In the dynamic landscape of UK commerce, high-risk businesses face unique challenges when it comes to payment processing. Radiant Pay, a pioneering payment processing service, emerges as a beacon, providing tailored solutions to businesses navigating the high seas of risk.
Embarking on the High-Risk Journey
In the intricate tapestry of UK business, certain industries inherently carry higher risks, ranging from travel and gaming to adult entertainment and forex trading. These businesses often find themselves in need of specialized payment processing services that understand the nuances of their operations.
Tailored Solutions for the UK Market
Radiant Pay, with its deep understanding of the UK market, offers bespoke payment processing solutions crafted to meet the specific needs of high-risk businesses. The company leverages its expertise to navigate the complexities associated with these industries, providing a seamless and secure payment ecosystem.
Compliance at the Helm
Operating within the bounds of UK regulations is paramount, especially for high-risk businesses. Radiant Pay ensures that its services adhere to the stringent compliance standards set by UK authorities. By doing so, they provide businesses the peace of mind that comes with knowing their payment processing is not only efficient but also fully compliant with local laws.
Transparent and Secure Transactions
In the UK, where transparency is highly valued, Radiant Pay stands out for its commitment to clear and honest transactions. The company employs cutting-edge security measures to safeguard sensitive financial information, assuring both businesses and their customers of a secure payment environment.
Local Expertise, Global Reach
Radiant Pay’s UK-centric approach is not limited to the local landscape. The company’s services seamlessly integrate with global payment systems, facilitating cross-border transactions for businesses with international reach. This ensures that high-risk businesses can thrive not only in the UK but also on the global stage.
In the ever-evolving realm of high-risk payment processing in the UK, Radiant Pay emerges as a trusted ally, providing businesses with the tools they need to navigate challenges and embark on a journey of sustained success. With a focus on compliance, security, and bespoke solutions, Radiant Pay is set to redefine the narrative for high-risk businesses in the UK and beyond.
Managing payments is a challenging aspect of doing business, especially when you’re just getting started. It’s a good idea to get a merchant account once you’ve opened a business bank account. Why? Because if you don’t, you might not be able to accept credit or debit card payments. However, what is a merchant account? Use our guide on setting up a merchant account for small company owners to learn everything you need to know.
What Basically Is A Merchant Account?
A merchant account is an account into which funds from processed debit and credit card purchases are sent. Along with payment gateways and payment processors, it is a critical component of the payment process. You will not have direct access to the account while you possess it. Instead, funds in your merchant account are moved automatically to your company banking account within 1-2 working days.
So, why should you register a merchant account if you can’t get your money? It’s straightforward. You won’t be able to accept credit or debit card payments from your consumers unless you have a merchant account.
Why do small businesses need to set up a merchant account?
You should try to accept as many payment options as you can as a small business owner. If you only accept cash, you can find yourself turning away potential customers. If you have a merchant account, you’ll be able to accept credit and debit card payments online and in person. Additional tools that merchant accounts offer, such as check processing services or online reporting options, may help you launch a small business. There are also merchant accounts that offer services to ensure that your account stays PCI DSS compliant, helping you to maintain the security and protection of your customers’ transaction data.
How Small Businesses Can Set Up A Merchant Account?
Opening a merchant account is simple, but do your homework to find the best supplier for your small business. Each supplier will have unique features, cost structures, and contract provisions. Pay close attention to the costs involved and contrast the services provided by various providers.
The next step is to set up your merchant account after selecting your provider. As well as your routing and account numbers for the business bank account where you want to accept your deposits, you must submit your business name, contact information, and tax information.
How Do Merchant Accounts Function?
After opening a merchant account, you can begin accepting credit and debit card payments. Here is a step-by-step explanation of what to anticipate:
Accepting payments
A card reader is required for in-house payments; these are often provided by your payment processor. Customers will only need to provide their card information if they are selling online.
Payment processing
Following the acceptance of payment, the card information of the customer is transmitted from the card reader to the payment gateway and then to the payment processor. Prior to being transferred to the customer’s bank, the information is first sent to the card network. When there are enough funds in the account, the transaction is authorized, and the card reader receives a confirmation.
