CHARGEBACK FINES & FEES Chargebacks don’t just entail payment reversals for merchants, but ALSO additional fees levied by acquirers to cover the costs of managing the chargeback process The chargeback fee levied by acquirers or payment service providers (PSPs) typically ranges from $15 to $50 for merchants with an average risk profile. For high-risk merchants, acquirers typically charge higher fees to cover the increased costs and risks associated with maintaining them as clients. ❗️Fees are also charged by the credit card schemes when merchants exceed certain limits for a total number of chargebacks and chargeback ratio. 🔹 For Visa, if a merchant with a regular risk profile exceeds 100 transactions per month with a chargeback ratio greater than 0.9 percent of transactions, they will be placed in the Visa Dispute Monitoring Plan (VDMP) where they will have to pay: - No additional fees in months 1-4 of the program. - $50 per chargeback in months 5-9 of the program. - $50 per chargeback in months 10-12+, plus the merchant will have to pay an additional $25,000 review fee. For merchants labeled high-risk fees are even higher. 🔸For MasterCard, the charges are different from Visa. Merchants are placed in the Excessive Chargeback Merchant (ECM) program when they exceed 100 chargebacks and have a chargeback ratio greater than 1.5 percent for two consecutive months. Fees are as follows: - Month 1 has no fines. - Month 2 has a fine of $1,000. - Month 3 has a fine of $2,000. - Months 4-6 each have a fine of $5,000, plus an additional $5 issuer recovery assessment for every chargeback above 300 per month. - Months 7-11 each have a fine of $25,000, plus an additional $5 issuer recovery assessment for every chargeback above 300 per month. - Months 12-18 each have a fine of $50,000, plus an additional $5 issuer recovery assessment for every chargeback above 300 per month. - Months 19+ each have a fine of $100,000, plus an additional $5 issuer recovery assessment for every chargeback above 300 per month. For high-risk merchants that have over 300 chargebacks per month and a chargeback ratio exceeding 3 percent, the fees lead to $200,000. Aside from the chargeback fees ranging between $15 and $50, there are unforeseen expenses which include: 👥 Customer acquisition costs 🚚 Shipping expenses 📲 Processing fees 💰Labor expenses 💵 Operational expenses ⛔️ Altogether, a $100 chargeback can cost a business over $200. The best way to avoid chargeback fees is by preventing chargebacks. Say goodbye to chargeback headaches and hello to financial peace of mind with Merchanto.org! Join us in protecting your business, reducing chargeback costs, and ensuring a smooth payment experience for you and your customers. Together, we'll safeguard your profits! 💼💪 📩 [email protected]
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CHARGEBACK FINES & FEES Chargebacks don’t just entail payment reversals for merchants, but ALSO additional fees levied by acquirers to cover the costs of managing the chargeback process The chargeback fee levied by acquirers or payment service providers (PSPs) typically ranges from $15 to $50 for merchants with an average risk profile. For high-risk merchants, acquirers typically charge higher fees to cover the increased costs and risks associated with maintaining them as clients. ❗️Fees are also charged by the credit card schemes when merchants exceed certain limits for a total number of chargebacks and chargeback ratio. 🔹 For Visa, if a merchant with a regular risk profile exceeds 100 transactions per month with a chargeback ratio greater than 0.9 percent of transactions, they will be placed in the Visa Dispute Monitoring Plan (VDMP) where they will have to pay: - No additional fees in months 1-4 of the program. - $50 per chargeback in months 5-9 of the program. - $50 per chargeback in months 10-12+, plus the merchant will have to pay an additional $25,000 review fee. For merchants labeled high-risk fees are even higher. 