When Covid-19 first arrived in the United States in 2020. There was considerable concern about how consumers would pay for goods in the midst of a pandemic. Cash was immediately regarded as undesirable because it changed hands so frequently, spreading germs in the process. Cards were viewed favorably, but using them in the traditional manner. That is, having to swipe and touch a keypad—was not a viable option.
Businesses that incorporated modern payment processing hardware, such as systems capable of processing payments, thrived during the pandemic. Customers knew they could use contactless payment at these establishments without jeopardizing their health.
Accepting credit and debit cards in person, over the phone, or via mail order through a payment provider that can securely process each transaction is referred to as credit card processing. A Credit Card Processor provides services that ensure customers can use credit and debit cards for quick checkouts.
What sets High-Risk Processors apart from other processors?
High-risk processors are similar to traditional processors, but their rates will be higher. Due to the nature of the business types with which they work. When compared to a traditional merchant, High-Risk merchants typically have less flexibility. High-risk merchants must provide additional documentation in order for their account to be approved.
Aside from that, the high-risk merchant faces the possibility of having a reserve placed on their account. In the event of a large number of chargebacks, processors may withhold a significant portion of the merchant account balance.
Credit Card Processing at High Risk
Before selecting the best merchant account provider, all merchants must understand how high-risk credit card processing fees work. There are numerous processors available, each with their own tailored solutions for specific types of high-risk merchants. Merchant Industry is an all-in-one Merchant Service Provider that caters to all types of high-risk merchants. If you process more than $10,000 per month, contact PayCly today and rest assured that your company is in capable hands.
The key players in credit card processing
- The Customer: The first stage of credit card processing begins when a cardholder swipes their card or provides the merchant with their payment information.
- The Merchant: The merchant accepts and collects payment information in one of two ways: physically, by accepting payments from the cardholder, known as Card Present Transactions, and online, through Card Not Present (CNP) Transactions processed through a gateway that collects payment from the customer.
- The Processor: The credit card processor collects payment information and is in charge of routing that data through various stages and facilitating communication between various parties.
- The Card Network: The customer’s card will use one of the major credit card networks, such as Visa or MasterCard. After receiving the information from the processor, the customer’s card network will relay it to the customer’s bank.
- The Customer’s Bank: The cardholder’s bank receives the payment request and checks to see if the cardholder has enough funds to complete the purchase. If the cardholder does not have enough funds, the bank will reject the transaction.
- The Merchant: Assuming the transaction is completed, the merchant is responsible for providing the customer with the goods and services purchased.
It is important to note that no funds have been released at this time. This means that the transaction is not finalized. The time it takes to settle the funds may vary depending on the customer’s card network. The same process as described above is used to settle and release funds from the cardholder’s bank to the merchant’s bank.
What Is the Credit Card Acceptance Procedure?
When a customer provides their payment information, whether it’s:
- In-person via a card reader at a POS or terminal Online via an e-commerce store’s hosted payment form
- By phone or by mail.
First, a customer provides their credit card information in order to be paid. The payment processor securely captures credit card information before encrypting it and routing it to the authorization network.
Following the transmission of payment information to the processor, who communicates with the customer’s bank via the appropriate card networks, the transaction is either approved or denied based on verification factors such as the validity and sufficiency of funds.
Approved transactions are routed to the payment processor before being returned to the POS, terminal, or credit card reader to complete the sale. The transactions are then batch processed for settlement, which occurs at the end of each business day.
Transactions that are declined will not be processed, and the cardholder will be required to provide another form of payment to complete the purchase.
Why choose PayCly for getting High-Risk Payment Gateway solutions?
Payment processing services are frequently unavailable in certain industries where the financial risks outweigh the benefits, as well as due to regulatory constraints.
It is thus prudent to carefully consider your options, but in the end, this will undoubtedly be worthwhile because payment processors provide numerous benefits for a business seeking to ensure growth and customer satisfaction.
PayCly payment processor solutions provide streamlined management to optimise transactions and enable your business to offer customers faster payment solutions and variable payment options. PayCly excels at recurring payments and will be an excellent payment partner for your company.
To integrate seamless and smooth payment solutions for your business, or for more information on PayCly.