First Financial high risk merchant services

9 Smart Steps to Choosing Your Business Merchant Services

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Industry research confirms what we all suspect and even have experienced: consumers using credit cards spend from 20% to 250% more than those who rely on checks or cash.

The average cash payer at McDonald’s spends $4.50 while those using debit or credit cards part with $7.00. The theory goes that those handing over dollar bills want to conserve them, but those using credit cards focus more what they’re getting from their purchase.[ii] In short, this second set focuses more on that steaming burger than the money in their hand.

American consumers love convenience of credit cards. Where 66% use credit and debit cards to buy both items and services, just 27% use cash. Further, experts expect the number of cash-using consumers to drop another few points to 23% by 2017.[iii]

These statistics lead to one conclusion: even the smallest business needs to accept credit cards to maximize sales. While a large corporation can put a team on finding the best merchant services provider for their needs, small business owners must evaluate competitors in the minutes between running their marketing program, taking calls and re-stocking shelves. It’s not easy juggling so many tasks. We well understand the saying,

“It’s great having a small business.
You get to choose which 100 hours per week to work!”

If you are looking to accept credit cards while maintaining solid creditworthiness for your business, finding an ethical merchant services provider who will be your partner in success is critical. These steps will shorten and clarify your research process.

1. Understand that to be able to accept credit cards you need to create a merchant account with a third party so that the money can move from the customer’s account to the merchant or business owners.

2. Determine your monthly sales volume. This step will weed out the merchant service providers that have a monthly minimum higher than your volume.

3. Determine whether you’ll be processing transactions online or at a bricks and mortar location. Equipment and software options will vary depending on this factor. You may need to integrate your account with third party services that also charge monthly fees.

4. Determine how many times each day will you run cards. Estimating this keeps you from over-buying features you don’t need.

5. Determine whether you’d prefer to rent equipment ($20 to $50 per month) or buy it (several hundred dollars). If you’re not sure about the business viability, renting for the first few months could be your best option.

6. Create a comparison sheet with these features listed down the leftmost column.

• Transaction rates: the majority of small business costs
• Equipment and setup costs
• Customer service: critical for small business owners who are not finance or technology experts
• Contracts and service terms: make sure you have clear confirmation
• Funding and processing time
• EMV capability: for smart cards that read data from integrated chips rather than magnetic strips. Credit card companies switched to this method in fall of 2015.
• Customization
• Simplicity of setup and use
• Possible third-party disintegration
• analysis and reports: to make your costs clear
• Types of processing
• Types of payments they accept: Visa, Mastercard, giftcards, debit cards and more
• Service constraints: what your merchant service provider WON’T provide
• Any additional features and benefits

7. Call the merchants you’re interested in and fill in the details.

8. Make sure the new merchant services integrate with any other ecommerce or other accounting software you currently use. Ask your tech people about the merchant services provider you’re considering.

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A+ Rated First Financial’s Small Business Merchant Accounts
Accept Revenue-Boosting Credit Cards to Ensure Your Business Longevity

First Financial is the nation’s leading provider of merchant accounts, particularly for the high risk borrowers. Apply for a small business merchant account here. We know that lots of reputable businesses exist in high-risk categories like Information Technology, simply because they’re new. Fill out the application in minutes. Follow First Financial on Facebook to get smart budgeting and saving tips, too!

Merchant Accounts in a Tough Environment

payday loan service merchant account

Organize for Approval! 

blank PayDay lenders have been getting quite a bit of attention recently, and not much of the good kind.

In August of 2013, New York Attorney General Eric Schneiderman charged Western Sky Financial with requiring interest rates of 300%, many times the state’s cap of 25%. More, several large e-check processors cut ties with all payday clients, making it impossible for check cashing, cash advance and payday businesses to serve customers.

The recent crackdowns have sent payday lenders scrambling for ways to keep their doors open. A+ rated First Financial has the reliable cash advance and payday loan merchant account services that keep you in business. We’re proud to help both brick and mortar and online cash advance and payday loan providers service their customers efficiently. Our fast approvals at competitive rates are the best in the industry.

 Fast Approval:  Just a Matter of Document Organization

Here is everything you need to get in business (or BACK in business if you’ve been dumped by another processor) as a payday loan or cash advance service:

  • last six months of processing statement from your current processor if you have one.
  • 3 months of business bank statements
  • business’ articles of incorporation, corporate resolution for officers and bylaws
  • Fictitious Name Statement or copy of Proof of Publication
  • Customer loan agreement
  • Business marketing materials
  • Owner drivers’ license of passport
  • Recent utility bill displaying owner address
  • List of states in which your business operates
  • Business most recent BSA/AML review

As you can see, it’s just a matter of pulling up some files. Possibly you have them all in one place anyway.Once these documents are reviewed, we may request the business’ tax returns, statement of information and fee schedules for finalization.

