduit system certainly demonstrates that.


Learning About Cryptocurrencies And How They Work

cryptocurrencies Y2Payments

If you’ve done any reading in the last few months, you’ve probably heard the word cryptocurrency mentioned at least once or twice. If you are unfamiliar with its meaning, you’re not alone. The concept of cryptocurrencies is a completely new, especially for business owners, and understanding how to use it to your company’s advantage can be complex.

What Is It?
Cryptocurrency is another word for digital currency. The idea here is that a digital currency is issued, yet regulated by various encryption techniques to control the generation of units and verify the transfer of funds. They are completely independent of any centralized bank. The value isn’t set in stone. In fact, values have varied considerably over the last few months.

How Does it Work Within Your Business?
Many companies are beginning to accept cryptocurrencies as a form of payment, and there are several good reasons to consider it. Cryptocurrencies process quite quickly. Thanks to the fact that there are no banks slowing the payment process, your funds will be available almost instantly.

Moreover, it’s a currency that works worldwide, which makes it easy to do business in other countries. It’s also a good way to avoid fraud and chargebacks. The system verifies funds, which means you can’t spend more than you own. Accepting cryptocurrencies may also mean you acquire new customers because so many people are embracing this idea.

If you’re worried about legalities, don’t be. It’s not backed by the government because it only exists in the digital world. You can accept it just as you would any other method of payment.

If you plan to accept cryptocurrency, the first thing you need to do is to begin working with a payment processor that is familiar with this type of currency. Y2Payments has been working with Bitcoin, Ethereum, Dash and other cryptocurrencies since they came into the market. We’ll help you learn more about what needs to be done to help your customers understand how to pay with this type of currency.

PCI Compliance and Your Business – An FAQ

PCI Compliance Y2Payment Systems

Accepting credit cards within your company? You probably need to know a bit about PCI compliance. Take a look at a few of the most frequently asked questions now.

What Is PCI Compliance?
PCI Compliance is a 2006 global policy to help protect credit card holders. Major credit card brands, including American Express, Discover, Mastercard, and Visa, have mandated that businesses have to remain compliant the policy if they utilize credit cards.

Do I Need to Worry About Remaining Compliant?
Anyone who processes cardholder information has to be PCI compliance. It really doesn’t matter how often you do so. If you hold that information, or even if you exchange it, you have to be compliant. Even if you process a single transaction each year, compliance is an absolute must.

Are There Consequences Involved?
If your company isn’t compliant, there are several consequences involved. They typically start with a simple warning, but the Card Associations can fine your company or even revoke your right to process credit card transactions at all.

Is It Hard to Be PCI Compliant?
It’s easier than you think to become PCI compliant. Typically, it’s just a matter of working with a payment processing solution that helps you become compliant. Any provider will offer the multiple layers of defense and secure data protection model necessary to help encrypt the information going from one place to another, a must in the world of compliance.

There are four levels of PCI compliance, depending on the size and type of business you run, and we can help you decide which one is right for your company.

Learn just how easy it can be to become PCI compliant when you work with us. Contact Y2Payments today to learn more.

Y2Payments is Hiring!

job payment processor direct sales Y2Payments

We are hiring 2 or 3 direct sales professionals. Are you inquisitive, highly detailed and investigative when it comes to on-boarding quality, high volume CNP merchant candidates? Do you have a desire to learn new things and constantly improve your skills? Are you well-versed in the payments world (especially in CNP environment) and card network regulations? Do you have a solid background in fraud investigations, recovery and chargebacks management in various online payment processors and financial institutions? If so, then Y2Payments may be the place for you.

Y2Payments is a merchant account consulting company specializing in the delivery of government-style pricing to Main Street merchants. Y2Payments has been providing cost effective payment solutions to state, county and municipal jurisdictions and main street businesses of all sizes since 1985. We do this through a national network of experienced Referral Agents with core competencies in related business services.

