There are several “legal” businesses in the market but due to the nature of the business that the product or services they provide are such that the business is categorized as a high-risk business. Similarly “Escort” is booming in the environment. In this industry and agency, people, especially women, are hired to accompany them for entertainment purposes.
Bankers frown at the mere mention of the word “escort.” It’s no surprise that banks refuse to process it because the business is too risky, with a high rate of chargebacks and a bad reputation. Because this type of service is strictly confidential, chargebacks do occur. The customer is most likely concealing his or her behavior from family and friends. Customers have been known to make these transactions using stolen credit cards. Money laundering is the result of this. Even merchants have been known to use their websites as a front for money laundering or even illegal prostitution.
3-6 months of payment processing statements showing total sales, refunds/returns, and chargeback requests with the company name;
3 months of bank statements from your business;
Incorporation certificate This document establishes your company’s legal status. This certificate is issued by a state governmental entity or corporation.
Certificate of Incumbency
All company officers and owners must have copies of valid passports with visible bearer signatures.
Payment methods escort merchants prefer are just like any other businesses. Geo-preferences should guide escort businesspeople. Aside from local payment methods that vary by country, consider the following options:
It can be difficult to find the right escort merchant account. It’s critical to do your homework and read the contract’s terms and conditions carefully. Providing documentation that clearly demonstrates that you are running a legal business is also essential. A knowledgeable merchant provider who specializes in escort merchant services can point you in the right direction.
Finding an escort merchant account can be time-consuming and difficult. However, if you arrive at the right door with the proper documents and application, you will be successful. Your only solution for a merchant account for your escort business is a high-risk merchant service provider.
Radiant Pay aims to provide lower rates and more secure processing options. It is a leading company, that specializes in tailor-made payment processing solutions in London, UK, for a variety of industries and risk levels, including escort services.
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
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.
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.
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.
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.
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.
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,
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.
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.
Radiant Pay is the global leading payment processing service provider, for business of all industries. It helps merchants to serve their customers as soon as possible by completing the financial transaction instantly. Radiant Pay offers the merchant and its customers flexibility of payment processing through secure and innovative services who have e-commerce presence or want to take it online. The service permits an online buyer to make a financial transaction at its comfort and within a few clicks.
Expert team at Radiant Pay, will help you with tailored Merchant Account Solutions of all types to all high-risk or low risk businesses, which will facilitate you to accept and process the electronic payment card transactions
Benefits of having a Merchant Account:
The travel industry is deemed to be a booming industry accounting for worldwide GDP and employing millions of people. As travelers around the globe, these days opt for online payment methods mainly using cards and other alternative payment processing methods.
We at Radiant Pay provide you with a beneficial, advanced, and transparent account. Here we have just the right payment processing solution to accelerate the success of your business.
With the reputation of credit and debit card scams in the travel industry, the need for security is satisfied with effective, safe, and reliable payment processing solutions for the travel business. With it, you can make sure that you and your customers both are protected from scams.
By having a trustworthy travel – merchant account you provide a safe and secure payment portal on your website. Money is an integral part of everyone’s lives, when customers experience the safety of the mechanism the trust is automatically elevated.
Increased customer satisfaction
It gives ease and freedom to the customers in selecting the payment method among multiple options. Today’s customer demands freedom of making choices of when and how they want to spend their money. By catering to the demands you can increase customer satisfaction or delight them.
Increased Sale and Reach
Today a customer can have full control over the travel plans. With the privilege of convenience provided by Google, he/she can simply search, compare and book flights, hotels. Here, the merchant account plays an important role by giving you (the business) to achieve this.
Using plastic money has become the new normal. The merchant account benefits by accepting credit cards and debit cards. It reduces the resistance of the payment transaction.
If you are new in the industry or looking forward to excellence and have reached here, you are at the right place. Radiant Pay is here to help you skyrocket your business success by helping you build an online merchant account setup.