Payment collection
This is when a merchant account is useful. The funds will be deposited here by the client’s bank and held here until they are transferred to your company’s bank account. There is typically a downtime of between 24 and 7 days, also referred to as the “settlement period.”
Setting Up A Global Merchant Account
You might want to think about opening an international merchant account if your small business has its sights set on international growth. You will be able to accept credit and debit card payments from clients all over the world as a result. Since you can open international merchant accounts anywhere you wish to grow your business, this is a smart strategy.
We Are Happy To Assist.
Radiant Pay enables you to automate payment collection, reducing the amount of administration your staff must handle while pursuing invoices. Look at the impromptu payment options and recurring payment options we offer. Radiant Pay is committed to providing you with payment processing services that are uniquely tailored to your business needs. We help our merchant partners accept a variety of payments from their customers, including credit cards, debit cards, bank transfers, online direct debit, and real-time bank transfers. Additionally, we provide assistance with offshore merchant accounts, high-risk processing, processing checks, and ACH transactions.
Online gaming has seen a sharp increase in popularity since the COVID-19 lockdown. The number of gamers has suddenly increased, which has resulted in a large increase in revenue. The market is undoubtedly ready for further expansion, and gaming companies are starting to recognise the many benefits of joining this trend.
The security of client data is the largest problem facing the sector. Many customers are still wary of giving their personal account information when they are purchasing because payment fraud is still on the rise.
You may have heard that the online gambling market is a “high-risk” one if you are considering beginning a firm in this sector. However, it merely means that you have to collaborate with the appropriate parties. This needn’t be bad news. But before we do that, let’s talk about why the gaming industry poses a significant risk to payment providers and how to mitigate those risks.
Online Presence
There are fewer protections in place because everything is done digitally and remotely. This implies that financial crimes like fraud and identity theft are now simpler to do. Banks label online transactions as high-risk as a result of their increased uncertainty.
High Chargeback Rates
Most banks and payment processors will request that you keep them below a particular threshold to avoid fees or even account suspension. There are various causes for these chargebacks.
High-Risk Industry
Online gambling is viewed as a high-risk sector of the economy. It frequently serves as a target for people trying to transfer illicit funds, and in some places, it has a bad reputation. Because of this, most banks and payment processors avoid working with gaming businesses, but not all of them. You may prevent and minimise any potential problems by making sure you have a licence from a respectable jurisdiction and continue to comply with the regulation, your bank, and your payment processor.
Foreign Inclusion
Although there are many advantages to incorporation in an offshore country, some accounts may be more difficult to obtain. By choosing an offshore bank, you can incorporate an offshore company and open an account.
International Business
An international operation is required to run an online gaming enterprise. Customers from all over the world will be served by you, and you will accept payments in a variety of currencies. Banks may be reluctant to provide services because they see this as an additional risk.
Given the current state of affairs, it is wise to forego looking for agreements with typical, low-risk merchant account providers. They will immediately reject your high-risk venture. High-risk businesses are rarely served by ordinary merchant account providers. All they want is to avoid the risk.
The finest investment an online gaming business can make is to look for a high-risk merchant account that is reliable and trustworthy to process payments safely. Look for people who are knowledgeable in the gaming and gambling industries in particular. By doing this, you can prevent your account from being deleted suddenly.
Applying for an Online Gaming Merchant Account
It’s rather easy to apply for a gaming merchant account. However, there are several requirements that you must follow in order to acquire and maintain good standing with your supplier.
The following materials are a few of the requirements to start the application process:
Application form
Gambling License Copy
Company Registration Certificate
a legally binding document, such as the M&A
Bank Statement
Overdue payments and unpaid invoices
This is merely a sample of the information that your provider might ask for. Of course, it will differ depending on your sort of business and the provider.
Radiant Pay is dedicated to offering you payment processing services that are specifically suited to the demands of your company. Credit cards, debit cards, bank transfers, online direct debit, and real-time bank transfers are just a few of the payment methods we assist our merchant partners in accepting from their clients. We also help with high-risk processing, offshore merchant accounts, and the processing of checks and ACH transactions.
