Mail order ("moto") merchant's most important tool is a secure online payment gateway.
It really is just about the only difference between mail order merchants and traditional retail merchants.
Mail order merchants, mobile merchants, e-commerce merchants, and traditional brick and mortar merchants all share the same concerns about marketing, employees, and inventory.
The most important similarity between mail order merchants and traditional retailers is the need to accept credit cards.
Yes, in this cashless society it is a need.
Any merchant who cannot or will not accept credit cards for small business cannot compete.
Those who do, find increases in both revenue and customer satisfaction.
Let's go over some the most frequently asked questions by mail order merchants: "What credit card brands are accepted?" As we said before, there are very few differences in card acceptance by traditional retailers and mail order merchants.
Mail order merchants can accept all of the common cards.
MasterCard, Visa, American Express, Discover, etc.
cards can be accepted by reputable merchants who use a secure online payment gateway.
"What type of equipment does a moto merchant need to accept credit cards?" A top credit card processing company is just about all a merchant needs, except of course, a great product to sell.
Top credit card processing companies will provide merchant with a secure payment gateway, and/or a credit card terminal, and the software and other hardware to process payments.
The Secure Socket Layer (SSL) is the technology used by payment gateways.
Card data is encrypted by the SSL for secure transfer.
"Do processors require a stack of a paper work, what do they need from merchants exactly?" Card processing companies will usually require a merchant's credit report, a few names and telephone numbers of their suppliers, and three personal references.
Processors will estimate your average sale amount and your yearly sales volume.
Those merchants who are moving their merchant service account to a top quality processor will be asked for a copy of their previous processing statements.
The card processing companies will usually be forthright in assessing what you were paying in rates and fees and what you could be paying in fees and rates.
Look for the top processors who conduct enough transactions that they can afford to be straight forward.
There are processors who will not hide fees and charges while offering deceptively low rates.
Card processors can create and begin processing a merchant account in a matter of days.
Should a merchant have a history of a large numbers of chargebacks or are involved in certain types of "riskier" industries (prepaid services, outbound telemarketing, etc.
) their account may take more time to initiate and may require a "reserve fund" set aside.
"I've heard that small mail order merchants are at too great a risk for fraud to accept cards? Can the mail order merchant do anything to prevent chargebacks?" Yes, merchants can protect themselves and their customers by following the security protocols set out by card associations.
Visa, and MasterCard among others offer credit cards enabled with security features.
These features should greatly reduce chances for fraud, thus reduce the costs of chargebacks.
Mail order merchants are not able to employ all of the security features so their rate structure starts at the "mid-qualified" rate rather than the "qualified" rate charged to traditional merchants.
Mail order merchants cannot conduct lower rated transactions that are face to face or allow for swiping the credit card.
Merchants do have some security measures that are quite effective nevertheless.
They can verify the CVV code on the back of the card, get an address, call back customer and verify the order.
Mail order merchants should attempt to qualify for the "mid-qualified" rate rather than the "non-qualified" rate whenever possible.
Mail order merchants can avoid fraud and qualify for the lowest available rates for moto sales ("mid-qualified" interchange rates) by taking certain measures.
If a transaction involves the use of a standard (non-reward or world type) credit card, includes required information (including AVS for Visa), enter an invoice or order number, and "batch out" or settle their batches within 24 hours of the transactions.
However, credit card associations' rules require that merchants who agree to take standard credit cards are not allowed to refuse to take the more costly reward credit cards of the same brand they normally accept.
No one is exempt from chargebacks, and almost every merchant has had at least a few.
Chargebacks can be prevented.
Merchants must get all of the required information from the cardholder including the CVV, to prevent any claims by customers that they did not buy a good or service.
Return policies that are clearly visible and easily understood are essential.
Return policies which are less than stringent are preferable, as the cost of chargebacks can be higher than the cost of pleasing the customer.
Card processing companies will ensure that customer credit card statements cite the merchant's "doing-business-as" (DBA) name.
This listing can prevent the chargebacks resulting from customer confusion caused by an unfamiliar name on their statement.
Chargebacks have destroyed small businesses.
Too many chargebacks can result in losing the ability to accept credit cards, which is devastating.
This is more unfortunate because chargebacks can be so easily avoided.
Find a processor who provides a secure payment gateways, and who is willing to go the extra mile to help you prevent fraud and keep your costs low.
Merchants who do their homework and take all of the precautions should enjoy increased revenue and lower cost processing.
Find the right top credit card processor and you will find secure solutions to your processing needs.