The most common question we hear when speaking to a potential new client is, “What is your rate?” the savings is what they focus on. What good is the savings if you are not receiving your transaction deposits? When it comes to your money, you need a payment partner you can trust. Do you have a dedicated team you can call when the unexpected happens and your deposits do not get funded? Why should you settle for a savings on your rates and compromise on having a good solid relationship with your payment processing team? The answer is, You Shouldn’t.
Your reputation is just as valuable as the processors, so when things go wrong, you both can look bad. When funds you are expecting, do not show up, your business is at risk so let’s talk about some of the things that can go wrong, how to prevent some of these issues, and understand why it is so important to have a processor you can trust.
All merchant accounts present some sort of risk to processors. In an ideal world, your processor should have an in depth conversation with you and your team so that you understand the risk your business presents. Passing this information on to your teams that actually processes the transactions is important, so that they can identify the transactions that might trigger a Risk Event. This knowledge will help you prevent situations that might cause your funds to be held/delayed, from reserves being required, and from sudden account closures.
Do you know what will happen if you have a seasonal business and suddenly your volume spikes or unusually large transaction comes your way? Some of the most common risk events include the following:
- Exceeding your processing limit. Did you know you have a monthly/annual processing limit? Exceeding your set processing limit will cause your account to be flagged for review resulting in funding delays. Depending on the amount of additional volume required, you may need to complete an underwriting financial review, delaying your funds for days or even weeks. Depending on the financial strength of the business, a security reserve might be required.
- Unusual transaction activity. Do you know your average ticket thresholds? Running transactions well over your average ticket may result in your account being flagged for a security review. In most situations when this occurs, you will need to provide more information on the transaction to the processor. Depending on how long it takes to get this information to the processor and for them to verify the transactions, you can expect your funds to be delayed.
- Chargebacks. Did you know that Visa/MasterCard/Amex/Discover have chargeback threshold in addition to your processor’s thresholds? Exceeding these thresholds can get your account closed and depending on the severity of the chargebacks, could leave you on the Terminated Merchant File, also known as the TMF List. If you find yourself on the TMF list, it will be extremely difficult to find another processor.
Having a merchant service provider you trust and a dedicated representative you can pick up the phone and call can help save you money, save your business reputation, and give you peace of mind that in the event an issue arises, your valued relationship will result in quick responses and resolutions. We value our reputation, let us show you we value yours. Contact us today to meet our Service Team and see how we can help you. (www.nationaltransaction.com)
By Mark Fravel