🔸For MasterCard, the charges are different from Visa. Merchants are placed in the Excessive Chargeback Merchant (ECM) program when they exceed 100 chargebacks and have a chargeback ratio greater than 1.5 percent for two consecutive months. Fees are as follows: - Month 1 has no fines. - Month 2 has a fine of $1,000. - Month 3 has a fine of $2,000. - Months 4-6 each have a fine of $5,000, plus an additional $5 issuer recovery assessment for every chargeback above 300 per month. - Months 7-11 each have a fine of $25,000, plus an additional $5 issuer recovery assessment for every chargeback above 300 per month. - Months 12-18 each have a fine of $50,000, plus an additional $5 issuer recovery assessment for every chargeback above 300 per month. - Months 19+ each have a fine of $100,000, plus an additional $5 issuer recovery assessment for every chargeback above 300 per month. For high-risk merchants that have over 300 chargebacks per month and a chargeback ratio exceeding 3 percent, the fees lead to $200,000. Aside from the chargeback fees ranging between $15 and $50, there are unforeseen expenses which include: 👥 Customer acquisition costs 🚚 Shipping expenses 📲 Processing fees 💰Labor expenses 💵 Operational expenses ⛔️ Altogether, a $100 chargeback can cost a business over $200. The best way to avoid chargeback fees is by preventing chargebacks. Say goodbye to chargeback headaches and hello to financial peace of mind with Merchanto.org! Join us in protecting your business, reducing chargeback costs, and ensuring a smooth payment experience for you and your customers. Together, we'll safeguard your profits! 💼💪 📩 [email protected]
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CHARGEBACK FINES & FEES Chargebacks don’t just entail payment reversals for merchants, but ALSO additional fees levied by acquirers to cover the costs of managing the chargeback process The chargeback fee levied by acquirers or payment service providers (PSPs) typically ranges from $15 to $50 for merchants with an average risk profile. For high-risk merchants, acquirers typically charge higher fees to cover the increased costs and risks associated with maintaining them as clients. ❗️Fees are also charged by the credit card schemes when merchants exceed certain limits for a total number of chargebacks and chargeback ratio. 🔹 For Visa, if a merchant with a regular risk profile exceeds 100 transactions per month with a chargeback ratio greater than 0.9 percent of transactions, they will be placed in the Visa Dispute Monitoring Plan (VDMP) where they will have to pay: - No additional fees in months 1-4 of the program. - $50 per chargeback in months 5-9 of the program. - $50 per chargeback in months 10-12+, plus the merchant will have to pay an additional $25,000 review fee. For merchants labeled high-risk fees are even higher. 🔸For MasterCard, the charges are different from Visa. Merchants are placed in the Excessive Chargeback Merchant (ECM) program when they exceed 100 chargebacks and have a chargeback ratio greater than 1.5 percent for two consecutive months. Fees are as follows: - Month 1 has no fines. - Month 2 has a fine of $1,000. - Month 3 has a fine of $2,000. - Months 4-6 each have a fine of $5,000, plus an additional $5 issuer recovery assessment for every chargeback above 300 per month. - Months 7-11 each have a fine of $25,000, plus an additional $5 issuer recovery assessment for every chargeback above 300 per month. - Months 12-18 each have a fine of $50,000, plus an additional $5 issuer recovery assessment for every chargeback above 300 per month. - Months 19+ each have a fine of $100,000, plus an additional $5 issuer recovery assessment for every chargeback above 300 per month. For high-risk merchants that have over 300 chargebacks per month and a chargeback ratio exceeding 3 percent, the fees lead to $200,000. Aside from the chargeback fees ranging between $15 and $50, there are unforeseen expenses which include: 👥 Customer acquisition costs 🚚 Shipping expenses 📲 Processing fees 💰Labor expenses 💵 Operational expenses ⛔️ Altogether, a $100 chargeback can cost a business over $200. The best way to avoid chargeback fees is by preventing chargebacks. Say goodbye to chargeback headaches and hello to financial peace of mind with Merchanto.org! Join us in protecting your business, reducing chargeback costs, and ensuring a smooth payment experience for you and your customers. Together, we'll safeguard your profits! 💼💪 📩 [email protected]