A+ Rated First Financial Gets your PayDay Loan Service Going Again

Whether you’re just getting started, looking for a new merchant account to replace an existing one or scrambling madly after being dumped by your current processor, First Financial has the solution to stabilize your business. Apply online in minutes. Don’t forget to follow us on Facebook and Twitter for the frequent tips that will help your business thrive!

 

7 Things You Should Know About Having a High Risk Merchant Account

7 Things You Should Know About Having a High Risk Merchant Account

Conceptual business illustration with the words merchant account
Having a high risk merchant account is a necessity for some businesses. Learn more about this type of account with these seven facts.

If you have an online business, accepting credit cards as a form of payment is absolutely critical to your success and your bottom line.

But if your business is considered high risk, finding the right match can be a daunting task.

So, what do you need to know about having a high risk merchant account before you begin looking for the right company to serve your needs? Here are nine things you should be aware of before you make a commitment.

1. Determine if Your Business is Considered High Risk

Before you select a merchant processor, you need to know if your business is even considered to be high risk. The criteria can vary widely between providers, but one of the first things they look at is if your industry typically has a high rate of fraud or chargebacks.

If you’re not operating from the United States, this is another potential indicator of high risk. Certain categories like firearms, drug paraphernalia, or even auction sites may also be considered high risk. Find out if you fall into this category first so you can be prepared for the next steps.

2. Prepare for Higher Fees and Longer Contract Terms

If you have a high risk merchant account, you can expect to pay more in processing charges and billed account fees. The reason is that your processor is taking you on as a risk, so they’re passing the cost of that risk on to you.

You’ll also likely have to keep your contract with the processor longer than you would if you were not a high-risk client. On average, high-risk accounts must stay with the same processor for three years or even longer.

An auto renewal clause is usually included which can force you to remain an ongoing customer for periods of a one-year minimum after each renewal. If you want to cancel, you’ll likely get hit with an early termination fee.

3. Check Available Plans for Your High Risk Merchant Account

Merchant processing plans can vary, so shop around until you find one that offers terms you can live with. Traditionally, these fees are charged on something called an interchange-plus pricing plan, although your rates will be higher than a low or no-risk account.

Find out if you can get a flat-rate pricing plan which will make billing a lot easier. If you discover that a merchant processor is charging extremely high per-transaction charges, you may want to steer clear. Compare rates and plans until you find one that’s within a reasonable amount.

4. Be Aware of Rolling Reserves

The term rolling reserves refers to money that is set aside from the proceeds of your sales in order to cover certain expenses. These reserves will help pay for things like chargebacks, and they’re put in place to protect the merchant processor.

Since many high-risk accounts tend to go out business, these reserves are there to cover any unexpected costs to the merchant processing company. If you’re new in business, you can almost guarantee that this is a requirement. However, as time goes on, the rolling reserves should decrease as long as your account remains in good standing.

5. Read the Fine Print

Any reputable merchant processor will give you a contract that spells out all of your fees and terms. Make sure you read this thoroughly before you make a commitment.

Look closely for different clauses that could cause you to pay even more than you expected. Some companies claim to specialize in high-risk accounts so they feel that they can charge their merchant accounts exorbitant fees. Do your homework and never sign anything until you’re completely comfortable with the terms and the cost.

If you’re ever in doubt about a potential merchant processor, ask your fellow business owners who they recommend. You can also read reviews online to find out which ones most high-risk customers are happy with, and which ones to avoid.

6. Security Measures will be Added

A quality payment processor will add some layers of additional security to your account. This can actually benefit you since it will help prevent fraudulent transactions and dishonest chargeback claims.

Requiring things like CVV2 verification is a good thing since it protects you and your processor from fraud. Ask your provider about what kinds of security measures they take to protect themselves and your business from unscrupulous transactions.

7. Develop a Good Track Record

If you really want to lower the costs associated with a high risk merchant account, work diligently to prove your salt. This could mean anything from reducing or completely eliminating chargebacks to consistently showing a profit for a long period of time.

The longer your business does well and maintains its reputation, the better off you’ll be in the eyes of the merchant processor. Some providers may even reward their high-risk accounts with lower rolling reserves over time or even reducing fees as time goes on.

Ask several potential merchant processors what kind of benefits they offer high-risk accounts if they do well. You might be surprised at the progress and positive benefits you can reap once the business is more established.