A high-risk merchant account is kind of bank account for online or offline business to accept payment through credit card. In order to accept the card payment, a businessperson needs to have internet merchant account in any financial institution. However, there are various types of businesses applying for merchant account—this affects the risks associated with it. The risk is high because some companies are at high-risk in their business. That is the reason payment processing is defined as risky for some online businesses.
Hence, few factors are there that define high-risk merchant processing—however, the main reason is merchant’s real and anticipated chargebacks, payment processing unit, and merchandise return. To be very frank, not all merchant service providers accept high-risk clients.
What Is High-Risk Merchant Processing? One must need to have merchant account before accepting online payment through cards. Online merchant accounts can be divided into two categories—low risk and high risk.
If the business is at low risk, them account provider will easily accept you and offer various services. On the other hand, if the business is at high-risk in terms of unconventional processing and history of other payment services who do not want to give payment access.
High-Risk Business Model Risks The business is risked with high chargeback fees, high processing fee, and other risks like sales of products and services, the safe transaction of every kind of money etc. these are the common parameters for applying merchant account. Whenever a merchant account provider knows about any fishy activity from merchant’s side, they will put additional protective layer against unexpected activities from merchant’s side.
If there is a high-risk business, the best solution is to maintain a relationship with online payment gateway specialized for risky businesses. Such provider will guide in monitoring suspicious transactions, potential threats, and fight chargebacks on daily basis.
Debit and credit cards have highly increasing become the preferred methods to pay for goods and services. As a merchant, we should be up to date with the current technologies and strategies available in the market. It is because when it comes to making an online payment, ease of access and security directly affect sales.
Keeping with the current advancements in technology in spite of the industry can be hard. The new payment gateway integration’s are one of the major areas, which we never let to get left behind, as offering security for our customers is a top priority. As a merchant, we should implement the most important card payment strategies now.
Importance of card payment strategies:
Developing and implementing the card payment strategy will help us perfectly plan for the upcoming years and keep speed with their competitors, as well as enhance their financial performance. Below, we mentioned some of the benefits of implementing card payment strategies now.
• Greater revenues
• Enhanced security over cash
• Minimized costs associated with the handling cash
• Improved reporting when compared with cash
Plenty of consumers are starting to use credit and debit cards because of its convenience similar to cash. Therefore, we must implement many new payment strategies to improve their comfort and flexibility in using cards.
List of payment strategies need to implement now:
We need to know about the following technologies and should work to implement them as well.
The biggest vulnerability with the card payment is thieves easily get access to use magstripe information. It is because of the data on the black strip of the card is unprotected. Europay, Mastercard, Visa (EMV) chips are one of the biggest steps towards eliminating this issue.
Radio Frequency Identification (RFID) is touchless card payments and it lets a card to recognize itself & make a transaction with no physical contact over a short distance. Apart from these, you can implement mobile wallets and NFC.
The online shopping sites are growing popular in the market. The international customers are purchasing the products online. So the multi-currency payment is the perfect solution that allows the foreign buyers to purchase the goods easily. It is the simple way to improve the sales from the international customer. We offer different payment process solution to risk merchants. It helps to improve the sales without more effort. You can accept all country currency and improve the orders from the foreign shoppers by adding the multi-currency payment to the checkout page.
Get quick approval for risky business account
Are you looking for the best place for applying the risky business account? Then it is the right place. We have a lot of the experience in the field so we provide the first-class services to our customers. You can get the Multi-currency payment for your business that keeps your business safe. It helps to improve the payment process for your business. We provide 24/7 hours customer service for long-term satisfaction. With the help of the multi-currency account, the business owner can display the product price in currency there the customer is located. We provide the affordable multi-currency processing and settlements to our clients.
Benefits of Multi-currency payment
The Multi-currency payment is the great feature of the online store gateway. It accepts the payment process and receives the settlement in the currencies choice. You can gain more benefit by using the Multi-currency payment such as improve sales, reduce expenses of processing, great cloud reporting, automatically load balance and others. The multi-currency account helps to load the balance automatically. The Multi-currency Processing with the international retailer account reduces the processing expended and foreign currency exchange risk. It provides the best online shopping experience to the international customers.