Business

High Risk Credit Card Processing: True Cost of Chargebacks

Chargebacks are the eCommerce butterfly effect. Are your prepared to fight chargebacks? Where can you easily get approved for high risk credit card processing? Just go on reading this post and you’ll discover.

 

The Impact of Chargebacks

Let’s start with chargebacks. So, a chargeback happens when your customer disputes a charge to his/her credit or debit card. After this dispute is filed, you’ll be required to refund the purchase and then go get involved in a long process of proving the validity of that charge.

 

It’s no surprise that chargebacks can immensely impact the bottom line of the whole payment ecosystem. In fact, chargebacks can destroy sales revenue and merchandise, cause additional fees for businesses, result in extra administrative costs, as well as put the relationships between merchants and institutions at risk.

 

Chargeback disputes impact not only merchants, but also banks and the consumer base as a result. Chargebacks are fraught with false declines, return fraud, threats to their sustainability, the compression of merchant acquirers’ margin of profitability, increased issuer costs, as well as rising prices for consumers.

 

High Risk Credit Card Processing and Chargeback Costs

Are you a business owner interested in some numbers concerning the impact of chargebacks? Do you need to find a payment processor to get approved for high risk credit card processing without challenges?

 

All you need is to work with a reliable and experienced credit card processing company that specializes in the high risk space and offers exceptional payment processing solutions to merchants of any type and size. Look for a reputable merchant services provider that provides services to every single merchant based on his/her own business specifics.

 

When it comes to chargebacks, work with a respectable payment processor that offers reliable services designed to reduce chargebacks and fight fraud successfully.

 

Now, let’s look at some numbers. According to some new data published by Javelin, the total chargeback costs brought about by both merchants and banks in 2017 made up roughly $31 billion in loss.

 

However, this isn’t the whole picture in fact. The true financial impact of chargebacks accounts for over $150 billion per year.The estimates in the field show that for every $100 in chargebacks, your true chargeback cost makes up $240 in wasted time, expensive fees, penalties, or additional losses associated with goods and services.

 

By the way, when faced with multiple chargebacks, your bank may add to your chargeback fees, require additional penalties for these chargebacks, or even close your account.

 

Remember that without the trust of your customers, you won’t go anywhere. When your customers trust you, they have greater willingness to contact you with a problem. Thus, you get an opportunity to resolve the problem directly with your customers instead of having to deal with the chargeback process.

 

Chargebacks cause revenue losses, false declines, penalties, and additional overhead. All these create problems for merchants they can’t afford to ignore. Work with a true professional in the field and take the right steps to avoid chargebacks as much as possible.

The Online Money Deals and the Exchange Trading

If you have thought about setting up your own e-commerce you probably have thought about whether it is necessary to make a currency exchange to be able to sell your products abroad. At present, the US dollar, the euro, the Japanese yen and the pound sterling are the four most important transaction currencies worldwide. And if your online business does not work with these four currencies, will you need to exchange currency?

When you buy online, the most common is to find e-commerce that work with any of these four currencies of which we have spoken before. Therefore, you would not have to change currency. What if you are the person who sells the product to a country whose currency is not the dollar, the yen, the pound or the euro? Neither. As a general rule, when dealing with sending money digitally, the banks themselves are responsible for changing the currency when paying in one currency or another. Explore your options from https://www.amarkets.com/trading-platforms/ now.

I pay with credit card

In case you have a credit card, the bank will take care of getting the currency you need. Therefore, if you receive an amount of money from a country that does not have the same currency as yours, the bank will change it. Your benefits will arrive in the currency with which you have configured your credit card.

Although there is an official price in a specific currency, there are several e-commerce that choose to calculate prices in different currencies. So, even if you access an online store that works with another currency different from yours, you will not have any problem to know how much money you will be paying.

Payment through PayPal

The other option that you can carry out is via PayPal. This electronic payment system allows you to pay on websites or transfer money between users who have email. This service, an alternative to checks or money orders, will allow you to pay without the need to take into account the currency. The company itself will be responsible for making the change of the currency so, if you plan to set up an online store, allowing payment through PayPal will solve the possible currency problems.