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CHARGEBACK FINES & FEES Chargebacks don’t just entail payment reversals for merchants, but ALSO additional fees levied by acquirers to cover the costs of managing the chargeback process The chargeback fee levied by acquirers or payment service providers (PSPs) typically ranges from $15 to $50 for merchants with an average risk profile. For high-risk merchants, acquirers typically charge higher fees to cover the increased costs and risks associated with maintaining them as clients. ❗️Fees are also charged by the credit card schemes when merchants exceed certain limits for a total number of chargebacks and chargeback ratio. 🔹 For Visa, if a merchant with a regular risk profile exceeds 100 transactions per month with a chargeback ratio greater than 0.9 percent of transactions, they will be placed in the Visa Dispute Monitoring Plan (VDMP) where they will have to pay: - No additional fees in months 1-4 of the program. - $50 per chargeback in months 5-9 of the program. - $50 per chargeback in months 10-12+, plus the merchant will have to pay an additional $25,000 review fee. For merchants labeled high-risk fees are even higher. 🔸For MasterCard, the charges are different from Visa. Merchants are placed in the Excessive Chargeback Merchant (ECM) program when they exceed 100 chargebacks and have a chargeback ratio greater than 1.5 percent for two consecutive months. Fees are as follows: - Month 1 has no fines. - Month 2 has a fine of $1,000. - Month 3 has a fine of $2,000. - Months 4-6 each have a fine of $5,000, plus an additional $5 issuer recovery assessment for every chargeback above 300 per month. - Months 7-11 each have a fine of $25,000, plus an additional $5 issuer recovery assessment for every chargeback above 300 per month. - Months 12-18 each have a fine of $50,000, plus an additional $5 issuer recovery assessment for every chargeback above 300 per month. - Months 19+ each have a fine of $100,000, plus an additional $5 issuer recovery assessment for every chargeback above 300 per month. For high-risk merchants that have over 300 chargebacks per month and a chargeback ratio exceeding 3 percent, the fees lead to $200,000. Aside from the chargeback fees ranging between $15 and $50, there are unforeseen expenses which include: 👥 Customer acquisition costs 🚚 Shipping expenses 📲 Processing fees 💰Labor expenses 💵 Operational expenses ⛔️ Altogether, a $100 chargeback can cost a business over $200. The best way to avoid chargeback fees is by preventing chargebacks. Say goodbye to chargeback headaches and hello to financial peace of mind with Merchanto.org! Join us in protecting your business, reducing chargeback costs, and ensuring a smooth payment experience for you and your customers. Together, we'll safeguard your profits! 💼💪 📩 [email protected]
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I’m noticing some major issues for subscription merchants that significantly affect approval rates and customer retention. 𝗡𝗲𝗼-𝗕𝗮𝗻𝗸 𝗖𝗮𝗿𝗱𝘀 𝗛𝗮𝘃𝗲 𝗔𝗯𝘆𝘀𝗺𝗮𝗹 𝗔𝗽𝗽𝗿𝗼𝘃𝗮𝗹 𝗥𝗮𝘁𝗲𝘀 Debit cards issued on top of neo-bank accounts are approved at an incredibly low rate. Some of this is the nature of the products themselves: The demographic of users may be less affluent, they may be gig workers with variable income streams, and/or they may be using the cards as a non-primary payment instrument. All of these attributes can lead to fewer available funds, resulting in high rates of involuntary churn. In many cases (depending on the merchant and product), these cards represent the most common BINs when we look at transaction count. Consumers may also be using these cards for subscriptions knowing there is a higher likelihood of future failure as a way to manage their subscriptions in a world with many subscriptions. Lastly, chargebacks on these cards can be elevated, resulting in the neo-banks having to decline more payments due to suspected fraud. 