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Merchant account question

Discussion in 'How do I ... ?' started by pamy2011, Feb 10, 2017.

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  1. pamy2011

    pamy2011
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    First Name:
    Pamela
    Dealer or Company Name:
    Humberview
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    Hi,
    Our dealership has entered into the online sales of vehicle accessories, cleaning products and performance enhancement products like lubricants/oil. In the beginning phase, we used Paypal as the online payment system.

    We wish to get a more reliable and safe payment processing system for our business. We decided to go for a good merchant account solution. Then, I found about high risk payment processing systems. I read that having a high risk merchant account provides added protection. The benefits are listed in the link.

    But, I don't know whether we need a regular merchant account or a high risk account. If anyone has apt knowledge on this, please help me with your suggestion and advice.

    Thanks in advance.
     
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  3. Adam Steere

    Adam Steere
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    The article minimizes the main reason why most businesses are high risk and that is in regards to charge-backs. Those typically happen at a high rate with consultations or other services where there are no deliverable goods. There is some protection added but there is a much higher cost as well. I have set up 50+ eCommerce sites/systems and I don't see the need for you to use a high risk system but I'm also not an attorney risk :).
     
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  4. Danny Muckley

    Danny Muckley
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    Daniel
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    As an automotive dealer you do not need to have a "High Risk" account unless the business has a less than stellar business credit rating. Rather you should look into what is often referred to as a "MOTO" (Mail Order/Telephone Order) account and I would recommend only accepting a solution based on interchange pricing. MOTO accounts are known to have a higher than average return volume since people are buying products remotely, therefore the processor will understand if your returns are higher than a standard retail account. The interchange pricing structure really helps you understand what your true processing costs are relative to the interchange rates that are charged by the card brands. You might look into a company such as Authorize.net or another online gateway with good reviews that will integrate with whatever shopping cart of your website provider is setting up.

    I hope this helps. Good Luck!
     
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