We are a top London-based company that offers payment solutions to online businesses and any other e-commerce companies operating in all “legitimate” industries. Any sort of client and their online enterprises can receive customised solutions from our clientele, which has no restrictions on business size, risk level, or transaction volume.
Why is the CBD industry considered High-Risk for Merchant Accounts?
The fact that the general public does not have access to enough research is the first hurdle in this industry. Many people are pessimistic about CBD and think it carries “risks.” Due to the fact that THC, the psychoactive component of cannabis, is present in only minute amounts in CBD, this substance is neither addictive nor psychotic. Many people are unaware that CBD does not cause you to feel “high.” Instead, it is treasured for its calming qualities and is included in a number of wellness products.
Getting the products to market is one challenge faced by the majority of CBD companies in the industry. The market is heavily saturated. Newcomers need to carve out and maintain a niche. However, you still require a strong point of sale to accomplish that. Additionally, you must be aware of your target audience.
Some manufacturers have used deceptive tactics when it comes to eCommerce. They were reported to the FDA for not disclosing all the information about their products and for making exaggerated claims about the advantages of CBD, which had an impact on other companies that sell CBD products. In some countries, CBD is actually illegal. This includes parts of Asia because those nations have restrictive laws governing the CBD industry.
The CBD market has experienced rapid growth.
The exploding CBD (cannabidiol) market has garnered significant headlines and provided material for countless analyses and forecasts.
Numerous new businesses now have opportunities thanks to the CBD industry’s rapid growth. In addition to going far beyond the production and distribution of cannabis itself, new companies are creating CBD goods and services that are entirely legal. There are now a large number of businesses in this industry, many of which produce, package, or market CBD products. Business News Daily reports that $20 billion in sales are anticipated for the CBD sector by 2024. The Cowen analysts’ projected estimate of this market’s revenue of $16 billion by 2025 was even more intriguing.
This broad industry has many facets because CBD is promoted as a medical solution for a variety of issues. CBD has a proven track record of treating epilepsy, and MS and helping cancer patients manage their pain. However, there might be risks that seem pitfalls for business owners in this industry.
Why is the CBD market so flourishing online?
eCommerce establishes a platform for CBD products that enable customers to buy CBD goods and get information about the potential advantages of CBD directly from the producer. If customers are worried that purchasing CBD is uncool, they can purchase it anonymously online. But the main reason CBD is developing into a sizable industry in and of itself is because of its therapeutic and holistic advantages. Customers can easily compare CBD prices when buying CBD online, enabling them to find the best offers in a crowded market. To ensure the best eCommerce experience, many CBD businesses also provide free online support, including chatbots.
Even though CBD can be bought in person, for instance in a health food store, many customers prefer to buy CBD products online because they find digital product descriptions easier to scan and read than packaging. An important piece of information, like the amount of THC in a product and the suggested dosage, will be displayed clearly in the product description for CBD products when purchased online, for instance.
Payment Processing for CBD Business
Since the passage of the 2018 Farm Bill, which was signed into law by President Donald Trump in December 2018 and exempted hemp from the Controlled Substances Act (CSA) definition of marijuana, more and more owners of e-commerce businesses are looking for payment gateways that support CBD merchant processing.
Radiant Pay offers the ideal mix of merchant account features to safeguard high-risk companies while enabling smooth cash flow. The rates for a CBD merchant account are higher due to industry regulations, even though they are comparable to those for other e-commerce businesses.
Any type of CBD retailer, including start-ups, mid-sized businesses, established enterprises, and public companies, may submit an application to purchase the payment gateway system and other services.
Are you looking for a CBD merchant account? To learn more about our services and to open a merchant account for your business, feel free to get in touch with us at https://radiantpay.com/contact.html. Understanding the client’s business needs, identifying suitable payment options, and actively participating in the choice of a Payment Service Provider that is best suited to the merchant’s requirements are all part of our consulting services.