Success is Possible

Even if you operate a high-risk business, there’s no need to despair. With a few helpful bits of information and a little research, you can find a quality high risk merchant account that will serve your needs well.

Visit our website for more information about: High Risk Merchant Services.

How to Find High Risk Merchant Services for Ecommerce Stores

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20 years ago, it was amazing to have a book come right to your door from a little online store called Amazon.

Today, what’s even more amazing is that you can run your own little online store and send your own crafts and other products to your customers’ doors. Online services like Shopify and Miva have made it easy to open stores, bringing in side-hustle level money or even creating full-time gigs.

Collecting money is a critical aspect in online business success. Luckily, the ecommerce platforms make it easy to connect with merchant processors to make accepting credit, debit, PayPal and more payments simple. You will need both a merchant service provider and a payment gateway. It may be a few steps, but accepting a wide variety of payments only takes filling in fields online. You the ecommerce platform about the merchant service and payment gateway you want and follow the instructions to connect both to your bank account and website.

The good news is that technology has progressed to the point where vendors can have a store without a website. Google Shopping, Facebook Stores and Instagram shops sidestep the need for a website. Merchants simply list their inventory on their ecommerce platform and feed it out through a line of code.

Even better, most ecommerce platforms accommodate any merchant service provider you choose. To pick the right one, consider your business’s potential expansion and make sure your plan will accommodate that growth. Also, ask the merchant account service what specific features they offer for ecommerce shops.

Test All Software and Hardware

Quality software and hardware require a trial run before unleashing your business upon a market. It also gives you a chance to check out the customer service that comes with your ecommerce platform and your merchant account. Run through some experimental purchases. Get this done because when a glitch occurs in real-time with a real customer, you want to be able to get it taken care of quickly and with little thought or research. You risk not only alienating customers but ending up with chargebacks and returns.

Understand Fees Involved

Merchant account service charge a percentage for all transactions plus a flat rate for each transaction and a fee for each month. If the merchant service is asking for application, setup, programming, annual or termination fees, be wary. These fees are often considered unethical, and the competent providers do not require them.

Depending on the type of ecommerce business you run, you may be better off paying more up front but allows you to have a greater number of transactions each month. You have to look at your business and crunch the numbers to see what works best for you.

Finally, look in the fine print for “transaction volume caps,” or other charges. These can eat into your profits. Set daily or monthly transaction caps could prompt your provider to shut your account down. That’s the last thing you want if a surge in sales arises during a promotional or holiday offer.

Merchant Services Help You Increase Your Sales – Call 1 (800) 950-0212

Get Started

Successful Marketing Tactics for the Web Design Company

web design presentation

Web designers with a niche can command higher fees. 

blank While the growing demand for web design is something to celebrate, it also brings new designers to the market, making competition fierce. The freelance web designer needs to be an able marketer, coder and creative artist to earn a living.

Conquer the marketing aspect of running your own web design company by reading these tried-and-true tactics. 

  1. Get a Niche

Today, the business website is critical not only to bring in new customers, but to establish credibility.

Capturing the true size of the market only starts with every business having a mobile-friendly website. Anymore, businesses are putting up separate websites for events they put on, books they write and communities they establish. Further, every entrepreneur starts one business only to spin off two or three others. As we discussed in our post, Web Design Outlook for 2016 and Beyond, demand for the average American job will increase by 7% until the year 2024, but the American economy will call for 27% more web developers and designers.

Long story short: there’s enough business to go around. Designers with niches (restaurants, finance, healthcare, retail, etc.) can begin to build deep expertise. They learn characteristics not only of their clients, but their client’s target audiences and referral partners. Further, they learn the legal limitations and opportunities for everything they can say on the website. When a web designer can convince a prospect they learned from the successes and failures of past attempts, they gain credibility . . . and more money. Most businesses would prefer to pay a little more to get the job done right the first time.

 

  1. Network in the Niche

Everybody knows how to network through their Chambers of Commerce where they meet people in all industries. Finding niche networks helps the web designer hear all of the participants’ pain points, complaints, opportunities and successes. This information eventually becomes very valuable, as the informed web designer can explain the prospect’s issues before he or she even has a chance. Networking events also gives you opportunity to meet new talented people, create connections with them and eventually find potential customers.

Putting on a presentation or attending a meet-up in your niche also gives you the opportunity to connect on a personal, face-to-face basis. Even volunteering your skills for an organization showcases your talents to your selected niche.

web designer with client

 

  1. Set up a Good Looking Portfolio

This is the best way to show off all your skills and experience on web designing. This lures customers and make them interested in your capabilities. You can attached this to your own website or any owned social media accounts.

