According to statistics published in 2005, online commerce grew more than 22% over the previous year. To accept credit cards for online commerce, a merchant account is required. Obtaining a merchant account is not easy for everyone. It involves a lot of money. To solve this problem, another emerging shortcut is to use third-party factoring services, also known as credit card processors. These processors process third party orders through their business accounts. A good processor provides a safe environment for the sale, ensures that the supplier fulfills its commercial obligations, and guarantees payment of the sale to the merchant.
The growth of online criminal methods to steal information and steal wealth is growing at an alarming rate. To help with these problems, these processors provide an invaluable service to novice merchants who are unable to pay their merchant bill and are critical to preventing fraud and protecting consumer interests. A good credit card processor instills a strong sense of satisfaction among consumers by protecting their interests and therefore, at a nominal cost, increases the income of the online merchant.
A good processor must be very strict as they answer to their merchant account provider. Too many dissatisfied customers or merchants can cause them to close. I came across http://www.InternetMerchants.info, which very elaborately describes the various credit card processors. It would be a good idea to check from here.
One of those well-known and established credit card processors is 2CheckOut (2CO), which is an online distribution center for more than 300,000 products and services. Provides customizable transaction interface, multi-level customer service interaction, security features using SSL encryption network. You can get started right away with no hassle of forward contracts, additional equipment, and you can deal with any international supplier except for some banned products.
Charge-wise, it may not be the cheapest, but in terms of customer feedback and valuation, it definitely stands out. The initial setup fee includes a one-time setup fee of $ 49. Additionally, a 5.5% fee per transaction and additional fees of $ 0.45 apply. These transaction fees may increase for some classes of products. The fees for additional services are even higher. 2CheckOut supports 28 currencies for payment. For payments in local currency, if it is one of the supported currencies, the bank transfer option can be exercised at a cost of $ 5 per transfer. You can also choose to receive funds in US dollars at a fee of $ 20 per transfer. These fees are definitely high for small payments, but 2CheckOut offers the option to set a payment release level and payments will be suspended until that level is reached. In addition, there are charges for stopping payment of the check and for chargebacks.
However, being a processor with one of the lowest fraud rates, these high rates also consolidate with the market.
Payment to suppliers
Generally, all payments are made on the 1st and 16th of the month, when all transactions that occur within 48 hours of this period will be processed and the payment will be remitted. However, vendors with sales volumes greater than $ 1,000 per week qualify for weekly transfers.
Types of products
A vendor cannot sell certain types of products, such as adult content, firearms, ammunition, tobacco products, and multi-level marketing, etc.
Protection of consumer interests
Protecting the interests of consumers is primarily in the interest of a credit card processor to stay in business. In accordance with the terms of the agreement with 2CO, a provider undertakes to redirect all customer complaints addressed to it directly or through 2CO, to the customer’s satisfaction, competently and harmoniously.
To protect the interests of sellers, it reserves the right to place limits on the purchase of products by specific buyers for any reason, in its sole discretion, as it deems appropriate.
Payments to an account are made after 2CO’s verification processes, which also hold money from the supplier’s account to protect the buyer’s interests. Generally, 5% of gross sales are held in reserve for at least 90 days, and in some cases, the Reserve is held at a higher rate for periods longer than 90 days.