With the rise in the Digital Age, the adult industry has also boomed. Among many sectors in the market, the adult industry is one of the most lucrative, and growing rapidly, especially in the United Kingdom. The industry is expanding dramatically in terms of sales volume, a spike in the number of customers making purchases. The world has moved its businesses from offline or bricks and mortar to online, and so is the Adult Industry moving too. And with the industry moving, business owners need a merchant account in order to accept credit and debit card transactions.
However, getting an account approved for this becomes a task. Due to the nature of business and a variety of other reasons most providers simply won’t approve an account adult business. The main reasons for rejection which are highly influenced are increased risk of chargebacks and reputational damage. This might have resulted in forcing many business owners out of desperation to accept subpar standard processing solutions for their legitimate online business.
Finding the right fit solution for your business can be difficult and troublesome but it will help the business in the long-term success of your online adult business be it the sale of sex toys or physical goods which comes under this business or the subscription services for exclusive digital content.
For all adult goods and services, including digital downloads, entertainment websites, legal escort services, streaming video, webcams, online dating, toys, novelty items, travel, strip clubs, and more, Radiant Pay offers adult merchant accounts. Since Radiant Pay has been doing this for a while, we are in a good position to impart our specialized knowledge on offering “package” services to the online adult industry. With affordable prices, subscription billing services, and cutting-edge fraud prevention technology.
The term “adult industry” covers a wide range of goods and services with adult themes. Here is a short list of the adult industry’s most popular subcategories:
Dating Websites
Sex Education Material
Lingerie items
Fetish-related items, Sex toys
Lubricants and Lotions
Adult-themed videos and photographs
Escort Services
What Makes the Adult Industry High Risk?
The following are some elements that make businesses in the adult sector high risk:
Reputation Risk:
While the majority of processors are happy to work with any profitable company, they do have to consider their reputations. Even though they are entirely legal, some providers simply don’t want to be associated with these kinds of companies.
High Regulatory Compliance Standards:
Compliance with multiple laws adds a layer of complexity that many processors do not want to deal with given that eCommerce businesses operate in almost every state.
Chargebacks
The most frequent factor that makes a company considered high-risk are having a higher-than-average chargeback rate, which affects many areas of the adult industry.
Risk of Frauds
All eCommerce businesses are increasingly concerned about fraud, but historically, the adult entertainment sector has had more of a problem with it.
Payment Fraud
The primary method of payment for adult entertainment and eCommerce businesses is card-not-present (CNP) transactions. In comparison to in-person card payments, CNP transactions have higher rates of identity fraud.
We Radiant Pay provides adult businesses with multiple options from which to choose, and we process online credit card and check payments. This will help both unbanked customers and businesses that have trouble getting merchant accounts. The majority of adult businesses can obtain an adult merchant account through Radiant Pay, which specializes in high-risk merchant accounts and is connected to card processors.
Hassle-Free Adult Merchant Account
Are you having trouble locating a provider of adult merchant accounts? Whether you operate an adult business online or offline, we do have a good solution for you. You may have spent many hours filling out card processor applications only to keep getting rejected. You will require a Merchant Account and a payment gateway if your business caters to adults. Your company will be able to accept card payments online while also increasing security by not keeping any cash on hand. Although many providers of payment services are hesitant to work with adult businesses, many of them are skilled in high-risk credit card processing solutions.
If you have any questions about setting up a merchant account, get in touch with us to speak with one of our payment specialists.
Author’s Giveaway:
Understanding 2257 and How It Affects Your Adult Business
Banking institutions place a high priority on following rules and regulations because doing otherwise could harm their reputation, and finances, or cause them to be penalized. The fact that the adult sector is subject to more regulations than many other sectors simply increases the likelihood of noncompliance. To obtain an adult merchant account and promote the adult industry as law-abiding, it is crucial to abide by all regulations that apply to the sector.
However, if you employ an actor of any kind, 18 U.S.C. 2257 must be practised in the daily operations of your adult business. Strippers, cam girls, and phone sex operators are the first types of performers. According to Section 2257, every producer of adult content is required to have and keep a copy of a government-issued photo ID proving the performer is at least 18 years old. This document must be kept for at least seven years. If your company dissolves, you are required to keep this record for five years after the end of the business.