You can go general in your portfolio. Do not just limit your portfolio to skills and experience related to web designing. You can go general and make people see your other talents. They might serve as an additional asset so keep your portfolio versatile.

  1. Make Valuable Partnerships

You can collaborate with field related businesses like web hosting companies or web developers. In this way, you are actually operationally putting your skills to the test. You can also offer more to your clients with the additional features and services from your partner companies, an advantage in keeping up over other competing web designers.

  1. Making it Personal

If you want to make your customers happy, you need to make them feel that you genuinely care for them and can provide them quality service and output with personal intentions even after you are done making your work and have been already paid. There are customers that need to be wooed and need to be given nice gestures, compliments to win them. Gifts and like chocolates and cupcakes, as well as holiday greetings or anything that reflect you as devoted and friendly can win them over. This also includes your way of advertising your service. Try to be a bit provoking and trendy that can catch someone’s attention.

 

These are the 5 most helpful tips in marketing planning for web designers like you to be successful in the industry. Remember that you have to be versatile to new strategies and techniques so that you keep up with the new trends and demands. Attract customers, make them happy, and you will be successful. When you go to collect credit card payments, remember to apply at A+ Rated First Financial, where high-risk businesses like web designers get the best merchant accounts.

 

4 Ways High-Risk Merchants Can Cut EMV Chargebacks

Don’t let chargebacks sink your profits!

blank Data breaches at Target, Facebook prompted the major U.S. credit issuers to insist on the EMV chip in October 2015. The move has made it much more difficult for fraudsters to create counterfeit cards, saving both companies and consumers money and headaches. According to Stephanie Erickson, vice president of risk products at Visa, the shift working: merchants are reporting less counterfeit fraud.

We applaud anything that reduces expenses to both businesses and their customers, but EMV has created another, although less costly, issue: chargebacks. Chargebacks occur when the card issuer holds the merchant liable for a payment transacted by a thief using a stolen or counterfeit card. Where once the banks absorbed much of these charges, today they are not so amenable. One payment network reported 250,000 merchants had experienced an 50% increase in chargebacks on card transactions. In effect, the banks, card processors and issuers are putting the burden of vetting for fraud on the merchants.

A few merchants aren’t accepting this responsibility. Claiming a lack of preparation time, they are now suing issuers. Networks counter that five years was plenty of time for even the smallest business to prepare for the increase in chargebacks they warned could follow the shift from magnetic stripe to EMV.

Merchants must know that if they have not yet switched to EMV terminals, they are liable for most of the chargebacks the banks had been absorbing. The top merchants affected have been gas stations, restaurants and quick service merchants like vending operations. It seems that large cities, college towns and border areas are the most likely to be the most tempting targets for thieves looking to take advantage of those who haven’t switched to EMV equipment yet. Smart criminals are avoiding the EMV terminals, another reason to get them into your stores. When a criminal successfully uses a magnetic stripe card at your business, you will get a chargeback and be liable for the purchase.

What can you do?

As mentioned above, Visa, Mastercard, and others have been adamant that merchants pay these charges. However, there are solutions that can limit the damage the EMV shift has brought to your high-risk business.

  • If you are not fighting chargebacks, start now. Won chargebacks do not count against your chargeback ratio. So, it means that a 75 percent win rate lowers your chargeback ratio by 300 percent. A better chargeback rate also helps you to keep your merchant account in good standing.
  • Fighting chargebacks can be a somewhat technical process. Consider getting an expert or service to fight these charges for you.
  • Lock down your eCommerce site or bricks-and-mortar business with front-end fraud prevention measures. These help identify the IP address of the customer by requiring them CVV and AVS. In this way, you filter most frauds and increase your chances in winning fraud disputes in chargebacks.
  • Use a chargeback alerts when you operate a service business. A chargeback alert is a type of alert that notifies you every time a customer initiates a chargeback. You have 24-72 hours to respond to it. If you are a service business such as technical support, you can always cut your losses by stopping your services whenever you get chargeback alerts.

 

Getting your merchant services streamlines is a great relief.

Most of All: Make the Shift to EMV Technology Today!

Magnetic strips on credit cards are just too easy for thieves to copy. Beyond this fact, credit card issuers now levy fees—often in the form of chargebacks—on merchants who do not use EMV technology. They want their customers to feel protected by offering the best, most secure, products. But this system doesn’t work if the merchants refuse to hold up their end.

When considering your options for taking credit cards, know that you’ll need a merchant services processor or merchant service account to safely process your transactions. A+ rated First Financial specializes in high-risk merchant accounts. Simply click here to apply and you’ll be able to start taking credit cards within 48 hours!

 

 

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