𝗠𝗼𝘀𝘁 𝗣𝗦𝗣𝘀 𝗖𝗮𝗻’𝘁 𝗔𝗱𝗱𝗿𝗲𝘀𝘀 𝗜𝗻𝗱𝗶𝘃𝗶𝗱𝘂𝗮𝗹 𝗜𝘀𝘀𝘂𝗲𝗿 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 (𝗛𝘂𝗴𝗲 𝗢𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝘆 𝗳𝗼𝗿 𝗣𝗦𝗣 𝗗𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝘁𝗶𝗮𝘁𝗶𝗼𝗻) For each merchant, there are inevitably some issuing banks with approval rates significantly below their peers. When the merchant contacts the PSP to address this poor performance, the PSPs typically respond, “contact your customer, and have them ask their bank why it was declined”. This is a terrible response and completely ignores the larger picture. Investigating 1 transaction at a time, and relying on customers to resolve these issues is not scalable. PSPs need to develop relationships with issuers and develop tools to identify poor-performing BINs and Issuers on an individual merchant basis. Doing this proactively would be even better. One caveat is that extremely large enterprise merchants can sometimes force this issue with their PSP or even develop direct relationships with some issuers, but this is much harder for smaller merchants. 𝗜𝗳 𝗬𝗼𝘂 𝗖𝗮𝗻’𝘁 𝗠𝗮𝗻𝗮𝗴𝗲 𝗖𝗵𝗮𝗿𝗴𝗲𝗯𝗮𝗰𝗸 𝗠𝗶𝘀𝘂𝘀𝗲, 𝗬𝗼𝘂𝗿 𝗔𝗽𝗽𝗿𝗼𝘃𝗮𝗹 𝗥𝗮𝘁𝗲𝘀 𝗪𝗶𝗹𝗹 𝗦𝘂𝗳𝗳𝗲𝗿 𝗗𝗿𝗮𝗺𝗮𝘁𝗶𝗰𝗮𝗹𝗹𝘆 Chargeback misuse is on the rise. More consumers are using chargebacks to refund or cancel a subscription. Even if you use all the tools available as a merchant, it’s very difficult to stop this. I have to work closely with clients on their customer experience (e.g., checkout flow, customer communications and notifications, product pricing, subscription management capabilities, etc.) to find ways to reduce chargebacks and refunds. In many cases, you can correlate this rise in chargebacks directly to an increase in “Fraud Suspected” decline reason codes and a dramatic decrease in approval rate by Issuer. #PaymentOptimization #SubscriptionManagement #CustomerChurn #Subscription
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Why I Prefer Merchant QR Payments Over Personal QR Payments for Merchants: 1. No Fees for the Payer: When I use a merchant QR code for payments, I don’t incur any fees. Currently, there are no service fees for merchant payments on QR, and if fees are introduced in the future, they will be the merchant's responsibility, not mine. 2. Better Protection for Disputed Transactions: If a transaction is disputed—like in cases of double payments or prepayments for online purchases—I have more assurance of getting my money back. If I have a legitimate claim, my bank will facilitate the refund. The merchant must prove that my claim is false, or else I’ll receive a refund. In contrast, if I pay using a personal QR code and don’t receive the service, my bank won’t help with the refund. I would need to contact the merchant directly, which is often unsuccessful. Many scams, especially on social media, involve sellers using personal QR codes and disappearing after receiving payment. 3. Reduced Risk of Legal Scrutiny: Engaging in transactions with strangers can occasionally raise legal concerns, particularly with larger amounts or frequent payments. Using a personal QR code could expose me to scrutiny if the other party is involved in illegal activities. Merchant QR payments help reduce this risk, as the responsibility for due diligence during onboarding lies with the acquirer (the entity that registers the merchant). 4. Promoting Responsible Business Practices: Some businesses avoid taxes by accepting payments through personal accounts. Using a merchant QR code encourages businesses to report their income transparently. While many small and medium-sized merchants use personal savings accounts for transactions, it's important to note that the Inland Revenue Department has stated that no business transactions should occur through personal accounts. Note:I make more than five transactions daily, with most of them being free merchant payments. I’m completely okay with paying a small fee of Rs. 10.17 or 11.3 for P2P transfers to family or friends, as the convenience is well worth the cost. However, I oppose the current implementation of VAT on transaction fees, as it ultimately gets passed on to the customer.