Radiant Pay is dedicated to serving Merchant Payment Servicesirrespective of the size of your business and the risk involved in transactions. Any legal business offering memberships, products, or services online is welcome to apply for Merchant Account Services. We are best known for leveraging our extensive experience and providing high-risk payment solutions to “hard-to-place” merchants.
Integrated payment solutions include Credit Card Processing Merchant Account, Offshore Merchant Account, High-Risk Processing, ACH & Check Processing, and Online Banking Payments. We assist businesses of every type and industry with merchant services that best define their goals thanks to our years of experience and in-depth knowledge in the credit card processing sector.
Got problem? We have solutions ready for you
We are responsible for offering you the best processor, one that offers first-rate merchant services and cutting-edge financial security solutions. As one of the top merchant account support companies, we have made a name for ourselves. Radiant Pay handles everything from assisting clients in managing their merchant accounts to addressing their needs with advanced payment options. Payment processing solutions simplification is a priority for Radiant Pay.
Industries we specialize in –
You name it, and we’ll have a ready payment solution to serve you—from matrimonial services to lottery pools to retail websites! The following are the main industries we serve:
Online Gaming
Gaming and gambling are traditional pastimes, but since the advent of the Internet, they have greatly benefited from commercial opportunities. It needs a gaming merchant accountto manage its accounts and is steadily expanding globally. Due to the numerous local and international regulatory challenges that the gaming industry faces, it is a global and borderless industry. Our business offers the business reliable and adaptable payment methods, a safe solution that promotes the success of other merchants. Our business operates by and in fulfillment of national and local laws that guarantee a safe environment for the gambling industry.
Casino
Finding a trustworthy credit card processing bank that enables you to accept payments in all major currencies is a difficult task if you own a casino and operate an online casino gaming business. Some banks refuse the application due to the possibility of a high rate of card rejection, erratic reporting, and weekly payout. Therefore, our casino merchant accountis for companies with a high payment risk. We are the casino industry’s payment partners who encounter payment difficulties.
Forex
Banks that provide them with a merchant account for payment processing classify the forex servicing industry as “High-Risk.” The high volume of transactions, chargebacks, frauds, and the highly regulated legal system is primarily to blame for this. Radiant Pay provides credit card processing solutions that help save the hard-earned money because it recognizes how unfair the economic and legal environment is to your company.
Adult
Online adult business owners now have access to a variety of new lucrative opportunities, including adult eStores, pornographic websites, dating services, adult novelty e-marketplaces, and much more. Since the establishments began providing their customers with online payment options, even conventional adult businesses like strip clubs and massage parlors have experienced explosive growth.
Due to their extensive compliance requirements, legalities, chargebacks, fraudulent transactions, and disputes, these businesses are categorized as High-Risk in the banking industry. Finding the right Adult Merchant Account service providers who comprehend the Adult industry and its maneuvers becomes even more challenging for adult business owners as a result.
Online Dating
You’ve come to the right place if you manage a membership- or subscription-based online dating service and are looking for a reputable Payment Solutions Provider! At Radiant Pay, we not only provide tailored solutions for your needs that are specific to your industry but also guarantee ongoing support for your merchant accounts. We provide a wide range of services, including offshore merchant accounts, mobile payments, cryptocurrency payments, ACH & Cheque processing, voucher transaction processing, online banking, and credit card processing.
Finding the ideal Online Dating Merchant Accountsolution is hassle-free thanks to Radiant Pay’s expertise, experience, and market knowledge.
Travel
The Wind Under Your Wings Could Be Radiant Pay’s Payment Processing Solutions!
We are a payment processing company with a focus on the travel industry. To assist your company in scaling the heights of success, we offer a broad range of custom solutions. We offer you:
a worldwide partner network of partner banks ready to accept payments from your company.
expertise in offering scalable, customized payment solutions for your company.
Radiant Pay’s payment solutions are appropriate for all sizes of travel businesses.
This is not all, though. With payment solutions made specifically for your business, Radiant Pay can assist legally operating online businesses in increasing their profits.
Does Your Business Fulfill Criteria For A Merchant Account?
