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Everything You Wanted to Know About the High Risk Merchant Credit Card Industry

Interview with executive Arturo Quintero

+ Arturo Quintero

Arturo has been the chief marketing officer for Painless Processing for over 5 years and has been in the marketing arena for financial services for over a decade. He specializes in creating content about merchant services with the goal to educate the consumer and help businesses navigate through the variety of services, allowing them to make the best decisions for their business.

+What do you do at Painless Processing?I am the Chief Marketing Officer for Painless Processing. I am responsible for the growth and placement of Painless in the market. I am also responsible for creating awareness of our capabilities and educating potential merchants about the industry and available solutions.

+What does Painless Processing do?Painless Processing is the company you go to if your looking to accept credit card payments for your business, whether on your website or at your store.

+What other services do you offer?Well, we can provide a cash advance which is a very simple business loan collateralized against your monthly processing. We also help businesses electronically process checks received in person or via phone. We also help with ACH processing, help people get Point of Sale Systems for their restaurants or whatever business, credit card terminals and cashless ATM machines.

+Why not just go through Paypal or Authorize.net?Authorize.net is a payment gateway that does not actually process your cards but is just the interface that links your website to your merchant account… We actually work with them as well as other payment gateways. As for Paypal you can go though them in many cases, but again, some businesses, like adult themed, tobacco, guns and other industries that are considered socially questionable or prone to legal issues get shut down by these types of processors.

+What are your rates and fees? Rates and fees vary depending on several factors. In general, retail businesses receive the lowest rates as they are typically card present transactions whereby a card is swiped through a terminal and identification is checked to assure the person using the card is the owner of said card and a matching signature is captured. Retail card transactions that are entered manually, also known as keyed transactions, as well as certain types of rewards cards, business cards, and international cards may be subject to higher rate structures. E-commerce businesses or Mail Order/Telephone Order (MO/TO) businesses are typically viewed as high risk because transactions are card-not-present and identification cannot be confirmed nor a signature captured. Products and services that are subject to state or federal regulation, age verification, recurring billing or bill in advance, high-volume or high-ticket sales, or may fall into a grey area of legality typically fall into the high-risk category as well. Rates and fees can be estimated prior to a risk and liability assessment from underwriting but will only be confirmed once this review is complete. Rates may be anywhere from .49% for the lowest risk merchants to as high as 7.95% for the highest risk merchants or higher if you are unable to qualify for a domestic merchant account. E-commerce rates for high-risk fall anywhere from 2.75% to 5% on average. A Painless agent will be able to give you a rate estimate after a brief discussion regarding your business and billing model.

+What types of businesses do you accept ? Painless Processing accepts all types of businesses. Just because you don’t see it on our site doesn’t mean we don’t have a solution for you. Just call us.

+I am using a specific shopping cart for my e-commerce business. Do you have compatible gateways that will integrate with my shopping cart?The simple answer is yes. Not all shopping carts integrate with all gateways. And, not all gateways accept payments for certain products or services based on their terms of service. Painless Processing specializes in the utilization of gateways and will match your business with the appropriate gateway and assist with the integration process to make sure you are processing, painlessly. In addition, Painless Processing can also assist with integrating QuickBooks. A Painless agent will be able to tell you which gateway to will best integrate with your shopping cart.

+Do I need to provide other documentation or information in addition to the application? Yes, the amount of additional documentation or information required will depend on the product or service offered, the business model, and the billing model. Low risk merchants are usually only required to provide standard personal and business identification. High risk merchants typically require more business and personal financial documentation as well as other information pertaining to the specific type of business. This is standard practice for high-risk merchants as liability is greater. Painless Processing agents will help every merchant understand the specific requirements associated with applying for the appropriate merchant account. To learn more about the required documentation necessary for high-risk merchants, download our FREE supportive documentation and information guide.

+Do you check credit?Yes, we check credit. We suggest that the individual(s) materially involved the business that knowingly have the strongest credit sign the application. If there is only one signer or if signers don’t believe they have the strongest credit; they can explore having a guarantor sign with them. However, the guarantor may be subject to a review of personal financials by our underwriting team. Likewise, signers with weak credit but extremely strong financial positions may be able to work around credit constraints. Additionally, adjusting the requested monthly processing volume to fall within acceptable limits may help. We highly recommend discussing your options with a Painless agent should you have any credit concerns as they will be able to provide helpful direction as to the best way to proceed.

+How long does the approval process take?Low risk merchants can be approved the same day or next day of receiving a completed and signed application and all supportive documentation. They can be processing within 24-hours of being approved. Approval for high risk merchants is typically 1 to 3 business days from the time that all documentation is received but my take as many as 3 to 5 business days for more complex circumstances.

+Do I have to sign a contract?

Yes, contract terms vary depending on factors such as acquiring bank, business or billing model, or exchange of hardware and are typically 1 to 3 years in length. For example, contracts that involve free placement of hardware such as POS systems usually require longer time periods than those that just need a merchant account. However, every bank is different and every contract has a cancellation policy allowing you to opt out if necessary.

+Do you have any cancellation fees? There is usually some nominal value associated with the early cancellation of any contract. Ultimately, Painless Processing never wants to see any merchant cancel and will work with you to try and resolve any situation that could result in the loss of your business. However, in times of hardship where cancellation is inevitable; we will do everything in our power to make an already difficult situation as painless as possible.

+If I went through bankruptcy is it still possible to get a merchant account? It is still possible but more difficult as the risk and liability level associated with the signer increases significantly. It becomes more difficult when that signer has judgments or leans against them. Please inform your Painless agent if you’ve experienced a bankruptcy so they can advise you on the best course of action.

+If I am listed on TMF or MATCH can I still get a merchant account? You may still be able to get a merchant account; however, it is difficult and based on the circumstance of your listing. In order to see if you qualify for a merchant account you will need to discuss you reason for being listed with a Painless agent.

+Do I need to be PCI Compliant or can you help me with this?It is in the best interest of all e-commerce merchants to be PCI compliant. Our solutions are PCI compliant and we will assist any merchant in need of help making their site PCI compliant.

+Do you have customer service or technical support to aide me in times of need?Yes, once approved for a merchant account you will have 24-hour customer service and technical support to assist you with any and all aspects of your merchant account and gateway. This includes installation, integration, and any other situations that may arise throughout the lifetime of your merchant account.

+Once I’m approved how difficult is it to start processing?It is a painless process. We will assist you with the installation, integration, and any walk-throughs necessary to assure you are comfortable with the software and hardware associated with your merchant account. We are here to answer any questions you may have and make payment acceptance process as simple and easy-to-use as possible so that you can focus on your business and your customers.

+What is the future of this industry?Wow that’s a long question. In short, its evolving rapidly. You have things like Apple Pay, Square, Bitcoin coming into play. You also have government regulations limiting what fees can be charged. It’s a growing industry as things become more digital and physical currencies go away but you need to be able to adapt.

+Want to learn more about merchant services offered by Painless Processing? Contact us today!www.painlessprocessing.com855-668-7405