Our team working towards minimizing losses, maximizing revenue and mitigating fraud and credit risk for our customers. You will be using your excellent skills in research and investigation to recover funds for your merchants while working with our exclusively licensed technologies to reverse/eliminate chargeback cases.

These are Independent contractor positions that pay up to 50% of revenues. Positions will offer a small draw that is offset by commissions.

This is a high-impact role that offers tremendous opportunities for growth, learning and leadership.

Primary Responsibilities

  • With minimal supervision and guidance, recruit and acquire high quality, high-volume CNP merchant candidates.
  • Educate those merchants about minimizing potential losses by using our next-generation, proprietary tools that result in substantial revenue enhancements.
  • Gather evidence, prior to submitting an application, from various data sources to prove the veracity of your prospects processing history.
  • Use appropriate judgment on when to escalate significant merchant issues to senior staff for consideration of exceptions to UW guidelines.

Required Qualifications

  • 2+ years’ experience in a role focused on CNP merchant onboarding and servicing.
  • Experience in ecommerce and payment platforms including electronic checks.
  • Knowledge of card networks’ Operating Regulations (Visa, MC, American Express and Discover) for both merchants and consumers
  • Excellent analytical skills with keen attention to detail
  • Strong verbal and written communication skills ensuring proper interaction with customers and colleagues
  • High level of computer skills to effectively use multiple systems and have advanced knowledge in MS Office and Adobe Acrobat Pro DC.
  • Self-starter and comfortable taking initiative while quickly grasping concepts, processes and ideas
  • Ability to work on routine tasks both independently and with the team
  • Highly professional with willingness to adapt to a constantly changing, merchant-focused work environment
  • Excellent time management skills with the ability to prioritize, multi-task or work flexible hours when necessary

Responsibilities include but are not limited to the following:

  • Internalizing that the Y2Payments rule number one is to become a trusted advisor to our merchants. That means keeping merchant priorities first.
  • Rule number two, then, is to never forget rule number one.
  • Adding new merchants to the Y2Payments portfolio monthly while limiting attrition of existing merchants.
  • The capacity to assist clients with all process, balance, and tracking of physical payments by accessing multiple reporting systems.
  • Responsible for handling all communication pertaining to assigned responsibilities that are sent to you directly whether from senior management or a Y2Payments approved vendor
  • Follow all standard operating procedures while communicating process failures and potential improvements to all merchants and your team lead or manager.
  • Assist merchants in posting payments to respective portals, as required, by following all client-specific requirements.
  • Review and validate all outbound mail to ensure the highest level of quality for all daily deliverables.
  • It is expected that all Y2Payments Referral Agents represent the highest level of professionalism, understanding that he or she will always be expected to act legally, morally and ethically.
  • Other duties as assigned.

Please send your resume to HR@Y2Payments.com or call 888.693.1850.

What are Interchange Fees?

Interchange fees Y2Payments

If you are a business that accepts credit card payments, there are fees you could be overlooking, and they may be costing you more than you think. They’re called interchange fees, and if you don’t understand exactly how much you’re paying each month to processors for these fees, you may not know where all of your profits are going.

A Definition
Interchange fees are essentially what a credit card sale is costing you. Any time you process a credit card sale with a customer, you’re paying a fee to do so. Take a moment to consider who is involved in a credit card sale.

First, there’s the merchant service provider – that’s your bank or financial institution. The financial institution that issues the card is the second party involved. That’s the company who actually issued the customer a card.

The last party involved is the credit card company behind the card itself like American Express or Visa. They set the interchange rate itself. For every card issued, a pre-set rate is also issued for merchant service providers to pay the bank that issues the card. That rate determines those fees that are costing you so much money.

Cards with points, airline miles, rewards, and so on have higher interchange rates. Debit cards tend to have lower interchange rates. The way you process a card also affects those rates. Swiped sales tend to have lower rates associated with them than online sales do. The important point to remember, though, is that the interchange rates set by the card company apply to every single merchant, even the smaller ones.

Lowering Your Rates
So, how can you keep those costly interchange fees in check? Work with us. 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.