The best way to find out if we serve you or what category your business falls into is to connect with Radiant Pay by clicking on https://radiantpay.com/contact.html
If you run an online business, why not accept a digital currency as well? While there has been some discussion about whether or not to accept cryptocurrencies, now is the time to take advantage of their flexibility and offer your customers another payment option.
Bitcoin and other digital assets are increasingly being used in everyday business transactions for a variety of reasons, including investment and operation. As with any other digital innovation, there are risks, but there are also substantial benefits. In practice, the list includes not only Bitcoin but also other cryptocurrencies.
Adopting the most delinquent technology in your business ensures that your brand is credible and acceptable. Radiant Pay offers competitive terms when it comes to establishing a cryptocurrency merchant account.
In this quick read, we’ll go over the top 7 reasons why you should accept cryptocurrency into your business right now!
Transactions take place quickly.
There is no need to wait for cryptocurrency transactions. The transactions are frequently completed in real-time or in a matter of minutes. Whereas credit card payments can take days, if not weeks, to process. Multiple banks do not slow down the payment process. On the other hand, cryptocurrency allows for instantaneous transfers as well as simple, real-time, and secure money transfers.
Global Acceptance
Because everyone in the world uses the same protocols to trade and invest in cryptocurrency, there is a global presence for crypto payments. As a result, customers will be able to pay more easily, and your online store will gain value.
No fraud, hacking, or chargebacks.
Security is the most important aspect of cryptocurrency payment processing. E-commerce businesses can also use a secure cryptocurrency payment gateway provided by payment processing service providers. Consequently, whether you run a brick-and-mortar store or an e-commerce site, a crypto payment processor can assist you in securing your transactions and customer data.
When it comes to crypto payments, this makes it impossible for fraud to happen. Each transaction involving cryptocurrencies must be approved by both parties. As a result, there will be no more disputes, and chargebacks will be eliminated.
Acquire new customers.
Cryptocurrencies have a large following; more and more people are learning about them, adopting them, and investing in them. Accepting digital currencies will be extremely beneficial to your business as your customers become more familiar with and use cryptocurrencies. While this is still a niche market, it isn’t going to be for long. It’s better if you give your customers as many payment options as possible. You’ll not only attract a larger customer base and more shoppers, but you’ll also save money.
Enhances your Brand Awareness
Crypto payments are one of the best tech-savvy methods to accept payments from all over the world because they offer a more advanced and secure method than credit and debit payments. Payments made in cryptocurrency reflect well on your company. That means that if you start accepting cryptocurrency right now, you’ll be ahead of the curve and ahead of the competition.
Accepting cryptocurrency allows you to save money.
Because cryptocurrencies are decentralized, they do not require every transaction to be verified by a bank. This means your company will no longer have to pay those fees, and you will no longer have to share your hard-earned money with financial institutions.
Lower Transaction Fees
The rates for accepting cryptocurrency transactions are substantially lower than those for debit and credit cards. Accepting digital currency instead is advantageous for small businesses because their transaction volume is low compared to large businesses, which get an advantage in negotiating a lower credit card transaction fee.
Cryptocurrencies have transformed the world of finance, with benefits resulting, in large, medium, and small businesses alike. When used correctly and, above all, with the right advice, digital assets can provide a significant financial and operational benefit to a business.
The Radiant Payteam is a powerhouse of brilliant minds who collaborate to deliver comprehensive solutions that are tailored specifically for your company! We have a broad understanding of payment dynamics in a variety of industries.
We can help your business qualify for Cryptocurrency acceptance thanks to our experience and scalable payment solutions. Offering cryptocurrency payment processing services allows you to accept Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Dogecoin.
The key to preventing chargebacks is providing excellent customer service and delighting the customer. This doesn’t eliminate the possibility, the risk remains. But the intention should always be to prevent them as much as possible by practicing certain activities.
If the ratio exceeds a certain threshold there are bright chances that it will result in serious consequences to the business. Either your merchant account will be shut down or blacklisted. High-risk merchant accounts are at high risk of getting chargebacks.
There are certain procedures that you can put into practice to prevent chargebacks.