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My colleague, Drew Edmond, has tremendous hands-on insight into the challenges that subscription merchants face when it comes to payment optimization. Be sure to read his post, as well as some of the excellent comments from the LinkedIn payments community. #payments #subscription #paymentsoptimization
Merchant, Subscription, and Platform Payments Optimization, Payments Strategy for Fintechs and Solution Providers. Ex-Square, Etsy Payments
I’m noticing some major issues for subscription merchants that significantly affect approval rates and customer retention. 𝗡𝗲𝗼-𝗕𝗮𝗻𝗸 𝗖𝗮𝗿𝗱𝘀 𝗛𝗮𝘃𝗲 𝗔𝗯𝘆𝘀𝗺𝗮𝗹 𝗔𝗽𝗽𝗿𝗼𝘃𝗮𝗹 𝗥𝗮𝘁𝗲𝘀 Debit cards issued on top of neo-bank accounts are approved at an incredibly low rate. Some of this is the nature of the products themselves: The demographic of users may be less affluent, they may be gig workers with variable income streams, and/or they may be using the cards as a non-primary payment instrument. All of these attributes can lead to fewer available funds, resulting in high rates of involuntary churn. In many cases (depending on the merchant and product), these cards represent the most common BINs when we look at transaction count. Consumers may also be using these cards for subscriptions knowing there is a higher likelihood of future failure as a way to manage their subscriptions in a world with many subscriptions. Lastly, chargebacks on these cards can be elevated, resulting in the neo-banks having to decline more payments due to suspected fraud. 𝗠𝗼𝘀𝘁 𝗣𝗦𝗣𝘀 𝗖𝗮𝗻’𝘁 𝗔𝗱𝗱𝗿𝗲𝘀𝘀 𝗜𝗻𝗱𝗶𝘃𝗶𝗱𝘂𝗮𝗹 𝗜𝘀𝘀𝘂𝗲𝗿 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 (𝗛𝘂𝗴𝗲 𝗢𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝘆 𝗳𝗼𝗿 𝗣𝗦𝗣 𝗗𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝘁𝗶𝗮𝘁𝗶𝗼𝗻) For each merchant, there are inevitably some issuing banks with approval rates significantly below their peers. When the merchant contacts the PSP to address this poor performance, the PSPs typically respond, “contact your customer, and have them ask their bank why it was declined”. This is a terrible response and completely ignores the larger picture. Investigating 1 transaction at a time, and relying on customers to resolve these issues is not scalable. PSPs need to develop relationships with issuers and develop tools to identify poor-performing BINs and Issuers on an individual merchant basis. Doing this proactively would be even better. One caveat is that extremely large enterprise merchants can sometimes force this issue with their PSP or even develop direct relationships with some issuers, but this is much harder for smaller merchants. 𝗜𝗳 𝗬𝗼𝘂 𝗖𝗮𝗻’𝘁 𝗠𝗮𝗻𝗮𝗴𝗲 𝗖𝗵𝗮𝗿𝗴𝗲𝗯𝗮𝗰𝗸 𝗠𝗶𝘀𝘂𝘀𝗲, 𝗬𝗼𝘂𝗿 𝗔𝗽𝗽𝗿𝗼𝘃𝗮𝗹 𝗥𝗮𝘁𝗲𝘀 𝗪𝗶𝗹𝗹 𝗦𝘂𝗳𝗳𝗲𝗿 𝗗𝗿𝗮𝗺𝗮𝘁𝗶𝗰𝗮𝗹𝗹𝘆 Chargeback misuse is on the rise. More consumers are using chargebacks to refund or cancel a subscription. Even if you use all the tools available as a merchant, it’s very difficult to stop this. I have to work closely with clients on their customer experience (e.g., checkout flow, customer communications and notifications, product pricing, subscription management capabilities, etc.) to find ways to reduce chargebacks and refunds. In many cases, you can correlate this rise in chargebacks directly to an increase in “Fraud Suspected” decline reason codes and a dramatic decrease in approval rate by Issuer. #PaymentOptimization #SubscriptionManagement #CustomerChurn #Subscription
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The Case for Cash: Why Avoiding Credit Card Fees Can Benefit Merchants and Consumers In an increasingly digital world, the convenience of credit and debit cards has made them a preferred method of payment for many consumers. However, for merchants and even consumers, the costs associated with card transactions can add up significantly. Understanding these costs and the benefits of cash payments is crucial for making informed financial decisions. The Hidden Costs of Card Payments When a consumer swipes a credit or debit card, several parties are involved in processing the transaction: the issuing bank, the acquiring bank, and the card network (like Visa or MasterCard). Each of these parties charges a fee for their services, typically taking a percentage of the transaction value. These fees include: 1. Interchange Fees: These are paid to the issuing bank and usually constitute the largest portion of the total fees. 2. Assessment Fees: These are charged by the card network (Visa, MasterCard, etc.). 