A merchant servicer has many ways of protecting themselves. They can charge a higher interest rate, or have the customer pay into a reserve account. With a high risk account, they need to be a little more progressive, as most of our everyday businesses are in the high risk range. The merchant servicers need to protect themselves, without going overboard...
With the adventure of starting up a new business comes the challenge of setting up a merchant account which is a type of bank account that allows a merchant to accept card payments for their products and services, without which your business is most likely going to lose many of your card holding customers. The payments business is highly competitive...
Many businesses are adopting credit card payment options, as more and more consumers opt to make purchases using credit cards. It’s customary within the credit card processing industry, for the processing bank to insulate itself against financial loss risk brought by charge back. This risk is usually addressed by placing a reserve requirement on the merchant account. The reserve requirement...