Secure Payment Gateway
A secured payment gateway acts as an extra wall of security and can considerably help a business to reduce overall chargebacks. To avail of robust solutions, Radiant Pay helps merchants with a rugged Payment Gateway. High-Risk Merchant accounts are very susceptible to meeting chargebacks, having extra walls of security saves you from unpleasant situations.
Card Verification
By performing card verification, you ensure that the customer placing the order is the cardholder or another authorized person.
Clear descriptors
This is the label that the customer sees in his purchases on the credit card bill or their statements. The best practice is to use the company name that you have on your merchant account here so that the customer recognizes the purchase and avoids confusion about where this charge is coming from.
Refund/Exchange Policy
Businesses can post their refund/exchange policy in storefronts and websites, and whichever furthermore places are applicable. By doing this you are informing your customers in advance about your policies.
Terms & Conditions
Add terms and conditions checkbox on order details form or payment pages if you are selling online
Email sales receipt
Provide your customer a sales receipt on their email also, set your software such that it automatically sends receipts to your customers. While doing so you are also gathering the customer information in your database which businesses can utilize for marketing purposes and updating offers and discounts promotions.
Email reminders
This practice is for reminding the customer about the monthly subscriptions or bills due. The reminder goes out before the charge is due. This gives customers the benefit of anticipating the charge to pay in the coming days. And also notified when the card is charged along with the receipt to the customer on his/her email address.
Risk scoring
It is a fraud prevention tool, that uses advanced statistical tools to compare every car-not-present transaction against a set of predefined rules.
There are many more ways a business can prevent chargeback or get chargeback protection by monitoring order velocity of card, identity morphing prevention, adding no chargeback payment method, etc.
Conclusion
The robust, effective payment gateway can help any business to prevent chargeback to a considerable amount along with the smooth functioning of payment transfers. Radiant Pay is a leading Payment Solution Service Provider that understands your needs according to the type of business you deal in and offers you suitable services.
Each and every business can benefit from a reliable, effective payment gateway that can help them avoid chargebacks and ensure that financial transactions run smoothly. Radiant Pay is a pioneering Payment Solution Service Provider that recognizes your needs based on the sort of business you function in and produces you with the appropriate support.
Chargeback is a dispute raised by a cardholder directly from their bank for the return of payment or reversal of a credit card transaction. It is very different from that of return of sale as this comes directly from the cardholder’s bank and is processed via the Payment Gateway to the merchant.
Chargebacks were brought into the picture to protect the buyer from businesses selling subpar products or services or performing unethical activities.
Difference between a Chargeback and Refund.
Although from the customer’s point of view it seems to be the same. But from a merchant’s point of view, the chargeback comes with the additional fee along with the product or service cost amount. In refund, a merchant directly refunds the amount to the customer using his merchant account, whereas in chargeback the issuing bank presses the administrative charges.
3 Types of Chargebacks / Fraud
True fraud
Under this category, unauthorized transactions take place. The cardholder is completely unaware that the card is used to benefit products or services, this means theft has occurred. Here when the cardholder files a chargeback it results in discontinuation of the credit card number first and a new card with a new number is issued.
In this case, the cardholder is encouraged to approach their bank first rather than getting in touch with the merchant to resolve the issue.
Chargeback fraud
Here the cardholder is a deceitful customer having ill intent. He is trying to get away with that, which is by not paying for a product or a service that they have truly ordered or purchased. The cardholder’s ill intent is the reason behind the chargeback.
Even though the business has rightfully delivered the products or catered the services as described, the consumer will file a chargeback dispute so that he/she can avail of it for free and not pay for it. Business owners have to then play defense by proving their case in the process. This in reality is daunting because the cardholder is unethically trying to take advantage of the protection policy and going against the very nature or reason behind bringing this policy into existence. The policy is supposed to provide protection but they’re abusing it.
Friendly fraud
The cardholder issues a chargeback due to an honest mistake. The cardholder issues chargeback with no malicious intent. It could be due to common, honest mistakes or errors like forgetfulness, being unclear of what they purchased, not recognizing a charge, delays in shipping, or the consumer not receiving a product along with many other scenarios, here’s a quick shortlist of why chargebacks could occur.