3. Processor Fees: The acquiring bank or payment processor also takes a cut for handling the transaction. For merchants, these fees can range from 1.5% to 3.5% per transaction, depending on various factors such as the type of card and the nature of the transaction. While this might seem minor for small purchases, it can significantly impact the bottom line over time, especially for small businesses operating on thin margins. The Impact on Merchants Merchants bear the brunt of these transaction fees, which can lead to several adverse effects: - Reduced Profit Margins: For every sale made with a card, a portion of the revenue is lost to processing fees. This can be particularly detrimental for businesses with low-margin products. - Increased Prices: To offset the costs of card fees, some merchants may raise their prices, indirectly passing on the cost to consumers. - Cash Flow Issues: Credit card payments, while convenient, can delay the availability of funds to the merchant, impacting cash flow management. The Benefits of Cash Payments Paying with cash offers several advantages that both merchants and consumers should consider: 1. No Processing Fees: Cash transactions do not incur processing fees, allowing merchants to retain the full amount of the sale. This is particularly beneficial for small businesses and high-volume, low-margin operations. 2. Immediate Availability of Funds: Unlike card transactions, which can take days to settle, cash is available immediately, improving cash flow for businesses. 3. Simplicity and Security: Cash transactions eliminate the risk of chargebacks and fraud associated with card payments. This can reduce administrative burdens and financial risks for merchants. Consumers and the Case for Cash While consumers might not directly pay transaction fees, the indirect costs can affect them:
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Great insights from Brandi Gregory here. If regulators want to limit processing fees to merchants and ultimately consumers, let’s look at the entire transaction cycle.
In the interchange game - both Issuers and Merchants should be frustrated and mad. But not at each other - they should be the angriest with merchant processors as those are the folks still making $$ on this business. We have all seen the uptick of small businesses charging a convenience fee for paying with anything other than cash or check. That fee ranges from 3-5% regardless of if the card used is debit or credit. Regulated debit or Unregulated debit. This is what I call bullocks on. I can tolerate it on credit I suppose. Debit is a total sham. As a dual professional household with kids, we utilize many support services to get things done around the house. We often use small local companies. Yesterday, I went to pay a bill and noticed a 4% credit card processing fee. The only way to pay the invoice was a credit card. I had planned to use my debit card to pay but with that charge it was adding a $30 fee to the invoice. I get it. They are trying to cover their expenses while not raising rates. I don't blame them. I blame their card processor (Merchant Acquirer). Here's the thing - I was going to pay with my REGULATED debit card. That means that they were going to earn ~$0.25 on the transaction for $900. Where was the rest of the $30 going? Brand would probably be paid about $3 on the transaction. Now we have $26.75 left. Who is earning that? The MERCHANT ACQUIRER. These small merchants are beholden to paying 3-5% in fees for their transaction processing because most are paying a bundled interchange + fee rate. They don't pay less when a customer uses a regulated debit card, they pay the same amount to the merchant processor. The merchant processor leverages least cost routing for routing the transaction the cheapest way for their merchant customers, but are they also charging less when a regulated card is used vs. an unregulated card? Not that I have ever seen. Hey CFPB - if you want customers to pay less by regulating interchange earned by FIs, how about you focus your attention on merchant acquirer processors and their business practices?