  • The Bitcoin is a cryptocurrency, known as the digital currency, is another option with which you can afford to pay your customers. This currency has nothing to do with the rest of non-digital currencies, so you do not have to carry out a currency exchange since there is no other system with which you can compare.

Therefore, an e-commerce should not carry out a currency exchange to sell internationally. The bank will be the one to assume that currency exchange thanks to the online processing of the money by the client so that, in the end, the money will reach your hands in the form of your own currency.

Organization and introduction of Service Desk

Service Desk is the system for the interaction of the user of services and their supplier on any questions of their use (incidents, problems, requests for service and others).
Features
Service Desk is a point of contact of the user of services and IT (the supplier of services)for any questions connected with their use.
Service Desk is the service focused on processing of various service events arriving in the form of addresses of users or messages of systems of monitoring. Implementing the service desk is the same as making your right choice.

Service Desk is aimed at restoration of the required level of the provided services by the elimination of incidents according to the level of competence of service and organization of recovery actions.

The Service Desk functions can include the performance of requests for service, providing information, control of the current state of the provided services – all necessary in order that the user has been satisfied and you could work further.

Service Desk works on the model of providing service to business: the structure, the list of requirements and level of service can be described in, SLA. From the point of view of the consumer, Service Desk represents the external company which renders IT services in the rules applicable to other service companies.

In turn, the process of automation of support service is one of the most important steps on the way of cost-cutting on IT and increases in its efficiency which in use brings considerable advantages.

Advantages and results of the introduction of Service Desk

  • Thewiderangeofapplication

Service Desk can perform the function of the general center of service for reception and processing of inquiries in economic, financial or legal service of the organization.

  • Fastsolutionofinquiries

The automated decision of ITSM for reception, processing, and distribution of applications from users considerably accelerates the process of the solution of inquiry or an incident. Gives more time to employees of the first line for providing more quality service and allows to exercise complete control of work of all IT specialists.

  • Effectiveescalation

Forming processes of providing IT services guarantees the correct escalation for the solution of inquiries. It allows to carry out the automatic delivery of information to the IT employee responsible for providing this service, reduces the time for scheduling and search of the data, prevents mistakes.

Your Options for the Proper System Protection

Are you considering launching a crowd funding campaign? Here are some tips to help you complete your project.

Choose the platform on which to launch your crowd funding campaign:

Many platforms offer the possibility of launching a crowd funding campaign. However, not all are equal and you should carefully choose the one that is best for your project. The inprotect systems are there now.

Before you start, we recommend that you compare platforms on 3 criteria:

  • The types of financing proposed
  • The success rate of the platform
  • The audience of the platform

Types of financing proposed:

The choice of the type of financing is a natural selection criterion. Indeed, there are 3 types of crowd funding:

Donations

Investments and loans and crowd funding platforms usually only offer one or two types of funding only.

Depending on the type of financing desired, you will be able to easily eliminate a part of the platforms.

Success rate of the platform:

The second criterion to take into account is the success rate of the platform: out of 100 crowdfunding campaigns launched on the platform, how successful are they in reaching their financing objective?

Rather than looking at the overall success rate of the platform, we recommend that you refine your analysis by considering only projects similar to yours both in terms of business sector and size of funding.

Indeed a platform can have a very different success rate depending on whether you wanted to raise $ 5,000 for an art project or $ 50,000 for a company.

The audience of the platform:

The last criterion is the audience of the platform. The audience is vital because the success of your campaign depends directly on your ability to get people talking about you in order to attract as many contributors as possible.

We recommend analyzing the audience based on 3 criteria: the number of active contributors on the platform, the number of Facebook subscribers, and the number of Twitter subscribers.

If the amount you want to raise is important, also consider the average amount invested by contributors.

Anticipate the cost of the crowd funding campaign

  • Launching a crowd funding campaign requires a real budget.
  • The realization of the project presentation video, press releases, and the digital content necessary to promote your crowd funding operation have a cost that should be anticipated.
  • Added to this are the costs of the platform and, depending on the type of financing desired, any legal fees or audit.

Prepare the promotional content of the campaign in advance

The success of your crowd funding campaign depends on your ability to build momentum around it.Prepare your promotional material in advance – video, content to relay in social networks, email campaign, etc.  will allow you once the campaign launched to devote all your time trying to make people talk about you.
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