Not receiving the item
Received incomplete/partial item.
Damaged item or not in compliance with description
They thought they were billed the incorrect amount
Child making purchase on parents credit card without their knowledge
Forgot about the purchase or someone else was authorized to use their credit but didn’t tell them.
Friendly fraud is mainly related to miscommunication or misinformation on either or both parties.
The chargeback process is made to favor the customer so you should necessarily know the process and best equip yourself before keeping your side safe and winning a dispute when you are caught in a chargeback situation. Presenting basic documents is enough and can help you win, additionally, you must gather as much information about the customer as possible at the point of purchase to prevent and protect yourself in future chargeback situations. By doing this step you are ensuring that you gather proofs if required to present.
Chargeback Process
The cardholder calls their bank
The customer calls their bank to initiate and file the chargeback and states their reason for doing so. And while filing they attach their evidence to support their claim.
Bank Review
In this step, the bank reviews the application submitted and verifies its legitimacy and depending upon the results approves or rejects the issues disputed as an invalid disputes.
Credit of amount
The cardholder bank on approval gives credit to the consumer on their credit card immediately.
Issuing chargeback to the card network
The fourth step includes formally issuing chargeback to the credit-card networks and a fee is also charged.
Receiving chargeback
The merchant account processor (acquirer) receives the chargeback and notifies the business via Payment Gateway and other dedicated communication channels. It requests the merchant to display the proof of purchase. This is the right place where a business owner can submit his records as evidence of purchase. Here’s a list of proof you can provide,
Printed receipt
Signed contract
Transaction details from merchant’s portal
Stamp verifying date and time of purchase.
Signature of cardholder
Choice of business owner
Here the business sometimes just lets go of the chargeback, the process ends but also at the same time the business owner is found at fault.
If the owner chooses to reply then will be required to provide proof of purchase to fight against the chargeback
Submission of documents
The business owner or the merchant then provides the documents displaying proof of purchase to the card-issuing bank.
Upon the result of a dispute in whose favor it is either cardholder or merchant, either party can file a chargeback if not satisfied with the results, only if you have strong supporting documents otherwise it will result in a huge penalty.
Conclusion
The robust, effective payment gateway can help any business to prevent chargeback to a considerable amount along with the smooth functioning of payment transfers. Radiant Pay is a leading Payment Solution Service Provider that understands your needs according to the type of business you deal in and offers you suitable services.
The only thing constant in this world is change, and with the rapid technological changes happening and the requirement to go digital has become the need of the hour. You can be a novice or an old timer merchant in your industry, to sustain we have to adapt to the changes.
This is the place where we Radiant Pay step in, we provide our clients with up to date services by keeping up with the new technological advancement. Before selecting any processing service provider you should know what you are getting into. Below are the different fees or charges which come into the pictures that a merchant should be aware of:
Merchant Discount Rate
A merchant is charged to process debit or credit card payment transactions. One shouldn’t not consider this charge because you compulsorily have to comply with those and can affect the end profit margin. These rates typically range between 1% – 3%.
Interchange fees
This fee is paid to the card issuing bank by a merchant with every credit and debit card transaction.The rate at which fees are supposed to be paid is not fixed and revised at regular intervals of time. The rates are different for debit card and credit card and on every financial transaction it is charged respectively.
Assessment/Service Fee
It is charged depending upon the total number of monthly sale transactions.This fee is paid to the credit card networks. It usually is a small percentage but is affected by factors like your monthly sales volume or risk involved.
Mark up fee/processing fee
As the name suggests, it is the fee charged for covering the cost of processing by credit card processing companies. It changes depending upon the plan chosen.
Chargeback Fee
It is the fee charged by acquiring banks to cover the administrative expenses incurred when processing the chargeback. A credit card chargeback occurs when the cardholder disputes a previous credit card charge and wants to nullify the sales transaction. Essentially the customer asks the card issuing bank to return those funds to the customer’s bank account.
It is the charge which is pressed by acquiring banks to cover administrative expenses which were incurred while processing chargeback.
It might seem chaotic but Radiant Pay has a wide range of solutions and services for seamless operation and will add value to your business