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🔍 Puzzled by Interchange? Many merchants and merchant services providers find themselves puzzled by interchange fees and their impact on the cost of accepting credit and debit card payments. Although many have heard the term "interchange," understanding it can be a challenge. ⭐ What is Interchange? When a customer buys something, like a $100 pair of shoes, the issuing bank funds the $100 to the shoe store before collecting it from the customer. Interchange fees are what the merchant's bank pays to the issuing bank for this service. These fees cover the costs of billing services, credit risk, fraud risk, and float. They make up most of the cost of card acceptance for merchants. ⭐ Why is Interchange Important? Interchange fees fuel the payment system's growth. They incentivize banks to issue more cards, increasing the number of cardholders and benefits for merchants. Interchange fees also help balance the system; if fees are too high, merchants might refuse cards, but if too low, banks might not issue them. ⭐ What Determines Interchange for a Transaction? Interchange fees vary based on several factors: ➕ Transaction Type: Manually entered and e-commerce transactions have higher fees due to higher fraud risk. ➕ Card Type: Rewards cards have higher fees to fund reward programs, while debit cards have lower fees due to lower credit risk. ➕ Transaction Size: Smaller ticket transactions can qualify for lower fees. Merchant Type: Different industries have tailored interchange programs. ⭐ How Can Merchants Lower Interchange Costs? Merchants can take several steps to minimize these costs: ➕ In Person Card Tap/Chip: Always tap/chip the card in person when possible. ➕ Address Verification: Use the Address Verification Service for manually entered transactions. ➕ Daily Settlements: Batch out your terminal daily to avoid higher rates. Auto-batching is easy and highly recommended. ➕ Valid Authorizations: Ensure every transaction is authorized. ➕ Industry-Specific Practices: Restaurants should enter tip adjustments promptly; hotels should include check-in/check-out dates and folio numbers. ➕ Other Fees by Card Associations Besides interchange, card associations charge additional fees such as assessments, network fees, and foreign card fees. Keeping track of these can be challenging due to frequent changes. For merchants looking to lower credit card processing costs, optimizing interchange fees is essential. Reach out to learn more about minimizing and offsetting these fees. Let's make your transactions smoother and more cost-effective. #cardprocessing #interchange #lowercosts 🚀 🚀 🚀 🚀 🚀 I'm Kathie. Thanks for engaging with my post! You can click the 🔔 on my profile to keep up with what I'm sharing. Or 👉Follow Me for expert business insights about B2B payments. 📅 Reach out to book time with me to learn more about a serious career in the payments industry. ♻ Share or Repost this to ensure your followers are in the know.
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Chargebacks in Online Dating 💔 Based on merchant category code (MCC), all dating site operations are categorized as high-risk merchants by default. The reason is simple: chargeback filings are more frequent than average for businesses in this MCC. Customers aren't always considering the actual regulations and proof required when they dispute transactions for sentimental reasons like frustration or dissatisfaction. They believe that their story should be enough to persuade the bank to cancel the charge, and they are not mistaken: banks will often accept a dispute if the consumer insists on it. However, there are three things that merchants can take to deal with the issue on their own: - offer great customer service; - use chargeback alerts; - and fight chargebacks. Simply because you work in a vertical with a high level of risk, doesn't mean you have to accept chargebacks as an inevitable part of doing business. Online dating can be highly profitable when managed properly. To reduce your spending on chargebacks & rise your revenue, we welcome you to Merchanto.org. Using our chargeback alert system, you will be allowed to manage disputes and fight chargebacks in real-time. Any questions about technology and integration? Feel free to contact our team: 📩 [email protected]
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